Tuesday, April 2, 2024
Advisor to the Prime Minister: Budget schedules resolved in the middle of this month, 3 APRIL
Advisor to the Prime Minister: Budget schedules resolved in the middle of this month
The financial adviser to the Prime Minister, Mazhar Mohammed Saleh, signed the approval of the budget schedules in the middle of April.
“The budget schedules are supposed to be decided in mid-April probably,” Saleh said in a press statement.
He added that “the tripartite federal general budget, which was stated in Law No. 13 of 2024, did not be without the principle of its annuality in the issue of preparing the annual schedules and submitting them to the House of Representatives for approval, specifically for the two years (2024, 2025).
”
He stressed, “The law on the approval of the tripartite budget constitutes an expression of an exchange of trust between the legislative and executive authorities to manage public financial affairs in our country to ensure the continued implementation of investment projects and the communication in the adoption of new projects in an integrated and planned manner.”
Saleh continued that “annual government spending constitutes about 50% of the value of GDP directly, and exceeds 80% indirectly by affecting the work cycle and the general activities of the market and building its positive expectations and stability.”
He pointed out that “the three-year budget was the first experiment that was adopted in the financial history of the country and was adopted based on an explicit legal text contained in the Federal Financial Management Law No. 6 of 2019 as amended, so it became necessary to document this financial experience rich in its economic contents and evaluate its results and the requirements for its implementation in the future when proceeding with its adoption again, including the proposal to study an appropriate ame ndment to some provisions of the Financial Management Law in light of what was produced by the experience of the application of the Tripartite Federal Public Budget Law.”
The Council of Ministers, a few days ago, received the budget schedules from the Ministry of Finance, and began work on them to sign and later send them to the House of Representatives.
https://alforatnews.iq/news/مستشار-لرئيس-الوزراء-حسم-جداول-الموازنة-منتصف-الشهر-الجاري
"RV UPDATE" BY FNU LNU, 3 APRIL
Fnu Lnu
Article quote: "Al-Kadhimi indicated that increasing the budget’s overall amount, from 199 trillion Iraqi dinars (nearly $152 billion) to 228 trillion Iraqi dinars (approximately $174.04 billion), resulted in a rise in the deficit, revealing that the budget is still being discussed in the Council of Ministers and would likely be presented to the Iraqi Parliament next month." It would logically follow that a revaluation would be likely before next month's USA confab.
[Response to Pimpy's HCL non-revenue sharing post from 3-31-2024 below]
The notion of revenue-sharing is nothing new in the Middle East. Bruni and Kuwait both do it...Revenue Watch Middle East Director Yahia Said recently returned from several months in Iraq working on the International Compact with the UN...This USIPeace Briefing summarizes the discussion. Many Iraqi citizens look to the law for what it can contribute to reconciliation, security, and welfare. The three parts of the agreement will deal with the issues of 1) revenue sharing; 2) restructuring of the ministry of oil; and 3) establishing the Iraqi National Oil Company (INOC).
It is quite clear that the HCL has intentions to codify the issue of welfare (not for government) and the number 1 issue is REVENUE SHARING. To be more specific; Section 1314 of the FY2007 Supplemental Appropriations Act [P.L.110-28] specifically identified the enactment and implementation of legislation “to ensure the equitabledistribution of hydrocarbon resources of the people of Iraq without regard to the sect or ethnicity of recipients” and “to ensure that the energy resources of Iraq benefit Sunni Arabs, Shia Arabs, Kurds, and other Iraqi citizens in an equitable manner” as benchmarks.
https://dinarevaluation.blogspot.com/2024/04/rv-update-by-fnu-lnu-2-april.html
Sudanese for deputies: The importance of passing laws aimed at improving the investment environment and developing the economy, 3 APRIL
Prime Minister Mohammed Shiaa Al-Sudani received a group of members of the House of Representatives.
During the meeting, Al-Sudani stressed, according to a statement from his office, {Euphrates News} received a copy of it, “the importance of integration and coordination between the executive and legislative authorities; in order to support the work of the government and its program, which includes many priorities that concern citizens and state institutions, through its focus on service and reform aspects in various fields.”
