The second in a week. The Council of Ministers issues decisions related to investment, heritage and health,28 JUNE

The second in a week. The Council of Ministers issues decisions related to investment, heritage and health

The Iraqi Council of Ministers took a number of decisions related to health, investment and heritage, in a second session this week.

A statement by the Office of Prime Minister Mohammed Shiaa Al-Sudani said that the latter presided over the 26th regular session of the Council of Ministers, the second during this week, in compensation for the session that was postponed due to the Eid al-Adha holiday.

The session witnessed the discussion of all general topics in the country, and the follow-up of service and economic files, especially those related to the implementation of the government program, and the paragraphs on the agenda were also discussed, and the necessary decisions were taken on them.

During the session, the Prime Minister directed the formation of a committee from the Investment Authority, the Advisory Commission in the Office of the Prime Minister, the Coordinator of Provincial Affairs, and the Legal Department of the General Secretariat of the Council of Ministers, to study the proposed amendments to the investment system.

The Sudanese also directed the ministries to activate the memorandums of understanding signed with Turkey during the visit of the President of the Turkish Republic, Mr. Recep Tayyip Erdogan, to Iraq.

Within the framework of government treatments for the electricity file and the development of direct solutions, the contract of the Ministry of Electricity with private sector companies to prepare an additional amount of energy was approved, due to the summer peak load, and in the method of (Take and pay), in accordance with the equation proposed by the Ministry of Electricity, and for a period of 3 months, extendable according to the need of the system, and according to financial powers.

As well as approving the exception of the oil products distribution company, for the purpose of contracting with a carrier company to transport operational fuel to private sector stations; so that fuel can be initiated as soon as possible, and to start processing electric power for the national system and based on the government’s approach to completing backward projects, and to prevent the waste of public money, the Council of Ministers approved the following:

First / Changing the name of the project (rehabilitating the original unified Khalidiya water project with a capacity of 250 m3 / h in the Governorate of the World Bank Emergency / additional financing), to become (rehabilitating the original Unified Al-Khalidiya Water with a capacity of 250 m3/ hour, and expansion with a capacity of 200 m3 / hour in Anbar Governorate / Emergency loan – additional financing), with increasing the total cost of the project.

Second / Introducing a component (completing the establishment of scientific departments in the Agricultural Technical College / University of Mosul), and increasing the total cost of the project.

In order to complete the requirements of the strategic joint sea water project, the recommendation of the Ministerial Council for Energy (24054 i) for the year 2024 was approved as follows:

1. Exclusion of the tenders for the Seawater Joint Project and the ILF Project Consultant Tender (CSSP) from the contracting methods stipulated in the instructions for the implementation of government contracts (2 of 2014) and exclude them from the application of the standard document.

2. Exclusion of tenders for the joint sea water project and the tender of the project consultant (CSSP) of ILF and consultants from the instructions to facilitate the implementation of the federal general budget for the years (2023 -2024-2025).

3. The draft included in the aforementioned paragraphs (1 and 2) by the Council of Ministers resolution (23700 of 2023). Within the framework of the government’s special work to care for heritage monuments, the Council approved the recommendations of the Joint Committee for Heritage Schools set out in the letter of the Ministry of Education on November 27, 2023, as follows:

1. Referring my school (Al-Futwa, and Quraysh) to demolition and reconstruction, in the traditional form and style specified by the Joint Committee.

2. Including schools (Kazimiya primary, Al-Mafid Primary, Kadhimiya preparatory school for boys, and Kadhimiya preparatory schools for girls) with maintenance and restoration work.

3. Coordinating the Ministry of Education and the Ministry of Finance to provide the required amounts for (12 schools) included in the plan to develop the holy city of Kadhimiya, by conducting the required transfer in accordance with the Federal Budget Law for the fiscal years (2023 – 2024 – 2025).

In the course of the government’s policy under the auspices of all components in Iraq, the Council voted on the following: First: Approving the recommendation of the Ministerial Council for Social Services (24018 KH) on the transfer of ownership of real estate, details of which are listed in below to the Office of the Christian, Yazidi and Sabean Endowments as follows:

1. Transfer of real estate ownership (2/6716 Al-Katoun – Diyala / Mandaean Sabean Sect), (10/2 Sekak and Paf / Miyadadiya – Diyala, the cemetery of the Mandaean Sabean sect), (1/ 473 especially Timari- Kirkuk Mandaean Sabean sect) without an allowance, based on the provisions of the Law of the Diwan of Endowments of Religions (58 of 2012).

2. Transfer of real estate ownership (2/456 Al-Khar / Baghdad Mandi Sabean Sect), (48/24 Abu Tararid Al-Diwaniyah, the cemetery of the Sabean Mandaean sect), (34/3 Al-Zubair / Basra, the cemetery of the Mandaean Sa’an sect) without an allowance, based on the provisions of the law on the ownership of Arss and buildings (3 of 1960).

