Sudani: Iraq is moving towards a market economy
BAGHDAD / Al-Sabah: The Minister of Labor and Social Affairs Mohammed Shiaa al-Sudani said that Iraq, having achieved victory over terrorist gangs, is witnessing a qualitative shift in its policies towards a market economy.
“The government has embarked on a package of economic reforms to support the private sector and create an attractive environment for investment,” Al Sudani said during a speech at the Islamic Conference of Labor Ministers held in Jeddah, Saudi Arabia.
The Sudani, said «the Ministry of Labor and Social Affairs and its supporters began to pay attention to issues of poverty and unemployment through the enactment of new laws».
Article Credit: alsabaah.iq (Special Thanks to Tim Tarkington)
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Efforts to develop financial management and investment in 2018
To achieve a renaissance in Iraq’s economy
Baghdad / Sabah – The Ministry of Finance seeks to implement the modernization of public financial management systems by providing advisory services to the Independent External Auditor for the years 2017 and 2018 for public finance management, public investment management and public procurement at the federal level, at a time when the competent specialist to provide the staff for the success of this project to achieve economic renaissance Inclusive.
International Finance
According to a publication on the Ministry’s website, the Ministry of Finance has received funding from the World Bank to cover the cost of the project and to allocate part of the funds for consultancy services.
“Consultancy services (services) include the recruitment of an independent external audit firm to audit the financial management and investment management of the project, which is expected to start the work of consultants during the month of July 2018. Ensure transparency between the publication on the website of the Ministry of Finance The main objective of the auditor’s work is to enable the auditor to clarify the professional opinion whether the submission of the financial statements of the project for the years ended December 2017 and December 2018 in a transparent and fair in all respects, and all cash received
And year-end payments, accumulated from start-up to year-end, in accordance with IPSAS on the basis of cash accounting.
The auditor also provides internal control over financial reports related to the preparation of replenishment payments, direct payments, payments made under special commitments and recoveries such as reimbursements based on reliable expenditure statements to support related cash withdrawals.
The projects in all respects comply with the laws, regulations, guidelines and provisions of the loan agreement. Database
“The accounting system for the project, books and records, provides the basis for the preparation of the PFS.” The project’s financial transactions are to be recorded and maintained by the PEA and the Finance and Planning Ministries through project management teams appointed to direct, manage and coordinate project activities in accordance with the requirements The loan agreement between the Government of Iraq and the World Bank, the Project Valuation Document, the Operational Manual of the Project, and the World Bank’s Directives on Expenditure and Supply Investment Directive In turn, the academic economist Dr. Essam Mohammed Hassan described this project as an important step not Management of investments and the direction of investments according to the actual need for the requirements of the current stage and the country’s need for infrastructure.
He said in an interview with Sabah that this would “provide the opportunity to prepare Iraqi cadres to enter heavily in investment programs, which will absorb unemployment and provide access and gain practical experience.”
He stressed that “now is the time to implement this idea and not with the government, the private sector also from companies and banks until migrating experiences return home.”
He pointed out that “hundreds of thousands of jobs in Iraq will be available when the implementation of the decisions of the Kuwait Conference for Reconstruction, which calls for the start and provide the young cadres of workers and technicians, accountants, managers and operators of computers and work monitors and other disciplines that would achieve a comprehensive economic renaissance “He said.
Article Credit: alsabaah.iq (Special Thanks to Tim Tarkington)
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Central Bank of Iraq Auctions $194,248,986 on 25 February 2018
Baghdad (IraqiNews.com) The Central Bank of Iraq (CBI) currency auction on February 25 registered $194,248,986 in sales, a -0.33% volume decline from the US $194,883,291 sold by Iraqi Dinar, credit and transfer at the previous auction held on February 22.
The latest auction was attended by 45 banks and 9 remittance companies. The same institutions attended the auction held on February 25 compared to the previous auction.
Data for the February 25 auction was made public by CBI Announcement Number 3642.
