Wednesday, June 5, 2024
The Central Bank explains the “fiscal control” mechanism contained in the budget, 5 JUNE
The Central Bank explains the “fiscal control” mechanism contained in the budget
On Tuesday, individual from the Governing body of the National Bank of Iraq, Ahmed Barihi, explained the term monetary control contained in the government spending plan, as numerous authorities misquoted it during their press explanations, which might prompt accidental blunders.
Berihi told , “The overall idea of the term monetary control referenced in the bureaucratic financial plan among public money experts is the endeavor of the public authority and the leader specialists to stick to adjust to surpass the shortfall rate in later spending plans and not diminish it to the deficiency in the ongoing financial plan.”
He expressed, “Numerous authorities abuse the term in their press proclamations, which might prompt accidental mistakes.”
“The government must benefit from the increase in annual revenues, whether oil or other,” he said, “in addition to developing productive projects to enhance the treasury’s financial resources to achieve the term.”
He kept, “Accomplishing monetary control requires serious checking of costs on a long-lasting premise and follow-up by the administrative specialists addressed by the Monetary Control and Respectability Division and the Place of Delegates in regards to deciding venture costs.”
"RV UPDATE" BY MILITIAMAN, 5 JUNE
Militia Man
Article: "The delete the Iraqi dinar zeros reoccurring invitation and existing challenges"
That was February 25, 2024. It's sill in the the news this year. July 26, 2023 Al-Alaq said the project still existed... Quote: "When this is done correctly we can expect Iraq to become a strong dinar that is considered a store of value and perhaps even stronger than the dinar that was before 1980." That's a pretty big deal...
Article: "Parliamentary Finance resumes its meetings regarding the budget in preparation for voting on the schedules" Quote: "Parliament decided, according to the agenda, to hold its twenty-seventh regular session next Monday.. ." I am not sure how long voting will take on the paragraph. But, if they are going to vote to do a budget at 1310 that would have a deficit of 64 trillion that would not be good for the people and they want to see another term in office they'll need the 3 zeros to be removed from the exchange rate. If there isn't a removal by Al-alaq they'll be in a pickle be sure.
That vote [scheduled Monday 3:00pm Baghdad time vote on the 2024 budget tables] is prior to markets opening in the United States in New York. Will they vote? Will they do it? We're going to find out.
The House of Representatives will vote next Monday on the budge schedules...We've been waiting for it... Is it important? Is it not important?----
Obviously it's a focus. Article Quote: "Mustafa ... announced the House of Representatives intends to vote on the financial budget tables for the year of 2024...It will be held at 3:00 in the afternoon on Monday."
I don't think anybody's going to be able to prove me wrong, you drop the three zeros, the exchange rate changes from 1 USD to 1.32 just like al-Sudani says. Do the math it comes out to .76, apply the real effective exchange rate and that's where the show starts big time... .76 is $0.76 - it's slightly less than the dollar.
That's value. It's not .0007 something. It's value. That's what they're talking about - Bringing value to the currency. That's what Al-Alaq is there for.
Article quote: "If we assume the Central Bank issues a new currency this will not affect the exchange rate of the Iraqi dinar."
This guy is not wrong...It won't in my view. The exchange rate will affect the new small denominations though...If they change the value of the exchange rate by dropping the three zeros, therefor the new denominations will be affected by it, which will be value. It's pretty simple.
If you raise the value of the currency it's going to have a ripple effect...Instead of being a pebble...or a brick in the pond this might be a boulder. There's going to be some waves. The World Bank, IMF, US Fed, US Treasury...Bank of International Settlements, everybody's going to need to know what you're going to do and when you're going to do it and pretty close.
They're not going to be broadcasting it like everybody thinks, 'What's the date and what's the rate?' That's not how it works. But we study it close enough to where...we can see it can't be far off...
If they're going to have liquidity and they don't have it now it's going to require new small category denominations to be in circulation. Just as al-Alaq's project to delete the zeros would require new denominations. Did they do that in 2018 and have them in storage? I believe they did...
They increased that gold supply by about 40 tons...Their currency reserves are around $110 billion. They have a massive amount of wealth. They have the ability to support their imports for about 16 months they say, which is about 5x what they need. That's important. They don't want to reduce those. They'd like to keep them on hand...Iraq has a good foundation for Alaq to do what he's supposed to do and it'll only get better if he does.
If they change the value of their currency they're going to have more surpluses...The oil price is about $70 in the 2023 budget. That hasn't changed for '24 or '25 because that's a tripartite budget. They got a surplus. Oil is somewhere around $80. It's been as high as $91ish. The expectations of oil is to be somewhere in the neighborhood of $80/$90 and they even talk about $100/barrel...Iraq is going to be sitting pretty good...They have phosphates...sulfur...natural gas...Those non-oil revenue streams...taxes and tariffs are going to come online...Iraq has a good foundation for Alaq to do what he's supposed to do.
Iraq is moving forward. They've got huge reserves...increased their gold, they're going to have the private sector, their stock exchange is going to be one to reckon with. It's an emerging market and a lot of money is going to be start flowing...
