Thread: Archive News - Iraqi Dinar Think Tank - 06/05/09 - 04/09/09

Central: no change in monetary policy and limit the audit procedures for the sale of cash

After seeing the dollar exchange rate volatility against the Iraqi dinar in the local market over the past few days, he urged the Central Bank of the economic change its policy towards the exchange rate, said the bank was seeking to reduce the installation and audit procedures.

The academic and the Chairman of the Economic Section of the Institute of Mustansiriya studies, Dr. Abdul Rahman Al-Najm al-Mashhadani told (Voices of Iraq) said that what happened during the last few were "following the reduction of the central bank's monetary Bioath banks in foreign currency auction," he said, "the spokesman said legal means to smuggle foreign currency abroad by import without external conversion, "urging the Central Bank to" codify and restrict such transfers to import goods and commodities. "

The U.S. dollar has seen prices in the local market in Iraq fluctuated markedly over the last week and the beginning of this week, as the price rose in Baghdad, Basra and Arbil, from 1170 dinars to the dollar to 1250 dinars to 1224 dinars Baghdad and in Erbil and Basra, and then returned in the fall of Baghdad 1223 and 1221 in Arbil, and it is conservative to the price of 1224 in Basra.

This was done amid reports of lack of liquidity due to reduced sales in dollars the central bank, by the requirement to provide additional gripping of the private banks, which rely on the central auction to provide customers the dollar, which has led the Bantrzi to issue a statement on Sunday that he is continuing to provide the banks with the dollar limits According to the rate of exchange accepted.

He said al-Mashhadani, "Many economists believe the dollar price of living is lower than it should be a 1500 dinars per dollar," he expressed the belief that "What happened in the past few days is the beginning of the Central Labor to raise the exchange rate," adding that "the separation rates between the central and the local market and called the parallel rate is incorrect because the real price, which must be the currency."

He pointed out that "the current economic needs, because the future of Iraq policy to encourage the investment industry, agriculture, local" and therefore in the light of this low price "seems expensive for domestic goods is aimed at the export of goods to Iraq and abroad, especially in the agricultural sector."

Otherwise it considers punitive Hamid Chairman of the Federation of international business, said "the Central Bank of the decision with regard to monetary policy, should maintain their independence without the intervention of any sector and the many criticisms directed against him," adding that "the stability of the currency exchange is one of the most important needs of the Iraqi market Currently, due to the fact that the Iraqi economy is backward in the various sectors of industrial, agricultural and tourism, "and who wants to find an alternative policy," the first wheel to move the Iraqi economy and the restructuring because it only means that would make the currency stable in the case of change of the central monetary policy."

In spite of the view that the punitive "The auction may be the currency in which the smuggling of currency," but say to him, told Voices of Iraq (VOI) said that "It's hard to change that policy now, because its replacement is not available, and the proof that a simple break the sale of cash led to confusion in the the local market."

In turn, denied the appearance of the central bank adviser, Mohamed Saleh, told Voices of Iraq (VOI) that there should be a "change in policy towards the Central Bank of Astaqraralamlp on the basis of the exchange rate of 1170 dinars per dollar," saying he was "logical and price contracts based upon positive expectations within the community and our current policy is to defend for this price and thus the leadership of the market and not vice versa."

He added that the central "faced strong criticism of formal and informal, as the exchange rate is excessive and called for the lifting of many of the exchange rate, considering that the auction as a means of capital flight."

The benefit of "an institution we must focus on the response to these charges and we have begun to take measures for an audit trail by which nature is red tape, and there have been cases of rejection of the requests if there is a lack of official papers submitted by the banks," referring to what happened, "led to the launch However, given the rumors true that there are signals about monetary policy change by us and this is not true, "he said," This experience made clear the importance of exchange rate stability for the Iraqi market."

On the severe shortage of cash and the sale has not been affected by the sale remittances, saying, "The hawala sales network within the international banking Phil no problem being under international control because we are interested in the application of the law of money laundering and crime," adding that "risk comes from the sale of operations through cash or cash, which led to the emergence of artificial price bubble in the local market, "stressing that the central" has tended to reduce the audit procedures that have been taken to avoid impeding the process of selling and buying, and demand cash. "

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Secretariat of the Council of Ministers demands by providing them with information about the financial irregularities that occurred during the period of the work of Bremer

Issued the General Secretariat of the Council of Ministers directive to ministries and official institutions all require the need to provide them with all the information available for any abuses occurred during the term of the civil administrator Paul Bremer on Iraqi funds deposited in the Development Fund for Iraq, which have been spent for the implementation of projects in Iraq, emerged after the manipulation or the implementation of projects, fictitious or otherwise made to the specifications in order to be able to prosecute the actors and the companies that caused the waste of funds in Iraq.

This directive comes after the delivery of the competent authorities in the Iraqi government information from the Secretariat of the International Advisory and Monitoring reports issuing a U.S. federal appeals court decision to include the right to proceedings against persons who manage the money on Iraq, even under the management of the civil administrator.

