Thread: Archive Latest News - Dinar Think Tank - 27/08/08 - 15/01/09

Originally Posted by Seaview

Central Bank confirms its intention to delete the zeros of the Iraqi currency

The Central Bank of Iraq adviser, on Wednesday, the bank's determination to proceed with the project to delete the zeros of the Iraqi dinar to convert thousand dinars to one dinar, referring to the adoption of long-term plan for the project, which would be reluctant to cash the huge bloc in Iraq.

The appearance of Dr. Mohammad Saleh, said that "the bank will, in any case, long-term plan for the implementation of the project, in order to avoid any disruption reflected in the cash arena, which will move based on studies and slow and accurate resolution of all problems in the trading bloc committed a result of enormity of cash in the bulging Iraqi market."

The factors of this action, which he described as very important by saying that "Iraq is one of the countries hit by hyper-inflation in more than two decades ago, reflected in hyperinflation, for example, increased monetary issuance of approximately 25 billion dinars in the early nineties, as in 2003 Six thousand billion."

He added, "If we add significant structural changes on the size of the budget that is the source of monetary expansion in the bloc, we can say that the country does not have the discussions thus a large amount of cash currency units, a legacy of a hyper-inflation."

And that "many countries of the world suffered from this problem and turned their economies towards relative stability, it must find a solution to curb the enormous mass of cash to facilitate exchange of cash in Iraqi society, which mainly deal Tdaullach cash now rather than the use of means of payment, advanced banking."

He added, "This means we need urgently to the availability of substantial monetary value categories of small-scale return to any sense of the payments system easy to use and lead to facilitate transactions."

He cites the example of the saying that in the category in 1980 was equivalent to 25 dinars then more than $ 75, the largest category of cash at the time, while in the highest category at present is the key category of 25 thousand dinars, and equals only $ 23."

The "to note the difference .. that Iraq needs to be large groups in value - as we have a small size to facilitate the exchange and perform the functions of the various money."

The interest of clarifying the problems impeding the performance of existing cash, saying: "The problems of one of the" dollarisation "the Iraqi economy, the demand for dollars category per cent to facilitate large transactions paid in cash, which represents about 120 foreign currency thousand dinars, which means that the actual Iraqi economy needs to Category or categories of him cash to facilitate the exchange value of cash, especially in large deals. "

And on the extent of the Bank's approach to the deletion of zeros, the central bank advisor said "it is intended and studies in this regard that any groups are circulating a new progressive and comfortable and not limited to the replacement."

He noted that "this will give a lot of prosperity and stability in the availability of liquidity high and strong and facilitate transactions in line with the stage of growth and economic prosperity optimistic that Iraq will happen in the months or years to come." Available, that "relatively long-term project would be included in the cash economy to gradually add a lot of comfort and harmony in the economic situation."

The "trend is the deletion of three zeroes, instead of cash from the deal even though monetary issuance of $ 18 trillion dinars deal even though the economy of not more than 15 billion dinars, a mass of different categories of comfortable Bsal criticism, circulation and encourages banks to accept cash deposits."

"We know for example that one of the biggest problems at the present time the problem of counting and counting and verification of counterfeit currency or the offense, and this burden to the banking system, the burden on the citizen as well."

The consultant concluded the central bank to say that "low cost counting and counting and other leads to a decline in inflation by an estimated rate of 3%, resulting from the cost of cash transactions of large deals, have citizen in Basra for example, to transfer funds to Iraq through cash into the category of the dollar, Potential burdens and costs and commissions arising from the conversion process. It cost added to the prices inevitably transactions.

Translated version of http://www.iraqdirectory.com/DisplayNewsAr.aspx?id=6957

This is bad news isn't it or am I not understanding this right?

Barham Salih al-Zubeidi and discuss the economic situation and balance in 2009

Research and Finance Minister Bayan Jabr with Deputy Prime Minister Barham Salih, Wednesday, the economic situation and balance in 2009, according to a statement of the National Center for information. The statement quoted Zubaidi as saying that "this meeting came in the framework of the government continued to strengthen the Iraqi economy and the welfare of Iraqi citizens and the promotion of the service reality." "As he came in the context of work on the rehabilitation of infrastructure and the advancement of projects in Iraq."

Translated version of http://almalafpress.net/index.php?m=39

Originally Posted by livefree

This is bad news isn't it or am I not understanding this right?

Well, it's not good news, but it depends how you wish to interpret it. To me it says 'lop'. It is stated by an Advisor to the CBI.

Depends who's word in Iraq one wishes to take or believe. I think it's a wait and see situation at the moment...

South Korea, Iraq's Kurdish region sign Oil Pact

South Korea's state oil company said Thursday it signed an agreement with Iraq's Kurdish regional government to drill for oil in exchange for social infrastructure investment.

The Korea National Oil Corp. and Prime Minister Nechervan Barzani of Iraq's self-ruled Kurdish region signed the deal in Seoul, KNOC said in a release.

