Al-Mandalawi directs Parliamentary Finance to prepare a comprehensive report on the budget schedules before Monday’s session
Acting Speaker of the Place of Delegates, Mohsen Al-Mandalawi, guided the Parliamentary Money Council to facilitate the last audit of all things in the spending plan regulation timetables for the year 2024, sent by the public authority.
Al-Mandalawi pushed, as indicated by an explanation from his office, a duplicate of which was gotten by, “the need of finishing deciding on these tables during the following meeting, particularly since the resident’s requirements are enormously pressing,” focusing, “that next Monday’s meeting will be set as the date for their endorsement.”
Al-Mandalawi approached the Money Panel to “at last and cautiously survey all tables of incomes, consumptions, and designations, decide the shortfall rates and ways of decreasing them, and set up a thorough report that will be introduced to the Place of Delegates for a vote, including every one of the perceptions that went with the 2023 spending plan.”
Iraq wanted to de-dollarize. They start de-dollarizing in January but it didn't work for them too much.
The government didn't expect that to happen even by telling them that the dinar are stronger...use the dinar instead of the dollar for the benefits of the country. They tried everything. Now, they said that plan didn't work so they come out to the new white paper...They realized they cannot do nothing without changing the exchange rate.
They're going to have to go down in the exchange rate for the de-dollarization...They're going to have to change their exchange rate...Between now and 8th of July we should have an answer...
what they going to do? Are they going to change the exchange rate...keep it the same...go up...go down?
I think they're going to have to go down on the exchange rate a lot for them to take off the dollar from the street.
The Iraqi government, on Friday, expressed its welcome and appreciation to the Security Council Resolution (2734), which was issued today unanimously, to end the mandate and tasks of the United Nations Assistance Mission for Iraq/UNami (UNAMI), according to a timetable that ends with full termination on December 31, 2025.
“The termination of the work of the mission in Iraq comes at the request of the Iraqi government, which was expressed by the letter of Prime Minister Mohammed Shiaa Al-Sudani on May 8-2024, addressed to the Secretary-General of the United Nations, Mr. Antonio Guterres, and the United Nations Security Council in this regard,” the spokesman for the Iraqi government said in a statement, replying to “Mil.
He added: “At a time when we are amplifying the international response to Iraq’s request, we confirm that the UN Security Council resolution came as a result of the tangible progress, which Iraq is witnessing at various levels and stability at the internal level, and the completion of the political construction process that was launched in 2003, after the overthrow of the dictatorial regime, the growing capabilities of our armed forces, heroic of various types, to protect the sovereignty of the country, the acceleration of the economic and urban renaissance movement, and the advanced steps achieved in the fields of reform, good governance, services and social welfare.”
He continued: “We take this opportunity to emphasize the continued cooperation and sustainable partnership with the United Nations and its development programs working in Iraq, and to express Iraq’s appreciation for the efforts of His Excellency the Secretary-General of the United Nations, and for the personnel of the United Nations Mission, and their services and their estimated sacrifices since the establishment of the mission in 2003, on the path of helping our people as it builds their constitutional political system, and establishes a pure Iraqi will and firm sovereignty, with active institutions representing the Iraqi state and its established entity.
”
However: “This decision enhances the regional and international role played by Iraq, as a pivotal state in the region supporting stability, peace and sustainable development. We also affirm the continuation of providing the necessary facilities to ensure the liquidation of the tasks and works of the UN mission, in accordance with a joint plan, consistent with the sovereignty and will of Iraq, as well as the commitment to complete the issues stipulated in the resolution, within the competencies of the mission, and to provide the necessary support to it in this regard.”
Earlier in the day, the UN Security Council voted on the decision to terminate the UN mission in Iraq at a formal request.
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...
Question: People want to know if they can drag this out until next year?
Militia Man: We don’t know the timing. But, I don’t think we are even close to go that long. There is way too much going on in the world and this is not only about Iraq. Remember all boats rise with the tide...I believe Iraq is ready to go with the rest of the world. Along with other countries like the Vietnamese dong.
Are they going to change the value of their currency...?
I'm pretty sure they are going to need to to pay for all these [reconstruction] objects...rebar, the cement - all that stuff is expensive at 1310. It's not so expensive if it's back at a 'previous era'....If they have the true value, their real effective exchange rate, it's going to be far cheaper...