Iraqi economy data in World Bank bulletin

Iraqi economy data in World Bank bulletin

VOI - [2/6/2008]

For the first time in 30 years Iraqi economy statistics and data will be published in a periodic bulletin released by the World Bank, an Iraqi central bank statement said on Tuesday.

tatistics on Iraqi economy will be published in a periodic bulletin issued by the International Monetary Fund (IMF) as of early March 2008, according to the statement.

"For the first time since 1977 Iraq has reached an advanced level of progress with regards to the proliferation of macroeconomics information, after it had blocked the international community's access to useful data for over 30 years," read the statement.

"The publication of these data opens the door to a new era of integration into the international community and ranks Iraq high on international development assessment and transparency…," it added.

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$82 million for land bank to increase its loan facilities

$82 million for land bank to increase its loan facilities

VOI - [2/17/2008]

he Iraqi Ministry of Finance will grant the Land Bank $82 million in a bid to boost its loan facilities, the finance minister said on Sunday।

"Minister Baqir Jabr al-Zubeidi ordered that 100 million Iraqi dinars (1 U।S. dollar=1,223 Iraqi dinars) be given to the Land Bank to increase its ability to grant loans," according to a ministerial statement.

he statement was issued following the minister's meeting with a number of ministerial advisors, Iraqi bank directors and Baghdad governor।

During the meeting, the minister called on the bank to expand its land loans to citizens and gave instructions for the formation of a committee headed by the general inspector and director of the Land Bank and al-Rasheed Bank, in addition to legal experts, to develop a plan for the establishment of a residential compound for the ministry's employees।

sumber dari : http://www.iraqdirectory.com/DisplayNews.aspx?id=5580

Trade Bank of Iraq Aims to Offer $7.5 Billion in Credit in 2008

Trade Bank of Iraq Aims to Offer $7.5 Billion in Credit in 2008

Bloomberg - [2/15/2008]

Trade Bank of Iraq, established in 2003 to finance trade and help in the reconstruction of the country, plans to issue about $7।5 billion in letters of credit this year, its chairman said.

he amount compares with the $6।3 billion offered last year and the $25 billion granted since 2003 by the bank, President and Chairman Hussein al-Uzri said in an interview at the Dead Sea in Jordan late yesterday.

The credit lines will be offered to ``importers of food stuffs, other vital commodities and imports for power equipment, the oil sector and other infrastructure projects,'' al-Uzri said।

Iraq, which is the holder of the world's third-largest oil reserves and exports about 1।7 million barrels a day, derives 95 percent of its income from oil production, al-Uzri said. The country imports about $3 billion in oil products a year ``because of the lack of refineries and other downstream facilities.''

Trade Bank of Iraq was involved in the financing of a 500 megawatt power plant in the northern Iraqi city of Erbil, which will begin operating in March this year, al-Uzri said।

he bank wants to ``expand from trade finance to more project finance and participate in major projects in the country and be one of the conduits for foreign investment in Iraq,'' al-Uzri said।

Iraq has an estimated 115 billion barrels of proven oil reserves, behind Saudi Arabia and Iran, according to BP Plc figures।

The Middle East and North Africa region account for about 35 percent of Iraq's imports, Europe represents as much as 30 percent and the U।S. and Asia account for the rest, according to al-Uzri.

sumber dari : http://www.iraqdirectory.com/DisplayNews.aspx?id=5570

Dollar, euro slightly down in Iraqi markets

Dollar, euro slightly down in Iraqi maarkets
Baghdad, 08 February 2008

The U।S. dollar was down against the Iraqi dinar in local markets in Baghdad and Arbil on Thursday, at 1,224, compared to 1,225 on Wednesday in the Iraqi capital.

The buying price in Baghdad hit 1,222 dinars per dollar, compared to 1222।5 yesterday.In Iraq's southern province of Basra, the dollar maintained its yesterday's selling price of 1,223, while the buying price rose to 1222.75, compared to 1222.5 on Wednesday.

In Arbil, the capital of Iraq's Kurdistan region, the selling and buying prices declined to 1224।50 and 1,223 respectively compared to 1,226 and 1,225 on Wednesday.

For the second day in a row, the euro dipped versus the dinar, hitting 1,790 for the selling price compared to 1,800 yesterday. The buying price also dropped to 1,780 today.