Under the terms, KNOC gets the right to drill for oil in eight locations, or blocks, in the Kurdish region. In return, KNOC will pursue power plant and sewage facility projects worth an initial US$600 million.
KNOC will carry out another US$1.5 billion in projects provided it becomes possible to export oil from Iraqi Kurdistan, the release said. Thursday's deal follows preliminary agreements reached earlier this year.

Oil exports from the Kurdish region have been hampered by a dispute with the Shiite-led central government in Baghdad, which considers any deals signed by the Kurds illegal as Iraq has not yet finalized a new national oil law.

The Kurdish government has drafted its own oil and gas law and has pursued numerous deals with international oil companies.
Iraq has been unable to agree on a law to set rules for foreign investment in the oil industry and determine how revenues would be shared among Shiites, Sunnis and Kurds.

The country has an estimated 115 billion barrels of oil and some 112 trillion cubic feet of natural gas reserves, according to the government.

Resource-poor South Korea imports virtually all of its oil. Through the first eight months of this year, it imported a total of 576 million barrels, mostly from the Middle East, according to KNOC.

Imports from Iraq totaled about 31 million barrels.

International Herald Tribune

Gas proving far less contentious than oil in Iraq

Shell’s latest gas deal may set a precedent for other IOCs.

Development of the energy sector in Iraq has proven cumbersome and highly controversial. The lack of regulations and oil laws, and the dominance of energy nationalists within the country, has prevented the signing of any production agreements that would enable the country to ramp-up production of oil and gas and thus provide critically needed financial assistance in the war-torn country. Instead, Iraq witnessed a third consecutive drop in monthly oil export rates in August, with only 1.75 million bpd.

Still, the picture is not wholly bleak. News of Shell’s recent signing of a heads of agreement with Iraq’s Ministry of Oil, has raised the hopes of many IOCs. The agreement allows for the establishment of a JV between the South Gas Company of Iraq and Shell for the processing and marketing of all associated natural gas produced in Basra in Southern Iraq.

"I think this provisional agreement is very significant and Shell has been very intelligent in adopting a strategy of pursuing gas contracts, instead of concentrating solely on oil like most other IOCs,” said Samuel Ciszuk, energy analyst – MENA, Global Insight.

In line with the rest of the Middle East, the gas industry has remained very much under the radar in Iraq - this despite the push for energy nationalism in the country. It seems, therefore, that Shell has been wise in its decision to push for gas contracts and has in the process side-stepped many of the issues dominating the oil sector.

Given that Shell will not be involved in the production of gas itself, it is much more likely that it will be able to progress with the JV, despite the lack of a legal framework in Iraq. The JV will simply monetise the gas that someone else has already produced. Such a plan is surely far less politically tumultuous then any agreement pertaining to production and there is still huge financial potential for Shell given its 49% stake in the JV. Regardless, it will be interesting to see if figures promoting energy nationalism within Iraq will pick-up on the deal and wreak any havoc.

For a time, it did seem that developments were being made in developing the oil sector, most notably with Iraq’s Oil Ministry offering short-term one year contracts to IOCs in June. Talks were underway with Exxon Mobil, Chevron, Shell, Total, BP and several smaller companies, but progress was tiresome and the Oil Ministry decided to call off the signing of any deals at the start of September.

Whilst in relative terms, when compared to industry standards, the year long deals were not particularly lucrative, they were still noteworthy. The six deals on offer were for work to increase Iraqi oil production from existing oil fields by approximately half a million bpd and could be seen as an opportunity for IOCs to gain a foot-hold in the energy-rich country.

“It would have been very difficult, and highly contested, to give away such short-term contracts given domestic pressure and a certain amount from the US. Right now the Iraqi government seems content to look for technical service agreements with IOCs rather than production sharing agreements,” explained Ciszuk.

The Iraqi Government’s recent US $3 billion 20-year agreement with China’s CNPC provides evidence of its swerve away PSAs. CNPC had originally signed PSA, but agreed to convert it into a technical agreement and accept a rate of return that looks extremely low by industry standards.

Still, it is understandably, rather difficult to push-forward with any production deals when there are no oil laws in place to regulate and guide. Until they can be determined, the CNPC deal seems to have set the standard for IOCs in regards to what they can expect by way of oil deals. Given the relatively small amount of revenue that is up for grabs in such technical deals, it may well be that the majority of IOCs see too few incentives to enter Iraq’s energy scene.

“If technical agreements turn out to be the main opportunity being offered to IOCs in the energy sector, then it may well be that Shell has drawn one of the few winning lottery tickets in Iraq,” concluded Ciszuk.

http://www.arabianbusiness.com/53217...-in-iraq?ln=en

Kurdistan considers generating energy from wind and water

Kurdistan regional government affirmed that it has presented studies to the feasibility of establishing facilities aimed to generate energy from wind and water. The northern region seeks to enhance local electricity supplies while investors employ billions of dollars to develop industry, habitat and tourism sectors. Kurdistan regional government called on people interested in this field to submit presentations by October 20.