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Exports offer hope in Iraq oil row

The Kurdistan regional government has told oil companies working in the northern Iraqi province that they will be able to export oil using Iraq's main pipeline as early as next month, an apparent breakthrough in a longrunning dispute about sharing Iraq's oil wealth. The oil ministry in Baghdad confirmed that crude extracted from some fields in Kurdistan could be exported. There remained significant confusion, however, and analysts warned this could be yet another false start. "We are absolutely certain oil will flow on [June 1]," Ashti Hawrami, the KRG's oil minister, said.

"Iraq desperately needs the oil revenues, and no one can deny that. The rest that needs to be worked out is just rough edges - I am talking about the oil law, the constitution, the legalities."

Oil has long been the subject of dispute between the Kurdish regional and Baghdad central governments. This has hindered passage of a national hydrocarbons law outlining foreign participation in the energy sector.

Any deal between the KRG and Baghdad would allow companies such as DNO, the small Norwegian oil producer, and Addax, of Switzerland, to pipe rather than truck out their oil. Addax said it had been told formally it could begin sending crude from the Taq Taq field through the main northern pipeline to the Turkish port of Ceyhan. Taq Taq, which can produce 40,000 barrels of oil a day, is expected eventually to produce 180,000 barrels a day. DNO, which can produce 50,000b/d from its Tawke field, received similar notice. Its shares rallied almost 20 per cent on the news.

In Baghdad, Asim Jihad, the oil ministry spokesman, said the oil would be exported once northern fields were connected to the national export pipelines.

"These quantities will increase Iraqi export capacity and all revenues will go to state coffers. The ministry supports any steps to increase Iraqi output and export levels," Mr Jihad said.

Iraq has the world's third-largest proven oil reserves, at 115bn barrels. The volumes set to be exported through the northern pipeline represent less than 5 per cent of Iraq's total output. But Baghdad has made significant progress in luring big oil companies, such as BP and Royal Dutch Shell, back to Iraq to help boost its ailing fields potential production by 1.6m b/d.

http://www.zawya.com/Story.cfm/sidFT...aq%20oil%20row

Sustained investments, $70 oil needed to rescue Iraq

Oil priced at $70 a barrel and sustained investments into oil projects are essential to extricate Iraq out of its budget and current account deficits, an economist who studied the Iraqi oil markets said.

Turker Hamzaoglu, an economist with financial advisory firm Merrill Lynch, said that considering the prevailing oil price of $58 a barrel and the Iraqi production capacity, it will take two to three years for the Iraqi economy to completely recover. Brent crude for August delivery was priced $57.85 a barrel yesterday.

"A rise in price of oil combined with an enhancement in production capacity is essential for Iraq to emerge out of its economic woes. The country was able to build good foreign exchange reserves over the past two years when oil was priced high. The reserves could build up again when new production capacity comes online," Hamzaoglu told Emirates Business.

Baghdad plans to boost the country's crude production capacity to 4.5 million barrels per day in the next three years from 2.4 million bpd now. Though a founding member of Opec, the country is not restricted by Opec production limitations.

Even though Iraq would record a GDP growth of seven per cent in 2009, its budget and current account balance will swing deep into deficits of 10 per cent and 17 per cent of GDP in 2009, Hamzaoglu said. He said the oil rich nation will still suffer because of prevailing low oil prices and will need the support from IMF to bail itself out this year.

"Iraq's economy is still heavily dominated by oil. Hence, all those huge surpluses in current account and budget balances that had been feeding into reserve accumulation have been reversed with plummeting oil prices.

"Iraq has ample reserves, but an IMF agreement supported by generous funding still seems likely," Hamzaoglu said in his new study.

Hamzaoglu's views come close on the heels of Iraq calling for expressions of interest (EoIs) for oil and gas fields with proven reserves of 44 billion barrels of oil and 44 trillion cubic feet of proven gas reserves.

Iraq's ministry of oil recently clarified a number of points in the final contract model to allay fears about investments that had risen after the contract was first made public. Some 35 companies had submitted bids for the projects as per the latest reports.

The country sits on 115 billion barrels of proven oil reserves, the third-largest in the world behind Saudi Arabia and Iran.

According to Energy Information Administration (EIA), the cluster of super-giant fields (more than five billion barrels reserves) of south-eastern Iraq forms the largest known concentration of such fields in the world and accounts for 70-80 per cent of the country's proven oil reserves.

The country has the lowest reserve-to-production ratio of the major oil producing countries, suggesting huge upside potential once the aged and underinvested industry revives with the participation of international oil companies.

http://www.business24-7.ae/articles/...55d019e0e.aspx

Finance confirms its readiness to settle the debts of Iraq for the benefit of Egypt

The Ministry of Finance that the Iraqi government expressed its willingness to settle the debt of Iraq to Egypt, which are government debts and debts to Egyptian companies as well as the benefits of Egyptian workers.

