An economic expert revealed the options available to the Ministry of Finance if oil prices continue to decline.
Salah Nouri told Al Furat News Agency: "The decrease in the selling price of exported oil affects the Ministry of Finance's commitment to financing the (current and investment) budget."
He explained that "the options before the Ministry of Finance are either to proceed with implementing the budget paragraphs, which means increasing domestic borrowing, which in turn affects the liquidity of government banks and the employees' pension fund, which are the lending entities, or to reduce funding for investment projects and some paragraphs of the current budget."
He warned that "reducing funding and spending leads to economic recession."
Nouri continued, "From a psychological and behavioral perspective, citizens with limited incomes fear the further decline in prices, which leads to a reduction in their monthly spending." link
MZ: “ Kurdistan Regional Government unveils upcoming tripartite meeting to resume all oil exports” Things are moving. Stability is there. Along with salaries being paid – this is all part of the HCL agreement. They did not give up the date of this meeting…..It may have already occurred.
MZ: “World Bank: Iraq has taken steps to develop Human capital” That sounds creepy due to translations. But it means they are taking care of their people. Education, Health Care and an educated work force.
MZ: “Iraqi dinar under pressure amidst regional tensions” They hid in this article a piece that we really like…They are shrinking the dinar note count which will increase the value.
Member: Did your bond contact get back with you after last nights appointment?? @Mark
MZ: On the bond side. The contact I was hoping could give me an update said they are now under an NDA. I am confident they got paid something at the table or they would not have signed it.
MZ: A couple other bond folks told me they did get their final paperwork but the plan is not to pay the until early next week. So paperwork is final…process is started but they will not get full release of their funds until next week.
MZ: I very much believe October will be our month…..I think we finally got off “stuck” in September and will see the fruition of it in October.
EXPERT COMMENTS ON THE RETURN OF THE DOLLAR EXCHANGE RATE IN BAGHDAD
Today, Thursday (September 26, 2024), Mustafa Hantoush, a researcher and specialist in financial and banking affairs, commented on the return of the dollar exchange rate to rise in Baghdad.
Hantoush said in an interview with Baghdad Today, “The dollar exchange rate in the local market is neither constantly rising nor constantly falling, but rather fluctuating, which means that solutions are possible to control this price, and the government has begun working on some solutions, including the directives of Prime Minister Mohammed Shia al-Sudani to return banking competition and not monopolize dollar transfers and others on some banks, as this competition will lead to greater stability in the exchange rate of the Iraqi dinar against the dollar.”
He explained that “there is a government trend to support the Iraqi banking system so that there are no specific banks controlling foreign transfers, and this is a good and important step,
in addition to developing international financial and banking relations, especially with the American side through the Prime Minister’s meeting with the US Deputy Secretary of the Treasury and discussing the status of the banking system and the dollar, and the meeting of the Central Bank of Iraq less than a month ago with the Treasury and the agreement to contract with the consulting company (Olver Wyman) to review the status of the Iraqi system (restricted by the dollar), which is supposed to sign a contract with it soon, which will have a positive impact on the dollar exchange rate file, and this matter reassures the street and reassures the market.”
He added, “The Iraqi government can work to create an official platform for the issue of trade with Iran and Syria using remittances or gold, in order for imports to be legal, and this reduces the great demand for the dollar through the parallel market, which is the main reason for the dollar’s rise above its official price.”
The US dollar exchange rate witnessed a significant increase in the past few days, reaching 152 thousand Iraqi dinars for every 100 US dollars in the main stock exchanges in the capital, Baghdad, as well as in the local markets, after it had recently witnessed a decline of 147 thousand dinars.
Can it get any clearer that Iraq is not in control of the RV?
Why would the US allow the RV to happen which would lead to a stream of income from the trading of the IQD on FOREX, if they want to maintain control over Iraq using blackmail methods to do it, thus using money to do it.
Remember “money talks, bullshit walks”. Please go read the section in this article on “BLACKMAILING IRAQ”. It will be an eye opener for sure for many of you.
This control also includes control over their currency moving back to the currency exchanges.
There is no sound legal basis for the hold up, other than the corruption of the US in prolonging the RV in the first place. Get it?
Most of this corruption would not have taken deep roots if they had let the RV go through in 2012-2013 as planned by Dr Shababi. As I said, and many others, the longer they wait for the RV, the harder it is going to be to uproot the corruption. Was this all intentional?