3. The Minister of Construction, Housing and Municipalities is responsible for the transfer of ownership of the two properties (180/54990/ Nasseriya, the cemetery of the Sabean-Mandaean sect), (123 Al-Shukhou market / Nasiriyah, the cemetery of the Mandaean Saean sect) without an allowance, based on legislative decision (693 of 1973).

4. Transfer of ownership of the property (13/430 Al-Karkh / Baghdad) in an allowance, based on the provisions of the Law on the Sale and Rent of State Funds (21 of 2013) amended.

Second: The transfer of ownership above, as established above, shall be bound by the conditions of endowment land, with the obligation to uses of land without changing them.

Third: The Ministry of Finance shall, within (30) working days, a maximum of the date of issuance of this decision, submit a study to the Council of Ministers to settle the rights resulting from the two properties numbered (3/6578 Ministerial / Baghdad Social Acquaintance Club), and (1/Hirkuk, the cemetery of the Sabean-Mandaean sect), and indicate the extent of transferring their ownership to the aforementioned office.

In support of the government’s work in the private sector, paragraph (4) of the recommendation of the Board of Advisors was approved, on addressing the problems and obstacles of work in the private industrial sector, which includes taking the necessary measures to grant a period of (6) months to all industrialists whose charge previous debts to any government entity, for review and settlement of debts and benefit from the Council of Ministers resolution (23188 of 2023), and the non-payment of debts within a period of (6) months is not considered an obstacle to promoting their transactions. This decision will be implemented from the date of its issuance.

In the field of health care and its projects, the Council of Ministers approved the instructions for the Ministry of Health on June 27, 2024, with the exception of the province of the implementation of Nineveh Governorate, and granted the Governor of Nineveh the authority to direct invitation directly to an advisory office for the purpose of auditing and approving designs, and supervising the implementation of the project (Ibn Sina Teaching Hospital), implemented within the emergency support budget.

Approval of what was stated in the Ministry of Health’s letter on the settlement of the amounts of the Iraq-specific commitment agreement with the Cofax facility, which was canceled in exchange for paying the fees for termination of the agreement with the manufacturers (GAVI), as all amounts due to Iraq are paid in one go within 20 days of informing (GAVI) of this, provided that the payment is 78.5% of the total amount due, equivalent to 6.546 million dollars, according to the Global Alliance for Vaccines and Immunization voluntarily.

The Council of Ministers approved the recommendations of the Diwan Order Committee (23603), which was formed under the guidance of the Prime Minister, in light of what was raised at the session held on June 4, which included reviewing the fees of lawyers stipulated in the Lawyer Law (173 of 1965) amended, to become as follows:

First: Retaining the text of paragraph (2/I/a) of Article (63) of the lawyer in force as contained in the text.

Second: Amend the paragraphs (B, C, D) of the aforementioned text in (I) to read as follows:

B. With at least (25 thousand dinars) only, and not more than (150 thousand dinars) in the lawsuit of unlimited value, and the criminal case in which the civil right is claimed.

C. An amount of (5%) of the value of the allowance sentenced in exprociation lawsuits, provided that it is not less than (25 thousand dinars) only, and not more than (150 thousand dinars).

Dr. With at least (25 thousand dinars) only, and not more than (75 thousand dinars), it is borne by the State Treasury of the assigned lawyer in accordance with the provisions of Article (144) of the Code of Criminal Procedure (23 of 1971).

https://shafaq.com/ar/سیاسة/الثانية-في-غضون-اسبوع-مجلس-الوزرا-يصدر-قرارات-تتعلق-بالاستثمار-والتراث-والصحة

JUDY NOTES, 28 JUNE

 Judy Note

From the information herein it’s assumed that matters regarding the Global Currency Reset and changeover to Restored Republics of the World is imminent.

The Military was waiting on the World Court for legalities according to Common Law, to be finalized between nations.

Everything has been completed for NESARA/GESARA payouts including GESARA being announced through certain media, making it legal.

All debts of various nations including the US, have been settled using GESARA funds collected from the Cabal. GESARA has begun paying out in several countries, with the US payouts to citizens scheduled.

Payouts for the Global Currency Reset has been authorized, scheduled and reported.

Word was that right now some Tier 3 Zim Holders were in Reno meeting with their Wealth Managers and proceeding with the redemption process. The Pentecostal Group has already started to pay out their Group One.

On Thurs. 27 June the new Iraqi Dinar rate was available to citizens of Iraq through their debit cards and ATMs.

Iraq has scheduled an announcement of their new Dinar Rate by publication in their Gazette on Sat. 29 June, with the celebration scheduled for  Sun. 30 June.

Very soon Tier4b was expected to begin exchanges in China, the process going across Asia and into Europe and then to the US.