The Prime Minister pointed out “the importance of proceeding with the adoption of laws aimed at improving the investment environment, developing the economy and meeting the terms of reform adopted by the government; in order to strengthen and diversify the resources of the state.”
"IMPORTANT IRAQ NEWS: THE CENTRAL BANK OF IRAQ CLARIFIES THE MECHANISM FOR DEPOSITING OIL REVENUES ABROAD" BY MNT GOAT, 3 APRIL
THE CENTRAL BANK OF IRAQ CLARIFIES THE MECHANISM FOR DEPOSITING OIL REVENUES ABROAD
Economy Baghdad News
The Central Bank of Iraq revealed the mechanism for depositing oil revenues abroad, in response to a parliamentary question on the subject.
The document stated that the legal basis for depositing oil revenues in the IRAQ2 account with the Federal Reserve Bank of New York was the expiration of the extension of the US President’s Executive Order 13303 put in place in 2003, which granted immunity to Iraqi funds deposited in the DFI account.
The Deputy Governor of the Central Bank, Ammar Hamad, explained that the “IRAQ2” account is used to deposit Iraqi crude oil export funds, and they are transferred to the Central Bank of Iraq account with the Federal Reserve Bank within 24 hours of receipt.
This mechanism ensures that funds are not subject to creditors’ claims, he said, as they belong to the Iraqi government from the export of crude oil.
He added that a memorandum of understanding signed between the Iraqi Ministry of Finance and the Central Bank of Iraq in 2014 regulates the work of the “IRAQ2” account, and that this memorandum is the legal basis for the establishment of the aforementioned account.
He noted that the immunity granted under the memorandum of understanding covered sovereign funds only, not funds used for commercial purposes.
He explained that Iraq’s foreign reserves are deposited with several external parties, including central banks and financial institutions, and are not limited to the Federal Reserve.
He pointed out that the interest rates on these deposits vary according to the investment segment, the duration of the investment and the institution with which the investment is made.
Finally, he explained that the company transporting dollars from the Federal Reserve Bank to Baghdad International Airport is Orient, and that the insurance amount for one shipment is 414,000 US dollars, and that the transportation fees are 216,310 US dollars.
Iraqi economy faces threat as US closes oil revenue account, 2 APRIL
Iraqi economy faces threat as US closes oil revenue account
ERBIL (Kurdistan 24) – In a recent development that has raised concerns over the stability of the Iraqi economy, the United States has closed the account through which Iraq collects revenue from its oil sales.
This revelation came to light through a letter addressed to the Finance Committee of the Iraqi Parliament, dated March 18, 2024.
The letter, signed by Ammar Khalaf, Deputy Governor of the Central Bank, outlines the closure of the account known as the Development Fund for Iraq (DFI), which has been operational since 2003.
The DFI, under the supervision and protection of the United Nations and the United States, served as a crucial mechanism for Iraq to collect and manage its oil revenues.
According to the letter, Iraq maintained this account with the US Federal Reserve Bank, allowing it to receive oil revenues in dollars and utilize them to cover essential expenses in accordance with agreements with the United States.
However, with the closure of the DFI account, Iraq’s oil revenue is now being directed to a new account, referred to as IRAQ2. This transition raises concerns among experts, including finance and banking specialist Kamaran Qadir Yaqub, who warns that the protection previously afforded to Iraq’s revenue may no longer be guaranteed.
Yaqub emphasizes the risk that IRAQ2 could be vulnerable to potential interference or manipulation by the United States, posing a significant threat to Iraq’s financial stability.
In addition to the closure of the DFI account, the letter also sheds light on a contractual arrangement between Iraq and a US company for the transportation of dollars from the United States to Iraq. Under this contract, Iraq paid a security deposit of $441,000, with a transportation fee of $216,310 for each convoy of dollars.
The closure of the DFI account and the implications for Iraq’s financial security highlight the complex dynamics of international financial relations and the vulnerability of countries reliant on oil revenue. As Iraq navigates these challenges, stakeholders closely monitor developments to assess the impact on the country’s economic stability and future prospects.
