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

Stable demand for the dollar on Sun.

Demand for the dollar was stable in the Central Bank of Iraq's (CBI) auction on Sunday, registering at $47.850 million compared to $45.920 million on Thursday.

"The demand hit $23.640 million in cash and $24.210 million in foreign transfers outside the country, all covered by the bank at a stable exchange rate of 1,179 Iraqi dinars per dollar," an official source from the bank told Aswat al-Iraq.

None of the 10 banks that participated in the session offered to sell dollars.

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

Aswat Aliraq

KIB to open 13 offices within Kurdish region

The Kurdistan Islamic Bank is planning to open 13 offices in the districts and cities of the autonomous Iraqi Kurdistan region during the next two months with the aim of enhancing banking services, a KIB official said.

"With those 13 offices, the number will climb to 30 should cover as many districts in the region as possible with basic banking services," the managing director of KIB, Ibtisam Nijm Abboud, told Aswat al-Iraq.

The bank is ready to move to a new 12-storey headquarters on Koulan street, Arbil province, Abboud said, adding the current headquarters would be the bank's fourth branch. The other branches are in Baghdad and Duhuk provinces, Abboud noted.

Aswat Aliraq

(Central): dinar to deal more acceptable levels to cover the dollar

Revealed the first in the Central Bank of Iraq, Muhammad Salih from the appearance that the bank decided within the future plan will begin next year, the E.x.e.cution of the removal of three zeros from the Iraqi currency, which is now experiencing inflation and Atrala can not be remedied only through this project, which will give a lot of prosperity and stability in the 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 coming months or years, but it «a long-term relatively cash in the economy will gradually give so much comfort and harmony in the economic situation. The determination of the bank in favor of implementing a project Deletion of three zeros from the Iraqi dinar to convert thousand dinars to one dinar, will begin the first phase of the project after for quite some time over a year, because this requires careful planning before implementation, because, if applied directly overburden citizens may cause problems even in monetary transactions between people .

When the start application will heed the grading and application progress will not see as in the people running the currency switch their carrier for banks to exchange the first step but would continue to deal in both existing and new until the exhaustion of the current market normally and without the citizens feel so. And the appearance that he was in 1980 Monetary issuance does not exceed 4 billion Iraqi dinars, with the highest category in the Iraqi currency is the category of 25 dinars, which were drawn, that while U.S. $ 75.

Currently, inflation, which was due to wars, conflicts and critical mass blockade was measured with the present monetary issuance of up to (20) trillion Iraqi dinars, while the largest cash is 25 thousand dinars, which is equal to only 22 dollars, and here it should be noted the difference in the way future country For the stability and growth. He added that the Iraqi economy based on his dealings in the monetary system, called Balkash any direct cash transactions because of weak banking systems and mechanisms and the circumstances created this type of transactions and fears of citizens from dealing with banks and others.

We need time to normalize the citizens, such as these transactions such as direct and thus a hike up cash for (20) trillion dinars created a need for large groups and this is why the demand for the dollar to the completion of insider trading (dollarization), despite the high value of the Iraqi dinar.

And the appearance that Iraq will shift from 20 trillion to 15 billion dinars and this would have positive effects on the economy and banking and everyday people will comfort and great, and I see it is very important and the issue of civilization, especially that most countries such as Turkey and Brazil dealt with the whole inflation for many years through such mechanisms And worked to replace the currency and raise the zeros and raise the value and size reduction through long-term plan for the implementation of the project. In anticipation of any disruption or fluctuations may occur in the secondary market transactions or in cash, we should adopt measures and steps minutes would solve all the problems in the trading committed by the magnitude Cash Block in the Iraqi market. The appearance that Iraq has suffered from hyperinflation in the past two decades, which was reflected in hyperinflation, rising monetary issuance of approximately 25 billion dinars in the early nineties, as in 2003 six thousand billion, and 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.

He noted that the reduction in the new currency 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.

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

Ministers: U.S., Iraq close to Security Deal

U.S. Secretary of State Condoleezza Rice and Iraqi Foreign Minister Hoshiyar Zebari said here on Saturday that the two countries are close to a security deal.

"We are very close. I have said many times that I think it is in the final stages and this would need the support of all the political leaders about this agreement," Zebari said before his meeting with Rice on the sidelines of the UN General Assembly.

"I hope there will be some good news for both of us and also to sustain and maintain the political and security gains that have been achieved in Iraq," he said.

Rice said there has been "good progress" in the talks of the security deal, although she said certain protections are needed to be agreed for the U.S. forces stationed in Iraq.

