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

Gold, metals stable in local markets

Gold and precious metals were stable in Iraqi local markets on Sunday, following a remarkable increase in their prices yesterday that many attributed to a corresponding hike in international markets.

In Iraqi markets, 21-carat gold was sold for $25.99 per gram, while the buying price was $25.20, same as yesterday.
Meanwhile, one gram of 18-carat gold was sold for $22 in Baghdad markets and $21.5 in Basra.

Platinum was also stable at $60 and $58 per gram for the selling and buying prices respectively.

Silver prices were $0.55 and $0.52 for the selling and buying prices in the Iraqi capital.

Aswat Aliraq

PM encourages German investment in Iraq

Iraq's Prime Minister Nouri al-Maliki called on German experts and companies to invest in Iraq and contribute to projects launched by his government to boost Iraq's economy and raise the living standard of its people.

The call was made during al-Maliki's reception of German Ambassador Hans Schumacher in his Baghdad-based office, according to a cabinet statement received by Aswat al-Iraq, Voices of Iraq, (VOI).

"Iraq, which suffered from the ravages of war during the former Iraqi regime, needs to benefit from the experience of countries and people who suffered the same fate," the statement quoted al-Maliki as saying, citing Germany, Japan, and South Korea as examples.

The premier stressed his government's keenness to foster its relations with Germany and enhance mutual cooperation at all levels between the two countries.

Al-Maliki further praised the German government's support of the Iraqi political process and its decision to reduce Iraqi debts.

The German envoy delivered to al-Maliki an official invitation from German Chancellor Angela Merkel to visit his country and reiterated his country's support for the Iraqi government's efforts in establishing security and stability.

Aswat Aliraq

Higher demand for the dollar in daily auction

Demand for the dollar was up in the Iraqi Central Bank's auction on Sunday, registering at $76.790 million compared to $32.570 million on Thursday, with analysts envisioning a further hike at the approach of the summer trade season.

"The demand hit $12.960 million in cash and $63.830 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 third consecutive session," according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

None of the 17 banks that participated in the auction offered to sell dollars.

Speaking to VOI, Jumaa Aani, an economic expert, said that the difference between the official and market exchange rate has encouraged banks to increase their purchase bids and reduce their selling offers.

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

Aswat Aliraq

ISX index higher

The Iraqi Stock Exchange (ISX) index rose by 1.601% on Sunday compared to the previous session, closing at 34.900 points, with a notable absence of non-Iraqi investors.

Traded shares in Sunday's session exceeded 1.113 billion at a total value of $1.534 million by implementing 211 contracts.

According to the daily analysis of the capital market, the banking sector's index, in which 15 companies traded, closed at 36.865 points, 0.696% higher than the previous session; while the industrial sector, in which nine companies traded, ended at 11.111 points, same as the previous session.

The statement concluded that 33 companies were traded in Sunday's session out of 94 companies registered in Iraq's stock exchange, of which 11 indexes went up, six dropped, and 16 maintained their previous price.

Aswat Aliraq

Cabinet reshuffle dominates Baghdad press

Iraqi newspapers gave prominence in their Sunday issues to Iraqi political blocs' consensus on a cabinet reshuffle that excludes the prime minister and where efficiency is a prime criterion for selection.

The independent daily al-Sumariyya newspaper published an article entitled, 'Golden chance,' by its Editor-in-Chief Basim al-Fadhily, in which he described the expected cabinet reshuffle as a great opportunity for Iraq's Prime Minister Nouri al-Maliki to bring in a technocrat government on grounds of efficiency rather than the sectarian quota system.

The author criticized ministries which he said "have devoted their efforts to serving the interests of their parties rather than those of the Iraqi people" and called to take advantage of the notable political consensus to better serve the country's needs.

Al-Fadhily further urged the Iraqi premier and members of parliament to place the interests of the Iraqi people above all else and to select "the right person for the right position."

Al-Mashriq, another independent daily, published an opinion article by Hamid Abdullah in which he defined national bias as love for the homeland and loyalty to the country.

"Iraq is a homeland that deserves our national bias…whoever does not have this national bias, their loyalty will remain questionable," the author said.

Aswat Aliraq

FM leaves for Russia to sign debt Reduction Agreement

Iraqi Foreign Minister Hoshyar Zibari flew to Russia leading a high-level delegation to negotiate about reducing Iraq's debts, the foreign ministry said on Sunday.