Dollar sales in the in the period January 1, 2018 to February 25, 2018 saw an increase of -1% compared to the sales of US $5.7 billion in the same period in 2017. The total amount of US currency sold by CBI in the calendar year 2017 was US $15.7 billion.
An analysis of the monthly dollar sales by CBI since January 2016 reveals highly fluctuating volumes. During the period from January 2016 to February 2018, sales of US dollars averaged US $1.81 billion per month. Peak volumes were reached in May this year when sales touched US $2.3 billion.
Article Credit: https://www.iraqinews.com/business-iraqi-dinar/central-bank-of-iraq-auctions-194883291-on-22-february-2018/
BGG ~ I will continue to highlight the regular auctions. After recently asking around about the reasons for the “tightening” of the supply of Dinar in the U.S… one of the main reasons I got was the fewer and fewer auctions. Wait – what?!? They are still having fairly robust auctions.
So, obviously, that’s not true… so what is it?
Another possibility is this MASSIVE financial embargo on Kurdistan, provided this was where currency was coming from.
I have also heard of a couple of major players talking about having money in – or being able to get money out of Kurdistan… all baloney. Kurdistan has been under very tight controls since snubbing the world diplomats with this sham vote pushed by Barzani.
Why was it a sham vote? Simple fact: you can’t just take what isn’t yours to take just because you vote on it.
Back to my previous rebuttal – anyone who actually had money in Kurdistan would have either gotten it out or is REALLY “up a creek”… likely just more B.S.
So…
1) Fewer auctions?
2) Tightening borders (fewer exports)?
3) More demand? I sincerely doubt it.
4) IMHO and most likely, the supply here in the U.S. from disgruntled sellers, which is likely where the bulk of the U.S. supply really comes from, and current interested buyers has finally reached a point of parity where the “supply – demand” scales are more evenly balanced.
Hence, the price goes up.
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Today, the dollar is falling against the Iraqi dinar
(Independent) .. The prices of the dollar exchange rate resumed the decline with the beginning of this week on the stock market and local markets on Saturday (24 February 2018).
Kifah Stock Exchange – Baghdad 122.250 dinars, while prices for Thursday 122,500 dinars.
Selling and buying prices in banking shops:
Selling price of the dollar = 122.750 dinars.
The price of buying the dollar = 121.750 dinars
Article Credit: mustaqila.com (Special Thanks to both Charles and Tim)
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Mike (Dinar Guru) – …the current reality is that the dinar is pegged to the dollar and under Article XIV, there is just about zero demand for a currency you can’t spend outside the country, pragmatically, why would anyone want it? To become a currency that’s internationally recognized under Article VIII with the IMF they have to hold this rate for a minimum of 90 days, it’s too easy to manipulate the rate for a short term and it doesn’t prove that Iraq has it’s act together and has the ability to maintain stability. There’s no reason any other country would accept it for payment for imports, they want the dollar. Like always, time will tell us what’s really going on, if Iraq can get the rate within the 2% band for minimum compliance with the IMF”s MCP requirements, all they have to do is hold it and hopefully they can accept the responsibilities Article VIII.
Read more: http://www.dinarupdates.com/observer/
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MilitiaMan (Dinar Guru) – Article: “Association of Private Banks concludes the course «Accounting for financial institutions” I would think [Quote] “the stability of the dollar exchange rate against the dinar will encourage foreign companies to invest inside Iraq.“, especially when it is 1:1 or better and not a program rate we currently have thus far today.
Read more: http://www.dinarupdates.com/observer/
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By Jack Detsch for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
Pentagon Stops Budgeting for Peshmerga Salaries
The Trump administration’s budget proposal for next fiscal year does not include peshmerga salaries even as the Pentagon aims to continue training the Kurdish force.