Other currencies, including the sterling, Jordanian dinar, Saudi riyal, and Lebanese pound were stable against the Iraqi dinar and were as follows:
1 British pound = 2,405 IQD (selling price), 2,390 IQD (buying price).
1 Jordanian dinar = 1,729 IQD (selling price), 1,675 IQD (buying price).
1 Saudi riyal = 330 IQD (selling price), 300 IQD (buying price).
1 Syrian pound = 24 IQD (selling price), 23।5 IQD (buying price).
1 Lebanese pound = 700 IQD (selling price), 650 IQD (buying price).

The Kuwaiti dinar, however, was up for the second consecutive day against the Iraqi dinar at 4,480 for the selling price, compared to 4,478 yesterday.

sumber dari : http://www.iraqinews.com/economy/dollar-euro-slightly-down-in-iraqi-markets.html?Itemid=126

Iraqi dinar recovering and it is the base in business dealings

Iraqi dinar recovering and it is the base in business dealings

04 February 2008

Heads of Iraqi unions of Chambers of Commerce confirmed that 2008 will be a year of quality transition in economic performance and the Government is expected to initiate the implementation of important projects, although that is linked to the adoption of the budget, which is still under parliament examination, scrutiny and amendment for approval.

On the sidelines of the sixth meeting of the Union within its to twelfth session which was held in Baghdad, here are some interviews with a number of heads of unions representing the traders segment.

Head of the Iraqi Federation of Chambers of Commerce, Jaafar Al-Hamadani, is optimistic for achieving a qualitative development in the area of trade relations with the world and for the improvement of security; however, he blamed on some differences in the formation and delay of activating the role of the National Authority for Investment to benefit from the advantages of the new investment law, but he expressed confidence in the promising future of the private sector, especially after the government decided to support it। He pointed out that supporting private banks will facilitate the work of traders, and the partnership launched by the ministries of industry, minerals and oil with international companies will be reflected on private activity in Iraq. He called for speeding up the establishment of the intellectual property rights law to be presented to the Cabinet and then to the Parliament and considered it an important means in the organization of economic life in the country.

Head of Baghdad Chamber of Commerce, Amjad Al-Jibouri, considered the monetary policy followed by the Central Bank to control the exchange rate of the dinar against the dollar a successful policy because it maintained trade from the losses which traders are exposed to due to monetary shocks. He said that The Central Bank and the Ministry of Finance succeeded in supporting the national economy in their monetary and fiscal policy, and raising the value of the Iraqi dinar is one of the results of these policies.

Al-Jibouri called for adopting an import policy that limits the chaos afflicting the commercial market and represented by dumping it with commodity and especially of the bad type, and believes that this is the responsibility of the Ministries of Finance and Trade relying on the representatives of chambers of commerce। About his vision for the future of the Iraqi economy, he said, "the economy is the engine of social and political life and if stability is achieved, the future of the Iraqi economy will be in the ranks of developed countries ... And will leave developing countries."

Head of Najaf Chamber of Commerce, Zuhair Mohammed Radhi, is optimistic of the economic future of Iraq due to the ingredients of success it has both in human and material wealth or its strategic position and border outlets which overlooks the world. He called for the creation of a new structure that suits the potentials of Iraq to start toward the economy of market and reiterated the importance of the supporting laws and legislation.

The last speaker was the Head of Nasiriyah Chamber of Commerce, Abdul Razzaq Al-Zuheiri,, who spoke about the lack of clarity and knowledge of the importance of the role of the private business sector in the formulation of trade policy, pointing out that the merchants segment is the one relied on to provide requirements of daily life and construction requirements. He trusted the government to support the commercial sector in a way that suits the size and role in the development of other economic sectors. He pointed out to understanding of government departments for the importance of Chambers of Commerce; therefore, involving them in all committees is hallmark of the success of proper planning for the economic process and development of the country.

sumber dari : http://www.iraqinews.com/economy/iraqi-dinar-recovering-and-it-is-the-base-in-business-dealings.html

Sharp drop in dollar demand in daily auction

Sharp drop in dollar demand in daily auction
Baghdad, 27 January 2008 (Voices of Iraq)

Demand for the dollar dropped sharply in the Iraqi Central Bank's auction on Sunday, registering at $25।825 million compared to $91.395 million on Thursday.

