IRAQ'S NEW INDUSTRIAL LAW

"THIS ACTION EQUALS HCL FOR CITIZENS!!!" BY FRANK26, 29 AUGUST

 KTFA

FRANK26:"THIS ACTION EQUALS HCL FOR CITIZENS!!!".........F26

Oil: We will achieve self-sufficiency in gasoline next year

8/26/2024

 

Baghdad

The Ministry of Oil announced, on Monday, that Iraq is close to achieving self-sufficiency in gasoline, while indicating that measures have been taken that have contributed to the decline in smuggling of petroleum derivatives.
The Director of the Oil Products Distribution Company, Hussein Talib, said: “The issue of reducing the import of petroleum derivatives depends on two important matters, the first of which is related to the refining industries and the development of refineries and their entry into operation, such as the Karbala refinery, which is considered one of the most modern refineries and produces 140,000 barrels, and the Northern Refineries Group, which has also entered into operation, in addition to developing the Dora refinery and adding the isomerization unit and the Shuaiba refinery.”
He explained that “these factors have led to the provision of products and reduced the import of petroleum derivatives,” noting that “Iraq has reached self-sufficiency in gas oil and white oil products, while self-sufficiency in high-octane gasoline (improved) will be achieved during 2025 according to the plans set by the Ministry of Oil and specialized agencies.”
He added, "The second matter that depends on reducing the import of petroleum derivatives is regulating the equipment and determining the real consumption of petroleum products. There are mechanisms put in place by the Oil Products Distribution Company to reduce unreal consumption, including issuing a fuel card for gasoline in Kirkuk and Nineveh governorates. " 

He pointed out that "gas oil is tightly controlled and we have controlled the flow of petroleum derivatives by installing GPRS systems for government and private cars," indicating that "this issue has limited the sale outside the controls and smuggling of petroleum derivatives."

He added, "Smuggling operations have declined during the current year as a result of the tightening of control over the software and technologies put in place by the Oil Products Distribution Company."

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DINAR REVALUATION REPORT: VIETNAM AS A PROMINENT PLAYER IN GLOBAL FINANCE, 29 AUGUST

 Vietnam's aspirations to elevate its status in the global forex market are indicative of its broader ambitions to assert itself in international finance. Several factors contribute to Vietnam's rising prominence in this arena:

1. Economic Growth: Vietnam has experienced rapid economic growth over the past few decades, driven by manufacturing, exports, and increasingly, a burgeoning service sector. This growth boosts the country's trade volume and foreign exchange transactions, making it a more significant player in the forex market.

2. Reforms and Policies: The Vietnamese government has been actively pursuing economic reforms and policies aimed at liberalizing the financial sector. Measures to improve the transparency and efficiency of the forex market are part of these reforms, which can attract foreign investment and increase the liquidity of the Vietnamese dong (VND).

3. Trade and Investment: Vietnam's expanding trade relationships and its role as a manufacturing hub for global supply chains enhance its involvement in global forex markets. Increased foreign direct investment (FDI) also plays a role, as investors need to exchange currencies, impacting forex volumes and liquidity.

4. Integration into Global Financial Systems: Vietnam's efforts to integrate more fully into the global financial system, including initiatives to align with international standards and practices, help boost its credibility and influence in forex markets.

5. Currency Internationalization: Vietnam's ambition to internationalize the VND involves increasing its use in international trade and finance. While the VND is not yet a major global currency, efforts to promote its use in regional trade agreements and bilateral transactions reflect a strategic push to enhance its global standing.

6. Regional Influence: As a growing economy in Southeast Asia, Vietnam’s forex activities also affect and are influenced by regional economic dynamics. Its role in regional trade agreements and economic forums adds to its influence in the forex market.

For Vietnam, achieving its forex ambitions involves balancing economic growth with stable currency policies, enhancing market infrastructure, and navigating international financial regulations. If successful, these efforts could solidify its position as a more prominent player in global finance.

Iraqi Dinar Update: The Delay in Forex Listing and What It Means for Ira...

"BECAUSE A NEW MONETARY REFORM IS ABOUT TO BE LAUNCHED!!!" BY FRANK26, 29 AUGUST

 KTFA

FRANK26: "BECAUSE A NEW MONETARY REFORM IS ABOUT TO BE LAUNCHED!!!".........F26

Prime Minister's Advisor Announces New Tax Reform Packages to Be Launched Soon

 

8/26/2024

Baghdad - WAA - Nassar Al-Hajj 

 

The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Saleh, announced today, Monday, the most prominent government steps to maximize non-oil revenues, while indicating the imminent launch of new tax reform packages.

Saleh told the Iraqi News Agency (INA):  "One of the basic principles of the government's program in the field of financial reform, which was approved by the Council of Representatives in October 2022, is maximizing non-oil resources in the general budgets of the Republic of Iraq, as quantitative targets were set for them so that their contribution to the total revenues generated by non-oil economic activity would increase to 20 percent instead of their historical rates, which do not exceed 10 percent at best."

