Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

Lower demand for the dollar, stable exchange rate

Demand for the dollar was down in the Iraqi Central Bank's auction on Sunday, the first this week, hitting $19.920 million compared to $68.430 million on Thursday.

"The demand hit $1.240 million in cash and $18.680 million in money transfers outside the country, all covered by the bank at an exchange rate of 1,210 Iraqi dinars per dollar, unchanged for the 13th session in a row," according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

The nine banks that participated in the auction offered to sell $2.800 million, which the bank bought at an exchange rate of 1,208 Iraqi dinars per dollar.

Speaking to VOI, Ali al-Yasseri, a trader, attributed the decline in the demand to the Arbaeen pilgrimage, which he said results in deep recession in southern Iraqi provinces due to the curfew imposed during the occasion.

The Arbaeen is a religious occasion marking the 40th day after the death of Imam al-Hussein, the Prophet Muhammad's grandson and the third holiest figure for Shiite Muslims, in the battle of Taf in Karbala in the Hijri year 61 (680 in the Gregorian calendar).

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

Lower demand for the dollar, stable exchange rate | Iraq Updates

Oil exports from Kirkuk's oilfields double

Iraq's oil exports from its northern oilfields in Kirkuk city to the Turkish Mediterranean Port of Ceyhan were two times more than their volume four years ago, an official source from the North Oil Company said.

"On Friday, the oil pumping process from Kirkuk's oilfields to the Turkish Ceyhan Port reached 500,000 barrels per day, the highest since 2003," the source, who preferred to remain unnamed, told Aswat al-Iraq, Voices of Iraq, (VOI).

"Oil exports through the Turkish port had stood at an average of 250-350 bpd," the source explained.

Mostly, Iraqi oil exports from northern oilfields are interrupted as armed groups repeatedly target the pipelines carrying oil from Kirkuk to Ceyhan port in Turkey. The larger quantities of crude are usually exported through ports in the safe city of Basra in southern Iraq.

Kirkuk, an oil-rich and mixed city of Kurds, Turkmen, Christians and Arabs, lies 250 km northeast of the Iraqi capital Baghdad.

Oil exports from Kirkuk's oilfields double | Iraq Updates

Iraq's oil flows to Turkish port despite incursion

Iraq will continue exporting oil from its northern oilfields via the Turkish Mediterranean Port of Ceyhan despite the Turkish incursion into the Kurdistan region, an oil ministry spokesman said.

"Iraq's oil exports from Kirkuk's oilfields via the Turkish Ceyhan port will continue as usual and will not be influenced by military operations," spokesman Aasem Jihad told Aswat al-Iraq, Voices of Iraq, (VOI).

"Baghdad and Ankara are both keen on the continuation of Iraqi oil exports via the Turkish port, which reaches 350,000 barrels per day (bpd)," Jihad added.

The spokesman explained that Iraq's oil exports total over 1.950 million bpd, including 1.600 million via the southern Basra port and 350,000 via the Turkish port.

On Thursday, Turkish forces shelled regions inside the Iraqi-Turkish-Iranian border triangle and engaged in battles with Kurdistan Workers Party (PKK) fighters in the border area of Bazia, which came under air attacks by Turkish warplanes.

Iraq's oil flows to Turkish port despite incursion | Iraq Updates

Iraq resumes oil supplies to Jordan

Iraq has resumed shipping crude oil to Jordan but the quantities are still a trickle of what they used to be before the U.S. invasion of 2003.

The latest shipment included six tanker trucks hauling 200 tons of crude. More trucks are reported to have crossed international borders but neither Jordan nor Iraq would reveal the volume delivered so far.

Before the war more than 3,000 tanker trucks were involved in the shipping of Iraqi crude to Jordan which relied solely on Iraqi supplies for its domestic energy needs.

Iraq sold oil at a preferential rate to Jordan.

The supplies were suspended once the former regime was toppled.