Kurdistan 24.net
"MORE SIGNS OF FULL SOVEREIGNITY" BY MNT GOAT, 2 APRIL
MNT GOAT
UNITED STATES HAS CLOSES DFI ACCOUNT THROUGH WHICH IRAQ COLLECTS REVENUE FROM ITS OIL SALES
ERBIL (Kurdistan 24) – In a recent development that has raised concerns over the stability of the Iraqi economy, the United States has closed the account through which Iraq collects revenue from its oil sales.
This revelation came to light through a letter addressed to the Finance Committee of the Iraqi Parliament, dated March 18, 2024.
The letter, signed by Ammar Khalaf, Deputy Governor of the Central Bank, outlines the closure of the account known as the Development Fund for Iraq (DFI), which has been operational since 2003.
(I would say this is really good news. We read many articles that Iraq was pushing for this DFI fund to end and it has. Where is all this money then that remains in the fund going?
We can now see that collecting oil revenue will also soon not be limited to US dollars. This is coming next and why over due. Yet more signs of full sovereignty not just on paper but tangible evidence we can see by events. The sovereignty of their currency is also coming and on the near horizon,,,, 😊)
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/Parliamentary Finance: Government Banks Did Not Comply with Sudanese Directives, 2 APRIL
Parliamentary Finance: Government Banks Did Not Comply with Sudanese Directives
Shafaq News / Member of the Parliamentary Finance Committee, Moen Al-Kazmi, confirmed on Monday that government banks do not comply with the Sudanese directives on the loan interest rate.
“A lot of the advances and loan money in banks is privately owned, and it does not necessarily have to be bank money, so there is no interest consideration and reduction,” Kadhimi told Shafak News.
He added that “the simple employee, if he wants to take an advance of 10 million dinars from banks, he will pay 14 million with the interest rate.”
Al-Kazmi explained that “the parliamentary finance committee will host during the coming period the governor of the Central Bank and bank managers to discuss the mechnism of granting loans and advances to employees and citizens,” noting that “the banks do not comply with the directive of the Prime Minister on that the interest rate is decreasing and not fixed.”
On March 26, a source familiar with the matter told Shafaq News that most government banks still adopt a fixed interest method on advances and loans despite the directives of Prime Minister Mohammed Al-Sudani to recalculate bank interest.
The Sudanese had directed government banks by adopting dwindling interest on loans and advances.
"WHAT A NOVEL IDEA" BY MNT GOAT, 2 APRIL
MNT GOAT
AL-SUDANI: OUR GOAL IS TO SERVE OUR PEOPLE
The Prime Minister during the second session of the Supreme Authority for Coordination between the Governorates: This is the first meeting after the local elections were held.
Prime Minister: The elections were one of the important milestones that represent an achievement for the political process
Prime Minister: Local governments must work as one team
Prime Minister: Local governments must make efforts to enhance citizen confidence
Prime Minister: Local governments are an integral part of the executive authority
Prime Minister: The evaluation of officials must be subject to a professional and scientific program
Prime Minister: Our goal is to serve our people
(Gee whiz…what a novel idea…lol.. lol.. lol…)
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/Why Lift Partial Government Support?, 2 APRIL
Why Lift Partial Government Support?
Economical 04/01/2024 Yasser Al-Metwally
Why lift partial government support? Is it linked to public finance reform?
The recent government decision to raise gasoline prices sparked widespread controversy and analyzes went in various ways.
Let us discuss the matter from the economic point of view of the decision, and based on our first reading of it, it became clear that
it was consistent with the vision and requirements of the International Monetary Fund, which stipulates that in order to achieve reforms, increasing government support by adopting tax policies that help diversify sources to enhance annual budgets.
From this standpoint, on which all capitalist and socialist theories are based, the process of capital turnover
aims to redistribute income fairly among segments of society.
This requires
imposing tax policies and
enhancing and
diversifying state revenues,
but these procedures are applied in countries that enjoy high stability.
Therefore, the timing of this decision may be considered inappropriate for the complex circumstances that the country is going through, especially market instability and structural distortions in the image of the Iraqi economy.
