Manu68: First of all, Merry Christmas and happy new year to all. Secondly, can someone please tell me what’s happened to the titanium date set in stone and this wasn’t going past 2021? Sorry if i missed it on any yubee tooby call.
Ross: What if the titanium date was based upon a moving target, such as, the naming of the new PM or the Approval of the 2022 Budget, etc ?
Tivon: As far as the “Titanium Date” is concerned. For one banks in Iraq are closed. So even if they released the rate today you wouldn’t see it until Monday morning.
Secondly January 1st from the Basel 3 Committee in Switzerland gave a hard deadline for banks around the world to implement protocols that would safeguard their institutions from another 2008 crash by having capital backed by gold or silver to protect consumer deposits if another financial crisis was to arise in the future.
Tivon: Which should imply that natural resources such as gold that Iraq has been accumulating to support their new exchange rate will have to be in one open book or portfolio that indicates they have a stable economy given the tons of precious metals they accrued over the years needs to be applied.
One could think “The REER” (Real Effective Exchange Rate). Because Frank has mentioned that banks were going against this mandate and will be shutdown as they defied this new policy.
We can use our imagination and say these must be Iranian influenced branches that refuse to play ball with the new leadership. I do not know what has come about with the “Financial Management Law” sense it’s not contingent upon the seating of the government given its supposed to be activated by default of the 2022 Budget not being voted on.
Then again the C.O.M. (Council Of Ministers) already voted on the current year budget. So with that said we all know Iraq has paid the remaining debt to Kuwait. We know Iraq has a sovereign status and they do not require the UN meeting in February to finalize anything for the official removal of CH 7.
We will not know anything concrete until Monday.
Ask yourself how long Iraq or any other country can continue to do any business if their Basel 3 policy is not activated (Today) in order for International markets to operate using fiat currency and not suffer parity issues with the US Digital Treasury Note that is backed by ISO-20022?
MilitiaMan: Good job Tivon, well said.. Fascinating thing too, is the ISX is closed tomorrow and there is a holiday for Sunday, yet, banks are to be open, but, with no withdrawals or deposits.. Strange way to do banking or is there more to it? Could it be they are open for exchanges, large notes for small notes? I don’t know, but, we can see that many things are in sync now and as you say, there is not anything we can do about it until next week anyway.. Is that part of the plan? We shall see. imo ~ MM
Mark: THE FINAL COUNTDOWN CONTINUES…IMO…THE NSCN NEXT IN THE COUNTDOWN
MilitiaMan: That is what I expect to be next, showing NSCNs.(New Small Category Notes) I will look to see what purpose they called for a holiday for Sunday, yet , banks are open, but, there are not to be deposits or withdrawals. I find that interesting, as why do banking without those two integral parts of banking? Well, could that be a time frame to exchange the old notes for new notes? I don’t know but, it sure has my attention.. imo !!! ~ MM
Samson: Unknown Fate Of The Federal Budget For 2022
1st January, 2022 by Basil Abbas Khudair
In a few hours, we will enter the new year (2022), which is not only a year for New Year’s celebrations, but the official timing of the date of the implementation of the federal budget in Iraq, which begins on 1/1 and ends on 12/31 of each year.
According to the timings set by the constitution and what followed by relevant legislation, the federal government is supposed to refer the annual budget as a draft law to the House of Representatives before the beginning of October so that the House of Representatives discusses and approves the project to turn it into a law so that the matter is completed before the end of the year so that the instructions for its enforcement are ready at the beginning of the following year as it is the situation in the rest of the countries, but none of that happened, not because of the dissolution of the House of Representatives and the shift of the government to the conduct of business in preparation for holding the elections, but rather because there are those who do not abide by the timings and fulfill the deadlines and obligations, and the reasons for not fulfilling them have not yet been announced. The government has prepared a bill. The 2022 budget to be approved before the House of Representatives is dissolved on the date known for months.
The issue does not stop at this point, but rather the budget is subject to possibilities. The President of the Republic issued a republican decree inviting the (elected) House of Representatives to convene on January 9, and this date is expected to be the beginning of the political debate to choose the three presidencies (the House of Representatives, the Republic, the Council of Ministers), and in the event that the three options are completed in good health, the Prime Minister will be given the legal deadline to choose candidates to fill ministerial portfolios that are subject to approval or acceptance by Parliament.
Considering that the budget is a financial tool for transforming plans into actual reality and in proportion to the estimated resources, after which the project is referred to the House of Representatives and after its approval, it is presented to the President of the Republic for approval and publication in the Official Gazette, and the implementation instructions are prepared and circulated to the exchange units.
There is no waste in it, as it will make the budget executable after 6 months have passed since its entry into force, which will lose some of its quality and feasibility, and during the period from the beginning of the year until the beginning of the implementation of the budget, it will be necessary to spend 1/12 of the actual expenditures for the year 2021, taking into account the proactive step of the Ministry of Finance With its uncles 133133 on December 27, 2021, which included (binding) instructions to restrict or freeze the exchange powers in most areas, and these instructions are valid and enforceable until the entry into force of the 2022 budget law, and it will be difficult for the next government to exceed them except through graduations through the advances and trusts, a method blamed on him for suspicions.
Although the majority is ignorant of the form of the next government, regardless of how it was formed, it will have at least three options. The first is to accept a pro forma budget that covers the fiscal year from its beginning to its end, and the second is to prepare a budget for the period from the beginning of its formation until the end of the fiscal year, such as for six months or more. Less or more and treating previous expenses with accounting adjustments, and the third is acceptance of the fait accompli and not issuing a budget similar to what happened in 2014 and 2020, and investing the remainder of the fiscal year to prepare the 2023 budget, and the three options are embarrassing and do not fit what the next government should characterize in being it was born from the womb of the demonstrations and protests that established the overthrow of the previous government and contributed to changing the electoral law and holding early elections.
Considering that the current composition of the House of Representatives is supposed to be in which the opposition is clear to the public due to the change in the names and affiliations that occurred in the House, and we expect that determining the responsibility for the delay in preparing the budget will be unaccountable, because financial issues often pass peacefully with evidence that the state remains for two years without a budget (2014, 2020) and that the final accounts after 2013 have not been approved until today, and that there are financial violations reported by the competent committees in the House of Representatives and diagnosed by the Integrity Commission and the Board of Financial Supervision, some of them have been resolved and others are still on the way, and it seems that Al-Kazemi’s government did not give precedence to the issue of the 2022 budget, with evidence that the Prime Minister did not refer to it as a topic when he talked about the economic achievements that his government reached in saving the country’s economy from collapse thanks to the (white paper) that achieved a financial abundance of 12 billion dollars. LINK
MilitiaMan: Final accounts appear to have been approved as of today. Articles have talked about 2013 and 2014 Budgets having had accounting issues in the past and apparently that held true and it shows they have been completed to date in 2021. It appears that they did finish the 2022 budget work prior to the dissolution of the parliament.
There are also noted to be financial violations that were found to have occurred back then that now have been resolved and some that will becoming and or are on the way to being resolved. From the looks of it Kahdimi kept the budget data quiet, as he gave no precedence to it in his recent speech.
If there is reason for him to have kept something so important as budgetary issues quite would suggest that there is something sensitive in the budget to keep quiet. The financial abundance may be the clue, we shall see and imo very soon.. ~ MM