The two countries have been negotiating the security deal as the UN mandate in Iraq will expire at the end of this year. According to both sides, the deal will not include a clear timetable for U.S. forces to withdraw from Iraq and a U.S. pullout will depend on security conditions in Iraq

PUKmedia :: English - Ministers: U.S., Iraq close to security deal

Press Release Issued by Foreign Ministry

One of the Iraqi S.a.tellite Channels (Al Sharqiya) started a fabricated and relentless campaign against Foreign Ministry and its employees, during the past couple days, claiming there is alleged and expulsion campaign to eliminate the ministry's staff and dismissal the Ambassadors and other allegations.

It is unfortunately that the officials in this channels have enlarged this uproar fabricated media although the ministry contacted one of the officials in the channel to clarify the fact and denied of what was published, but even they relied on fabricating exaggerations and create things aim to creating a state of chaos and confusion against the ministry's work and to create a crisis that does not exist basically, and giving false and untrue information, using for the policy purposes to separate the political blocs participating in the government and political process.

Foreign Ministry is just like other institutions and can use its legal right to study and identify it employees, who reached the age of retirement to take the appropriate decision or retiring them in accordance with the applicable statutory or extending the work of some of them specified by the ministry and with the minister's approval and endorsement of Prime Minister, based on the requirements of the work and continuing interest. This is still a subject of study and scrutiny and has not issue any decision about that so far. It seems that there is an inaccurate information leak, which reached to this channel, and broadcasted and amplified without a reference to the interested news to make sure of it and this makes it lose its credibility in front of the public opinion.

We regret when Al Sharqiya channel is moving away from the professionalism media required by any media organizations which characterized by credibility , objectivity, true and aimed word. We regret when this channel used this cheap method, which is designed only to provoke negatively and insulting the sovereignty of ministry in the Iraqi government, this ministry, admitted by all, have achieved many important successes and influential in the management of foreign policy, new diplomacy opened on the world and the countries of the region and the Arab world.

While we deplore the way in which Al Sharqiya followed it regarding this issue, we reject it totally, and we call on this channel to be accurate and objective in its work and in access the information so that its work would be strong.

Press Department
Iraqi Foreign Ministry
Baghdad
28/9/2008

PUKmedia :: English - Press Release Issued by Foreign Ministry

President Talabani to return to Kurdistan region tomorrow

Iraqi President Jalal Talabani is scheduled to return to the Kurdistan region tomorrow, a source told PUKmedia. He will be received by the Kurdistan Region President Massoud Barzani and other KRG officials at the Erbil International Airport.

“President Talabani will be back home tomorrow after a successful visit to the US,” the source said. Iraqi President underwent a successful heart surgery in the US and he then attended the one week-long annual session of the UN General Assembly held in New York on Septembe 23. He also chaired a meeting of the state presidents who are members of the Socialist International in addition to holding series of meetings with the US and other foreign officials.

PUKmedia :: English - President Talabani to return to Kurdistan region tomorrow

Financial committee meets with central bank's governor

Financial committee at Parliament heard Central Bank's Governor, his deputy and some of the bank's directors to discuss many issues, particularly its measures to maintain Iraq's reserves in US and effects of oil prices changes on 2009 budget.

MP Ayad Alsamara'i, the committee's chairman, said that investment spending's insufficiency made Government as first motive of inflation through increase operating spendings, as he confirms necessity of support easy lending's institutions at agriculture, industry and housing sectors.

ÌÑíÏÉ ÇáÕÈÇÍ - Financial committee meets with central bank's governor

The Sale of Banking Services

Banks generally sell (services), and if a bank wants to market its services successfully, it must make customer demand for its services in the level rising through the meet the demands of the consumer or customer performance and improve the performance requires the application of modern marketing concepts with perfecting the art of selling Personal, through the development of communication taking place between the seller and the buyer directly ..It is indeed regrettable that the majority of banks, did not give this important post .. In order to market the service is successful it would be useful to review in contact with the public, panel procedures in banking operations .. With an emphasis on the need for a better deal with customers through the training of bank personnel and modern means of communication for sale, especially direct sales staff ..

The point to a shift in procedures and the development of means of communication for sale in private banks by some involved in the banking sector, this reference repeated on various occasions - This was more in some private banks with branches - but the reality of the case indicates that the The majority of private banks continue to operate routine methods to work, staff are still working methods of these banks were not relevant metadata inconsistent with the minimum curriculum vocabulary marketing banking services, and even one of these banks and branches located in downtown Baghdad Staff showing any degree of good deal still way (review of the nets) is based in dealings with customers and if they opened the bank - which is usually closed - Vsibah a customer entered the Guard Kzl scary until the completion of what he wants to serve .. If we have a model and this section if the departments of banks, is not interested in achieving production in the sale of service by a culture of dependence on government support institutions, then the matter with various banks as the civil service as financial institutions are particularly concerned about the sale of upgrading service, to encourage the customer and to assist in making The objective of the procurement service, and therefore it is interested in developing personal sales to achieve the goal sought by him ..

