2014 Budget, Omitting Zeros, Debt and Money Frozen. What do all these have in common? They all have to do with currency reform!
Early this morning Pops posted a new 2014 Budget Article, this is exactly what I have been looking for, a clear understanding of where they are in the 2014 Budget process.
We found out that the budget that was in front of Parliament last Saturday, the 7th, which was discussed by the Members of Parliament was in fact the Council & House of Representative’s Budget and not the Federal Budget, so we have needed clarity on where they are with the 2014 Fiscal Year Budget and now we have it.
Read More Link On Right
Here's a quote from that meeting which also serves as the link too: "the meeting also saw discussion of the House of Representatives budget for fiscal year 2014."
This new article: Completion of the draft budget for 2014 and submit them to the Council of Ministers gives us a much better understanding of where the Budget is in the process.
Quote: "The budget for 2014 submitted to the Council of Ministers has not been approved yet and therefore did not reach the House of Representatives."
Quote: "From the budget is expected to take a full month until completed, and that next year's budget adopted 3 million and 500 thousand barrels of daily oil exports at $90 per barrel."
Quote: "estimates of the total budget so far reached 166 trillion Iraqi dinars is expected to be completed in November next fully."
Quote: "the Ministry of Planning and Finance until now in the final stages of drafting the budget and then send to the Cabinet for discussion in several sessions and then put on the House of Representatives to be read and voted upon."
With this new information, it sure is looking like January 2014 before they implement Currency Reform folks.
We should still wait on confirmation from the CBI on this but all the evidence keeps pointing us in that direction.
Here are a few things that should help:
1) Mr. Hadi heading up a new movement in the Finance Committee to pass the law next month to start omitting the (3) zeros from the currency.
For the newbies that still do not have a clear understanding of this, it means from the currency, not the value of the currency.
Quote: that the project of omitting zeros from the Iraqi currency.
This next quote tells me that they need to pass the law so they can take care of debt by getting their frozen funds freed up, they also need this for full membership into the WTO.
Quote: A finance committee member of Iraq stated that a law for omitting zeros from Iraqi currencies should be passed in order to confront the issues like debt and money frozen.
Quote: The project to delete the zeros is in frozen state now and cons of approval is launched without coordination with the executive bodies will stagger policy the country,stressing the need for coordination and agreement with the concerned authorities for approval within a proper timeline.”
Quote: It has been known that the project of omitting zeros from the Iraqi currency will like to take place in next month
Omitting means that the new lower denominations currency (LDC) will not have the zeros on them and deleting the zeros means that they will delete what is still in circulation at the time the project is launched.
Link: Omitting Zeros From Currency Finance committee member stressed n passing law for deleting zeros
2) To implement the project at the start of Iraq's New Fiscal Year makes sense, since that was the plan for 2013 but because of the demonstrators and political unrest it was delayed.
3) We know that the Finance Committee wanted to launch it early this year but we also know that they did not want to postpone it until 2014 but so far, this looks exactly what is happening:
Title: September 24, 2012 12:02 PM
Member of the Finance Committee .. speed up the implementation of the project to delete the zeros at the beginning of 2013 and not postponed to 2014
4) The progression of articles last year starting in July ended up telling the story even though we did not want to believe them at the time. We also know that they have a sense of urgency to get it done this year and why I believe that they have decided to pay off the remaining $10 billion compensation to Kuwait and to free up their frozen funds.
We are now seeing how that ties in with the law to omit and delete the (3) zeros: pass law, free frozen funds, pay off debt. But the Budget needs to include the new numbers, accounting and balance out the salaries, retirees, loans, etc….
5) We know that there is still some work to do to get Iraq full accession into the World Trade Organization. Debt issues, passage of a few more laws along with Iraq meeting the International Covenants are still needed.
Protection of Products Law No. 11: Parliaments only needs to read this one more time and then they vote on it. This could take place as early as this coming Tuesday.
International Covenants: These human rights laws have been passing through parliament with only a few more readings and they will be voted on and passed.
Debt Issues: As I pointed out above, Mr. Hadi wants the omitting zero law done as early as next month.
As you can see there are a few more things that need completed but we see these getting done, what’s another few months when it comes to the possibility of making a great return on our time and money.
Can it happen tomorrow or Monday as many call it time and time again? No, they must complete the process before implementing the project.
FYI, I sure would like to be wrong on this but I don't think I am!
Happy weekend to all and I hope this has helped. Stryker