Tuesday, July 9, 2024
Coffee with MarkZ. 07/09/2024
LATEST FROM MNT GOAT : "EVERYTHINH IS SET TO MOVE AHEAD WITH THE PROCESS OF CURRENCY REFORM & PROJECT DELETE ZEROS
LATEST FROM MNT GOAT
I just want to conclude today by saying that everything is set to move ahead with the process of currency reform. We are just waiting. We know that the next step must be taken to move ahead and that is to revalue in-country only first just slightly over a dollar, then conduct the Project to Delete the Zeros as the currency swap out takes place.
The CBI told us then they plan to monitor for a short time for inflation and then move to reinstate the dinar back to FOREX and when doing so the IMF plans to place the dinar in a new peg as in a basket of currencies and float it. Today we witnessed a confession by former MP Ayoub Al-Rubaie who confirmed on Tuesday that Washington failed in Iraq by stalling this work.
Yes, we still also wait for the Oil and Gas law. In my last Newsletter dated 6/27 I presented an article explaining, once again, the issues preventing this law from moving ahead as quickly as they desire. So, knowing this could this actually be the reason why Biden is stalling.
Is this then Biden’s fault or Iraq? Remember Iraq did agree to “fully” implement their constitution and the US told them they will not reinstate their currency until it is implemented. But remember this was not the only issue and so let’s not now go off half-cocked once again with this foolish mindset that one event will trigger the RV. Just also remember once again all the intel guru lies about the budget and how they tried to convince everyone the new RV rate was in the budget. It was not and never will be. This was out of ignorance. Let’s not go down that road again…..please! 😊
Al-Sudani Directs To Reconsider Some Economic Decisions
Al-Sudani Directs To Reconsider Some Economic Decisions
Economy | 08/07/2024 Baghdad - Mawazine News Prime Minister Mohammed Shia Al-Sudani confirmed today, Monday, that the government has provided the private sector with great supportive opportunities and worked to empower it, while directing a review of some unproductive economic decisions and policies. Al-
Sudani chaired the periodic meeting of the Ministerial Council for the Economy, in which the decisions related to the economic reality and the implementation of the reform aspects included in the government program were followed up, according to a statement received by Mawazine News Agency.
At the beginning of the session, Al-Sudani pointed out "the importance of reviewing the economic decisions and policies that were taken in previous stages, and that the time has come to stand up to a number of unproductive work contexts and practices, and that reform requires strong and correct decisions."
The Prime Minister explained that "the government has provided the private sector with great supportive opportunities, and worked to empower it and launch its projects, and it is closely following up on everything required to continue the pace of growth, and its supportive decisions will not be directed towards the benefit of groups that live on specific outlets, without providing a contribution or returns to the country."
The statement added that "the Council discussed the report of the Diwani Order Committee (24573), headed by the Deputy Prime Minister and Minister of Planning, to follow up on the volume of support directed to petroleum products and fuel supplied to factories and plants and to the Ministry of Electricity."
The statement explained that "the Council also followed up on the issue of taxes due on companies and ways to organize them, and approved the adoption of a clear mechanism for the tax, in addition to approving the work to separate the real operating factories from the fictitious factories and audit the numbers and tables presented in the report and adopt an economic vision that supports the export of factory products and expansion of production."
The statement continued that "on the organizational side, the Council approved the formation of a technical committee from the sectoral bodies in the Ministries of Oil and Trade, in addition to the Council of Ministers' advisors; in order to control roles and resolve loose ends," and directed "to set the next meeting within a week to make final decisions." https://www.mawazin.net/Details.aspx?jimare=250986
Evening News with MarkZ. 07/08/2024
Mazhar Muhammad Saleh: Our Cash Reserves Are The Highest And There Are No Fears Of The Dollar Rising
Mazhar Muhammad Saleh: Our Cash Reserves Are The Highest And There Are No Fears Of The Dollar Rising
Economical 07/09/2024 Baghdad: Al-Sabah Yesterday, Monday, the financial and economic advisor to the Prime Minister, Mazhar Muhammad Saleh, commented on the return of the rise in the exchange rates of the US dollar against the Iraqi dinar in local markets.
Saleh explained, “The fixed exchange rate system in Iraq is based on international reserves, which are the highest in the history of Iraq and its monetary policy, as the foreign currency covers a percentage of more than 100% of the total currency currently exported.”
He added, "In view of the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market today in the country does not constitute any relative importance in influencing the stability of the general price level, as
that general price level has become stable in its components and trends as a result of the influence of the official exchange rate factor."
Currently, the dominant factor in financing foreign (import) trade, amounting to 1,320 dinars per dollar, is a stable trend in the exchange rate and revolves around the stable external value of the dinar,
which is embodied by the state of stability in the relative prices of goods and services to a large extent, as annual inflation in the country does not exceed only 3%. According to Saleh,
based on the above, and in light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that is affected by the parallel exchange market in periods.
Short periods due to urgent international or regional political events here and there or in adapting some instructions regulating the monetary market.
The Sudanese advisor for financial affairs said that after the disappearance of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments inside the country since last year and its legal ban, the parallel exchange market has begun to have its general effects today only on a narrow economic scope of prohibited transactions practiced by informal markets. At a rate of 10% of the total supply and demand transactions for the currency. Saleh stressed that
“the stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets mentioned above, is a real and established stability.
Rather, it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country and containing the inflationary expectations that were caused by the forces of The parallel exchange market during the past years. The financial advisor concluded his speech by pointing out that
“the secondary (irregular) market, due to the freedom of external transfer, is under the influence of the official exchange market rate, whose operations are constantly expanding in the interest of dealing with the fixed official exchange rate.” https://alsabaah.iq/99176-.html
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