"The demand hit $7.625 million in cash and $18.360 million in money transfers outside the country, all covered by the bank at a stable exchange rate of 1,213 Iraqi dinars per dollar, unchanged for the fifth consecutive session," according to the central bank's daily bulletin which was received by Aswat al-Iraq - Voices of Iraq - (VOI).

The 15 banks participating in the auction offered to sell $2 million, which the bank bought at an exchange rate of 1,211 Iraqi dinars per dollar.

In statements to VOI, Ali al-Yasseri, an Iraqi trader, said that banks have delayed their remittances and decreased their cash bids to a minimum in an attempt to force the bank to lower its exchange rate.

However, the bank adopted a consistent policy and did not yield to pressure," he added.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

sumber : http://www.iraqupdates.com/p_articles.php/article/26651

Cheney: Iraq to be self-governing by 2009

Cheney: Iraq to be self-governing by 2009
By: Mike Allen and Jim VandeHei and John F. Harris Dec 5, 2007 03:54 PM EST

Vice President Cheney today predicted Iraq will be a self-governing democracy by the time he leaves office, calling the current U.S. surge strategy “a remarkable success story” that will be studied for years to come.

In an interview with Politico, Cheney offered a remarkably upbeat view of Iraq, despite continued violence and political paralysis in the war-torn nation.

Cheney, who has been widely criticized for overly optimistic — and sometime flat wrong — projections in the past, sounded as confident as ever that the Bush administration will achieve its objectives in Iraq.

“I am fairly confident we’ll have [Iraq] in a good place, where we’ll be able to look back on it and say, 'That was the right decision. It was a sound decision going into Iraq,'” Cheney told us in a 40-minute White House interview.

Sounding a note of caution, the vice president said: "We've got a lot of work to do। We're sort of halfway through the surge, in a sense. We'll be going back to pre-surge levels over the course of the next year."

But Cheney said that by the middle of January 2009, it will be clear that “we have in fact achieved our objective in terms of having a self-governing Iraq that’s capable for the most part of defending themselves, a democracy in the heart of the Middle East, a nation that will be a positive force in influencing the world around it in the future.”

All of that by 2009? “Yes, sir,” he replied.

It was a remarkable prediction by any measure, and one that is certain to infuriate congressional Democrats.

Nearly as surprising, Cheney said he has no reason to question the intelligence released this week showing that Iran is not an imminent nuclear threat, putting him at odds with conservatives such as presidential candidate Fred Thompson of Tennessee and others who have raised doubts or disputed the findings.

“I don’t have any reason to question what the [intelligence] community has produced,” he said। “Now, there are things they don’t know. There’s always the possibility that circumstances will change. But I think they’ve done the best job they can with the intelligence that’s available.”

However, the vice president said the administration is "still concerned" about Iran's enrichment activities

"We still think there's need to continue the course we've been on to persuade the Iranians not to enrich uranium," he said. "The long pole in the tent in terms of developing nuclear weapons, traditionally, historically, has been developing fissile material, either highly-enriched uranium or plutonium. In this case, they're embarked upon the program to develop uranium, obviously."

Asked how badly the NIE would complicate the administration's strategic objectives, the vice president replied: "We don't get to say we only pursue those policies if they're easy. It's very important, I think, and the President clearly does, that we proceed down the road of trying to persuade Iran diplomatically to give up their efforts to enrich uranium. That has not changed. There's nothing in the NIE that said we should be -- not be concerned about their enrichment activities."

Cheney said the assessment was released because “there was a general belief that we all shared that it was important to put it out — that it was not likely to stay classified for long, anyway,” he said.

Cheney said that “especially in light of what happened with respect to Iraq and the NIE on weapons of destruction,” officials wanted to be “upfront with what we knew.” He said he agreed that was “the right call.”

So you though it might leak? “Everything leaks,” he said with a chuckle.

Suggesting the intelligence has been over-interpreted in some quarters, Cheney said he thinks it’s “important to be precise in terms of what it means.”

For instance, he pointed out that the NIE “doesn’t deal with” the effort to persuade Iran to give up efforts to enrich uranium। He pointed to a footnote in the NIE that reads: “For the purposes of this Estimate, by ‘nuclear weapons program’ we mean Iran’s nuclear weapon design and weaponization work and covert uranium conversion-related and uranium enrichment-related work; we do not mean Iran’s declared civil work related to uranium conversion and enrichment.”

