Clare: Government official: Iraq is not thinking of floating the currency at the moment
10th August, 2022
A government official confirmed, on Wednesday, that Iraq is not considering floating the currency currently, indicating that the flotation at the present time will threaten the collapse of the country’s economy.
The official said in an interview with Shafaq News Agency, “The rentier nature of the Iraqi economy makes it difficult to float the Iraqi currency, and therefore Iraq is not currently thinking of floating it.”
The official, who asked not to be named, added, “Access to hard currency in Iraq comes mostly from our oil exports, which is in the hands of the government, and that the local market is circulating for it and does not bring this currency, and therefore its flotation will threaten the Iraqi economy with collapse because it will increase demand for it in exchange for limited supply.”
He also indicated that “floating the currency without diversifying the economy will have negative repercussions on the purchasing power of the Iraqi consumer, especially the middle and poor groups,” adding that, “the float is on the table with the government in the long run because of its importance in stimulating the production process in the country.”
It is noteworthy that some officials talk from time to time on the necessity of floating the currency and liberalizing it to preserve the hard currency reserves with the Central Bank.
Tivon: Say what? The government is not thinking of floating the currency in light of every conceivable reason to do exactly that for the same reasons they said it’s not feasible? You don’t say. Do you see how they undermine the Iraqis when they were already told by the CBI and their news media to expect their currency to float soon?
Do you guys know what a rentier economy is? A rentier economy depends on government policy, it is particularly susceptible to plutocracies, oligarchies, “crony-capitalism,” and other forms of corruption, leading to public mistrust in big business, government, and the social/economic elite.
Guys, he’s referring to a old regime that has already forfeited over their power to the demands of the citizens where they are no longer at the mercy of a small select proxy who create economic conditions by divesting, siphoning, pillaging, and plundering communities into the ground because of their greed.
Keep in mind Al-Kazemi didn’t announce his cabinet yet. Also keep in mind that he can do the reverse by brining purchasing power first or do both as an interim gov.
These were the same people trying to use the USD rate as a political tool to gain the trust of the citizens to make them think voting in the Coordination Framework would be of their best intrest simply by what the reduction represents. Which is “Purchasing Power”. Something we know Al-Maliki did not want as it goes against the reason he wants power in the first place which is contingent upon the Iraqis remaining poor.
Another excuse he brought in this article is the hard currency reserves and its so called limited supply. Remember, the operandi of the government is to convince you of scarcity. I am not even going to mention the gold reserves. To easy.
Let’s just go back on what Mazhar Muhammad Saleh stated when they mentioned that the hard currency reserves are nearly covered. Which protects against inflation and market fluctuations. Hell, he didn’t even mention the EFSL. Which was specifically designed to address all the areas of concern.
All provision of the EFSL was initiated on July 17th. Which is aimed at reducing poverty. Creating financial stability. Achieve food security. Along with social protection.
One example to sum up everything is to look at Post-57. A protest was diverted in an area where electrical issues were of concern for the people in the Kanaan district. What did one man do that the “The Government” couldn’t provide that prevented demonstrations for basic needs? He addressed a economic issue outside of government intervention without waiting or hesitating to issue direct assistance by going directly to that specific community that the local government neglected.
Not only that they also addressed the water problem in that same district through security forces. They said the dangers and threats of displacement due to droughts have disappeared. He didn’t come up with an excuse by referring to limited resources and the lack of funding.
Do you see why it’s important to focus on the men in the field? The ones with boots on the ground. The ones who are directly interfacing with the people. That is what this entire investment has morphed into ever since Al-Kazemi took up the mantel to address the pervasive issues facing the citizens of Iraq.
And that’s the same attitude Abdul Karim Shammari brought to the local Kanaan district and assisted those people without giving them a thousand reasons as to why it can’t be done. Why? Because more than likely they been hearing this type of rhetoric for years.
