ADVISER TO THE PRIME MINISTER: ECONOMIC POLICY IN IRAQ IS MOVING TOWARDS IMPLEMENTING THE PRINCIPLE OF MONETARY SOVEREIGNTY WITH COMMENTS OF MNT GOAT, 1 DEC

 ADVISER TO THE PRIME MINISTER: ECONOMIC POLICY IN IRAQ IS MOVING TOWARDS IMPLEMENTING THE PRINCIPLE OF MONETARY SOVEREIGNTY

(Oh gee whiz… it seems Mnt Goat was correct again….lol..lol.. read it and weep all you gurus making fun of my blog.. ☹)

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Tuesday, that the economic policy in Iraq is moving towards implementing the principle of monetary sovereignty (RV written all over this article), and while he pointed out that the informal exchange market represents only 10% of circulation, he stressed that the currency cannot be controlled.

A country other than the dinar with in-country pricing (or program rate); Because monetary duality has harmed the economy, (due to an inadequate rate of the dinar assigned) he pointed out at the same time that there is a tendency to diversify currencies for travel purposes and not be limited to the dollar.

Saleh told the Iraqi News Agency (INA): “Economic policy in general and monetary policy in particular are moving towards a new principle called (monetary sovereignty), which considers the Iraqi dinar the only refuge for exchange, pricing, and coverage of internal transactions.”

He added, “It is not permissible for the currency of another country whose monetary policy is subject to pricing and trade exchange operations within the Iraqi economy, and  the principle of monetary sovereignty starts from this level.” (Yes, it starts by fairly pegging your currency and assigning a rate to reflect the true value of it.)

He continued, “The problem in Iraq is the existence of two exchange markets: the first is the regular one in which exchange takes place through the central bank’s platforms, which prices the exchange rate at 1,320 dinars to the dollar as a stable and official price and defends monetary policy.” 
He explained, “The second market is irregular, representing 10% of the trading rate. It is an uncontrolled market controlled by speculators and adds noise to the Iraqi economy as a whole.” 

He pointed out, “There are two things: The first is commodity diversification, which the government has begun through baskets supporting livelihoods, including the food basket, which has achieved stability in the prices of materials, as well as the medicine basket, a construction basket, and another basket for reserve materials that the Ministry of Commerce will launch soon. These are funded at the official exchange rate and help… Stabilize prices and counteract the noise introduced by the informal market.” 

He stressed that “dealing in the dollar (dollarization) and its pricing of the internal economic movement is what is most harmful to the economy, but there is no harm in covering external transactions exclusively and through official platforms.” 

Saleh pointed out, “On this basis, government policy and the policy of the Central Bank moved towards not relying on one country’s currency in foreign transactions and diversifying those currencies such as the Emirati dirham, the Turkish lira, the Chinese yuan, the British pound, and the euro, in addition to the dollar. This diversification reduces the dollarization of the economy and gives it great independence.” 

He stressed, “This diversification can be generalized at the level of selling foreign cash currencies for travel purposes and according to the currency of the country to which one is traveling. This will greatly reduce the demand for the dollar as a single currency in transactions, and the monetary and commodity diversification adds independence to the Iraqi economy.”

Regarding Iraq’s steps to provide these currencies, Saleh said, “The monetary authority in Iraq is independent and there is a wide consultation circle between it and the government. This is happening for the first time to open banking arrangements with central banks in countries that have a commercial partnership with Iraq, such as the Emirates, Saudi Arabia, Turkey, and China, and it is possible to cooperate with these countries.” Directly in their national currencies to achieve ease of conversion and exchange to finance trade and the movement of goods, supported by a stable exchange rate of 1,320 dinars, which allows for achieving stability and monetary sovereignty.”

He pointed out, “The demand for foreign currency is linked to the demand for goods and external transactions. It is dangerous to use the dollar to cover internal transactions, and monetary double-dealing has harmed Iraq. This must end, and it does not mean not providing foreign currency to citizens for the purposes of financing foreign trade or for the purposes of travel and tourism. Therefore, there are steps.” This is a major regulatory change aimed at achieving diversification through agreement with several countries with which transactions are conducted.”