The Pentecostal group will begin to pay out their Group Two on Thurs. 4 July – the same day the US will be celebrating Independence Day with major announcements expected.

Iraqi Dinar Guru News Highlights (6/28/24)

Dinar Explainer 2: Consequences of Iraq's Two Exchange Rates , 28 JUNE

  Dinar Explainer 2: Consequences of Iraq's Two Exchange Rates

28th June 2024 

On a recent webinar organised by the Iraq Britain Business Council (IBBC), Professor Frank Gunter of Lehigh University outlined the key changes in the dinar exchange rate over the years, as well as the consequences of having two exchange rates. (For more on the reasons why Iraq has two exchange rates, click here).

Current Exchange Rates

There are two exchange rates in Iraq: the official exchange rate and the market rate.

The official exchange rate is approximately 1,310 Iraqi dinars per US dollar.

The market rate is higher, at around 1,460 Iraqi dinars per US dollar, which represents a 12% gap between the two rates.

Impact of Dual Exchange Rates

The existence of dual exchange rates has several negative effects on Iraq's economy:

It slows economic growth by disrupting existing contracts and discouraging trade and investment both domestically and internationally.

It encourages corruption, as individuals and entities can profit from the difference between the official and market rates by being paid in dollars and making payments in dinars.

It complicates fiscal policy, making it harder for the government to manage the economy effectively.

Historical Changes in Exchange Rates

December 2020: The dinar was devalued by 23%, primarily due to the fiscal crisis of 2020 and the drop in oil prices. This devaluation was intended to allow the Ministry of Finance to obtain more dinars for each dollar of oil revenue.

February 2023: There was a revaluation, increasing the value of the dinar from 1,450 to 1,310 per dollar. This revaluation was beneficial for importers, as it made imports cheaper, but it negatively impacted exporters of non-oil goods, making their products more expensive abroad.

Effect of Dollar Appreciation

Since the revaluation in February 2023, the US dollar has appreciated by about 3.3%. This further makes imports cheaper in Iraq but makes exports more expensive, affecting the balance of trade.

Challenges of Dual Exchange Rates

The dual exchange rates have contributed to economic disruption by making it difficult to conduct business with predictable costs and revenues. The gap between the rates incentivizes corrupt practices and complicates governmental fiscal management, ultimately leading to slower economic growth.

In summary, the official and market exchange rates in Iraq have undergone significant changes in recent years, driven by economic crises and fiscal policy decisions. The dual rates present ongoing challenges for economic stability, growth, and governance.

The consequences of having two exchange rates in Iraq can be summarised as:

Slowing Economic Growth

The dual exchange rate system disrupts existing contracts and discourages both domestic and international trade and investment. This disruption hinders economic stability and growth.

Encouraging Corruption

The gap between the official and market exchange rates creates opportunities for corrupt practices. Individuals and entities can profit from the difference by being paid in dollars and making payments in dinars, exploiting the discrepancy for financial gain.

Complicating Fiscal Policy

Managing the economy becomes more challenging with dual exchange rates. The existence of two rates complicates fiscal policy, making it difficult for the government to implement effective economic measures and maintain financial stability.

LINK

"RV UPDATE" BY BRUCE, 28 JUNE

 Thurs. 27 June 2024 Bruce

• All of my information tonight is coming from Iraq.

• Today one of our sources was at the Iraqi Airport in Baghdad and was able to use his Iraqi debit card to access funds. For him to do that he had to have the new Iraqi Dinar Rate.

• Today a source in Iraq said we would have the Iraqi Budget in the Gazette over this weekend.

• My sources say Tier 4b notification could come the last three days of this month – Fri, Sat or Sun. 28, 29, 30 June.

• Iraq was planning on celebrating their new Iraqi Dinar Rate on Sun. 30 June

• The contract rate on the Dinar went up another dollar today. They will give that rate to you if you are a US citizen.

• We don’t know when this is going to go. My Iraqi contact said our time was coming in a matter of days.

Global Collapse As Petrodollar ‘Ends’? Steve Hanke Debunks Fake News, ‘F...

Dinar Explainer 1: Why Iraq has Two Exchange Rates, 28 JUNE

  Dinar Explainer 1: Why Iraq has Two Exchange Rates

By John Lee.

On a recent webinar organised by the Iraq Britain Business Council (IBBC), Professor Frank Gunter of Lehigh University explained the causes and effects of Iraq's dual exchange rate.

The three reasons why Iraq has two exchange rates are:

1. Excessive Demand for US Dollars Internationally :

There is a high demand for US dollars in countries like Iran and Syria, where local currencies have significantly devalued. Entities in these countries are desperate to obtain dollars, which are accepted everywhere and difficult to trace.

The excessive demand for US dollars internationally is driven by several factors:

1. Currency Devaluation in Neighboring Countries:

• The Iranian rial has lost 75% of its value due to sanctions from the US and other nations.

