Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Inflation rate down in June

Iraq's annual basic inflation rate dropped to 12.4 percent in June 2008, compared to 14.7 percent in May 2008, the Central Bank of Iraq said on Monday.

"The consumer price index (CPI) was remarkably lower in June 2008," according to a bank statement received by Aswat al-Iraq - Voices of Iraq - (VOI).

Prices of foodstuffs, which constitute more than two thirds of the market base of products and services used in calculating the CPI, went down significantly because of two reasons: a rise in domestic agricultural production and the constant rise of the Iraqi dinar against the U.S. dollar, which helped reduce the serious effects of the international food crisis.

The statement noted that the bank will continue its policy of monitoring the stability of prices in Iraqi markets, adding that stabilizing the value of the Iraqi dinar and maintaining its purchasing power is the main objective of the bank's monetary policy.

Aswat Aliraq

Soon: Iraq resumes oil exports through Syria- spokesperson

Iraq will soon resume its oil exports via the Syrian port of Banyas on the Mediterranean coast, a spokesman for the Iraqi Ministry of Oil said.

"The ministry has agreed with an international company (whose name and nationality were not disclosed) to rehabilitate the Iraqi-Syrian pipeline linking Beiji refinery (western Iraq) to Banyas port on the Mediterranean coast, which has stopped working since the mid-1990s," Assem Jihad said in an exclusive statement to Aswat al-Iraq- Voices of Iraq- (VOI).

Jihad explained that the rehabilitation aims at "pumping oil through a new pipeline" in an attempt to boost the export policy adopted by the Ministry of Oil.

The export capacity of the pipeline is 200,000 barrels per day (bpd), Jihad noted, adding that the concerned company will undertake rehabilitation and maintenance work on it as soon as possible.
Iraq currently exports 2 million barrels of oil per day, mostly from its southern ports in Basra and Amara.

The Shiite province of Basra lies 590 km south of the Iraqi capital; while Amara, the capital city of Missan province, lies 390 km south of Baghdad.

Aswat Aliraq

Iraqi Parliament to Vote on Elections Law Today

It is decided that the Iraqi Parliament members are going to vote on the elections law draft in today’s session. Meanwhile, sources mentioned that there is a probability of delaying in issuing the law.

These developments came after the suggestion of the Electoral Commission to postpone the elections from October to December. Also, the Unified Coalition has presented an agreement project with 4 points to solve the problems of Kirkuk Province elections.

“Today’s session will witness voting on the elections law, where two choices will be made for each article by voting on it with “Yes” or “No”. There is a probability of postponing the elections in Kirkuk Province. Today’s session may witness arguments between the Parliament members”, a media source from the Parliament said.

PUKmedia :: English - Iraqi Parliament to Vote on Elections Law Today

Delay of Iraq provincial law ratification

Iraq’s Parliament delayed the ratification of provincial law which will delay elections. Even if the law is approved today or in coming sessions, elections cannot be carried out before mid December due to the need of fulfilling all necessary requirements such as preparing electoral centers, renewing voters’ registers and updating needed data, head of the elections high independent commission Faraj Al Haydari explained.

As for the main disputed issue on Kirkuk, new related proposals will be passed during the anticipated parliamentarian session in aim to bring closer different points of views. The unified coalition bloc is mediating in this concern while Arab, Turkmen and Kurdish parties are studying the suggested proposals in hope to ensure full quorum in today’s session.

Delay of Iraq provincial law ratification | Iraq News | Alsumaria Iraqi Satellite TV Network

Maliki did not specify US pullout time zone

Iraqi Cabinet spokesman Ali Al Dabbagh said in a statement that Prime Minister Nuri Al Maliki did not specify a time zone for US Forces withdrawal from Iraq. Al Dabbagh’s statement came in response to a report published by German Der Spiegel Magazine quoting Al Maliki as saying that he favors withdrawal of US Forces from Iraq within 16 months according to the proposal by US presidential candidate Barack Obama. The statement continued that Al Maliki stresses on an Iraqi vision based on Iraq’s security needs, thus security improvement in Iraqi cities makes the withdrawal of US Forces within agreed upon deadlines bound to ongoing progress on the ground. Al Dabbagh added that statements by Al Maliki or any other member of the government should not be seen as support for any US presidential candidate. It is to be noted that Obama calls to end US military presence in Iraq and withdraw US forces by one or two brigades a month.