"Zibari, leading a delegation of the finance, oil and electricity ministries, left for Russia on Sunday for talks with Russian officials and to sign an agreement to settle the issue of Iraqi debts due for Russia in accordance with the Paris Club rules," a foreign ministry source, who requested anonymity, told Aswat al-Iraq – Voices of Iraq – (VOI).

"The delegation will also probe ways to enhance relations between the two countries within expanded negotiations starting Monday," the source added.

"The delegation will invite Russian companies to start working in Iraq in return for reducing Russia's 13 billion dollars due on Iraq," he said.

Earlier, Russian ambassador to Iraq Vladimir Chamov, in a meeting with Iraqi President Jalal Talabani, said that Russia would sign an important agreement with Iraq reducing 91% of the country's debts for Russia.

Aswat Aliraq

Iraq Welcomes Russian Debt Write-Off

Iraqi President Jalal Talabani welcomed Friday an expected Russian decision to write off 91 percent of Iraq's estimated $13 billion debt, calling it a "historic turning point" in relations between the two countries.

A diplomat at the Iraqi Embassy in Moscow said Thursday that the pact would be signed during a visit by Iraq's Foreign Minister Hoshyar Zebari that starts Sunday. A Russian Finance Ministry official also said a debt-restructuring deal was planned.

They both spoke on condition of anonymity because they were not authorized to make public statements.

Talabani and other Iraqi officials met Friday with a delegation led by the Russian ambassador to Iraq to discuss expanding ties. Russia strongly opposed the U.S.-led invasion in 2003 that overthrew Saddam Hussein.

"It is expected that a new agreement will be signed to reduce the Iraqi debt by a proportion of 91 percent," Talabani's office said in a statement. "The two sides have agreed that this will be a historic turning point in relations between the two countries."

The decision to write off Iraqi debt was seen in part as an effort to improve Russian companies' chances of winning oil contracts and other deals in Iraq.

The Iraqi government has complained that it cannot support its huge Saddam-era debt to various countries — amounting by some estimates to more than $60 billion. The Bush administration has urged other countries to follow its lead and write off Iraq's debts as a way for Baghdad to channel more money to rebuilding.

In June, China announced it was forgiving Iraq's debt. It didn't give figures, but the Iraqis said they owed China about $8 million.

But some of Iraq's major creditors, including Saudi Arabia and Kuwait, have refused to do so until they see progress on national reconciliation, economic reform and security.

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CNH Announces Its Participation in Baghdad Meeting of the U.S.-Iraq Business Dialogue

CNH (Case New Holland) (NYSE: CNH) today announced its participation in the second in-person meeting of the U.S.-Iraq Business Dialogue (USIBD) in Baghdad.

"Today provided a great opportunity for CNH to show its commitment to Iraq by highlighting past successes in the region as well as focusing on future market growth," said Joseph Samora, Senior Vice President, CNH. Samora was appointed on January 11, 2007, by U.S. Department of Commerce Secretary Carlos Gutierrez to be one of ten members in the U.S. Section of the U.S.-Iraq Business Dialogue. "This visit further solidifies Case New Holland's market leadership in Iraq for agricultural and construction equipment for over 30 years."

Today's Baghdad trip was led by Secretary Gutierrez. During his Baghdad meetings, Samora highlighted the completion of CNH's recent sale of 200 New Holland tractors in Iskandariyah, Iraq.

The USIBD is intended to bring together U.S. and Iraqi business leaders and government officials to discuss ways to facilitate private sector business growth in Iraq and to strengthen trade and investment ties between the United States and Iraq. Iraqi Minister of Trade Abd Al-Falah Al-Sudani appointed ten Iraqi businessmen to the Iraqi Section of the USIBD.

The USIBD on February 20, 2007 had its first in-person meeting in Erbil, Kurdistan, Iraq. Today's meeting in Baghdad was the second USIBD in-person meeting in Iraq.

Today, the USIBD presented its first formal recommendations aimed at developing Iraq's private sector, including adoption of policies to stimulate the growth of the private Iraqi banks and the creation of a joint U.S.-Iraq initiative to restart dormant private Iraqi industry.

Samora and the other members of the U.S. Section in the USIBD had a briefing with General David H. Petraeus, Commanding General, Multi-National Force-Iraq and Iraqi Prime Minister Nouri al-Maliki. In addition, Samora met with Iraqi Minister of Agriculture Ali Husayn al-Bahadili.