All facilities, whether service or productivity is the customer's satisfaction as one of the parties to offset the sale .. The significant development there has been on sale in the service of private banks years ago .. But this development on dealing with the public good has receded and disappeared along with private banks to check the event that the benefit night at the Central Bank, and by avoiding the sale of the public service equivalent in conjunction with the evidence of private banks and a remarkable attention from the practice of credit that do not benefit much (interest tonight )!.

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

Kurdish politician: Iraq needs to the United States

He Adviser to the President of the Parliament of Iraqi Kurdistan Tariq essence that Iraq needs to the United States because it is in dire need of international support.

The substance in an exclusive interview with news channel world of today, Sunday, Irbil, the need for Iraq to sign a security agreement, but after reaching a solution satisfactory to all parties, and preserving the sovereignty and unity of the state of Iraq and the Iraqi people, stressing the need for transparency in government brief People on every step made in this aspect.

The Adviser to the President of the Parliament of Kurdistan of Iraq should be adopted reference to the Convention, expressing his belief that it is the main reference National Political Council, noting the need to brief him on every step to reach a satisfactory outcome for the Iraqi people, with the U.S. side.

Translated version of http://iraqshabab.net/index.php?option=com_content&task=view&id=11591&It emid=1

Iraqi Oil Minister Interviewed on Contracts, Oil and Gas Law, Corruption

["Today's Encounter" programme, presented by Abd-al-Azim Muhammad, interviews Iraqi Oil Minister Husayn al-Shahristani - date not given; recorded]

Al-Jazeera S.a.tellite T.e.l.e.vision at 1430 gmt on 26 September carries a new 25-minute episode of its "Today's Encounter" programme, featuring an interview with Iraqi Oil Minister Husayn al- Shahristani by Abd-al-Azim Muhammad. This week's episode discusses the latest developments in the Iraqi oil file.

Muhammad begins by noting that the Oil Ministry has suspended negotiations with companies that seek to sign partnership contracts with Iraq, and he asks Al-Shahristani to update the programme about this issue. Al-Shahristani says negotiations with these companies focused on providing remote technical assistance because of the security situation at the time, adding that "Iraq has announced the first round of licensing, which constitutes open, transparent, and clear competition among qualified companies." He says that 120 companies participated in the solicitation for bids, of which only 35 were qualified. He adds that "Iraq is no longer in need of this type of contract and has announced its suspension." Concerning partnership, Al-Shahristani says "Iraq will not sign production sharing contracts," explaining that these contracts give foreign companies the right to share the state its oil production. He says Iraq rejects these contracts and seeks to have technical service contracts with companies against remuneration or investment in oil fields.

Muhammad notes that a clamour was raised against the Oil and Gas Law because it gives rights to foreign companies to invest in oil and to be partners in production for long periods of time if they shared in the exploration process, and he asks Al-Shahristani to comment. Al-Shahristani says this clamour was unrealistic and incorrect, because this law did not specify what type of contracts should be used and left it for the Iraqi government to decide, adding that "in the absence of this law, which has not yet been endorsed, we in the Iraqi Oil Ministry and the central government in general have now made a decision to the effect that Iraqi oil contracts to develop oil and gas fields should be service contracts only, not partnership contracts."

Asked about the contract that the ministry signed with a Chinese company to invest in the Al-Ahdab field, Al-Shahristani explains that this contract was a production sharing contract that was signed under Saddam in 1997 and that the current Iraqi government negotiated with the Chinese and transformed it into a service contract. He adds that this contract gives the Chinese company specific cheap remuneration, ranging from six to three US dollars, for every barrel extracted, regardless of the barrel price.

Asked why China, Al-Shahristani says: "We wanted to convey a clear message to the Iraqis, Arabs and the world that Iraqi oil is in safe hands and that Iraq will not allow any foreign company, regardless of its nationality, to gain possession of Iraqi oil." Asked whether this applies to the United States, which has been pressing for the endorsement of the law, he says "of course the United States has its own interests and employs the mechanisms that are available to it, but proudly speaking as a patriotic Iraqi oil minister, I say that our decisions will never be influenced by any foreign viewpoint. Rather, it is only Iraq's interests that govern these decisions."