If they go on the Forex system it's going to be international. It's going to be fast and furious.
Could they do something within the county prior to that?
Sure, why not, educate the citizens, do what they got to do...
OPEC Holds Iraq Oil Quota Flat, 5 JUNE
OPEC Holds Iraq Oil Quota Flat
The 37th OPEC and non-OPEC Pastoral Gathering – – known as ‘OPEC in addition to’s – – was held in Vienna at the end of the week.
Among the things concurred was to keep Iraq’s arranged oil creation level at 4.431 million barrels of oil each day for 2025.
The following gathering of the gathering is booked to be hung on first December 2024.
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Parliamentary Finance: The region’s share of the budget is still unclear
Today, Tuesday, Individual from the Parliamentary Money Board of trustees, Mustafa Al-Karaawi, mentioned a few observable facts on the 2024 spending plan tables, while affirming that the locale’s portion in the 2024 spending plan is as yet hazy.
In an interview with the, Al-Karaawi stated that “the region’s share in the 2024 budget is still unclear” and that “there are many disputes over the budget tables.”
He added, “The spending plan tables didn’t specify how to gather the sums owed by the locale,” taking note of that “the tables that the Place of Delegates decided on didn’t make it clear to us exhaustively about the district’s monetary duty.”
"RV UPDATE" BY PIMPY, 5 JUNE
Pimpy
Everything seems to be ending around 2025. The tripartite budget will end by 2025, the United Nations Security Council mission to Iraq will end by then. Also the end of 2025 is the projected end of the time for Saudi Arabia to end all their major projects that they got going on over there with those big lavish cities for the ultra rich to go hang out...
Article: "UN Security Council extends mission in Iraq for last time" The United Nations Security Council voted to end the Iraq mission by the end of next year, 2025. The UN will not be babysitting Iraq anymore. That goes a long ways towards them establishing their sovereignty.
Article: "The document..The House of Representatives votes next Monday on the budget schedules" Finally after all this time. There was a huge delay.
Trump did not buy Iraqi dinars. You realize Trump has been tied to Iraqi dinar way before he was the president?
...You have to be careful about where you're getting your source from...
There are no articles out there that confirm this at all...There's no, and I mean none, proof out there that Donald Trump owns Iraqi dinar...----
Article: "Expert: The Iraqi economy is witnessing a remarkable growth, with the decline in the dollar exchange rate." This is good. We need this to happen. Iraq needs it to happen.
More importantly the policies that are being implemented by Iraq are favorable amongst the IMF, World Bank and all those people who are involved with making sure Iraq stay on track, stops laundering money and financing terrorist. The more Iraq continues to stay on track and prove to the world they are going to behave themselves for now on the doors open for Iraq to rejoin the international community...
Article: "Economist: The budget is not affected but dollar exchange rates. And explain the reason" The person is saying the budget is never affected by the dollar exchange rate because the budget is based on Iraqi dinars.
Article: Central Bank of Iraq quote "There are no current plans to print new currency."
What that tells me is people don't have to worry about a lop or redenomination because in order for you to have a redenomination or a lop you have to create new currencies. It also tells me they're not creating the lower denominations which means they're going to stick with the currency they currently have. Some people see this as the glass half full. Some people look at it as the glass is half empty.
I agree it's going to happen. I don't have doubt about that. I'm just keeping an eye on whether or not they want to delete the zeros. If they go to a free floating market hopefully there won't be...deleting the zeros and we'll see the exchange rate go up pretty quick before they have time to respond...
Iraq was already a member of the World Trade Organization. They are going through the ascension process for a second time. That's because all the rules, regulations, understandings and business practices...changed once the fall of Saddam Hussein. Now we have to make sure all their practices, rules and regulations regarding trade line up once again with the World Trade Organization. Iraq has been a member of the World Trade Organization since 2004. This is their second time throughout the ascension process...
There's this misconception that the World Bank, IMF and the BIS get to tell countries what to do. They don't...They facilitate. They make recommendations but they don't control a country's bank..----.
Another budget is getting ready to come and go and there is no talk of the rate change. Isn't that what they told you? It would be in the new budget because there was no way for them to do large projects, there was no way for them to move forward without an exchange rate change...Why so secret now? Is this one of those things they're trying to keep from the people?
They didn't keep it from the people last time [they increased the value] and there's no mention of it this time...Keep your fingers crossed, it hasn't passed yet so maybe they'll change it between now and the time they pass it...You guys know what I think.
Floating the currency means the value is determined by the market, so if people for whatever reason want to start investing in the Iraqi dinar and the start buying up the Iraqi dinar that means the demand for it is there, think supply and demand.
Since they have a liquidity issue, there's not going to have a lot of Iraqi dinar out there and if that's the case then they don't have the supply to feed the demand...But we'll be more than happy to sell our Iraqi dinar back to them if they get the exchange rate up around a quarter or more. I know I would.
https://dinarevaluation.blogspot.com/2024/05/rv-update-by-pimpy-24-may.html
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