Meanwhile, citizens have expressed different reactions towards the due visit of Obama to Iraq. Journalist Jawad Kazem hoped that the visit of democrat white house candidate would not be used as an electoral campaign.

Maliki did not specify US pullout time zone | Iraq News | Alsumaria Iraqi Satellite TV Network

PM heads first cabinet meeting following ministers' return

The Iraqi cabinet on Monday met in full under the chairmanship of Prime Minister Nouri al-Maliki, the first government meeting following the return of the Sunni Iraqi Accordance Front's (IAF) ministers and the appointment of replacements for the Sadrist's.

"The national unity government has been completed today with the appointment of the new ministers," a cabinet statement received by Aswat al-Iraq - Voices of Iraq - (VOI), quoting Maliki as saying.

"It is a historic day where efforts made by both the Parliament and the government combined to achieve this significant process," the premier noted, adding "efforts will continue to approve the appointment of deputy ministers and ambassadors."

"The main challenges are services, construction and economy. These are the issues that the Iraqi people have been long suffering from because of war and ventures that squandered its wealth and drowned the country in debts…," Maliki added.

On Saturday, the Iraqi Parliament approved the appointment of a deputy premier and nine ministers to fill vacant posts in a new ministerial line-up.

"Today the Parliament approved the list of candidates for vacant portfolios in the Iraqi government, which included a deputy prime minister, Rafe' al-Isawi, in addition to nine ministers, including five from the Sunni IAF and four from the Shiite Unified Iraqi Coalition (UIC)," MP Taha Dara al-Saadi from the Shiite coalition told VOI.

The IAF list included Abd Thiyab al-Ajeeli as the minister of higher education and scientific research, Mahir Dali Ibrahim al-Hadithi as the minister of culture, Farouq Abdelqadir Abdelrahman as the minister of communications, Mohammed Munajid Aifan al-Dulaimi as the minister of state for foreign affairs, and Nawal Majeed Hameed as the minister of state for women's affairs, al-Saadi noted.

Meanwhile, the UIC ministers are Aamer Abdeljabbar Ismail as the minister of transport, Ahtan Abbas No'man as the minister of state for tourism and antiquities affairs, Kholoud Sami Azaza as the minister of state for provincial affairs, and Thamir Jaafar al-Zubeidi as the minister of state for civil society affairs, he added.

According to the Iraqi Parliament's rapporteur, Abdelahad Afram, a total of 165 parliamentarians gave the vote of confidence to the new ministers.

In early August 2007, the IAF, 38 seats, withdrew its five ministers and a deputy premier, Sallam al-Zawbaie, from Maliki's government in protest of what it described as the non-participation in the political and security decision-making process.

The Sadrist bloc (30 seats), or Iraqis loyal to Shiite cleric Moqtada al-Sadr, withdrew its six ministers from the cabinet in April 2007; while the Iraqi National List (INL) withdrew its five ministers in August of the same year.

Aswat Aliraq

Sorry if already posted........

Iraq opens oil refinery in Anbar

Iraqi oil minister on Sunday inaugurated an oil refinery with 16000 bp capacity in Anbar province.

"The refinery would cover s great deal of oil products needs for the region,"a Iraqi government media office statement cited Oil Minister Hussein al-Shahristani as saying.

The minister noted "the oil ministry has sought to upgrade refinery production units in order to increase production levels and to turn Iraq into products exporting country".

The refinery, located near the Syrian border in the once-violent Anbar Province, was closed in 2005 due to deteriorating security. Its rehabilitation is part of efforts by the government to boost services and win loyalties in the nation's Sunni heartland.

The refinery is expected to generate local jobs and meet needs for fuel and other petroleum products in the region, which was once the main stronghold of al-Qaida in Iraq.

Armed Anbar groups began an uprising against al-Qaida last year to halt attacks that claimed hundreds of civilian lives. The Anbar movement was hailed by the U.S. military as vital to helping root out armed attacks a key element in bringing violence in Iraq to its lowest level in four years.

Washington and Iraqi leaders now want to deepen Anbar's support with political pacts and development projects such as the refinery, which began work on Friday.

The 51 year old refinery will have an initial capacity of processing 16,000 barrels of crude a day, said a statement from the Oil Ministry. Two more production units will be added to reach 70,000 barrels a day, the statement added without mentioning a specific timetable.

Iraq's three main oil refineries are running at roughly half the 700,000 barrels daily capacity before the U.S.-led invasion in March 2003.

