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

CBI attributes higher inflation to intl. increase in food prices

The Central Bank of Iraq (CBI) attributed the rise in the basic inflation rate in April 2008 to the unexpected increase in international food prices.

"Basic inflation index in Iraq was remarkably high in April 2008 due to an external shock that is still affecting the Iraqi economy in the light of a sudden increase in international food prices," the bank said in a statement received by Aswat al-Iraq, Voices of Iraq, (VOI).

The rise in the annual basic inflation index reached 16%, according to the statement.

Food is the most important element in the market basket of goods used in calculating the consumer price index (CPI), which measures inflation at the retail level, the statement explained.

The figures announced by the central bank contradicted those revealed in a report by the Iraqi Central Agency for Statistics and Information Technology yesterday, but both figures demonstrated an increase in the basic inflation index in April.

Iraq's inflation rate index rose by 1.8% in April 2008, compared to March 2008, while the annual inflation rate jumped by 5.5% in the period April 2007-April 2008, the central agency said.

A rise in the CPI reflected an increase in the average price of the following consumer goods and services: foodstuffs (13.6%), furniture (0.8%), medical services and medicines (1.3%), and varied goods and services (0.6%), according to a report released by the agency and received by VOI.

Constituting 20.2% of household spending, the report indicated that the prices of cigarettes and beverages; cloth, clothes and footwear; fuel and lightening; and transport cost were higher by 1.4%, 0.2%, 4.9%, and 2.5% respectively.

The report, which is based on field data about the retail prices of goods and services in local markets, revealed a 20.1% decrease in lightening and fuel prices in April 2008, compared to the same month of last year.

Aswat Aliraq

Drop in the demand for the dollar

Demand for the dollar was down in the Iraqi Central Bank's auction on Wednesday, reaching $76.130 million compared to $127.485 million on Tuesday.

"The demand hit $4.180 million in cash and $71.950 million in foreign transfers outside the country, all covered by the bank at a stable exchange rate of 1,199 Iraqi dinars per dollar," according to the central bank's daily bulletin which was received by Aswat al-Iraq - Voices of Iraq - (VOI).

The 12 banks that participated in the auction offered to sell dollars, which the bank bought at an exchange rate of 1,197 dinars per dollar.

Speaking to VOI, Ali al-Yasseri, a trader, said the demand for the dollar has unexpectedly and significantly decreased on Wednesday. The fall in the exchange rate encourages banks and traders to increase their remittances, he added.

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

Aswat Aliraq

Dewan Rakyat: Halliburton no longer provides services in Iraq

KUALA LUMPUR: Controversial US-based multinational Halliburton has sold off its subsidiary, which has been involved in providing military services in Iraq, in stages since Nov 2006.

Deputy International and Trade Industry Minister Datuk Jacob Dungau Sagan told Datuk Mukhriz Tun Dr Mahathir (BN - Jerlun) that in 2007, the firm officially declared that it no longer owned the subsidiary involved.

"This is before the Government approved its licence to operate a factor manufacturing equipment for the petroleum and gas sector in Johor.

"The company is considered one of the five biggest and most famous firms involved in this field," he said, adding that Malaysia hoped to promote itself as the hub for the manufacturing of oil and gas equipment.

Dewan Rakyat: Halliburton no longer provides services in Iraq

Political process 'better, stronger' - PM

Iraqi Prime Minister Nouri al-Maliki said on Friday that the political process became in a "better and stronger" position after the security improvement in Baghdad, Basra and Mosul.

This came during his meeting with Australian Ambassador in Baghdad Marc Brown, according to a statement released from al-Maliki's office.

"There is a development in our armed forces' abilities and we started to focus on developing the economic and services fields," al-Maliki said in the statement received by Aswat al-Iraq - Voices of Iraq (VOI).

"Iraq prepares for holding the provincial councils elections and because of the improvement in the political process, we expect to achieve great results," he added.

He called on Australian companies to contribute in supporting the government's efforts to develop the agriculture sector as well as the construction and economic projects.

"The diplomat voiced his country's support to the Iraqi government's efforts towards realizing peace and security in the country," the statement said, noting that Brown invited al-Maliki to visit Australia.

Aswat Aliraq

Iraq VP clarifies Iraq relations with Iran
Iraqi Vice President Adel Abdul Mehdi said it was wrong to describe rows between Iran and regional powers as Iraqi-Shiite dispute

Iraqi Vice President Adel Abdul Mehdi said it was wrong to describe rows between Iran and regional powers as Iraqi-Shiite dispute considering that reports on a Shiite plot to control Arab countries is a result of changes on the regional level in the political powers balance in some Arab countries. Abdul Mehdi’s statements came in the context of assessment to Lebanon’s crisis which needs consensus just as Iraq.

As for reports about an Iranian project to control the region, Iraqi VP stressed the importance of distinguishing between the media on one hand and the situation on the ground on the other hand. Shiites and Sunnis are of one religion and have lived in this region for the past centuries and they will remain together. Such reports are a mistaken interpretation of political rows between Iran and the region displayed as Sunni-Shiite row which is a dangerous, Abdul Mehdi added.

As for security improvement in Iraq, Iraqi VP noted that progress is major mainly while secure areas are expanding in Iraq to more than 98%. As for political rows and divisions within parliamentarian blocs mainly between the Coalition and Al Sadr Bloc, he clarified that pluralism is the essence of democracy. Abdul Mehdi insisted that there is no political division inside any front but there is a firm stand towards holding up arms in streets.