I wish I could say more bit I am pressure for time. We are in a season of action. No more talking. You are seeing it as they say it if it needs to be uttered to reassure the people that they will no longer be abused. And that their needs will be met. Imo LINK
Post 57: Postponing massive demonstrations near Baquba after a relative improvement in the supply of electricity
Clare: REMEMBER WHAT FRANK SAID ON THE LAST UB2B:
“I BELIEVE THAT IT WILL BE KAZEMI THAT MAKES THE ANNOUNCEMENT TO THE CITIZENS, RIGHT AFTER HE ANNOUNCES HIS GOV’T … I MEAN, FRACTIONAL SECONDS AFTERWARDS”….FRANK26
IN FRANK’S OPINION AND imo
“Right now we are at where we want to be. So let things unfold from here and stay focused on what you know to be true. There is no reason to jump ship and assume the worst for any conceivable outlook that this is about to come to a conclusion. You are watching these men work the system and bring it to it’s needs and the feet of the citizens without any push back. This will continue for other things the citizens are anticipating to be presented very soon. Imo” – TIVON
I TOTALLY AGREE WITH YOU TIVON imo
Samson: Al-Sadr asks the judiciary to dissolve the Iraqi parliament and the President of the Republic to set a date for the elections
10th August, 2022
On Wednesday, the leader of the Sadrist movement, Muqtada al-Sadr, asked the judicial authorities to work on dissolving the Iraqi parliament within a maximum period of next week, urging at the same time the President of the Republic of Iraq, Barham Salih, to set a date for early legislative elections in the country.
Al-Sadr said in a tweet seen by Shafak News Agency, “Someone may say: The dissolution of parliament needs to hold a parliament session to dissolve itself. No, there are blocs that adhere to quotas and persistence in corruption and will not succumb to the people’s demand to dissolve parliament, but I say: The parliament’s dissolution is not limited. with that.”
He added, “From here, I address my words to the competent judicial authorities, especially the President of the Supreme Judicial Council, hoping that they correct the course, especially after the end of the brief constitutional deadlines and others for Parliament by choosing the President of the Republic and assigning a Prime Minister to form a government of stakes, as well as the national or independent majority and away from the old, grim faces that despair Including the people, and if they are not corrupt, they are either deficient or deficient.
Yes, I direct my words to the Iraqi judiciary, from which we still hope for good despite the political and security pressures it is subjected to and leaks from here and there, provided that it dissolve Parliament after those constitutional violations above.. …within a period not exceeding the end of next week, and graciously assigning the President of the Republic to set a date for early elections, subject to several conditions that we will announce later.
And he continued, “During this, the revolutionaries will continue their sit-ins and their revolution, may God reward them with the best reward… and they will have another position if the people fail again, and we ask all the revolutionaries, the resigned Sadrist bloc, other deputies, and all lovers of the homeland to submit official lawsuits to the Federal Court and through legal means and through the centralization of the committee.” It is clear that the elimination of the stake is at stake, and we hope that it will take into account the interest of the people and not be afraid of pressures, as I am sure that many judges are with the people and with reform.” LINK
Tivon: A man of action. I guess Al-Sadr is turning a new leaf. My older comment from the beginning of the year (Before The EFSL) didn’t hold him in high regard. If any of you remember that. But as you can see he is directly aiding in the resurrection of the phrase “Power To The People”.
I can’t point out anything I wouldn’t do in the current environment. Al-Kazemi has some heavy hitters in his corner. And it will not stop anytime soon. The people know what’s going on now. They are privy to the proxies.
What a time to be alive as investors seeing it all come together. We are approaching historical times. I can not wait for the coming days ahead. We all know where this is going. The only thing left to do is the obvious. Citizens Entitlements. This is the bottom line.
I will wait for the remainder of the week for clearer insight on the matter. Right now we are at where we want to be. So let things unfold from here and stay focused on what you know to be true.
There is no reason to jump ship and assume the worst for any conceivable outlook that this is about to come to a conclusion. You are watching these men work the system and bring it to it’s needs and the feet of the citizens without any push back. This will continue for other things the citizens are anticipating to be presented very soon. Imo
Jerry1971: Sadar is up to the mark in getting this hope less and useless parliament dissolved hopefully by next week thus enabling Kazemi to announce his govt to his people also bringing forth the announcement of the new iqd rate exciting times in Dinarland. IMO.
Grant123: One day we will wake up and be blessed! A lot needs to be sorted out in a short time period! Let’s hope they can do it! IMO
Calandig: Good day family. I wanted to highlight the importance of the phrase “next week “. This is strictly in my opinion so I could be totally off but it you notice when the Middle East uses the word “next” when referring to days it’s within the very same week (ex. if they say today next Thursday that means tomorrow).