The Ministry of Finance, said the Egyptian side insisting on its part to continue to solve one side only of this debt (the Egyptian labor dues) at the time that Iraq claims to a comprehensive settlement of the total debt.

As the Ministry of Finance and the interests of the Republic of Iraq to the brotherly relationship between the two countries is continuously seeking to resolve the matter fairly for both parties.

The ministry said the Iraqi government hoped at the same time that the brothers in Egypt, re-consider their position on this issue and move towards a comprehensive settlement of the debt stock.

The Egyptian press reported some very recent paper (Egypt Today), as well as newspaper (Al-Ahram) articles and news related to the position of Egypt from the Egyptian debt settlement of the country, including in particular (dues remittances of Egyptian workers) and the so-called remittances yellow.

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Crude oil exceeds $ 59 for up to the highest level since 6 months

Oil climbed to reach the highest level in six months, exceeding the level of 59 dollars a barrel, and derived some support from the weak dollar.

The U.S. crude price of $ 1.10, at 59.60 dollars a barrel. In the earlier record of 59.68 dollars a barrel, its highest level since last November. And the price of Brent crude was 88 cents to 58.36 dollars a barrel.

Said Tony Machasek from Bach Komudz "the U.S. dollar slightly weaker than the price of oil may give a measure of the force."

The economic downturn of the global decline in oil prices from record highs above 147 dollars a barrel in July.

However, prices rebounded this year, due in part to the high prices of global equities, which raised difficult to believe that the States may have exceeded the worst of the recession.

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Inflation rate down by 4.4% in March - COSIT

The inflation rate in Iraq went down by 4.4 percent in March 2009 compared to Feb. of the same year, and by 3.1 percent compared to March 2008, according to a release issued on Tuesday by the Iraqi Central Organization for Statistics and Information Technology (COSIT).

"The inflation report for March 2009 was prepared based on field collection of data," said the release that was received by Aswat al-Iraq news agency.

On March 23, 2009, the COSIT indicated that inflation rate of Feb. 2009 went down by 0.9 percent compared to Jan. of the same year.

http://www.zawya.com/Story.cfm/sidZA...5%20In%20March

Cork Telecom is seeking to expand its network in Iraq

Cork Telecom has announced a three companies licensed to m.obile phone in Iraq, it was strongly enter the draft to expand the coverage of its network at the national level in Iraq, through the investment of $ 100 million in the second phase of expansion.

The press release that the future plans of Cork Telecom aims to increase its subscriber base to 4 million users in addition to invest some 300 million dollars over the next few years, to increase the capacity of the network to accommodate more than two million subscribers, and to provide coverage on a national scale destruction.

The statement disclosed that the company will lead role E.ricsson main supplier of the equipment and install systems in the expansion plans will provide coverage and capacity in the central and southern regions of Iraq. The services will include the provision of focal points of high-capacity microwave to serve as the backbone of the link between the major areas in Iraq.

In the same vein, President and Chief E.xecutive Officer of Telecom Cork Saravan Mustafa said «Cork Telecom Iraqi telecommunications company which is 100 percent committed to the rapid growth of the national network and expansion and will continue to invest heavily to implement expansion plans, with a focus on providing high-quality coverage of the service, and with our partner E.ricsson We will have to have the technical basis to supply our customers the best m.obile phone network in Iraq ».

For his part, said project manager at E.ricsson Aseff peace: «we have commitment to and partnership in the long term strategy in Iraq with Cork Telecom has over the past five years and we are fully committed to make it a success».

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U.S. company to drill wells in Maysan

The cabinet has approved the contract with an American company for the drilling and completion (20) oil wells in the field of Albozorkan in the province of Maysan, the total amount of $ (224.4) million and the implementation period of standing (24) months. He said government spokesman Ali al-Dabbagh said in a press statement the Council of Ministers also agreed to establish diplomatic relations with the State of El Salvador, and to propose a draft law of the national information infrastructure.

The statement said al-Dabbagh said he was also approved a draft law for the abolition of Article (43) of the Code of Federal budget in 2009 and re-examine the issue when preparing the federal budget for 2010.

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United Arab Emirates have indicated their willingness to develop and rehabilitate the Iraqi oil installations

Expressed the UAE's readiness to engage corporations in competition with scientific companies to invest in oil fields in Iraq.

The spokesman said the oil ministry's media Assem Jihad said the Ambassador of United Arab Emirates Sheikh Abdullah Ibrahim Azwai of his country was ready to compete with international companies for the development and rehabilitation of oil installations.

Jihad said that Oil Minister Hussain al-Shahristani, the UAE welcomed the desire of our sister companies to enter Iraq.

He pointed out that the ministry welcomes any effort of the brothers contributed to the strengthening of bilateral relations between the two countries.

The minister noted that the Ministry adopt a policy of openness and strengthening of relations with all countries of the world and in particular the fraternal countries, because Iraq is keen on the economic integration of neighboring countries.

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