Economist: Reserves in the Central Bank vary between dollars and gold, 29 JAN

 Economist: Reserves in the Central Bank vary between dollars and gold

Economist Salah Nouri said on Tuesday that the reserve in the Central Bank consists of (the dollar currency, the euro currency, gold is based on the London market price.

In his interview with {Euphrates News}, Nouri explained that “the Central Bank’s policy aims to diversify the investment portfolio between the dollar currency and gold, as this portfolio is managed according to global variables.”

He pointed out that “the central bank has investments in the form of debt bonds in the US Treasury with acceptable interest.”

“In light of the current international changes and the statements of US President Trump, the central bank can move towards gold as a safe haven,” Nouri continued.

He added: “According to the central bank’s announcements, gold reserves promise the level of safety, in addition to the dollar reserves, which can help maintain economic stability.”

Regarding economic challenges, Nouri pointed out that “the difficulties that Iraq may face are related to the financial policy managed by the Ministry of Finance, as the low oil prices and determining the amount of exports and problems with the region lead to a decrease in the ministry’s revenues from oil sales in dollars, as well as the US Federal policy that transfers the dollar to the Ministry of Finance.”

“These difficulties in fiscal policy negatively affect the monetary policy pursued by the Central Bank of Iraq,” Nouri continued.

From.. Ragheed

https://alforatnews.iq/news/خبير-اقتصادي-الاحتياطي-في-البنك-المركزي-يتنوع-بين-الدولار-والذهب

TIDBIT FROM PIMPY, 29 JAN

 Pimpy 

 This is what I was talking about, once Trump gets into office how is this going to affect Iraq.  

You see Trump has already approached Saudi Arabia and OPEC to ramp up production of oil.  If they ramp up production of oil this will drive down the cost per barrel.  Of course here in America we benefit from it, lower gas prices...Iraq...

they have built everything based on $70 per barrel of oil.  Now the new budget hasn't passed yet.  

One of the things...they need to figure out is how much they think they're going to get per barrel.  If they ramp production that's diluting the market with oil.  That's going to cause the price to go down. That's one of the things I was concerned about.

MAJEED: READY TO GO ON FOREX!! @DINARREVALUATION #iraqidinar #iraqidinarinvestor

 

Iraqi Business Council: Budget deficit threatens salaries and a delegation from the Central Bank will visit Washington soon, 29 JAN

 Iraqi Business Council: Budget deficit threatens salaries and a delegation from the Central Bank will visit Washington soon

The head of the Iraqi Business Council, Daoud Abdul Zair, considered the continuation of the budget deficit a “great danger” on salaries, while he revealed an upcoming visit by the Central Bank of Iraq to Washington to discuss important issues.

Abdul Zair, during his hosting in the program {Free Words} broadcast by Al-Furat satellite channel on Tuesday evening, said: “The rise in operational spending since 2019 is due to employment, government and federal obligations, and employee salaries, along with the requirements of the political and administrative situation of the state, 

explaining that “80% of operational spending goes to salaries, while 10% is allocated to sustain the management of public resources.”
Abdul Zayer pointed out that “corruption represents a prominent problem in government spending in general, including operating spending,” stressing that “the main imbalance lies in the philosophy of managing the economy in the country, where salaries are supposed to be financed from local revenues.”

He added that “the Prime Minister has diagnosed this defect; however, Iraq always faces emergency crises that prevent the provision of a suitable climate to convert oil resources into development and investment projects capable of covering part of operational spending.”

“Salaries constitute a great burden on the budget, as it reaches 8 trillion dinars,” Abdul Ziyar said.
Regarding financing, Abdul Zair stressed that “the internal debt is safer and faster compared to the external debt, which imposes complex restrictions and conditions on Iraq,” warning that “the continuation of the budget deficit constitutes a threat to salaries,” pointing out that “the Central Bank’s reserves represent the sovereign fund of Iraq.”

He touched on “the impact of oil price fluctuations, saying that the reserves of the Iraqi dinar are based on oil reserves, which gives Iraq flexibility to act in the event of low oil prices,” adding that “Iraq’s non-compliance with OPEC decisions on reducing production may lead to low prices.”

“An upcoming visit by the Central Bank of Iraq to Washington to discuss intractable issues, such as the exit of the dollar to punishing countries, and foreign trade through American banks to ensure control over the transfer of funds,” Abdul Zair revealed.

He pointed out that “as of this year, the bank account will be financed in dollars directly from the central bank away from the currency auction, and the process will be limited to 5 local banks approved by the US Treasury, most of them foreign.”
Abdel Zair concluded by pointing out that “the performance of the central bank so far does not meet the ambitions,” stressing that “reliance on the export of crude oil will remain a chronic problem unless it is converted into oil industries that contribute to supporting the national economy.”

Wafaa Al-Fatlawi

https://alforatnews.iq/news/مجلس-الاعمال-العراقي-عجز-الموازنة-يهدد-الرواتب-ووفد-من-المركزي-يزور-واشنطن-قريباً

TIDBIT FROM MNT GOAT, 29 JAN

 Mnt Goat  

The below message recently comes up on this site [xe] when you inquire about the IQD. It says “Notice IQD may be redenominated”. 

This redenomination is the newer lower denominations we have been waiting for. Yes, they will have to execute the Project to Delete the Zeros.

 We know that the CBI must also raise the rate of the dinar at par or just over a dollar within country to get this project started and create incentives to turn in the dollars.

 This is really the final push to de-dollarize Iraq. The CBI still needs to break this parallel market. As long as the dinar is much lower than the dollar this issue will linger.

Reinaldo JC: The CBI needs to EXPOSE/CHANGE/INCREASE the Dinar rate! for approve the Budget! #iqd

 

Sudanese reviews the salary file of Kurdistan.. A delegation from the region visits Baghdad on Friday, 29 jan

Sudanese reviews the salary file of Kurdistan.. A delegation from the region visits Baghdad on Friday

The Undersecretary of the Ministry of Finance, Ribaz Hamlan, announced on Tuesday that he discussed the salary file of Kurdistan Region employees with Prime Minister Mohammed Shia Al-Sudani.

“We visited Prime Minister Mohammed Shia Al-Sudani, and discussed during the meeting the financial situation and the challenges we face during the current year, then we informed the Sudanese about the budget and salaries of the employees in the Kurdistan Region, and the message of the Prime Minister of the Kurdistan Region Misroor Barzani came during the last extraordinary meeting of the Council of Ministers of the Regional Government on this situation, which was held on the 11th of this month,” said in a statement.

He added, “I explained to the Prime Minister in detail all the steps that the Kurdistan Regional Government and the Ministry of Finance are working on on a daily basis in the presence of representatives of the Federal Ministry of Finance, but the salaries of the employees of the region are very late, and then I mentioned that the demands of the Kurdistan Region is within the framework of the Constitution to treat it as a region, the budget law and the decisions of the Federal Court and apply them as they are regarding the financial dues of the region.”

He concluded his statement: “Everyone is waiting for a meeting next Friday in Baghdad between the delegations of the Kurdistan Regional Government and the Federal Ministry of Finance headed by Fouad Hussein, Deputy Prime Minister and Chairman of the Iraqi Economic Council.”

https://alforatnews.iq/news/السوداني-يطلع-على-ملف-رواتب-كردستان-ووفد-من-الإقليم-يزور-بغداد-الجمعة