This is accompanied by a weakness in the economic culture that makes any decision regarding support face dissatisfaction.
Perhaps the reason for this weakness in the economic culture is due to the lack of transparency in the directions of tax revenues and their spending.
It is known that the capital cycle is based on the adoption of tax revenues, as I mentioned above, and
it goes in two important areas, the first of which is the
redistribution of income among citizens according to their standards of living, and the second is that one of the
government’s duties is to provide services in exchange for the amount of taxes it receives from taxpayers.
This is how economic theory works in all countries of the world.
The lack of transparency means the lack of clarity about the
size of tax revenue in the budget and the
ways of distributing it among services, as well as its
support for vulnerable segments.
This absence resulted in a weakness in the economic culture and its depth among the citizen,
which makes him not accept any decision related to increasing taxes or removing government support because
he is not aware of the directions of spending this money, which should go towards providing the best services to him.
The instability of the exchange rate along with the stability of wages and salaries leads to an impact on purchasing power.. How?
This is because the Iraqi market is accustomed to exploiting rumours.
Any decision is exploited by some merchants, thereby raising prices, and
the effect of this is to create dissatisfaction,
which is sometimes exploited by some at a time when the government has begun to find preliminary solutions, gain the satisfaction of the citizen, and talk about truly tangible achievements.
Therefore, we see the necessity of postponing the implementation of this decision until another time when
market stability and prices are achieved and the
standard of living improves and until the
citizen witnesses the results of the government’s efforts in implementing broad government service projects on the ground, which is nothing more than a point of view.
Then we, the economic media community, can convince the citizen that these projects require that he contribute to their perpetuation through his compliance with correct and sound economic decisions.
https://alsabaah.iq/94400-.html
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The Central Bank Of Iraq Clarifies The Mechanism For Depositing Oil Revenues Abroad, 2 APRIL
The Central Bank Of Iraq Clarifies The Mechanism For Depositing Oil Revenues Abroad
Logo of the Central Bank of Iraq Drains Economy News – Baghdad The Central Bank of Iraq revealed the mechanism for depositing oil revenues abroad, in response to a parliamentary question on the subject.
The document stated that the legal basis for depositing oil revenues in the “IRAQ2” account with the Federal Reserve Bank in New York is the expiration of the extension of Executive Order issued by the US President No. 13303 in 2003, which granted immunity to Iraqi funds deposited in the “DFI” account.
Deputy Governor of the Central Bank, Ammar Hamad, explained that the
“IRAQ2” account is used to deposit funds for Iraqi crude oil exports, and they are transferred to the Central Bank of Iraq’s account at the Federal Reserve Bank within 24 hours of receiving them. He stressed that
this mechanism ensures that the funds are not exposed to creditor claims, as they are funds belonging to the Iraqi government derived from the export of crude oil.
He added that a memorandum of understanding was signed between the Iraqi Ministry of Finance and the Central Bank of Iraq in 2014 regulating the work of the “IRAQ2” account, and that this memorandum is the legal basis for establishing the aforementioned account.
He pointed out that the immunity granted in accordance with the memorandum of understanding includes sovereign funds only, and does not include funds used for commercial purposes.
He explained that Iraq's foreign reserves are deposited with several external parties, including central banks and financial institutions, and are not limited to the Federal Reserve Bank.
He pointed out that the interest rates on these deposits vary according to the investment segment, the duration of the investment, and the institution with which the investment is made.
Finally, he explained that the company transporting the dollar from the Federal Reserve Bank to Baghdad International Airport is Orient, and that the insurance amount for one shipment is 414,000 US dollars, and that the transportation fees are 216,310 US dollars.