The sides signed a new deal almost a year ago for the resumption of supplies but insecurity on the Iraqi side of the border has made implementation difficult.

Jordan needs at least 120,000 barrels

http://www.azzaman.com/english/index.asp?fname=news\2008-02-23\kurd.htm

Basra's 2008-2010 Development Strategy set out

An updated strategy for developing Iraq's southern province of Basra in the period 2008-2010 has been developed by a specialized committee, Basra's provincial council head said on Saturday.

"Basra's strategy is the first developed by the provincial council in cooperation with concerned bodies, governmental institutions and local councils, in a bid to coordinate work and provide a comprehensive vision of all sectors in the province," Muhammad Saadoun al-Abbadi told Aswat al-Iraq, Voices of Iraq, (VOI).

"Under this strategy, the current or incoming provincial council will have to take practical steps to provide necessary finance for the reconstruction of the city," the council's head explained, citing allocations from the central government, donations and grants from investors as the main sources of finance.

"The strategy preparation committee, the development and reconstruction committee, the economic development committee, Basra Reconstruction Team (BRT), the provincial government project (RTI), the United Nations office, Basra's business information center, and specialized university professors have all participated in drawing up the strategy," al-Abbadi added.

The Shiite province of Basra lies 590 km south of the Iraqi capital Baghdad.

Basra's 2008-2010 development strategy set out | Iraq Updates

ISX index down by 0.723%

The Iraqi Stock Exchange (ISX) index dipped by 0.723% on Sunday compared to the previous session, closing at 35.68 points.

Traded shares in Sunday's session exceeded 275 million at a total value of 490.461 million Iraqi dinars (1 U.S. dollar =1,223 Iraqi dinars) by implementing 189 contracts. Non-Iraqi investors participated with over 3 million shares, totaling more than 4 million Iraqi dinars by implementing four contracts in the banking sector.

According to the daily analysis of the capital market, the banking sector's index, in which 11 companies traded, closed at 37.570 points; while the industrial sector, in which six companies traded, ended at 11.220 points.

The statement concluded that 29 companies were traded in Sunday's session out of 94 companies registered in Iraq's stock exchange, of which nine indexes went up, eight dropped, and 12 maintained their previous price.

ISX index down by 0.723% | Iraq Updates

Imported Products Subvert Iraqi Economy

Average Iraqi consumers are open to frequently purchasing cheap products from different countries of origin currently available on the local Iraqi market. Iraqi economists are blowing the whistle; Iraqi made products are unable to compete with the imported foreign-fabricated items.

Iraqi academic Abdul-Rahman al-Mashhadani commented on this issue, "No customs fees on foreign products, especially Chinese, Syrian, and Iranian made, engenders a flow of these products that reach Iraqi customers with lower prices when compared to similar Iraqi products," Al-Mashhadani told Aswat al-Iraq – Voices of Iraq – (VOI). He continued, "due to this phenomenon, many Iraqi factories ceased their production lines, because they are unable to compete with the prices of imported items."

In his argument, al-Mashhadani explained to VOI "Allowing those products to enter Iraq arbitrarily creates a calamity for the Iraqi economy," proceeding "Iraqi capitals fled the country because of this economic flaw…the embargo that was imposed on Iraq during the 1990s negatively affected the private industrial sector in Iraq." He demanded "rehabilitation of the Iraqi private-owned industries, and to assist Iraqi capitals by offering them loans and supplies crucial to their facilities, such as electricity, fuel, and water."

Economic researcher Sattar Jabbar considered "No customs fees are the most important problem facing the Iraqi market." However, "there are customs fees, such as the rebuilding fee, on other goods, like raw materials used for industrial purposes," proceeding, "all these parameters decelerate the Iraqi industry; a matter that increases unemployment in Iraq…The state should interfere to assist both the public and private industrial sectors in Iraq." He stressed the fact that "Tens of Iraqi factories are currently not working."