So, by applying this point of view that phrase “next week “ I believe could mean either tomorrow (Thursday) or Sunday 8/14.
Why do I believe this? I’m glad you asked. On Friday 7/29, the IMF had a press release concerning the SDR basket for 2022-2027(in the FAT). The results of their findings go into effect on 8/15. Again, just my opinion.
Tivon: Even without the drop dead date of August 15th. We know a few things. The first being the dissolution by default will activate Al-Kazemi and his government. Given that he will act as an interim transitional authority. He will officially hold all power to activate reforms at anytime he sees fit. So it doesn’t matter if he does it before or after the 15th.
The second thing is that we know all banks will be ready for the new digital platform by that date. Which is another plus for us. We know based off what he already told the citizens along with the guy from Al-Sadr camp that the citizens will have their demands met in days.
So you guys do not have to put pressure on yourselves about the 15th.
Don’t forget that even the citizens know they no longer have obstacles in front of them. That says a whole lot. They are waiting for Al-Kazemi. This is who I am focused on. Let this guy bring it home for us. What has he promised up until this point that he has not delivered on besides the reforms itself? We are actually seeing it with our own eyes without any special obscure intel.
We know what’s next. We don’t need the UN, IMF, AMF, World Bank, CBI. Or US Treasury to tell us that. You should be ready regardless. On the 15th and afterwards. Imo
I am 100% excited about August 15th. Why? Because for the first time in this investment all banks in Iraq will be ready for the new rate. Al-Kazemi could announce on that date or afterwards his interim government. Then the next day the CBI can reinstate the currency.
I think regardless of the 15th it will go in that order. Or it can all happen at once within hours. Regardless the sequence can happen in a consecutive fashion or a concurrent manner. I am good either way because we know what supposed to happen and there’s nothing wrong with that. Imo
Samson: Al-Kazemi’s advisor talks about the possibility of approving budgets for more than one fiscal year
10th August, 2022
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained, on Wednesday, the possibility of approving budgets for more than one fiscal year
Saleh said, to the official news agency, that “the amended Financial Management Law No. 6 of 2019 refers to the approval of the general budget on an annual basis, as the draft law sent by the executive authority is presented in the House of Representatives to legislate the law called the Federal General Budget Law,” noting that “The global applications of the general budget are mostly annual
He explained, “Iraq adopts a strategy for the general budget that extends for the next three years and is in line with the indicators of the country’s economic development plan, but it is subject to amendment annually
He pointed out that “a proposal that the general budget for more than one fiscal year requires amending the effective financial management law, abandoning the annual budget and replacing patterns of budgets that are approved for a number of years,” noting that “this type of budgets will grant the financial authorities in particular and the executive authority in general.” High flexibility in adjustment and response to developments, economic conditions and emergency financial surprises when legislating a general budget that extends for more than one fiscal year
He added, “The proposal has not been implemented in the world’s financial experiences, so it is necessary to study the issue with one of the multilateral international financial organizations, of which Iraq is a member, in order to study the idea in accordance with the approved systems in public finance and its global applications and to assess the legal effects.” and accounting related to the foundations of governance of public budgets of this type LINK
Governmental Adviser: Iraq adopts a budget strategy for the next three years LINK
Tivon: Wow- That is actually crazy. Are you all seeing this? It is over for the corrupt. Al-Kazemi and his cabinet are pivoting hard. They know the EFSL is already cleaning house. So they want to implement a fail-safe once that law expires into next year and have a general budget in place that will basically be an extension of the EFSL.
It’s subject to amendment annually just in case certain areas financially present unique issues where over/under spending could present problems in the newly emerging markets Iraqis will grow into. They can write a 3 year spending plan and adjust it at the end of or beginning of any fiscal year to maintain a economic flow sense they will no longer be relying on oil to bolster their GDP.
They need to make sure the alternative revenues are keeping pace with growth for longer periods. Plus it keeps the political aspect in check and retains a consistent agenda for the party that builds trust with the citizens where they are not concerned to much with hoping a new budget doesn’t stifle growth because it lacked the funding of the previous one.
This is just my personal view as I am sure it’s way more layered. But this makes total sense and is very genius. This will basically keep Al-Kazemi in power even if he’s not in office anymore beyond his tenure. I mean…emergency financial surprises? IMO