The Department of Defense had requested $365 million in stipends for the year that ends Sept. 30 but did not spend the money after negotiations to extend an expiring memorandum of understanding broke down in September. Iraqi Prime Minister Haider al-Abadi had agreed to pay the peshmerga wages in October, but a US Inspector General report released earlier this month said the Kurdish fighters still hadn’t been paid
“Those documents do not specifically refer to training/stipends for the peshmerga,” Pentagon spokesman Eric Pahon told Al-Monitor in an email today. Lawmakers have yet to weigh in on the $716 billion Pentagon request for fiscal year 2019.
Instead, President Donald Trump’s budget request for the year starting Oct. 1 seeks $850 million to train and equip Iraqi troops with a focus on bolstering the Iraqi Security Forces with Ranger brigades. As part of that amount, the peshmerga force of about 150,000 could still be eligible for up to $290 million in so-called operational sustainment funds aimed at preventing the Iraqi government from becoming more reliant on Iran and Russia, according to budget language.
The shift in focus by the United States comes as the Iraqi Kurds have been marginalized by Baghdad following the Kurdistan Regional Government’s (KRG) controversial independence vote in September. As a result, US and peshmerga officials are at odds over how much assistance is actually getting through to Erbil since Baghdad has to sign off on any weapons shipments to the Kurdish troops.
“Right now, the Iraqis are stopping a lot of stuff,” said Michael Knights, a researcher at the Washington Institute for Near East Policy.
Though the Pentagon acknowledges that the peshmerga proved helpful to the US-backed coalition until the beginning of the Mosul fight in 2016, the Kurdish force has faced difficulties in assimilating US equipment, experts say, in part because the peshmerga relies on its own training structures and tactical formations. The US-led coalition said in December that 5,200 American advisers in Iraq had stopped advising the peshmerga as the Pentagon appears set to draw down its presence.
Over the past year, the United States also sold the Iraqi government nearly $300 million worth of military equipment to outfit two infantry brigades with M-16 rifles, .50 caliber machine guns, up-armored Humvees and mine-resistant vehicles. That was cut down from an initial effort to outfit four peshmerga brigades — each typically between 4,000 to 8,000 troops — including a border unit.
“Peshmerga brigades didn’t fit a US brigade set,” Knights told Al-Monitor. “A lot of the German equipment went everywhere. Gucci German assault rifles got given to commanders and bodyguards.”
The US-led force has trained 26,000 peshmerga over the course of the anti-IS mission that began in 2014. Even though the funding stream appears to be in a winnowing process, the United States and the KRG remain engaged in high-level dialogues, with the peshmerga still playing an important role as the Pentagon aims to curb the influence of Iran-backed Shiite militias that are enmeshed in the Iraqi Security Forces.
In meetings in Washington in November, the head of the KRG’s Department of Foreign Relations called for the United States to do more to encourage talks with Baghdad and keep tenuous supply lines open on the border, including the Fish Khabur crossing, a critical lifeline for the 2,000 US troops serving in Syria.
“We already have border guards,” Falah Mustafa told Al-Monitor in a November interview. “Border guards are wearing Iraqi uniforms, they are on the payroll of the Iraqi government, they are getting instructions and directives from the Iraqi government in Baghdad.”
(Picure Credit: David B. Gleason)
Article Credit: al-monitor.com (Special Thanks to Paul Moseley)
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Kaperoni (Dinar Guru) – Article: “Dollar exchange rate and gold in Iraq on Thursday prices” Quote: “According to figures received by the “Economy News”, it has reached sales of $ 100 at the exchange rate in Baghdad struggle to 122,000 dinars, while the purchase was 121.750 dinars, after it was 122.250 yesterday, settled with the sale price of $ 100. In Erbil Stock Exchange 122.750 dinars, and when the purchase was 122.250 dinars.” So pretty much the spread is 1220 to $1 They still got about 7 dinar to go to get in compliance.