Owner of a fabrics factory, Abu Noor, said to VOI "In the 1970s, my father established an industrial facility in Kadhimiya district of Baghdad – capital city of Iraq, to produce fabrics," adding "I closed that factory because the products are unable to compete with imported foreign fabrics. The machines that I have in my factory are very old. Their production capacity is limited to only 200 meters per day; factories in neighboring countries embrace advanced technologies that enable each of them to produce 1000 meters per day."

Abu Noor addressed an essential question, "How can we proceed in our production without governmental support that helps us to buy new equipment thereby allowing us to compete with foreign products?" Abu Noor told VOI, "Before the embargo, the quality of Iraqi products was able to compete with foreign qualities," confirming "the industrial private sector alone won't be able to retrieve that position again, because it requires governmental support."

In Abu Gharib district, west of Baghdad, Naseer Nadhom has a plastics factory, but foreign plastic made items that dominate the market in Iraq divert the interest of Iraqi customers. "As an outcome of the low demand on Iraqi made plastic products, due to the presence of the high quality Iranian and Syrian plastic items, I released 50% of my staff," Nadhom said to VOI, confirming, "this is not a unique case of my factory; it happened in other factories too… the phenomenon of unemployment in Iraq will reach unprecedented levels if the situation remains as it is."

Iraqi industrial figure, Basheer Al-Najafi, perceives that private industries in Iraq have only one major problem. "Shortage in power supply is the most important problem that faces Iraqi factories nowadays," Al-Najafi asserted to VOI, explaining "we increased the prices of our products after we started using domestic generators, and thus, our sales were negatively affected by return." Al-Najafi demanded the Iraqi government to fulfill only one request, "Just to provide industrial areas in Iraq with 6 continuous hours of electricity per day," adding "this, if it were to happen, will remove many obstacles that seriously endanger our performance, and will actively minimize production costs."

Iraqi labor Abu Eman told VOI "I used to work at one of the factories in Abu Gharib industrial area in Baghdad, but the factory was closed due to the deterioration in security situation in that area," adding "I remained unemployed for a period of time, until the security circumstances in Abu Gharib were improved, the factory then resumed operations, and I got my job back." Abu Eman considers that foreign products "would undermine the industrial sector in Iraq, an issue that will increase unemployment in this country."

Average Iraqi Customer, Um Hussein, prefers imported rather than Iraqi made products. "Imported clothes vastly contribute to Iraqi families with limited incomes," Um Hussein said to VOI, adding, "I have five children, three of them are attending school, and I have a lot to buy for them. If the government decided to prohibit importing these goods, or planned to increase customs fees on them, then the government should find an alternative for limited income families." She continued, "The government should not think of rich businessmen; it should try to find a solution for the problems of citizens with a limited income."

Sociologist Faris Al-Obaidi analyzed this social phenomenon of demand on imported products. "It is a consuming cultivation affected by the out of standards circumstances that Iraqi citizens had experienced during the past 25 years, represented by wars and embargo," Al-Obaidi said to VOI, adding "as a result, Iraqis were accustomed to demanding anything that is prohibited, and consuming foreign products became a gauge of social contention in Iraq," referring "Changing this kind of attitude is difficult, and would take time." He clarified that "it is important to support local industries to rebuild Iraqi customers’ trust in the quality of Iraqi products. Only at this point will there be a sort of balance between the Iraqi and foreign products, and consumers in Iraq will have the opportunity to choose between them."

Imported products subvert Iraqi economy | Iraq Updates

Kurds offer political settlement between Ankara, PKK

While Turkish army continues its military operation inside Iraqi soil to chase PKK's fighters, Kurds offered political mediation between Ankara and this rebel group.

As Kurdistan region's government called Turkey to stop its incursion, Arab League urged to activate threefold committee to solve this problem peacefully.

Deputy PM Barham Saleh confirmed at his meeting with a delegation of US Senate in Baghdad on necessity of stoping this attack and targeting infrastructure in Kurdistan and these actions wouldn’t be useful but would increase tension throughout the region.