CNH Announces Its Participation in Baghdad Meeting of the U.S.-Iraq Business Dialogue

U.S. Growth Hampered by Oil, Subprime, Gutierrez Says (Update1)

By Massoud A. Derhally

Feb. 10 (Bloomberg) -- The U.S. economy will grow below its average of 2.7 percent to 3 percent in the first half of this year, as a result of higher oil prices and the subprime crisis, U.S. Commerce Secretary Carlos Gutierrez said.

`` We are going through a housing correction, there is no question about that,'' Gutierrez told reporters today during a press conference in Amman, Jordan. ``We do foresee that our growth rate will decline, but we will continue to grow. For the next couple of quarters we will grow at a smaller pace but we will continue to grow while the housing market adjusts and corrects.''

The U.S. Congress this week passed and sent to President George W. Bush a $168 billion stimulus package that Gutierrez said ``will help the economy stay vibrant while the correction happens.'' The growth rate declined to 0.6 percent in the last quarter, while growth for the year was 2.2 percent, he said.

``In the long term our strategy is to keep taxes low, engage in the world with trade, avoid isolationism and continue to support the private sector,'' Gutierrez said.

U.S. service industries unexpectedly contracted in January at the fastest pace since the 2001 recession, according to data released Feb. 5 by the Institute for Supply Management, as the housing slump deepened and consumer spending cooled.

Consumer Debt

Separately the Federal Reserve said Feb. 7 that consumer debt in the U.S. rose at the slowest pace in eight months in December as the economy came close to stalling and borrowers cut back on credit-card use.

High oil prices are slowing the U.S. economy and affecting the rate of inflation, Gutierrez told reporters today.

``There is no question that, the way the price of oil has grown over the past year and several years, that it wouldn't have an impact on the economy,'' he said. ``It has an impact on inflation, it has an impact on what consumers can spend. Consumer spending is 70 percent of the US economy.''

``The one thing that is favorable to us is that today the percentage of oil as a percent of the economy is lower than what it was 20 or 30 years ago, so that we are able to withstand the increase better,'' he said.

The U.S. economy has expanded at an annual average of 2.86 percent over the past five years, according to Bloomberg data.

Trade with all countries has been growing at about 12 percent a year, Gutierrez said, adding that he hopes Jordan, with which the U.S. has a Free Trade Agreement, could also grow by that pace. Trade between the two countries has quintupled since 2000 to about $2.1 billion.

Gutierrez also said security in Iraq has improved and the country now offers opportunities for trading partners including Jordan. ``If Iraq grows, that can be very positive for Jordan and the whole area,'' he said.

A number of US companies are looking at investing in Iraq, Gutierrez said, declining to name them. It's important for Iraq to develop other industries besides oil, he said.

To contact the reporter on this story: Massoud A. Derhally in Amman, Jordan at [email protected]

Gates Visits Iraq for Talks on Reducing U.S. Troop Presence

Defense Secretary Robert Gates visited Iraq for talks with military commanders on reducing U.S. troop numbers in the country, as Agence France-Presse reported a suicide bombing killed at least 25 people north of Baghdad.

Gates arrived in the Iraqi capital late yesterday after attending an international security conference in Munich, and held a working dinner with Prime Minister Nuri al-Maliki and President Jalal Talabani, the Pentagon reported on its Web site.

He is scheduled to meet today with General David Petraeus, the U.S. commander in Iraq, and discuss the planned withdrawal of combat brigades by July and possible further cuts later this year, according to the American Forces Press Service.

The five brigades, totaling about 20,000 soldiers, form the core of a U.S. buildup last year that brought the total level of American forces in Iraq to more than 160,000 personnel. Officials say the buildup has improved security in Iraq and that the extra troops can be withdrawn by mid-year if those gains persist.

President George W. Bush said in a television interview yesterday the U.S. won't seek permanent bases in Iraq. The two countries are discussing a so-called framework agreement to replace the current legal authorization for U.S. forces in Iraq that expires at the end of this year.

``We will be there at the invitation of the Iraqi government,'' Bush told Fox News, according to a transcript.

Gates plans to congratulate Iraqi leaders on recent political progress, including the adoption of a reconciliation law which allows members of former president Saddam Hussein's Baath party to return to public life, the news agency said.

Gates told reporters traveling with him that he will discuss ``the prospects for further success,'' including a proposed provincial powers law which would give more autonomy to Iraqi regions, AFP said.

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