Iraq has the world's third-largest known crude oil reserves an estimated 115 billion barrels but it suffers acute refinery shortages following years of U.N. sanctions and war.

The shortfall has forced Iraq to turn to imports from neighboring Iran, Kuwait and Turkey.

Iraq opens oil refinery in Anbar - Middle East News

Update.......

Parliament defers vote on the law of provincial council elections to a meeting Tuesday

Published 21.7.2008, 16:37

Decided by the Presidency of the Council of the Iraqi parliament to postpone voting on the law of elections to provincial assemblies meeting tomorrow, Tuesday, to give the parties an opportunity for different elections around Kirkuk to reach a compromise formula.

A member of the European Parliament Kurdistan Islamic Sami Alaterci in an interview with "Uzmatik", said "it was scheduled today, Monday, voting on election law provincial assemblies in Parliament, but political blocs had been unable to reach a final formulation of the article on the elections in Kirkuk."

He Alaterci to "Today's meeting saw a great convergence between the different political blocs over the issue of Kirkuk," adding that the reason for postponing the vote on the law "was to find a compromise formula that satisfies all parties, the elections in Kirkuk."

Alaterci pointed out that "the political blocs heading towards postponing the elections", but controversial in this regard is "the conditions for such a postponement, and mechanisms used, the duration of time", as saying.

It was the official spokesman for the Kurdistan Alliance in the Iraqi parliament *******ing Rawanduz had confirmed in an interview with "Uzmatik" on Monday, failure to reach a final solution between the political blocs on the Adoption Law of provincial council elections, in the House of Representatives of Iraq.

It is noteworthy that the presidency of the Iraqi parliament had decided at a meeting last Wednesday to postpone voting on the law of elections to provincial assemblies meeting today, Monday, to allow an opportunity for the political blocs to agree on controversial points in the law, especially the organization of elections in the city of Kirkuk.

http://translate.google.co.uk/transl...hl=en&ie=UTF-8

This looks like an opinion - it from a reputable Iraqi Newspaper - he's got a fair point though.......

Why this loan?

Thanked Al-Salihi
We loaded the Iraqi media days before the news of the Ministry of Finance recognizes the Japanese loan of three billion dollars, up grant rate to 81% when the interest rate does not exceed 05.0% and for a period of forty years will be repaid after ten years, and adds the news that Japanese companies have chosen (12) projects Implemented in the areas of electricity, water, sewage, was signed ten of them, four have broken down between Baghdad and Sulaymaniyah, Dahuk and Arbil, and was surprised when I read the news and a source of surprised that Iraq has a cash reserve of up to thirty billion dollars according to official statements made by Iraqi authorities have absolutely no need for such This loan facilitator, which places a plus for the state's treasury and for future generations of the sons of this homeland, adding that the loan is not the latest Government intends to obtain from Japan and other countries,

I do not know until this moment is a lesson in spending millions of dollars on social protection network, although these millions able to build dozens of factories and projects which can absorb the beneficiaries of this network, which marred a lot of financial and administrative corruption admittedly based upon, although this is not inherited my ignorance Exempt from the question about the reasons for seeking further loans conditional and unconditional at the time Iraq could endowed by God big fortune to rebuild their cities and to provide for the welfare of its citizens and decent living, and restored barren land flooded salt and destroys nature cruel to invest thousands of farmers unemployed Agriculture years ago, and have the fruits of Iraq's land, rather than importing everything from neighboring countries, ranging from iron and bricks and cement, not the end of fruit, vegetables, meat, milk and pickles, and about all this is reasonable justification for borrowing in recovering economic conditions that will be the best in Aram Negotiable days, especially the mad rise in oil prices is still in appalling manifestations dynamism?!

I did not understand that I am against one of the closer relations based on the benefits and common interests among nations, I personally wish to be with us all human beings intimate links and exchange of commercial balanced to keep in July reconstruction of our country to resolve all our economic problems, social and absorb millions of asylum Labour and Employment in the draft Iraqi core does not make them (the world) "on the state and society through dinars granted by some of the social safety net, and with all this that I did not stay long on the threshold of officials to submit financial disclosure to us the reality of economic development of Iraq, debt, which extinguished the Paris Club, And send us confidence and security of our present and our future and we wish that we dream, and not to remain in their expectations and speculations and loans, what we have enough money and enough .... ..... Suffice ...!!!

http://www.almadapaper.com/paper.php...page&sid=47112

Gulf Inflation and the Dollar Peg
With the world teetering on the edge of a depression, these are not easy times for financial authorities, whether in the United States, in the Gulf, or indeed anywhere else, says Patrick Seale.

