aggiedad77 » April 17th, 2015, 10:12 am
Friday News Summaries and Commentaries
Efforts to identify the mechanisms of the Iraqi economy
According to one economist the starting point of the economic mechanism for Iraq is a market economy along with identifying the role of both the public and private sectors....that makes sense....right up front identify the players and what will be expected of them in order to achieve what you expect....in the meantime they should look to the CBI for much of the gameplay that will see the market economy put into serious play.
Specialize demanding amend the Banking Act and stress: It has 600 branches and total funds amounted to one billion and 600 million dollars
There is a call to strengthen amendments in the Banking Law....strengthen them to help private banks thus allowing them to be effective in assisting in meeting the challenges faced within Iraq today and into the future.....
Much of the economic collapse within Iraq has been responsible for the weakened affect on private banks and even in a lowering of confidence in the government sponsored banks....recovery for the many banks within Iraq started after 2003 but was ground to a halt due to issues related to political and security problems....
There is no doubt there is room for improvement in the Iraqi banking system, in particular associated with the private banks....the government is working in this direction as we speak....but do they recognize the full implications of what needs to happen....only time will tell.
President of the World Bank for the servants, we will contribute to the financing of urgent projects in the liberated areas
Notice this is from the World Bank GROUP.....the humanitarian arm of the World Bank who remains committed to helping finance those projects in liberated areas that are deemed to be "urgent".....water, electricity, and other such work that is deemed to be of special need for Iraqi citizens....humanitarian type of work....they told PM Abadi they also remain committed to providing assistance towards economic and financial reforms for Iraq.....the support spoken of here will come largely in the form of monetary support for projects so identified.
Abadi from Washington is economic reforms in Iraq
PM Abadi spoke before a group of US businessmen who have expressed an interest to work in Iraq and invest there....Abadi spoke of security, economic, and political challenges facing Iraq as well as reforms that are underway to turn things around in Iraq....he conveyed a welcoming gesture towards those in attendance to see Iraq as an opportunity for their companies and their investments that would bring big benefits to Iraq and reward themselves handsomely.
Iraq calls for a review of the dinar exchange rate
The CBI has recently made efforts to provide more windows to be opened to deal with currency sales in Iraq, essentially doubling the number of banks and companies involved in the process and has seen some improvement in the exchange rate between the USD and the IQD.....
Dr. Saleh spoke on behalf of PM Abadi and stated that the price of the IQD against the USD is unrealistic at the current time.....he continues to stress the need to remove cap restrictions placed on the CBI by Article 50 of the budget....this gives the CBI no operating room to conduct its business of stabilizing the IQD......
The problems created by Article 50 made supply and demand a big issue and pitted the USD against the IQD leading to increases in the USD over the IQD....I think he is very politely trying to say that whoever implemented the cap didn't fully understand what they were doing or the repercussions of their actions.
Abadi and Biden discuss the mechanism of application of the framework agreement between the two countries Alastruthristi
PM Abadi met with VP Biden and talked about the Strategic Framework Agreement between the two countries....within this they also touched on issues surrounding economic and financial cooperation, and within the energy arena they talked specifically about oil and electricity....some of the basic essentials of those area liberated recently from the clutches of DAASH....Abadi it seems focused on what the US can do to provide help in the fight against DAASH and also in the rebuilding of the provinces affected by this war on terrorism.....not really sure that Biden said to much at this stage of things.
Alkhlati holds the government and the central bank responsible for the fluctuation of the dollar prices
A member of the National Alliance bloc offered up his personal opinion that stated the government and the CBI are the ones who need to be controlling the fluctuation in prices between the USD and the IQD.....guess he is partially right....it is the CBI's responsibility to handle such control.....it is the government's responsibility to not meddle in the CBI's business...ala Article 50....never should have been allowed into the budget....let the Judicial branch make its determination soon, hopefully ruling in favor of the CBI and then let's allow them to get a new grip on things.....politicians do not need to handling the finances of a central bank.....there is too much greed at stake in a process like that.
Abadi continues his meetings in Washington and looking financial challenges with the International Monetary Fund
PM Abadi's meetings continue in the US....looking to address financial challenges by seeking assistance from the IMF to meet these challenges....the IMF pledged support both from a humanitarian standpoint as well as helping to deal with economic financial difficulties....time will tell the story of how much support the IMF is willing to spring forward with for Iraq.
Abadi: We have to move on to the economy is controlled by the private sector
PM Abadi is stating that Iraq remains committed to reforms within the country that include many economic and financial apparatus' that surround such reform all the while seeking to encourage business investors to look towards Iraq as a country rich in opportunities....one that is moving to remove investment red tape and to eliminate the corruption that has been prevalent in the past.....he sees bureaucracy as playing a negative role with investments in the past and aims to change that climate....a big change that he is attempting to invoke is pushing as much responsibility to the provinces as can be done to deal with investment opportunities more on the local levels rather than through Baghdad....stressing the need to move more and more towards and into the private sector for control of things.
Government Abadi turning three military bases to civilian airports
According to PM Abadi the COM has recently approved turning three former military bases into civilian airports...these include bases in the Maysan, Wasit, and Dhi Qar provinces.....they are claiming that revenues from these airports can help to overcome the strong reliance that Iraq has had on oil for revenue in the past....yes every little bit certainly helps.
Parliamentary investment: the coming months will see a shift investment file
The Committee on Economy and Investment is stating that in the coming months Iraq will see a change coming about for investors seeking to invest in Iraq....this sounds like the elimination of much red tape and corruption that have been prior issues for investors to get a toe-hold in the country.....they are expecting a vote on the Investment Law in the next few months.....keep this in the back of your mind....this is the opinion of just one individual and may not be reflective of the committee head's opinion or direction....or that of the government's desires....it could all happen much sooner if the proper pressure is applied in the right areas.
Oil Committee suggests that the government should not rely on the payment on credit because it will increase the country's crisis
Again do not be misled by the title here....a member of the Oil and Gas Committee is speaking....does not mean his opinion is that of the entire committee....very important to keep that in mind....as he states paying for projects on credit is not something that should be considered because it will simply add to their debt....
He says they should improve oil production capabilities, build refineries and seek other means besides oil to bring revenues to Iraq.....what has he been smoking in his pipe.....the same things the government has been talking about since Abadi took office.....but they have to have ongoing work within the oil arena as well as other industries to make this all happen....thus the idea of project work on credit....because they have a liquidity problem here and now.....this guy lives on another planet it would seem.
Iraqi Kurdistan’s next big crisis: Its presidency
The Kurds have recently been working on their Constitution, writing amendments and such to it, voting on it....looking ahead to what will happen with their presidency....Barzani has served his two terms and then some......what is the future for the Kurds in this respect....democracy or dictatorship....some loopholes in the Kurd system have kept Barzani in office beyond the time his two terms were up in 2013....the battle ensues over this issue for them..
Many believe that Barzani is the strongest man for the job....but does that give him the right to make his own policies....the current terrorist crisis does not help the situation....it almost puts Barzani in a position similar to what Roosevelt held back in the day...stay in office to combat the crisis that has reared its ugly face in the Kurdistan region....I am sure we will see and hear much more on this issue in the future.
Is your coffee cup half empty or half full this morning......mine is completely empty at the moment and is demanding to be refilled.....here is the news thus far on this Friday....enjoy.....who knows what else will be hurled at us on this day.....thanks to Delta for the tidbit last night too. Aloha Randy