Concerning the contracting process, Al-Shahristani says: "We do not negotiate with a certain company over a certain field. What we did was to announce the first round of solicitation for bids over six giant oil fields and two gas fields, and this process is still going on. Another round will be announced before the end of this year, and a third will be announced early next year," emphasizing that all these contracts will be service contracts designed according to Iraqi standards. Asked how the ministry is proceeding with the contracting process while the Oil and Gas Law has not yet been endorsed, Al-Shahristani says: "It is true that the Oil and Gas Law has not been approved, but we already have a law in effect that governs the work of the Oil Ministry and the Iraqi oil policy, which gives the Iraqi Government the right to negotiate and sign contracts." He adds that the Iraqi Government will adhere to the mechanisms and controls of this law until the new law is issued, emphasizing that his ministry is not committing any violation by abiding by the current law.

Asked when the Oil and Gas Law will be referred to the Council of Representatives for discussion and approval, Al-Shahristani says there are some political differences over a number of articles, topped by the production sharing contracts, explaining that "a large number of parliamentarians believe that a paragraph should be added to the law to prohibit the use of production sharing contracts. We in the Oil Ministry have announced that we will not conclude production sharing contracts and, thus, we concur with what the Parliament wants." Muhammad notes that the Iraqi Kurdistan Province has reservations about this law. Al-Shahristani explains that the delay in endorsing the Oil and Gas Law prompted the Iraqi Kurdistan Province to sign production sharing contracts with foreign companies without consulting with the central government, which outraged all Iraqis, adding: "We in the Oil Ministry expressed the central government's stand and said that these contracts are illegal and, accordingly, foreign companies should be held responsible for violating the Iraqi law." He says: "We support the viewpoint that Iraq is not in need of production sharing contracts at this current stage, particularly that oil companies are ready to come to Iraq to render oil services in return for remuneration."

Asked whether the Oil and Gas Law empowers oil production provinces to conclude contracts with foreign companies without consulting with the central government, Al-Shahristani denies that this law does so, explaining that "a province can negotiate contracts, provided it adheres to the plan set by the central government, the standard Iraqi contract approved by the central government, and the mechanisms of negotiation." He adds that Iraqi oil is for all Iraqis and is not the property of the Iraqis living in oil producing provinces or governorates, emphasizing that the only party that is empowered to negotiate or designate others to negotiate on its behalf is the government, which represents entire Iraq.

Asked how the problem with Iraqi Kurdistan Province will be resolved, Al-Shahristani says there is a constitution that governs everybody, and whose articles are clear, adding that if differences arise in interpreting these articles, the constitutional court will have the final say concerning these differences. Muhammad notes that it appears that the central government cannot pass orders to the Iraqi Kurdistan Province and that matters are resolved by consensus, not by the Constitution, and he asks Al-Shahristani his opinion. Al- Sharistani emphasizes that consensus is better than confrontation and that "conceding a constitutional right will never take place."

Asked whether the government can prevent foreign companies from implementing their contracts in Iraqi Kurdistan province, Al- Shahristani says: "The simplest way to prohibit this is to prevent these companies from exporting oil, and this is what is taking place there." Asked why Iraq is still importing oil by-products from abroad, he confirms that Iraq continues to do so, but notes that while Iraq used to import more than five billion USD worth oil by- products in 2005 and 2006 and the people stood long hours in line to obtain them, now the imports are a little over 1bn USD, despite the soaring oil prices, and there is no congestion at gas stations.

Asked to talk about corruption in the oil sector and black market dealings, Al-Shahristani says: "This is part of a propaganda campaign against the Iraqi political situation in general and is not accurate. This campaign is being promoted by several sides." Muhammad notes that there are some 63 illegal sea ports in Basra where oil is shipped out of Iraq. Al-Shahristani says this figure is illogical, because "Iraqi crude oil is not exported by this method; rather, it is pumped through pipelines to the Basra oil docks located in the deep waters of the Gulf and is controlled and supervised by international observers. Even the price of exported oil does not come to Iraq directly, but goes to the Iraqi Development Fund in the United States of which five per cent is taken out for Kuwait and the rest goes to Iraq." Concerning corruption, Al-Shahristani says there was massive corruption during the former regime's era as the state was involved in oil smuggling, and this corruption continued during the US civil administration after the downfall of the regime until 2006 when the current government was formed. He adds: "I can very sincerely and confidently say that the percentage of corruption has drastically reduced compared to what it used to be; that the mechanism for selling Iraqi crude oil is accurate; and that the entire operation is well controlled."

Originally published by Al-Jazeera TV, Doha, in Arabic 1430 26 Sep 08.

Iraqi Oil Minister Interviewed on Contracts, Oil and Gas Law, Corruption - Business - redOrbit