• The Syrian pound has lost 99% of its value primarily due to the ongoing civil war.

• These significant devaluations have led entities in Iran and Syria to seek more stable currencies like the US dollar.

2. Preference for Physical Dollars:

• There is a particular demand for physical US dollars (paper currency) rather than electronic funds transfers (EFTs). Physical dollars are preferred because they are accepted everywhere and are impossible to trace, making them more desirable for transactions that may need to avoid scrutiny.

3. Cheaper Source of Dollars in Iraq:

• Due to these devaluations and economic instability, Iran and Syria find it more feasible to obtain dollars from Iraq. The Iraqi market offers a cheaper source of dollars, requiring fewer real resources compared to other regions.

These factors collectively create a significant international demand for US dollars, which in turn impacts Iraq's exchange rate dynamics by increasing the pressure on its currency system and contributing to the existence of dual exchange rates.

1. Internal Demand for Dollars:

Within Iraq, the dollar has dominated the dinar both as a medium of exchange and as a store of value. Although recent regulatory changes have reduced this dominance, the demand for dollars remains strong.

The internal demand for dollars in Iraq is driven by several key factors highlighted in the text:

1. Dominance of the Dollar:

• Historically, the US dollar has dominated the Iraqi dinar both as a medium of exchange and as a store of value. This dominance means that people prefer to use and hold dollars over the local currency, contributing to the internal demand for dollars.

2. Regulatory Changes:

• Although there have been recent regulatory changes aimed at reducing the dominance of the dollar, the demand remains strong. These changes have not been sufficient to shift the preference from dollars to dinars significantly.

3. Economic Practices:

• Iraq's economy is still very much a cash economy. The Central Bank of Iraq estimated that there were 90 trillion dinars outside financial intermediaries, highlighting the extensive use of cash. This reliance on cash further underscores the preference for a stable currency like the dollar.

4. Banking System Challenges:

• The banking system in Iraq is underdeveloped. The state-owned banks are not private sector-oriented, with major banks like Rafidain and Rasheed facing difficulties. Additionally, Iraq is severely under-banked, with only four bank branches and five ATMs per 100,000 Iraqis, compared to the Middle East and Northern Africa average of 14 branches and 37 ATMs.

• The lack of a universal core banking system, which makes it difficult to withdraw funds from a different branch than where the deposit was made, contributes to the preference for holding dollars.

5. Insecurity of Deposits:

• The perception that deposits have become more insecure has increased the demand for dollars. For instance, the suspension of dollar withdrawals starting January 1, 2024, has likely exacerbated concerns about the security and accessibility of funds, driving people to prefer holding dollars.

These factors collectively create a strong internal demand for dollars in Iraq, complicating efforts to manage the exchange rate and stabilize the economy.

1. De-Dollarization Efforts by the New York Fed:

The New York Federal Reserve has restricted dollar transfers to reduce dollar flows to Iran and Syria. They have also excluded over two dozen Iraqi banks from transactions, which has increased the complexity and demand for dollars in Iraq.

The de-dollarization efforts by the New York Federal Reserve (New York Fed) are part of a broader strategy to control the flow of US dollars, particularly to countries under sanctions such as Iran and Syria. Here are the key points from the text:

1. Restriction on Dollar Transfers:

• The New York Fed has restricted the transfer of physical dollars to Iraq. Previously, both electronic dollars (via electronic funds transfer, or EFT) and paper dollars could be sent to Iraq. Now, the New York Fed primarily allows only electronic transfers while restricting the shipment of actual paper dollars.

2. Exclusion of Iraqi Banks:

• Over two dozen Iraqi banks have been excluded from doing transactions with the New York Fed. The New York Fed will not transfer funds to these banks or respect their transactions. This exclusion is part of the effort to control the flow of dollars and reduce the likelihood that they will end up in countries like Iran and Syria.

3. Objective of De-Dollarization:

• The primary goal of these restrictions is to reduce dollar flows to Iran and Syria. By limiting access to physical dollars and restricting certain banks, the New York Fed aims to make it more difficult for these countries to obtain US dollars, which are in high demand due to the devaluation of their own currencies and economic sanctions.

4. Impact on Iraq:

• The de-dollarization efforts have significant implications for Iraq. The restriction on physical dollar transfers and the exclusion of certain banks have added to the complexity and demand for dollars within Iraq. These measures are part of the broader challenge facing the Iraqi government as it tries to manage its dual exchange rates and stabilize its economy.

These efforts by the New York Fed are part of a strategic initiative to use financial controls as a means of exerting economic pressure on countries like Iran and Syria, while also attempting to mitigate the impact on the Iraqi economy.

You can read more on the history and consequences of the dinar exchange rate here.

https://www.iraq-businessnews.com/?p=221422