He stressed, “The state has large commercial arms, and whenever it finds that there are needs affected by secondary market noise, the commercial apparatus intervenes to expand its dealings, supported by a stable exchange rate, as well as in cooperation with Iraqi merchants.” 

Regarding the government’s steps to strengthen the banking system, the Prime Minister’s advisor said, “There is a large team headed by the Prime Minister that directly supervises the reform of the banking system, and the largest system is the government system, whose assets dominate 85% of the assets of the banking system in Iraq, so the reform begins with government banks.” We are working on this seriously, and during the next 6 months the results of this reform will appear, and there will also be work in parallel to reform the private banking system, and there is a strong movement and cooperation in this direction with the associations of private and Islamic banks.”

He stressed, “The Prime Minister’s philosophy confirms that economic reform cannot be achieved without reforming the banking system, and therefore the priority begins with reforming the financial system.”

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

Iraq predictions 2024: American forces will remain, the factions will continue to attack, and Sudanese will pay the price, 1 DEC

 Iraq predictions 2024: American forces will remain, the factions will continue to attack, and Sudanese will pay the price

Iraq predictions 2024 - American forces will remain - the factions will continue to attack and Sudanese will pay the price“The Americans will not withdraw from Iraq next year. This will not happen, especially if a promising understanding develops between Washington and Tehran regarding the war on Gaza,” this is a summary of what experts and analysts asked by the 964 Network said about their expectations for next year regarding the issue of foreign presence in Iraq .

They say that the greatest harm caused by the continuation of armed attacks, which are expected to increase after the truce in Gaza, will fall on the government of Muhammad Shiaa al-Sudani, who will clash more with the coordination framework and face increasing complications in already complex files, most notably the fluctuations of the dollar.

But some experts spoke of a higher frequency of attacks against the military bases occupied by the Americans in Iraq once the truce in Gaza ends, noting that the factions “do not find a way other than marches to expel them from Iraq,” even with the presence of Shiite forces that refuse to continue the attacks to avoid consequences that would harm the government. Coordination framework.

Resistance factions in Iraq stopped their operations against American forces in the country out of respect for the truce between the Israeli occupation forces and the factions in Palestine.

It is expected that attacks against American forces in Iraq will increase to force them to leave, and this will be the goal of the “resistance” during the coming months, starting from the end of the truce.

There is no way for American forces to leave Iraq except by targeting the bases with air strikes and drones during the coming period.

It will be difficult for American forces to leave Iraq next year through diplomatic means, because the American side is determined to stay and is working on creating crises to justify the need for it.

The federal government will face a greater crisis with the Americans and with local political forces, with the resumption of attacks during the coming period, which is expected to continue.

After the recent attacks on military bases, indications have emerged that the Americans will not cling to Iraq any longer, even though they know that a number of Shiite forces oppose the attacks launched against them.

Data indicate that American forces may seek to withdraw from Iraq next year.

The Sudanese government is in an embarrassing position, because the Americans are one of the most important parties that supported his government, and the continuation of attacks against them will place him in a greater confrontation with his allies in the coordination framework, and will complicate him with already complex issues, most notably the fluctuations of the dollar.

Contrary to what many say in the media, expectations indicate that the region is moving towards stability, especially after the negotiation efforts between Washington and Tehran, and the flexible position on the Palestinian crisis. This will reflect on the internal situation in Iraq.

Flood Feasts, a former senior army officer, told the 964 network:

Whoever expects the withdrawal of American forces from Iraq is short-sighted and naive. This will never happen, especially since the security agreement between Washington and Baghdad granted the right to have 5 American bases in the country.

The armed factions’ step was unsuccessful in choosing this timing to target the Americans in Iraq, because the government of Muhammad Shiaa al-Sudani will pay the price by faltering the relationship with Washington politically and economically.

Adnan Al-Kinani, former brigadier general in the army:

The withdrawal of American forces will be very difficult next year, due to Washington’s strong influence at the political, economic and military levels.

There will be no political consensus, in the government and parliament, to remove the American forces, and some even see their presence as a necessity at this stage.

The American administration does not support the idea of ​​withdrawing from Iraq, because it is a promising country in the field of investment, and its strategic location is crucial in the regional conflict in which Washington is involved.