Read more: http://www.dinarupdates.com/observer/
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Kaperoni (Dinar Guru) – [I read that the Official Rate is 1180.] …the CBI auction post under CBI news states the price at 1182. … market forces (interbank) are minimal at this point plus the CBI has pegged to the dollar. …that is why the CBI cannot stay pegged once in compliance. The CBI needs to move to a different exchange rate regime (some type of float) which would allow flexibility to adjust the value of the dinar based on economic pressure (this is known as discovery) created by investment. …I think its key to understand why they CBI must move off the peg before investment begins… “Adopting a flexible exchange rate before liberalizing the capital account enables a country to absorb capital account shocks at lower cost to the real economy than under a fixed exchange rate. By contrast, liberalizing the capital account first can help offset temporary current account shocks, expand the range of instruments available for risk management, and deepen the foreign exchange market.”
Read more: http://www.dinarupdates.com/observer/
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Barzani and McMaster discuss political and security developments and Washington’s bilateral relations with Erbil
In his first meeting after his arrival in the US capital …
News / Kurdistan – In his first meeting with US administration officials after his arrival in the US capital Washington, the adviser of the Security Council of Kurdistan Region pleased Barzani, on Thursday, with US National Security Adviser Herbert McMaster, bilateral relations between the Kurdistan Region and the United States, and recent political and security developments.
Representative of the Kurdistan Regional Government in Washington Statement Sami Abdul Rahman, written on her account on the site of social networking , in connection with the meeting: «There has been fruitful dialogue on the latest political and security developments, economic development, as well as the development of relations between the Kurdistan Region and the United States».
The adviser of the Security Council of the Kurdistan Region pleased Barzani arrived in the United States on Thursday afternoon.
Barzani is expected to hold meetings with several senior US officials in the White House and members of Congress, discuss the region’s relations with the United States, and the outstanding problems between Erbil and Baghdad.
Barzani’s visit to Washington follows his participation from 16-18 February in the Munich International Security Conference.
This visit is the first official high-ranking official to Washington since the referendum on independence from Iraq, which was conducted by the Kurdistan region on 25 September last and won an overwhelming majority in favor of independence.
Article Credit: basnews.com
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Some interesting headlines…
The parliamentary pledge to approve the budget by a tripartite meeting and a repeat scenario
Baghdad agrees to raise the proportion of Kurdistan from the budget and Erbil is waiting
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Baghdad freezes investigation process of the fall of Mosul
An investigation into how the city of Mosul fell to Daesh has stalled. A senior official in the Iraqi government told The New Arab that “the investigation into the fall of Mosul has now been frozen.” He explained that the investigation directly blames former Prime Minister Nouri Al-Maliki, a senior aid Tariq Najm, former Defence Minister Saadoun Al-Dulaimi, former Undersecretary of the Ministry of the Interior Adnan Al-Asadi, as well as senior military commanders in the Iraqi army, senior officers of the Federal Police and local officials.
Thus far the investigation has taken eight months and heard 100 testimonies from politicians and military leaders.
The senior official stressed that “the investigations and the statements of officers and reviews of recorded telephone conversations between the military leadership in Mosul, before its fall, and the office of Al-Maliki, reveal the existence of what is more likely a plan. All the details of Daesh members’ movements and their advance were being sent to Maliki, without his order.”
The official said that the investigation had show that al Maliki had sought to use the the fall of Mosul and its recapture as a boost to his political campaign. However the army quickly collapsed and his plan failed. In fact the flow militants into the country from Syria led to the a total loss of control on the part of the government and Iraqi forces.
However, he stressed that the investigation will not be resumed again during the government of Haider Al-Abadi. This isn not because of insufficient evidence but because the investigation of the case targeted very senior people.
In late 2014, the Iraqi parliament voted to form a committee to investigate the causes of the fall of Nineveh province, at the request of 89 deputies. Moreover, in August 2015, it recommended the trial of 70 security and political officials, including Al-Maliki, holding them responsible for the escape of Iraqi forces from Mosul and Daesh control over it.
The report of the investigation committee included testimonies of military leaders who confirmed that Al-Maliki and the Governor of Nineveh at that time, Atheel Al-Nujaifi, were responsible for the fall of Mosul.