He added, "Diversifying non-oil revenue sources and maximizing them in public budgets is one of the biggest reform challenges in the financial and economic fields in the country."

He pointed out that "these challenges come from two main factors: the first is the degree of connection between the diversification of budget resources and the success of diversification in the country's gross domestic product, especially the three sectors of agriculture, industry and services."

He explained that "the oil production sector still dominates a percentage of the components of that gross domestic product, which sometimes reaches 60 percent, which gives the national economy a rentier character and direct coexistence with the financial flows provided by the oil resource, mostly without anything else."

He added, "The second factor of these challenges is related to non-governmental activity in generating the gross domestic product, and we mean specifically the activity of the market or the private sector."

He added, "The majority of economic forces generating income and wealth within market activity conduct their economic activities within the framework of what is called the 'shadow economy', which are 'grey' markets that are not regulated and are not known to the regulatory, tax and banking authorities as is commonly known, and their percentage amounts to about 70 percent of the total private sector activity in the country."

He stressed that "the grey or shadow markets are one of the most important factors causing the decline in non-oil revenues in the country's general budget components."

He pointed out that "the first step taken by the current government to maximize non-oil revenues began with adopting a new approach to tax reform," noting that "the Council of Ministers approved earlier this year 8 new packages to reform the country's tax system, led by the principle of expanding tax bases, especially those that are hidden, evading or neglecting annual tax accounting."

He stressed by saying: "Two tax reform packages have been launched, and the remaining packages will be launched sequentially and gradually within the government's reform policy in the financial field and maximizing the state's resources from sources of income and wealth outside the oil sector, as this is accompanied by administrative and legislative reform and high-precision digital governance of tax institutions in the areas of assessment and collection with high transparency and efficiency."

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DINAR REVALUATION REPORT : BOLD'S MOVE OF ZIMBABWE'S GOLD BACKED CURRENCY, 29 AUGUST

 Zimbabwe’s recent move towards a gold-backed currency is an intriguing development that challenges conventional financial wisdom. 

In August 2023, the Reserve Bank of Zimbabwe introduced a gold-backed digital currency, a significant departure from the typical fiat currency systems most countries use. This approach has the potential to reshape both Zimbabwe's economy and its position in the global financial landscape.

Here’s a breakdown of the key elements and implications of this shift:

• Historical Context: Zimbabwe has a tumultuous history with hyperinflation, particularly evident in the late 2000s when the Zimbabwean dollar became virtually worthless. This led to the abandonment of its currency in favor of the US dollar and other foreign currencies.
• Economic Instability: The introduction of the gold-backed currency is part of Zimbabwe’s broader strategy to stabilize its economy and restore confidence in its monetary system.

Mechanics of the Gold-Backed Currency:

• Gold as a Backing Asset: The digital currency is pegged to gold, meaning that its value is directly linked to the price of gold. This linkage aims to provide a stable value, reducing the risk of hyperinflation.
• Implementation: The Reserve Bank of Zimbabwe holds physical gold reserves that back the digital currency. This system requires rigorous management to ensure that the amount of gold held matches the value of the currency issued.

Potential Advantages:

• Inflation Control: By tying the currency’s value to gold, Zimbabwe aims to prevent the kind of runaway inflation that plagued the Zimbabwean dollar.
• Restoring Confidence: A gold-backed currency can help rebuild trust in the country’s financial system and attract both domestic and international investment.

 Challenges and Risks:

• Gold Price Volatility: Gold prices can fluctuate, and this volatility might affect the stability of the currency if not managed properly.
• Gold Reserves Management: The Reserve Bank must maintain adequate gold reserves to back the currency, which requires transparency and effective management to avoid issues of over-issuance or mismanagement.

Global Implications:

• A New Model: If successful, Zimbabwe’s approach could offer an alternative model for other countries struggling with hyperinflation or currency instability.
• Skepticism and Adoption: The broader financial community might be skeptical of this model’s long-term viability. The success of Zimbabwe’s gold-backed currency could influence discussions about the role of gold in modern monetary systems.

 Looking Forward:

• Monitoring Impact: The real test will be in the currency’s performance over time. Observers will closely monitor inflation rates, economic growth, and the currency’s stability.
• Broader Trends: Zimbabwe’s experiment with a gold-backed currency might spark renewed interest in precious metals as a basis for currency stability in other parts of the world.

In essence, Zimbabwe’s gold-backed currency represents a bold and unconventional approach to addressing economic instability. Whether it will succeed in stabilizing the economy and restoring confidence remains to be seen, but it certainly provides a fascinating case study in alternative monetary policy.

Evening News with MarkZ. 08/28/2024