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Thursday PM UPDATE for June 18, 2020 Part 2

Al-Kadhimi says that all proxy positions will be held in their jobs until July 15

Iraqi banks were informed of a new schedule of prices for bank commissions to be implemented on July 1, 2020. (Is it possible that the price changes will coincide with the adjustment of the currency rates?) Time Will Tell

Tishwash:  Counselor David: We are discussing a new salary scale and we need 4 billion dollars a month

Advisor to the Prime Minister Hisham Daoud confirmed on Thursday that Iraq is currently achieving revenues of less than two billion dollars, while he spoke about a bilateral fact-finding committee on the killers of the demonstrators. S about the demonstrations.

“The weapon outside the official forces and the crowd is an illegal weapon, and the parties must choose either political or military action,” David said during a televised interview with the “Shortest Roads” program with colleague “Nabil Jassem” and his follower, “NAS” (June 18, 2020). “Bombing of missiles is outlawed terrorist acts.”

On the Corona virus file, David said, “We are missing beds for intensive care, and we have more than a thousand beds for intensive care only,” noting that “Russia has shown its willingness to provide us with a drug for the Corona virus.”

And David pointed out that “our revenues are less than two billion dollars, and salaries are more than 6 billion, but they will be secured for the coming months, but the problem persists, in addition to that the salaries of retirees are deducted from them independently of the government’s desire.”

Dawad pointed out that “many countries have indicated their willingness to help us financially, and the moment we face corruption will come, but there are pressing files now.”

And that there is “an attempt to borrow and provide future benefits.”

The adviser to the Prime Minister revealed “a bilateral committee will be formed to investigate the facts about the demonstrations.”

On the salaries of the Kurdistan region, David said that “Kurdistan will not receive another part of the salaries if it does not deliver oil.”

He added, “We will not erase the impact on the upcoming elections, and it is illogical to limit our relationship with the United States to the security aspect.”

He stated that “We have about 4 million employees, a million retired and deserving of social protection salaries, and their salaries require 6.5 billion dollars per month, and what comes into the state is only one billion dollars, which means that the state is required to add 4 billion dollars every month,” noting that “there are 34 million Iraqis do not take salaries from the state, and these need to secure their life conditions. ”

And that “there must be reforms to ensure that the crisis does not recur, and there is an idea to involve the Iraqi segments in resolving the crisis, there are retirees who receive a pension of up to 30 million dinars per month, while others do not receive more than 200 thousand and there must be reforms in this the side”.

He explained that “we have short-term solutions through internal and external borrowing, and the salaries will be secured this year, but in return we can burden the future generations with external debt because of the loans.”

Dawood added that “there is a government debate on a salary scale that takes justice into account,” stressing “the need to diversify economic resources, as Iraq cannot continue to rely 95% on oil as a primary resource.”  link

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Harambe:  Bloomberg: Zimbabwe Scraps Currency Peg Three Months After Introduction (6/18/20)

Zimbabwe’s central bank abandoned a currency peg it introduced in March and said it would allow the rate to be set by an auction system.

The announcement represents a setback for Reserve Bank of Zimbabwe Governor John Mangudya, who unilaterally imposed the peg of 25 to the U.S. dollar against the advice of the bank’s Monetary Policy Committee, according to people familiar with the situation. The introduction of the fixed rate further strained relations between Mangudya and Finance Minister Mthuli Ncube, who have clashed on other policy issues.

Under a system to be introduced on June 23, auctions will be held weekly, the central bank said in an emailed statement on Wednesday. Authorized currency traders will be required to serve all importers and users of foreign currency in between auction days at the ruling market rate.

“Its a defeat for Mangudya, but for how long it will last no one really knows,” said Tony Hawkins, an economics professor at the University of Zimbabwe.

The new system is likely to result in a narrowing of the gap between the official rate and cost of currency on the black market, which has risen to four times the peg rate. The crucial tobacco and gold sectors had campaigned against the peg as they said it was making their business unviable. Some mines were closed.

Zimbabwe re-introduced its currency last year after scrapping it in 2009 following a bout of hyperinflation. Erratic currency policy has now contributed to an inflation rate of 786% and regular shortages of fuel, wheat and foreign exchange.

A crawling peg, which will be adjusted from time-to-time, will still be used for dealings with the government.

https://www.bloomberg.com/news/articles/2020-06-17/zimbabwe-abandons-currency-peg-three-months-after-introduction

Harambe:  CNBC: Oil prices inch up on faith in supply cuts, demand recovery … Brent Crude at $42.31 https://www.cnbc.com/2020/06/19/oil-markets-opec-and-allies-in-focus.html