Cheney, in a seemingly relaxed and unhurried mood, chatted in his shirtsleeves, not wearing glasses, with his big chair swiveled to the side to meet his visitors.

His private office was dominated by a Christmas tree decorated with berries, pinecones and birds.

He talked at length about Congress for a story to be posted tomorrow morning and that will appear on the front page of Politico for Thursday’s edition.

By contrast to President Bush’s paper-free Oval Office desk, Cheney’s is a working desk, stacked with reference and reading material, including a pictorial directory for Congress and the latest issue of Politico.

On the lighter side, Cheney said he is reading “The Coldest Winter: America and the Korean War,” the recently released final work of the late David Halberstam.

sumber dari : http://www.politico.com/news/stories/1207/7227.html

IMF sees Iraq economy, oil output recovering

IMF sees Iraq economy, oil output recovering
16 Jan 2008 01:02 PM ET

WASHINGTON (Thomson Financial) - Iraq's economy is expected to find stability in 2008-2009 despite political and security problems as oil production recovers and the government moves ahead with reforms, the IMF said.

Mohsin Khan, director of the International Monetary Fund's Middle East and Central Asia department, said that Iraqi gross domestic product (GDP) growth would likely top seven percent this year and hold between 7 and 8 pct in 2009.

Oil production, which accounts for 70 pct of the war-ravaged country's GDP activity, is expected to increase "at least" by 200,000 barrels per day (bpd) in 2008, he said in a news teleconference.

The IMF estimates Iraq produced two million bpd in 2006-2007.

Khan said the IMF's full-year 2007 forecast of 1.3 pct GDP growth for Iraq was based on non-oil data from the first six months and probably will be revised upward.

"There was an improvement in economic activity" in the second half of the year with an improvement in security, he said, citing "anecdotal" evidence.

Oil production picked up in the fourth quarter and retail services are improving, he said.

"We're expecting a significant jump in growth," he said.

newsdesk@thomson.com AFP/ajb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

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Agencies see good year for Iraq

Agencies see good year for Iraq
Thursday, 17 January 2008, 02:15 GMT

Iraq faces a period of economic growth and political progress, according to assessments by the International Monetary Fund and the UN.
The IMF sees 7% growth in 2008 and a similar rise next year, and says oil revenues from buoyant exports should be up by 200,000 barrels a day.

The UN envoy to Iraq welcomed dialogue between the Sunni and Shia communities and praised the government's work.

But analysts warn much depends on rapid progress in the next six to 12 months.

Reporting from Baghdad, the BBC's Jonny Dymond says the IMF and UN statements amount to a coincidental chorus of approval that tops off what have been, by Iraq's dismal standards, a good few weeks.

The change in the political mood is largely down to the passing of a law on Saturday, enabling some members of the Baath Party of Saddam Hussain to re-enter the military and bureaucracy, our correspondent says.

They were barred from public service by one of the first acts of the US-run Coalition Provisional Administration.

The law reversing that expulsion, combined with the sharp fall in violence in much of Iraq, has led to greater optimism.

Oil-fuelled growth

Mohsin Khan, director of the IMF's Middle East and Central Asia department, said Iraqi GDP growth would likely top 7% this year and hold at between 7% and 8% next year.

"Of course all of this is conditional on oil production expansion and the security situation improving," he said.

On oil production, he forecast a rise of "at least" 200,000 barrels to 2.2m barrels per day.

Anecdotal evidence, Mr Khan added, suggests there was also an "improvement in economic activity" in the second half of 2007, combined with an improvement in security.

However, Iraq will "continue to need aid, particularly in the security area", the IMF official said.

Compliment

The UN's Staffan de Mistura said he would present a positive picture of progress in Iraq in a report to the UN Security Council despite earlier serious misgivings

"At the beginning of [2007]... we were genuinely concerned by the lack of progress on national dialogue," he told Reuters news agency by telephone.

"Today that has substantially changed. It has changed our mind from being worried or from being pessimistic."

The UN report would, he said, "compliment" Iraq's government on its work at fostering reconciliation.

"Iraq needs to maintain the momentum, 2008 is going to be a crucial year," Mr de Mistura added.

Violence continued in Iraq on Wednesday as a woman suicide bomber killed eight people in Diyala Province, and three US soldiers were shot dead in Salahaddin Province.