120 views Added 04/02/2024 - https://economy-news.net/content.php?id=42099
"RV UPDATE" BY BRUCE. 2 APRIL
Thurs. 28 March Bruce
The Central Bank Warns Against Closing Iraq's Account With The US Federal Reserve: It Will Put Our Money At Risk (Documents), 2 APRIL
The Central Bank Warns Against Closing Iraq's Account With The US Federal Reserve: It Will Put Our Money At Risk (Documents)
Economy breaking Central Bank of Iraq US Federal Reserve 2024-04-01 10:24
Shafaq News/ On Monday, the Central Bank of Iraq revealed the legal basis for depositing oil revenues in the US Federal Reserve. According to documents issued by the bank and viewed by Shafaq News Agency,
“The legal basis for depositing oil revenues in the Federal Reserve Bank of New York in the IRAQ2 account alternative to the DFI account is the expiration of the extension of the Executive Order issued by the US President No. 13303 issued in March 2003.”
According to which immunity was granted to the Iraqi funds deposited in the Iraqi Development Account (DFI) at the time, and the end of the United Nations protection over Iraqi funds that was granted to it under UN Security Council Resolution No. 1483 of 2003 after the issuance of UN Resolution 1956 at the end of 2010.
The documents added, "Accordingly, an IRAQ2 account was opened, which is used to deposit funds from Iraqi crude oil exports, and they are transferred to the account of the Central Bank of Iraq at the Federal Reserve Bank within 24 hours of receiving these amounts to ensure that they are not exposed to the claims of creditors, as they are funds belonging to the Iraqi government derived from the export of crude oil."
This mechanism was organized through a (memorandum of understanding) signed between the Iraqi Ministry of Finance and the Central Bank of Iraq on 6/2/2014 for the purpose of organizing the work of the IRAQ2 alternative account for the Development Fund for Iraq, and this memorandum is the legal basis for establishing the aforementioned account.
She continued, "The immunity granted in accordance with these two documents includes sovereign funds only and does not include funds used for commercial purposes."
The documents explained, “With regard to the answer to the third paragraph, foreign reserves may be deposited with several external parties, central banks and financial institutions, and not only in the Federal Reserve Bank, and interest rates vary according to the investment segment, the duration of the investment, and the institution with which the investment is made,
in addition to the fact that the transport company is Orient is the company contracted by this bank to transport dollar shipments from the Federal Reserve Bank to Baghdad International Airport, with an insurance amount of (414,000) US dollars (four hundred and fourteen thousand US dollars per shipment, and transportation fees of (216,310) US dollars (two hundred and sixteen thousand three hundred and ten US dollars, Department of Parliamentary Affairs, Department of Parliamentary Oversight.” She continued,
"It is not possible to transfer the revenues from the sale of oil to the interior due to the impossibility of carrying out financial operations for Iraq if the funds are at home, and
closing our account with the Federal Reserve Bank could expose Iraq to the risk of international claims,
in addition to the inability to settle our payments in US dollars without the presence of... An account at the Federal Reserve Bank or other U.S. commercial bank.
https://media.shafaq.com/media/arcella/1711995857611.jpeg
https://media.shafaq.com/media/arcella/1711995858300.jpeg
https://shafaq.com/ar/اقتصـاد/البنك-المركزي-يحذر-من-غلق-حساب-العراق-لدى-الفيدرالي-ال-مريكي-سيعرض-موالنا-للخطر-وثا-ق
"ZIM WILL BE REDEEMED 1 TO 1 PERIOD" BY QFS_GLOBAL VIA TWITTER, 2 APRIL
The Central Bank reveals the reason for depositing Iraqi oil money in America, 2 APRIL
The Central Bank reveals the reason for depositing Iraqi oil money in America
Baghdad - Iraq Today:
The Central Bank of Iraq revealed the legal basis for depositing oil revenues in the US Federal Reserve.
According to documents issued by the Central Bank, "the legal basis for depositing oil revenues at the Federal Reserve Bank of New York in the IRAQ2 alternative account to the DFI account is the expiration of the extension of the US President's Executive Order No. 13303 issued in March 2003, which granted immunity over Iraqi funds deposited in the then DFI Iraq Development Account, and the end of the United Nations protection over Iraq's funds that were granted to it under the UN Security Council Resolution No. 1483 of 2003 after the issuance of UN Resolution 1956 at the end of 2010."