Where exactly was a lot of this lost or stolen money going? Did the US politicians get “kickbacks” from Iran the longer they let this go on? Yes, I know this all sounds almost unbelievably corrupt, but I am sorry to say that through Bush, Obama, the Biden, Trump administrations this scheme did exist. The nuclear deal was just a distraction from the real corruption. Get it?
Yet the US again acts as the bully and gets what it wants, even if it circumvents the sovereignty of Iraq.
Oh… wait one second! Did the US invade Iraq to free Iraq from the dictatorship of Saddam? It’s been over 20 years already and so where is all this freedom they promised? Remember two points:
1. Having a constitution does no good unless you follow it; 2. Money talks, bullshit walks. Do you see my point here? So, who is in control of the RV? Oh boy if you can’t see by now that, everything I have been telling you is true and that namely the US through the US Treasury has been holding up the RV, than I give up on you. This article takes all the intel guru guessing from this question. Read my lips, read the lips of the Iraqi people – It is the US that is holding up the RV. Get it now?
So, to conclude my commentary today I am not going to tell you some foolish, stupid bank stories or about some three-letter agency telling me “it’s all done”. Instead, I am going to make you a promise to keep giving you real and honest information from Iraq itself. Remember not to be fooled by all this nonsense from these intel gurus. They lie to you and deceive you. They are doing nothing more than speculating and guessing. Of course they have already taken my recent information and telling you there is a rumor about early 2025 RV. Folks I am here to tell you it is much more than a rumor, unlike their garbage they have been pumping out to you. Some information is not rumors, as these intel gurus can perceive the TRUTH even if it hit them in the head.
Every piece of forthcoming events told to me by my CBI contact so far have come to pass or are now underway. We have seen the consolidation of banks, the dissolving of some banks, and in today’s news we read about the defunding of some. Is this not what the US Treasury is in Iraq to do, as I was told? We also witnessed many educational articles and videos presented to us, sponsored by the CBI, as we were told would happen.
We were told prior to June that June would be the kick off of the process of the 3rd phase of the strategic projects for Financial Reforms and we witnessed the US Treasury then get involved. WOW!
I have to drill this into your mind to help you understand what is going on in Iraq.
Then we were told earlier that the project to delete the zeros, could not occur unless the US Treasury gave its assurances to complete the process once started, which meant to go all the way to the reinstatement (end of process).
It could not do this at that time and then the US Treasury finally stepped in and is now more forcefully and aggressively moving these reforms ahead.
We seem to see only mostly the banking reforms but they are also working to help recommend procedures and regulations of the Iraqi Stock Market (ISX) and get it back on track too. These are also reforms in case you forgot.
According to the US Treasury these reforms are necessary to combat corruption. Just so you remember my contact also told us that Ali Al-Alaq was not leaving the CBI as the director and his resignation was NOT accepted. He really did not want to leave but used this tactic for pressure to get the GOI Finance Committee to listen to him and to appreciate his plan to get to the reinstatement.
Many don’t want to listen and instead believe you can just hurry the process. This reminds me of many of the intel gurus out on the web that know absolutely almost nothing about what is really happening in Iraq.
AL-SUDANI ISSUES BANKING DIRECTIVES, INCLUDING SUSPENDING CAPITAL INCREASES FOR BANKS SUBJECT TO US SANCTIONS
A government source revealed, on Thursday, that Prime Minister Mohammed Shia al-Sudani issued directives related to financial and banking reforms, including not increasing the capital of banks subject to US sanctions.
The source told Shafaq News Agency, “Prime Minister Mohammed Shia al-Sudani, before leaving for New York, held a number of meetings with banks and the Central Bank of Iraq, where those meetings discussed in detail the Central Bank of Iraq’s plan to rehabilitate private banks by contracting with an international consulting company.”
He explained that “the Prime Minister directed a number of points, on the importance of the plan for developing private banks by Oliver Wyman Company being clear in terms of timing, distribution of responsibilities, and issuing progress reports in this regard.”
The directives included “accelerating the implementation of the recommendations issued by the Ministerial Council for the Economy to support Iraqi banks, including delaying the increase in capital for banks banned from dealing in dollars by the US Treasury.”
The source indicated that Al-Sudani also directed “the preparation of a study to activate the local cards project internally, as well as urging Iraqi ministries and institutions to increase dealings with licensed Iraqi banks in various banking services and open accounts with them.”