A wounded eyewitness in Khan Bani Saad, a town near Diyala's provincial capital Baquba, said the bomber had targeted a group of Shia worshippers.

sumber dari : http://news.bbc.co.uk/2/hi/middle_east/7193174.stm

IMF Executive Board approves US$744 million stand-by arrangement for Iraq

IMF Executive Board approves US$744 million stand-by arrangement for Iraq

The Executive Board of the International Monetary Fund (IMF) has approved a successor Stand-By Arrangement for Iraq for an amount equivalent to SDR 475.36 million (about US$744 million). Prior to the Board's approval, Iraq cancelled the current Stand-By Arrangement, which had been approved by the IMF's Executive Board on December 23, 2005 (see Press Release No. 05/307) and extended on March 12, 2007 (see Press Release No. 07/48) and on August 1, 2007 (see Press Release No. 07/175). The successor arrangement is designed to support Iraq's economic program over the next 15 months through March 2009. The Iraqi authorities intend to treat the arrangement as precautionary.

Following the Executive Board's discussion of Iraq, Mr. Takatoshi Kato, Deputy Managing Director and Acting Chair, stated:

"The Iraqi authorities have succeeded in keeping their economic program on track in 2006-07, despite the difficult security and political situation. The tightening of monetary policy and the appreciation of the dinar—along with the maintenance of fiscal discipline and the measures to reduce fuel shortages—have led to a sharp reduction in inflation. Direct budgetary fuel subsidies have been eliminated, except on kerosene, and private fuel imports have been liberalized. The recently enacted amendments to the pension law have made the pension system fiscally sustainable. A new chart of accounts and budget classification have been adopted and the payments system has been modernized.

"Although the security situation has showed signs of improvement in recent months, it remains a major obstacle for investment and reconstruction, hampering oil production and economic growth। Also, much remains to be done to modernize financial management of the government and the central bank, and to reform the banking system.

"The authorities' program for 2008 aims to allocate resources towards investment, including in the oil sector, and to improve the provision of public services, while containing current government spending, notably on the wage and pension bill. The program—which envisages an increase in economic growth, a further reduction in inflation, and an increase in net international reserves—will also encompass priority structural reforms, including actions to strengthen administrative capacity and governance.

"The authorities intend to press ahead with structural reforms, including measures to modernize public financial management, complete the census of public service employees, and restructure the two largest public banks. They are determined to avoid the re-emergence of direct fuel subsidies, and plan to develop a rule-based mechanism of adjusting domestic fuel prices. To strengthen governance in the oil sector, the implementation of a comprehensive oil metering system should be finalized as soon as possible. In addition, a new hydrocarbon law needs to be put in place to facilitate investments in the oil sector.

"The Central Bank of Iraq (CBI) will continue to strengthen its accounting and reporting framework by implementing the recommendations of the Fund's Interim Safeguards Assessment Report and the Ernst & Young audit of its 2006 financial statements। The central bank also aims to expand the coverage of the payments system, strengthen the supervisory framework for commercial banks, and adopt reserves management guidelines.

"The authorities' efforts to settle arrears and conclude debt agreements with private and official creditors are commendable. However, further progress is needed to resolve the remaining non-Paris Club claims," Mr. Kato said.

ANNEX

Program Summary

The main objectives of the new program are to maintain macroeconomic stability, facilitate higher investment and output in the oil sector, and move forward with key reforms that were initiated under the previous arrangement. The 2008 program envisages an increase of oil output to 2.2 mbpd, and overall GDP growth to reach 7 percent. Annual consumer price inflation is targeted to decline to 12 percent in 2008. The net international reserves of the CBI are expected to increase to about US$34 billion by the end of 2008.

The 2008 government budget makes room for sizable investment while maintaining fiscal sustainability and continuing to avoid direct fuel subsidies, except on kerosene। External debt sustainability would be achieved when the third tranche of the Paris Club debt rescheduling (20% in Net Present Value terms) is triggered upon completion of the final review of the proposed SBA by end-2008 and further progress is made in rescheduling the remaining debt from non-Paris Club official creditors on comparable terms.

Key structural reforms under the program include the strengthening of public financial management and the accounting framework of the CBI; the restructuring of the two largest public banks; and strengthening governance in the oil sector.