Whoever wants to remove the American forces has no solution but to do so by force.

964media.com

Economist: The government is required to shift to a flexible economy by encouraging investment and protecting investors from extortion, 1 DEC

  Economist: The government is required to shift to a flexible economy by encouraging investment and protecting investors from extortion

Economic expert Saleh Al-Hamashi called on the government to shift to a flexible economy by encouraging investment and protecting investors from government blackmail and others.

He said in a statement to the National Iraqi News Agency ( NINA ): “The global economic conditions are fluctuating, global growth is slowing down, the region is suffering from major political and security crises, events are accelerating, and the possibilities are many, and all of these events are casting a shadow on the region’s economies.”

 Al-Hamashi added: “Iraq already suffers from the problem of the rentier economy, which by its nature is inflexible in the face of economic, political and security fluctuations, as it turns the state into a financial one and leaves it out of the general economy.”

 He pointed out: "Iraq today has benefited from the rise in global oil prices, but has been affected by the rise in global prices for foodstuffs. All commodities have also risen globally, and the government is unable to address or compensate for the shortage locally because the Iraqi economy has become a hostage of regional and global economies."

Al-Hamashi expressed his belief that the impact has become direct on the Iraqi economy in all economic developments, calling on the government to develop a plan to transform into a flexible economy capable of facing all changes by encouraging investment and protecting investors from governmental and non-governmental blackmail, as well as activating the role of banks in moving the wheel of the economy. By providing cash liquidity and easy movement of funds.”  link

Iraq Dinar - Monetary - Sovereignty - Commercial - International Companies BY MILITIAMAN

Kurdish Delegation Fails to Separate Salaries from Budget in Talks with Iraqi Government, 1 DEC

 Kurdish Delegation Fails to Separate Salaries from Budget in Talks with Iraqi Government

In a recent turn of events, a delegation from Iraq’s Kurdistan region failed to persuade Iraq’s federal government to separate employee salaries from Kurdistan’s share of the general budget. The delegation, led by the region’s Minister of Finance and Economy, Awat Sheikh Janab, faced a deadlock with the federal government over the crucial issue.

Non-Oil Revenue Dilemma

According to an anonymous Kurdish source from the Kurdistan Democratic Party, the stalemate stems from a stipulation in the general budget law passed by the Iraqi parliament earlier this year. The law states that in exchange for the federal Ministry of Finance’s commitment to fund the region’s entitlements monthly, Kurdistan must deliver its non-oil revenues to the state. However, the narrative reveals that the agreement between the federal government and Kurdistan has not been fully honored, leading to recurring problems with funding the region’s employee salaries.

Discrepancy in Oil Production Costs

Apart from the non-oil revenue issue, the two parties also disagreed on the cost of oil production between companies operating in Kurdistan and others in the rest of the provinces. The federal general budget law for 2023-2025 sets the cost of producing and transporting each barrel of oil at $6-9. In stark contrast, the Kurdistan Natural Resources Ministry states that oil production costs in the region range from $32-91 per barrel, a significant discrepancy that poses yet another challenge to their agreement.

Unilateral Control and Rejected Requests

Adding to the complexities, the Kurdistan coordination framework is adopting a unilateral internal strategy to control all state positions, not just in the Shiite space but also in the wider Iraqi public space. This move has been met with some resistance, as evidenced by the Iraqi High Independent Commission for Elections’ rejection of a request from the former Speaker of the Iraqi Parliament, Mohammed Al-Halbousi. Al-Halbousi had requested that his parliamentary seat be filled by a candidate from the Progress Party, a request that the commission turned down.

Meanwhile, the West Bank has seen a surge in tensions, coinciding with US Secretary of State Antony Blinken’s visit to the region. Blinken’s visit comes amid efforts to extend a humanitarian truce in Gaza between Israel and Hamas, along with the exchange of more prisoners held in Gaza for Palestinian detainees in Israeli prisons. The interplay of these events paints a complex picture of the ongoing political and social dynamics in the region.

https://bnn.network/politics/kurdish-delegation-fails-to-separate-salaries-from-budget-in-talks-with-iraqi-government/

"RV UPDATE" BY MNT GOAT, 1 DEC

 Mnt Goat 

 “ADVISER TO THE PRIME MINISTER: ECONOMIC POLICY IN IRAQ IS MOVING TOWARDS IMPLEMENTING THE PRINCIPLE OF MONETARY SOVEREIGNTY” WOW! WOW! WOW! 