Kurds offer political settlement between Ankara ,PKK | Iraq Updates

Iraqi Oil Ministry Threatens to Transfer Oil Towers from Kirkuk to South

The Iraqi oil ministry threatens to transfer two of the oil towers from Kirkuk to the south of Iraq, while the officials form Kirkuk province informed the related Kirkuk bodies not to let the towers to be transferred to the south.

The Kirkuk governor Abdul Rahman Mustafa told Kurdistani Nwe newspaper that they will not let the towers to be transferred to the south even they are forced. The governor called on the Iraqi government to send a delegation to discuss and solve the issue. Details will be published in the coming edition of Kurdistani Nwe newspaper.

PUKmedia :: English - Iraqi Oil Ministry Threatens to Transfer Oil Towers from Kirkuk to South

Itisa**** to Launch Operations Next Week in Baghdad and Basra

Itisa**** Abr Al Iraq, the latest national ******** Fixed Voice and Data Telecommunications Company in Iraq, announced that it will launch the first phase of its operations next week in Baghdad and Basra. This is to be followed by other expansions to reach 100% coverage across Iraq.

The company has completed all technical preparations necessary to start its operations and to provide high technology ******** services, which shows Itisa****'s commitment in making major advancements in the Iraqi telecommunications market and to increase levels of penetration across the Iraqi society. The company also has a professional work team which will provide assistance and support to all subscribers.

"As an Iraqi company we view our role towards our subscribers from a national perspective which encompasses major responsibilities of keeping them abreast of the latest technology, increasing awareness among Iraqi people about telecommunications, and spreading the culture of advanced technology across the society". An official spokesperson from Itisa**** said.

"We are launching our services with full capacity while ensuring that quality provided to our subscribers is our prime goal. Our highly trained and professional staff in both cities, who underwent rigorous training on all aspects of technical and customer support issues will be geared towards providing excellent customer care service and high operational synergies." The official spokesperson added.

Itisa**** relies on CDMA2000, the latest available technology of the third generation (3G) in telecommunications technology to provide fixed ******** voice and internet services, while placing great emphasis on the security aspects against data leakage. The ******** voice service will enable subscribers to make on-network, off-network and international phone calls in competitive rates. Moreover, it allows customers to enjoy a wide range of features which were exclusive to mobile phones only, whereby short messages, caller identification, call waiting, call forward and voice mail will be available to subscribers.

Furthermore, subscribers will be able to use added value features provided through the network as Itisa**** aims to benefit the Iraqi people from this latest technology through allowing the ultimate use of available features.

Itisa**** subscribers, therefore, can use added value features such as ring back tone, SMS2TV- enables users to send short messages to and interact with TV and satellite channels programmes. Other added value services will include interactive voice response (IVR) which allows subscribers to dedicate songs, interpreting their dreams, and receiving daily wisdoms and jokes.

As for ******** internet service, Itisa**** provides high-speed internet services based on two different systems to cater to the different needs of its customers. The 1X internet service with a speed up to 150Kbps and is suitable for internet browsing, email and chatting in addition to other benefits. The High Speed Internet (EVDO) with a speed up to 3.1Mbps, is the second system, which is suitable for businesses and internet frequent users. The high speed Internet (EVDO) allows users to download programmes, listen to music and news, and access on-line games on real time basis.

Taking its customers' needs into consideration, Itisa**** offers two options to subscribe to its services. Customers can either subscribe to post-paid account or pre-paid accounts by using scratch cards which comes in $5, $10, $20 and $30.

Itisa****, the latest National ******** Fixed Voice and Data Telecommunications Company in Iraq and the sole Iraqi company to launch ******** Local Loop and internet services by using the latest available version of CDMA2000 which is a third generation (3G) ******** technology, providing excellent voice clarity and data communications to users at home or at work.

PUKmedia :: English - Itisaluna to Launch Operations Next Week in Baghdad and Basra