Iraq joined the IMF on December 27, 1945. Its quota is SDR 1.188 billion (about US$1.860 billion).

IMF EXTERNAL RELATIONS DEPARTMENT

Public Affairs

Phone: 202-623-7300

Fax: 202-623-6278

Media Relations

Phone: 202-623-7100

Fax: 202-623-6772

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Raid nets $1 mln of forged Iraqi currency

Raid nets $1 mln of forged Iraqi currency
Tue Nov,27 2007 12:14pm EST

BAGHDAD, Nov 27 (Reuters) - Forged Iraqi banknotes worth about $1 million were seized in a central Baghdad raid on Tuesday, officials said, in what was believed to be the biggest operation of its kind against kounterfeiters.

Iraqi National Security Minister Shirwan al-Waeli said four people were arrested during the raid by Iraqi soldiers and security ministry officers on a ground-floor apartment in Baghdad's Karrada distrikt.

"A huge amount of money was found in the house, more than 1 billion Iraqi dinars," Waeli told Reuters.

A Defence Ministry statement said the notes seized amounted to 1.25 billion Iraqi dinars, equivalent to roughly $1 million.

Robberies targeting banks and security vans carrying Iraqi and U.S. currency are relatively common in and around Baghdad since the U.S.-led invasion to topple Saddam Hussein in 2003, but large-scale counterfeiting operations are extremely raare.

A security ministry official, who asked not to be named, said four printing presses were also seized in the raid.

"I myself counted 965 million dinars," he said

Waeli said the forged currency was in notes of 10,000 and 25,000 dinars. He said security ministry officials had been tracking the gang since Nov. 5.

Television footage showed piles of forged notes seized in the raid, some stacked in plastic-wrapped bundles and others in uncut shiits.

Most transactions in Iraq have been carried out in cash since the 2003 invasion because of limited facilities to transfer money through banks or other financial institutions

Huge amounts of money were also looted from Iraq's banks during the invasion. (Reporting by Waleed Ibrahim; Writing by Paul Tait; Editing by Charles Dick)