A Nineveh province council member, Hossam Al-Abar, stressed that “political compromises and factional and partisan interests led to the delay in resolving the issue of the fall of Mosul, and the absence of its results till now.”
He explained to The New Arab, “the government of Nineveh demanded, more than once, during meetings with Al-Abadi and Speaker of Parliament, Salim Al-Jabouri, for pressure on the judiciary and hold those who are convicted to account”.
He added that “the delayed announcement of the result of the investigation document, indicates the existence of considerable political pressure.”
In June, 2017, the Iraqi MP Abdul Rahman Alloizi, revealed the existence of political persons “more powerful than the law” who are involved in the incident, noting that “the absence of political will to hold accountable the involved parties, especially that those in charge are prominent figures and from all types and sects, made everyone silent and unwilling to advocate justice.”
A member of a coalition of state law, led by Al-Maliki, Iskander Watut, considered that “the investigation of the fall of Mosul neglected the names of political and military figures.” He explained to The New Arab that “the authors of the document neglected for example the statement of the Chief of Staff of the Iraqi army, Babaker Zebari, who said that he ordered the withdrawal of military forces from Mosul, as well as not directing enough charges in the incident to the President of Iraqi Kurdistan, Masoud Barzani.
He added “I am not defending Al-Maliki, but to holding him fully responsible is illogical. It was not his fault, it is rather the fault of his military counsellor, Farouk Al-Araji, who failed to warn Al-Maliki of the danger of the breakthrough that occurred in Mosul.” He stressed that “the file is currently in the hands of the judiciary, and we trust it, but the follow-up committee of the case which is appointed by the Iraqi parliament is acting with a clear political bias.”
At a time when MPs and political figures believe that the investigation document is in the hands of the Supreme Judicial Council, the supreme administrative authority responsible for Iraqi judicial affairs, a legal source from the Council confirmed that “the document was only handed over by the investigation committee to be checked, as the incident of Daesh’s occupation of Iraqi areas, where there are numerous security members, and the withdrawal of the army from Mosul is a military crime.”
The source, who spoke on condition of anonymity, added that “the fall of Mosul is a military crime, and the process of trial must be carried out before the Iraqi military courts,” noting that “the ordinary judiciary has nothing to do with this case.”
Article Credit: middleeastmonitor.com (Special Thanks to Charles Bright)
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Click this link to join the DU “private” FaceBook Group…
https://www.facebook.com/groups/571383766355188/
(go here and ask to join… then add some Dinar Friends!!)
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Post RV Checklist (it’s getting to be that time!! Listen up!!)
Dos and Don’ts of Windfall Wealth:
Treat it like a PowerBall win
– Tell no one, not even family. If you must talk, do so with one who is already in the know.
– Don’t run out & buy new “stuff”. People notice.
– Get an unpublished number and give it out very sparingly.
– Get a tax accountant you can trust to make sure the IRS is satisfied (Certified Opinion is something to look into) and pursue asset protection…
Read Complete List: http://www.dinarupdates.com/showthread.php?18519-The-Post-RV-Checklist-and-Flashback-documents&p=128477#post128477
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Under Conference : Kuwait , the results of which are discouraging to solve the problem economic Iraqi especially after the devastation resulting from the grinding war on terrorism must think of radical solutions and take advantage of other peoples experiences
Erbil-Baghdad Agreement Imminent
A total of 6,000 cases of corrupt officials have been brought in by former and current governments, of which about 3,000 have not been completed, government sources said on Sunday.
The Commission on Reconciliation, Accountability and Justice in the House of Representatives, that next week will see the announcement of the names of about 5,000 people included in the seizure of funds.
$30bn Pledged to Iraq – Time to Act!
Iraq is ready to reform the financial and economic sectors
WASHINGTON, United States – The US President Donald Trump has reportedly called an Iraqi delegation visiting him in the Oval Office last year “thieves,” according to a report by Washington Post published earlier this week.