The documents added, "Accordingly, the IRAQ2 account was opened, which is used to deposit the funds of Iraqi crude oil exports and is transferred to the account of the Central Bank of Iraq with the Federal Reserve Bank within a period of 24 hours from the receipt of these amounts to ensure that they are not exposed to the claims of creditors as they are funds belonging to the Iraqi government derived from the export of crude oil, and this mechanism has been organized through a (memorandum of understanding) signed between the Iraqi Ministry of Finance and the Central Bank of Iraq on 2/6/2014 for the purpose of organizing the work of the alternative IRAQ2 account. for the account of the Development Fund for Iraq and that this memorandum is the legal basis for the establishment of the said account."
"The immunity granted under these two documents covers sovereign funds only and does not include funds used for commercial purposes."
The documents explained, "With regard to the answer to the third paragraph, foreign reserves may be deposited with several external parties, central banks and financial institutions, and not only based in the Federal Reserve Bank, and that interest rates vary according to the investment segment, the duration of the investment and the institution with which the investment is made, in addition to that the carrier company is Orient Company, which is contracted with this bank to transport dollar shipments from the Federal Reserve Bank to Baghdad International Airport and with a security amount of (414,000) US dollars (four hundred and fourteen thousand dollars). US per shipment, and transportation fees of (216,310) US dollars (two hundred and sixteen thousand three hundred and ten US dollars) Department of Parliamentary Affairs, Parliamentary Oversight Section.
She added that "it is not possible to transfer the revenues of the sale of oil to the interior because of the impossibility of carrying out financial operations for Iraq if the money is at home, and closing our account with the Federal Reserve Bank can expose Iraq to the risk of international claims, in addition to the inability to settle our payments in US dollars without an account in the Federal Reserve Bank or another US commercial bank."
"THE RV IS CURRENTLY UNDERWAY INSIDE THE BORDER OF IRAQ" BY GINGER, 2 APRIL
GINGER
Sat. 30 March Ginger“We’re hearing that the revaluation of the rate is currently underway inside the border of Iraq.
Baghdad-Washington dialogue: Will the US withdrawal file from Iraq be resolved?, 2 APRIL
Baghdad-Washington dialogue: Will the US withdrawal file from Iraq be resolved?
A new round of dialogue is being held between Baghdad and Washington, the fourth since last February, to discuss the issue of the American withdrawal from Iraq and ending the role of the international coalition to fight ISIS. This tour comes ahead of the visit of Iraqi Prime Minister Muhammad Shia al-Sudani to the White House.
Challenges:
This round of dialogue faces many challenges, the most important of which are:
The lack of a clear consensus on the feasibility of withdrawal: Iraqi views on withdrawal differ, between those who see the necessity of the withdrawal of all American forces, and those who see the importance of some of them remaining to support the Iraqi forces in the fight against terrorism.
The position of the American administration: The American administration did not announce a clear position on withdrawal, while the statements of its officials indicate their desire to redraw the coalition’s tasks or for the forces to remain for additional years.
Pressure from armed factions: Some Iraqi armed factions continue their attacks against American forces, demanding their complete withdrawal from the country.
Discussions:
The discussions between Baghdad and Washington address many points, the most important of which are:
Evaluating the international coalition’s mission: The fourth round evaluates the need for the international coalition’s presence in Iraq.
Setting a timetable for withdrawal: Baghdad is demanding that a clear timetable be set for US withdrawal.
Determining the nature of American support for Iraq: The tour discusses the nature of the support that the international coalition will provide to Iraq after its withdrawal.
The issue of the withdrawal of US forces from Iraq remains complex, and requires further dialogue and negotiation between Baghdad and Washington. link
"ANNOUNCEMENTS WILL OCCUR IN THE FORTHCOMING WEEK" BY TEXAS SNAKE, 2 APRIL
Wed. 27 March Texas Snake
The latest message to all Regional Currency Exchange Managers is to advise their specialists to be available for duty in the week following Easter Weekend.
All requirements have been satisfied Globally and announcements will occur in the forthcoming week.
Sat. 30 March Texas Snake
“The council and Gov’t of Iraq have advised all retailers in country are free to revise their product prices upward to reflect the change in Dinar valuation taking place today in country. They are RVing in-country in Iraq today. Confirmed by two independent sources.”