  It tells us flat right out in the open that Iraq is about to take complete control over their currency again. WOW! ...This has reinstatement and RV written all over this statement...

What will 2024 look like? 

I will say one thing for sure as it will not be business as usual in Iraq...I will also dismiss this silly notion once again that Iraq must first rebuilt their economy and then watch the value of the dinar grow with it from 1/6 of a penny upwards...

the very basis of the economy now is generating billions each month in oil revenues ...So why not reflect this value of the oil reserves alone in the rate of the dinar. If nothing else this wealth should be reflected into the equation of the rate of the dinar...

I mean right now, NOT five or ten years from now... we can see the current rate does not reflect the currency value...Oh…but there is much more growth already than just oil too...We know for a FACT the dinar is being “artificially suppressed”.

A Government Advisor Explains The Reasons For The Delay In Stabilizing The Exchange Rate In The Market, 1 DEC

 A Government Advisor Explains The Reasons For The Delay In Stabilizing The Exchange Rate In The Market

Economy  2023-11-30  Today, Thursday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified the priorities of the national project launched by Prime Minister Muhammad Shiaa Al-Sudani to protect the standard of living and end the influence of the informal market, while explaining the reasons for the delay in stabilizing the exchange rate in the market.

Mazhar Muhammad said, in a press interview, “Although the analysis of the main reasons for the continuation of the phenomenon of the exchange rate in the secondary market, which is witnessing fluctuations that are not commensurate with the strength of Iraq’s vast international reserves, in which the Central Bank of Iraq platform is responsible for financing external transfer requests from foreign currency that is specifically used For the purposes of financing foreign trade for the private sector,

however, it is still the subject of due diligence in organizing external transfer requests at an exchange rate of 1,320 dinars per dollar on the part of banks that is not commensurate with international compliance standards.”

He added, "Some of them have not reached the level of interest required globally because they mediate in the purchase of foreign currency for the benefit of the commercial community, some of which are subject to rejection. This accumulates a surplus demand that may find its way to financing and illegally towards the informal secondary market for exchange, which is a market that does not constitute... "Only 10% of the foreign currency supply, in addition to it being an illegal market and leaving colored noise on the stability of the exchange rate."

He continued: “Today, economic policy is responsible for following additional import windows for basic commodities and maintaining their stable and financed prices at an exchange rate of 1,320 dinars per dollar, and at the forefront of that is adopting a policy of defending price stability towards providing an additional commodity supply with a stable price, and in a national project launched by the Prime Minister.”

To protect the standard of living in a way that removes the real income of the citizen from the price noise of speculative forces in the illegal exchange market.

He pointed out that "one of the priorities of this project is the launch of the government trade arm, in cooperation with the national private sector, by providing 4 additional baskets to strengthen the commodity supply, which extend between food (in addition to the food basket), the pharmaceutical basket, the building supplies basket, and the basket of widely used reserve materials, especially related to the transportation sector and others." ".

He added: “Since the demand for foreign currency is a demand for foreign goods, services and benefits that take place outside the country (and not inside it as dollarization does and its harmful effects on the stability of the monetary system), the Iraqi monetary policy is working hard to address the problems of financing foreign trade.”

“The country has strong currencies that are stable in their exchange rates and at the same time adhere to the principles of international compliance and combating money laundering, in order to facilitate trade and investment relations between Iraq and its trading partners around the world.”

He pointed out that “these strong policies all provide a protective umbrella for economic stability, end the role of the irregular and illegal market, and distance their effects from price stability in a sustainable manner, as all of these policies work within the lofty goal of protecting Iraq’s monetary sovereignty and ending the use of foreign currencies in evaluating internal transactions.”

And keeping it away from the payments system and its operations within the national economy, which is a legacy that has extended since 1982, as dealing with the dollar internally in settling or paying for the buying and selling of goods, services, rents, and contracts within the national economy is an act that violates the law.   https://kirkuktv.net/AR/Details/18583