Kurdistan considers generating energy from wind and water | Economics News | Alsumaria Iraqi Satellite TV Network

Iraqi-US draft pact will be presented to political council for national security soon

The Iraqi-US draft pact will be presented to the Iraqi political council for national security after the holy feast of Ramadan, Iraqi lawmaker from the united Iraqi alliance bloc, Abas al- Bayati told PUKmedia today.

“The US- negotiating team has returned from Washington and may bring amendments regarding the Iraqi government’s demands,” he added indicating that the ongoing negotiations between Iraq and the US concerning security, political and economic aspects should be held in closed doors.

http://pukmedia.com/english/index.ph...=6672&Itemid=1

Njervan Barzani: no interest for the Kurds to block approval of oil and gas law

He Njervan President Barzani's Kurdistan regional government that oil contracts signed by the Kurdistan regional government with leading companies Alaalmiphi legal contracts, constitutional and the best proof of this is that companies signing contracts with us an excellent oil.

Barzani said in a press release today, Thursday,: "The allegations say that the Kurds standing obstacle to the ratification of the oil and gas by the Iraqi Council of Representatives is not unfounded, noting at the same time that the Kurds had agreed with the central government to speed up legislation We made this law, he said: "We continue to make great efforts to pass this law only Addinm officials argue, oil contracts entered into by the Kurdistan regional government with international companies to extract oil in the province as illegal.

The President of the Government of the province that the Kurds have signed contracts are legal contracts were based on the Iraqi constitution and reverse those companies were not to risk their own money and its international reputation if were not sure of the legal and constitutional contracts.

Barzani said that we are in a provincial government offered the central government in more than once that they can see the most important of those contracts and we agreed with the central government to share the Kurdistan region of 17% of oil revenues with the rest forwarded to the central treasury and we intend to resort to the general revenue oil Territory

We suggested that they will be judged by any international body competent to develop a new mechanism for our contracts Italpona either cancel or abandoned This is not logical at all.

Translated version of http://www.ipairaq.com/inner.php?name=politics&id=4362

Samurai: Procedures for the central bank to maintain the financial reserves of Iraq in the United States Slow

The head of the Finance Committee and Chairman of the parliamentary bloc of Iyad Samarrai, the Accordance Front, the Iraqi Central Bank procedures to maintain the financial reserves of Iraq in the United States of "slow".

The statement quoted the Iraqi Accordance Front, broadcast on its website on Tuesday by hosting al-Samarrai told the Finance Committee in the House of Representatives Governor of the Central Bank of Iraq, his deputy and a number of heads of departments and advisers in the bank: that the measures slow, and the U.S. presidential protection, which will expire on the ninth of May next year Had expired by the U.S. House of Representatives because there is an effort within the Council for breaking in response to pressure from U.S. interests.

Alluding to the need to rectify the matter quickly to avoid Iraq was a difficult situation by intensifying efforts of the Ministry of Finance and the Central Bank in this matter.

He said one adviser noted that the high level of risk when you move money from one bank to another, which requires proactive arrangements, where it was agreed that the central bank sends periodic reports regularly to the House of Representatives and organizing regular meetings to discuss it.

Translated version of http://www.ipairaq.com/inner.php?name=politics&id=4374

Baghdad Receives Foreign Investment: (Part 1)

Revealed a group of economic experts, the Iraqi foreign investment in Iraq in the coming period, through a t.e.l.e.v.ision program aired by Arab S.a.t.e.l.lite

Prof. Golden reminds secure that after years of war and blockade the capital Baghdad opened its doors wide to foreign investment, to begin to compete with global corporations is the biggest in the history of Iraq to take advantage of the Investment Law No. 13 of 2006 after the restoration of security to some extent, the climate of investment projects started for the establishment of five hotels Stars, the first inside the Green Zone, a hotel which was obtained by Iraq's Marriott Iraqi investors with investment value amounted to one hundred and twenty million dollars, did not name the second after Alattiyvip located in the Tigris on the one hand and near the Baratha mosque, making it the archaeological projects of tourism both natural and religious value of investment Monday, amounted to approximately twenty million dollars.

Iyad Yahya (economist): Investing in Iraq is now the best investment in all regions of the world, Kalash lucrative profits, law investor fever, and fever by the possibility.

Golden safe: the project is the development of Baghdad International Airport, one of the largest investment projects in the capital Baghdad, where the investment value reached ten billion dollars seven accomplish more than one company includes the construction of a second to leave the room, lounges and the formation of a modern fleet of aircraft under the pretext of the Iraqi Baghdad up the most European countries Arabic, directly, in addition to building commercial city near the airport and hotel five stars and a center for conferences, exhibitions, playgrounds and building lines of the World.

Ramzi Al Shammari (investor): the topic of investment in Iraq is first and foremost means the security situation is set this thing, and what the facilities provided by the Government and the Central Bank of foreign companies. If always in 2006 and 2006, according to the companies operating in Iraq are statistical 44 companies are now more than 8 thousand companies registered in the Registrar of Companies now wants to compete and interference in Iraq's reconstruction and development and investment.

It is a long article and carries on in the link below and partly in the ISX forum :-

http://66.102.9.104/translate_c?hl=e...lLdOW-W78-K9LA