As for the US-Iraqi agreement regarding US Forces presence in Iraq, Abdul Mehidi underlined that Iraq insists on controlling the action of forces and reaching an agreement regardless of the time US Forces will spend in the country.

http://www.alsumaria.tv/en/Iraq-News/1-17952-Iraq-VP-clarifies-Iraq-relations-with-Iran.html

Connecting Iraq to the telecommunications world

"The Center will allow Iraq to connect to the world," summed up an Iraqi engineer overseeing construction at al Mamoon Exchange and Telecommunications Center in Baghdad.

"This will become the heart of Baghdad's telecom system and enable the government to provide the citizens of Iraq with reliable service," explained U.S. Army Corps of Engineers Resident Engineer Wade Ricard.

To further accent the Center's importance to Iraq, Wade said, "It is a symbolic project, capturing the architectural aesthetics of the surrounding community and emphasizing the openness of the new government buildings, as the focal point of the city."

Currently the project is 48 percent complete and is scheduled to open at the end of this year. The new facility features an eight-story structure that will house communication switch gear and telecommunication offices. It includes a 1,300 sq. meter post office, a loading dock for delivery trucks, a 250-car covered garage, and a cafeteria capable of seating 150 people.

More than 100 Iraqi construction workers and 23 other workers are presently preparing the first floor slab rebar and sleeves for the main office building and the post office building, casting the second floor columns and finishing the car park drainage. The contractor has his own concrete plant capable of producing 90 cubic meters of concrete per hour in order to meet the demand.

The old al Mamoon tower is a landmark known throughout Iraq, but is incapable of meeting the growing communications needs in the city. Mohammad Abdula, a lifelong resident of Baghdad, said phone service in Baghdad is available locally allowing residents to call those in their immediate neighborhood. "But unless you use a cell phone, you can't call friends and family on the other side of the Tigris River or to other cities in Iraq. This facility is the first step in restoring and improving phone service here." He looks forward to the day when Iraqis can make international calls using their home ****** as well as connecting to the Internet. In addition to connectivity, there are other reasons to consider this project as a milestone in Iraq reconstruction.

USACE Officer in Charge, Navy Lt. Cmdr. Chuck Smith, International Zone Resident Office, said that al Mamoon Center is a significantly more complex project than what is typically seen in Iraq. "The Center is being built with advanced construction techniques such as concrete post-tensioning that are rarely used here," he says. "For this reason, it's been a challenge to provide the right level of quality assurance and oversight."

"Perhaps the most important part of the construction is that al Mamoon Center buildings are not designed to be fortified," says Smith. "The office tower is one that might be seen in any large city in the world. It expresses a confidence that conflict will end and things will improve."

Smith is part of USACE's Baghdad Area Office that is currently managing more than 120 projects valued at more than $770 million including new water and sewer lines, electrical distribution networks, road paving, hospital renovations and schools.

Iraq Development Program - Connecting Iraq to the telecommunications world

Exxon working with Iraq on Oil Sector Deal - ****

Exxon Mobil Corp is currently working with Iraq's government on crafting a technical agreement in the OPEC nation's oil sector, a company ****utive told U.S. lawmakers on Wednesday.

"We're looking at a technical agreement right now," Stephen Simon, Exxon's senior vice president, told lawmakers at a hearing in the Senate Judiciary Committee.

Even without a long-awaited oil law to set international investment terms, Iraq is plowing ahead to set deals to reinvigorate its dilapidated oil sector.

Simon said he would not agree to delay signing contracts with Iraq's government until the oil law is finalized.

"I'm not going to make any commitment of that type," Simon said.

Sen. Charles Schumer, New York Democrat, said it was "outrageous" for Exxon to forge ahead with oil deals before a framework oil law was enacted, and said such actions could ex****bate sectarian violence in the war-torn nation.

Iraq, whose primary source of revenue comes from oil, needs huge amounts of investment to boost oil output but also to rebuild the country after years of sanctions and war.

Delays in approving the oil law to govern the industry have held back investment -- the current draft being negotiated, for example, was first agreed by the Cabinet in February 2007.

UPDATE 1-Exxon working with Iraq on oil sector deal - exec | Industries | Energy | Reuters&

President Talabani Meets US Ambassador to Iraq

Iraqi President, Jalal Talabani, met today with the US Ambassador to Iraq, Ryan Crocker, in Baghdad.

In a meeting, which was attended by Iraqi Deputy Prime Minister, Barham Saleh, both sides exchanged views about the recent developments in Iraq, stressing the importance of joint relations between both countries. President Talabani referred to the steps paced to pass the oil and gas law by the Iraqi Council of Representatives, saying political parties were coming forward together to address the concerns related to the law.

PUKmedia :: English - President Talabani Meets US Ambassador to Iraq

Iraqi oil revenues increase by $250 million in April

Iraqi oil revenues increased by $250 million in April compared to March 2008 due to the hike in the oil prices in the international markets, Iraqi oil ministry spokesman said on Wednesday.

"In April, Iraqi oil revenues reached $5,922 million compared to $5,644 million in March 2008," Asim Jihad told Aswat al-Iraq- Voices of Iraq- (VOI).

The spokesman added that Iraq "exported nearly 57 million barrels of crude in April, sold at $103.7 per barrel."

"43.800 million barrels were exported from oilfields in southern Iraq, while 13.3 million barrels exported from northern Iraqi oilfields," Jihad said.

According to Jihad "the revenues generated by exports form the country's southern oilfields reached $4,512 million, while $1,410 million were generated from exports of the northern oilfields."

Aswat Aliraq

BP Submits Iraq Plan, Exxon Expected Next

BP could become the first major oil company to sign a technical support contract with Iraq if a final proposal it submitted to the oil ministry this week wins approval, industry and Iraqi sources told Oil Daily Tuesday. The proposal, for the Rumaila oil field, follows several months of negotiations ........

BP Submits Iraq Plan, Exxon Expected Next