Tishwash: State invites the President of the US Federal Bank to visit Iraq
Foreign Minister Fuad Hussein met President of the United States Import and Export Bank Kimberly Reed on the sidelines of the Manama Dialogue Forum 2020, inviting her to visit Iraq.
The aspects of implementing the memorandum of understanding between the bank and the Ministry of Finance that were signed in 2019 were discussed, and how to benefit from the amount allocated in the memorandum in the fields of agriculture, investment, trade, and others.
“We are looking to benefit from the banking expertise of American banks,” Hussein said, according to a statement. link
CaliforniaSusan: I have heard 3 awesome pieces of information from Zimbabwe government. #1 they do not intend to use foreign money as a national currency. The zim will be used. #2 Zimbabwe intends to enter the global stage by cultivating marijuana and selling it around the world. #3 is the information that Ray and Tony provided this afternoon. I am still uncertain if the zim will be in the 1st basket, but it seems more likely given these 3 items
Tishwash: Oil “disturbs” Iraq’s 2021 budget: an expected update of the “dinar exchange rate” and amending the numbers to “reduce the financial deficit
The Parliamentary Finance Committee informed the Presidency of the House of Representatives, today, Sunday, that it will hold continuous meetings as soon as the General Budget Law arrives in Parliament for discussion and approval as soon as possible. It is likely that the 2021 budget will be approved at the end of this December.
“The government has postponed sending the budget to the House of Representatives so far due to the high oil prices in the global market, which requires reformulating the numbers in the budget sections to reduce the financial deficit ceiling and increase revenues,” the committee’s reporter, Ahmad Al-Saffar, said.
He explained that “the cabinet will meet next Tuesday and may approve the budget then or hold a special session to discuss and approve the budget next Wednesday, which means that the budget will reach the Presidency of Parliament early next week.”
He added, “The draft budget is still up to the General Secretariat of the Council of Ministers to audit it in coordination with a special committee from the Ministry of Finance and the International Monetary Fund to update the Iraqi dinar exchange rate before the end of the fiscal year,” indicating that, “according to government estimates that we have informed about the price of a barrel of oil.” In the general budget it will be between 42 – 43 dollars.
The official spokesman for the Council of Ministers, Minister of Culture, Hassan Nazim, announced last week that the Council of Ministers decided to postpone its session devoted to discussing the draft Federal Budget Law 2021, until yesterday, Saturday, as it has not yet been held.
Expectations of the next deficit?
And on that, today, Sunday, a Foundation for Studies, the Iraqi government’s monthly expenditures exceeded the 6 trillion dinars barrier for the month of October, surpassing the general average for the year of 5.7 trillion Iraqi dinars.
The Future Iraq Foundation for Economic Studies and Consultations said in a statement that operating expenses for salaries rose to reach 3.45 trillion dinars, surpassing the general average for salaries of 3.34, an increase of 3.45%.
The statement pointed out that the expenditures for social care increased by 19% compared to the annual general rate to reach 1.5 trillion dinars, indicating that “the total expenditures of the Iraqi government have increased by 5.85% from the annual rate to reach 6.12 trillion dinars,” noting that “the general rate was 5.7 trillion dinars.
The statement added that “at the level of imports, imports achieved an increase of 8% compared to the general rate of imports, and despite the decrease in oil revenues by 10% from the general average, a significant increase of 175% in non-oil revenues, as non-oil revenues amounted to 1.186 trillion dinars. It is higher than the general average of 431 billion dinars, and thus the total revenues for the month of October (last) will be 4.652 trillion dinars.
He pointed out that “despite the increase in revenues, the government recorded a real deficit of 1.5 trillion dinars, and thus the total cumulative deficit of the Iraqi state for the year 2020 has reached 15 trillion dinars.”
The institution expected; That “the deficit until the end of the year exceeds more than 29 trillion dinars as a result of the need for the government to pay debts dues at the end of the year in addition to paying the amounts of oil licensing companies, which are expected to be worth more than 13 trillion dinars,” according to the statement. link
Fuze: Tish you hit the Jackpot on this one. Very plainly this article strongly implies the Cabinet of Ministers , Parliament Finance Committee and the IMF are reworking the 2021 Budget numbers due to higher oil prices, with a target date of no later than Wednesday December 9th for the Cabinet to approve the budget that then goes to Parliament early next week with a December 31, 2020 budget approval back wall date, which ends Iraq’s fiscal year. Article also strongly implies sometime in this period the DINAR EXCHANGE RATE WILL BE CHANGED! Simple and plain.
Tishwash: Iraqi Kurdistan .. Demonstrators burn all party headquarters in Sulaymaniyah
Today, Sunday, a security source in Iraqi Kurdistan revealed that protesters in the Bireh Makron district of Sulaymaniyah governorate burned the party headquarters inside the district.
And the “Baghdad Today” website quoted the source as saying that the demonstrations began to protest the delay in paying government employees’ salaries.
The security source explained that the judiciary is now witnessing clashes between security forces and angry protesters.
He pointed out that the Baghdad-Sulaymaniyah road is still closed with barrels and burning tires, since last Thursday.
Earlier, Deputy Sirwan Baban, a member of the Kurdistan Parliament for the “New Generation” bloc, called on human rights institutions and the United Nations to intervene to stop “the police and repressive measures in Kurdistan .”
He said that the reports of human rights organizations should include the practices of the security services and the party against unarmed citizens who demand their legitimate rights, accusing the security forces of using violence and excessive force.
Hundreds of people from Sulaymaniyah governorate in the Kurdistan region of Iraq went out at the end of last week due to late salaries, demanding the cancellation of deductions and deductions.
On Saturday, the security forces intervened and broke up those protests, which resulted in a number of deaths and injuries, amid regional and international criticism of the violence that was used against peaceful demonstrators. link
Tishwash: Currency auction cost Iraq more than 20 billion dollars in losses
The Future Iraq Foundation for Economic Studies and Consultations revealed the cumulative amount of loss due to the currency auction in the Central Bank of Iraq during the past years.
The Foundation said in a statement seen by Al-Mustaqilla today, Monday, that according to “an analysis of the Central Bank’s sales figures for dollars through the foreign currency sale window and the average market price, the amount of Iraq’s loss from the difference between the two prices amounted to more than 20.7 billion US dollars from 2004 to September.” 2020, depending on the amount of foreign currency from the central bank, the rate of the private selling price from the central bank, and the local market rate.
He explained that “this value represents 3.57% of total central bank sales, which amounted to more than $ 582 billion over the past years.”
The statement pointed out that “the highest percentage between the amount of loss as a result of the price difference and the value of the currency sold was in 2016, where the ratio was 8%, with a loss of 2.64 billion dollars out of the 33.5 billion dollars that were sold through the auction window.”
“As for the highest value of the loss, it was in 2013, when the loss amounted to about $ 3 billion out of the $ 53 billion that was sold through auction.”
He noted that “this loss came as a result of the existence of two prices, the first is the official selling price from the central bank and the other is the market exchange rate,” indicating that “whenever the exchange rates rise in the local market with the stability of the selling exchange rate from the central bank, the difference represents a loss to the central bank. He won for exchange companies and banks dealing in speculation between the two rates.
The statement indicated that “this process of loss will continue as a result of the existence of two official prices and a local price or a speculative price, and that we must work either on floating the dollar or imposing on exchange companies, remittances and banks, to unify the selling price according to the numbers set by the Central Bank in order not to create this large fluctuation. “.
He pointed out that “the loss percentage has decreased during the past three years, as it reached 1.2% of the total window sales in 2019, but it has returned and increased during 2020 to more than 2.84%.”