The oil-rich Arab states of the Gulf are suffering from a painful and insidious disease which, if unchecked, will eat away at their prosperity and stability. The disease is called inflation.

The figures tell the story. Inflation in Saudi Arabia - by far the region’s biggest economy - is running at about 10.4% a year; in the United Arab Emirates it is 11%; in Kuwait 10%; in Oman 13.2%; in Qatar 14%.

Double-digit inflation such as this is hard to check. Governments are forced to compensate by increasing subsidies on basic items, by introducing price controls and, above all, by increasing wages of public employees. Private employers have usually to follow suit - and inflation edges upwards.

In inflationary situations, it is always those who live by their labour - who have no access to oil revenues and are not cushioned by wealth - who suffer first and who start to agitate, threatening political stability.

The root cause of Gulf inflation is, of course, the stupendous avalanche of wealth which has poured over the region as a result of the soaring price of oil. Not so long ago, oil was selling at $20; now it is edging towards $150. The oil price has surged seven-fold since 2002. It has doubled in price in the last year alone.

If one cause of inflation is the sharp increase of wealth - too many riyals and too many dirhams chasing too few goods - another cause is the peg of most Gulf currencies to the weakening dollar. The Saudi riyal, for example, has been pegged at a rate of 3.75 riyals to the U.S. dollar since 1986.

As the dollar falls sharply against the euro and the yen, such dollar pegs contribute to inflation by making Gulf imports from Europe and Japan more expensive. Oman’s import bill, for example, surged in 2007 by almost 47% to $15.96bn.

Economists and central bankers up and down the Gulf are now debating whether it would be wise to end the dollar peg and revalue their currencies.

A committee of Saudi Arabia’s Shura Council has recommended to King Abdallah that the riyal should be revalued by up to 30%. But Hamad Saud al-Sayyari, head of the Saudi central bank, has said that adjusting exchange rates will not solve the problem of high inflation. Meanwhile, Muhammad al-Jahdhamy, ****utive vice-president of Oman’s central bank, has said that inflation will stabilise, a remark that implied that a revaluation was not necessary.

Some experts believe that Gulf currencies should abandon the dollar peg in favour of a peg to a basket of currencies. Others argue that only a floating exchange rate would give the Gulf countries the monetary policy independence they need in a situation of global financial turbulence.

Ala’a A-Youssuf, chief economist of the London-based Gulf Finance House, argued in a letter to the Financial Times (July 16) that exchange rate appreciation alone would not be effective. He called for a “comprehensive medium-term development framework that explicitly recognizes the need to contain inflation while fostering growth and development.” Such a programme, he might have added, would be easier to implement if the Gulf countries were to adopt a single currency, on the model of the European Union.

The Financial Times (8 July) has called for Gulf currencies to include the price of oil in the basket to which they could peg their currencies. Their currencies would appreciate when oil was strong and depreciate when it was weak.

The truth is that the world economy is in great trouble. While oil and other commodities continue to climb, stock markets tumble and several leading commercial banks are struggling to stay afloat. In the United States, consumer confidence is at a 28-year low.

The biggest threat overhanging the world economy is the uncertain future of Fannie Mae and Freddie Mac, the pillars of the U.S. mortgage market. Together, they own or guarantee almost half of the $12,000bn U.S. mortgage market. But, as house prices fall and foreclosures rise across the United States, they have incurred huge losses. If they collapsed, the consequences could be disastrous for the global financial system - and for the dollar.

To survive, Fannie and Freddie need to borrow and raise fresh capital. But it will not be easy to attract private lenders so long as it is not clear what the U.S. government will do to save these venerable institutions.

One solution being floated is not to nationalize them - which would be contrary to America’s liberal market ideology - but to place them in “conservatorship” - a sort of disguised nationalization, which would allow the U.S. government to pretend that the liabilities of Fannie and Freddie were not its own.

With the world teetering on the edge of a depression, these are not easy times for financial authorities, whether in the United States, in the Gulf, or indeed anywhere else.

Patrick Seale is a leading British writer on the Middle East, and the author of The Struggle for Syria; also, Asad of Syria: The Struggle for the Middle East; and Abu Nidal: A Gun for Hire.

Middle East Online