sumber dari : http://www.reuters.com/article/latestCrisis/idUSL27337013

Iraqi dinar will see the high value of 2008

Experts Iraqi economy was likely to continue to rise in the value of the Iraqi dinar against the dollar during the year 2008, in the event of continued policy of the Central Bank of Iraq in the activation of open auctions and withdraw liquidity। These experts agreed that the gap between the financial and political cash is the motivation behind Ascending careful of the value of the Iraqi currency, and warned of the danger of inflation on the real value of the Iraqi dinar, and the need to find radical solutions to reduce the impact. The financial and economic expert Dr Majid picture, that "the adoption of Iraq to cover the need for goods and services through imports, led to the resort monetary policy to support the Iraqi dinar exchange rate even reached 1216 dinars to the dollar." He told the Independent News (Voices of Iraq) that "it is expected to continue to support Pacific Iraqi dinar value as long as inflation factors were continuing." He added that "the basis of the weakness of harmony between monetary and fiscal policy in general, is the absence of clear economic policy, it is trying to hand monetary policy pressure on the money supply in circulation and supporting monetary unit, while fiscal policy to encourage ongoing expenditure policy." It was that "the presence of the clear economic policy will lead to harmony between policies and all other factors relevant economic development." Image stressed the need for "economic policy is the promotion of productive expenditure at the expense of consumer spending being." However, he said, "regrettably the budget in 2008 to removed emphasizes the ongoing non-productive expenditure, which represents 72.7% of total spending, while investment spending 27.3%, this is in addition to the fact that most investment spending for projects and service projects Aantegeh not." Economic Iraqi scientist Abdul Jabbar Alafi, finds that "the high value of the Iraqi currency would continue year 2008, and that this increase stems from the policy of the Central Bank, which he described as flexible policy since in 2004" saying that the explanation that " Iraq is a dollar put incorrect, and that the bank amendment because the Iraqi currency is a national symbol, and it must be achieved real value, a policy of the Central Bank managed to correct the exchange value of the dinar to the dollar, which was dominant to the price of the dinar since 91 almost, and I think it succeeded calendar policy prevailing price of the dollar over the long years, The dollar's worth a thousand Dinreetraci soon, God willing. " Iraqi businessman, J. Aradi, speaking l (Voices of Iraq) on the pros and cons of the policy of financial support to the Central Bank of ERA selling the dollar and the currency was withdrawn from the market by granting private banks profits estimated proportion (20-25) percent said "the Central Bank of Iraq currently supporting Iraqi currency largely through the sale and purchase of the dollar auction of hand, and the withdrawal of currency from the market by granting profits 20% of the fixed deposits which contributed to withdraw a large part of the cash from the Iraqi market. " But he pointed to the seriousness of this situation that the "banks prefer to transfer all assets of cash to the Central Bank instead diverted to the labor market and Iraqi production because profits content between 10% and 12%, which led to the suspension of the role of these banks in the domestic investment." Aradi noted that "disruption of the investment that led to the weakness of Iraqi products and the adoption of Iraq to foreign products led to the strengthening of the currency in digital and not real," and said "the prices of goods and services despite the depreciation of the dollar against the Iraqi dinar, which calls for measures economic and financial consolidation and strengthening of local and foreign investment to raise the value of the Iraqi dinar, which measured the quantity of real goods and services obtained by the citizen and not a numerical value of the currency and curb inflation. " Commenting Iraqi economic thinker Dr. Ismail Obeid that the warning of increasing interest rates, which leads to lack of investment, considering that this misguided policy action at all, pointing out that raising the price leads to the result of falling into the so-called Bfaj liquidity, which is the way of risk economically. He added: "We need a constitutional amendment, so it can build an economy subject to development without a clear and transparent laws determine the course of economic changes, and can only deal with inflation dismissed commodities markets, or increase the supply of goods produced, but that we address inflation through trap this means stopping liquidity increased production capacities and foreign investment, which is also affected. " He said that "the lesson is not strongly Iraqi dinar officially, but strength against other currencies" noting that it is not "only to find the so-called Silhouette prices that presupposes the existence of an information base on imported goods as a kind of border prices and compares them once domestic prices." Economic researcher Hossam Acommok sent from the anticipated decrease the value of the dollar against the Iraqi currency, but it explained to (vote for Iraq) that this reduction "will be the well-being of the Iraqi citizen, contrary to what was expected, due to increased inflation rate derived from the great imbalance in the economic structure of Iraq The lack of coordination between sectors of the government and the Central Bank in its policies, which has made great sacrifices in order to raise the value of the Iraqi dinar, but it failed to achieve tangible results because of indiscriminate actions contradict one another. " He added Acommok "at the time the withdrawal of the Central Bank liquidity despite our reservations on the measure, rose Oil Ministry prices of oil derivatives by reached (2150) double what it was before 2003 and put forward this two hundred billion dollars rising inflation." He concluded his speech by saying "what the monetary policy in Iraq is good, but it is inconsistent with the reality of the situation is correct structure of the Iraqi economy to serve the Iraqi people who have not benefited from reduced practically the dollar." The Minister of Finance, the Iraqi statement said Zubaidi Jabr told media recently that the Iraqi dinar today much better than some global currency, because behind large amounts of gold and hard currency, noting that the proposal to delete the three zeroes of the Iraqi currency after assuming office in the Ministry of the Week and presentation this proposal to officials in the monetary policy of the Central Bank. He said that the Central Bank at the time was reluctant to accept this idea, but it became a strong dinar, the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea. For his part, the bank denied the existence of such intentions currently, and will remain current currency is adopted in local dealings, but in the faith of all coins withdrawn from circulation and replaced but the same categories of paper and include categories of (25,50,100) dinars.

sumber dari : http://www.dinartrade.com/226.htm

Demand for the dollar down in daily auction

Demand for the dollar down in daily auction

Baghdad - Voices of Iraq
Wednesday , 16 /01 /2008 Time 12:59:16


Baghdad, Jan 7, (VOI) - Demand for the dollar went down in the Iraqi Central Bank’s auction on Monday, the first session this week after the Army Day holiday, registering at $142.970 million compared to $181.280 million on Thursday

"The demand hit $16.40 million in cash and $126,930 million in money transfers outside the country, all covered by the bank at a stable exchange rate of 1,215 Iraqi dinars per dollar, unchanged for the third session in a row," according to the central bank's daily bulletin which was received by the independent news agency Voices of Iraq (VOI), The banks participating in the auction offered to sell $4.200 million, which the bank bought at an exchange rate of 1,213 Iraqi dinars per dollar.Demand for the dollar was at a record high in the Iraqi Central Bank's auction on Thursday, reaching $181.280 million, the highest in its history.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday



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A New Oil Plan for Iraq

A New Oil Plan for Iraq

Thursday, Jan. 11, 2007

By VIVIENNE WALT/PARIS

In his speech announcing plans to boost troop levels in Iraq, George Bush noted that Iraq was about to pass "legislation to share oil revenues among all Iraqis" in order to give the citizens of that country a share in the economy. Indeed, the 33-page draft of that proposed Oil & Gas Law now circulating, if passed as currently written, would end decades of total government control over Iraq's mammoth oil reserves and distribute oil income among all the country's regions — a dramatic change from the past and a potential windfall for Big Oil. But it must first get through Iraq's fractious parliament and the country's divisive ethnic politics. Already, the draft shows signs of wrangling and potentially troublesome compromise.

With the stakes high, negotiations have been fraught, particularly with the Kurds in the country's oil-rich north. A small government committee met in Baghdad over several weeks late last year to thrash out whether the Kurds' regional government could cut its own oil deals with foreign companies without Baghdad interfering. Kurdish officials have argued their case for months. The proposed law offers a tortuous compromise. A new Federal Council of Oil & Gas will have 60 days to object to any oil deal the Kurds make, and only then with the agreement of two-thirds of the council's members — which will include a Kurdish official. Disputes would also be taken to a new group of independent advisers, who "might include foreign oil and gas experts, Iraqi or foreign," says the document.

Equally thorny is the status of the giant oil fields around Kirkuk, whose capacity is about 700,000 barrels a day, and which the Kurds claim as their own. Under the new law those revenues — like those from elsewhere — will flow into a new national Oil Fund and then be carved up among each region in proportion to its population. Since only the Kurds in the north and the Shi'ites in the south produce oil, that ensures Sunni areas around central Iraq — coyly termed "non-producing provinces" in the law — aren't left out of the deal, potentially deepening Iraq's ethnic divide.

As written, the law would end more than three decades of Iraq's nationalized oil industry. It would give 10-year exploration and development rights to foreign oil companies — at least those willing to start drilling in a country where hundreds of contractors have been killed and pipelines are regularly blow up. Once the exploration deals expire, the companies can negotiate to produce the oil for another 20 years in partnership with the state-owned Iraq National Oil Company. Foreign oil companies would then pay the government 12.5% royalties of the oil's value, and be able to export the rest of whatever oil they find — potentially massive amounts.

Indeed, early word of the document last weekend brought howls from some groups that believe Iraq's government is offering big oil companies overly generous production-sharing deals, which it could regret when the war finally ends. The alternative would be heavy state control, along the lines of the two oil giants that border Iraq, Saudi Arabia and Iran. "What we are looking at is Iraq signing deals for next 20 years at a time when it is extremely weak and not fully sovereign," says Greg Muttitt, co-director of Platform, a watchdog organization in London that monitors the oil and gas industries. "The U.S. has put a lot of effort into this." But it's not certain that U.S. or British majors like ExxonMobil or BP will be the first big benefactors. Both China and India signed exploration deals with Saddam before the war, which remain in effect.

Whichever companies arrive, their finds could be massive. The country sits atop about 115 billion barrels of oil reserves — the fourth largest in the world after Saudi Arabia, Canada and Iran — and about 110 trillion cubic feet of natural gas. What is more, much of the oil is relatively easy to reach and cheap to pipe out. There is a catch, however: the infrastructure is in dire shape. Even before this war, rigs and wells had lain rotting for years, since the crippling war with Iran in the 1980s sapped the economy and international sanctions in the 1990s left Iraq in bad need of spare parts. "The consequences have been really quite severe. Things are in bad shape," says James Placke, senior associate of Cambridge Energy Research Associates, who spent decades in the region as a U.S. diplomat. "It is not a good investment environment." That is an understatement. Iraq's oil minister Hussein al-Shahrastani has said in recent months that it will take about $20 billion to fix Iraq's equipment well enough to more than double its current output of about 2 million barrels a day, to about 4.5 million barrels in five years' time. In Iraq, that is a very long time off.

sumber : http://www.time.com/time/world/article/0,8599,1576593,00.html