Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by CharmedPiper

Tomorrow October 5 sounds like a great day to reval...don't you think!!!

this weekend might be fun. monday the 8th is a national holiday in the usa so banks are closed here. 3 day weekend.

Originally Posted by Cdn Scrooge

I have been doing a lot of thinking lately (my wife says that’s dangerous, but what the heck, I do it anyway).

I’m going by memory, and if any of you out there see anything wrong please let me know.

According to what I read, prior to Saddam taking control, Iraq had a healthy economy, and it was not based solely on oil exports. They were at one time the world’s largest exporter of dates, and had a strong agricultural area between the two big rivers. They also have large limestone deposits which are not plentiful in the middle east. Limestone is what is ground up to make cement.

With this economy, the dinar was trading at the $3.00 level (i.e 1 dinar = $3.00 USD)

Then along came Saddam. Amongst other things, he proceeded to attempt genocide on the Kurds, basically destroyed the country’s infrastructure, and racked up large debts to other nations. During his tenure, the dinar suffered downward pressure, due to the crumbling economy of course, and he artificially propped it up and managed to keep it around the $2.35 mark towards the end.

Then the US intervened, got him out, and set up a democratic government which is what is there now.

They are currently dealing with jealousy and fear between the three main sectors of the Iraqi population; the Kurds, the Sunnis, and the Shiites.

They are also contending with more than half the population in abject poverty (living on the equivalent of $1.00 USD or less per day), violence between the Sunnis and Shiites, and just to add insult to injury they have to contend with the Al-Qeada lunatics.

In order to have their infrastructure rebuilt, their agriculture restored to past levels, and in general, some sort of domestic production they need foreign investment of capital and expertise. Considering the current level of the dinar, to just open the doors would allow a few wealthy industrialists to virtually buy up their entire economy (other than the oil which is government owned and controlled). So the Foreign Investment Law needs a reval to go with it.

In order to get their oil exports up to the levels they would like, they need to rebuild the wells and pipelines that were damaged or destroyed and they need to develop new fields.
There are the big oil companies standing in the wings with cheque books in hand, and you can see they are almost drooling at the prospects.

Before they can really go ahead with this though, they need legislation in place to cover ownership and revenue splitting. This will be rather tricky considering that the Kurds, Sunnis and Shiites all have different viewpoints on how it should be divided and controlled. So we need an agreement amongst them in that regard.

There also seems to be some squabbling in the area of security and private militias and they are trying to come to an agreement and hammer out legislation covering that.

Pretty well all the foreign debt (at least the majority of it) has been forgiven and this will allow Iraq to approach the world economically with a clean slate.

Mr. Maliki is walking a tightrope of sorts but from the news reports out of Iraq this past week or two it seems he is making headway. The opposing factions are at least talking and have not yet given up.

It seems to me that as soon as the FIL, the Oil legislation and the definitions of the regions etc are in place then Iraq will be ready to roll. My belief is that a reval would be announced at that time and shortly thereafter we should see quick progress in Iraq’s economic condition.

When will this take place you ask? I honestly don’t know, but I feel that it will be very soon (within the next month or so).

The above is sort of a synopsis of all the information I have absorbed over the past year or so and the conclusions I have arrived at from noting the changes (some very subtle and some more obvious) in substance and tone of the news out of Iraq. I am putting this out here to see what other people think about it, either agreeing with me or not, and to see if there is anything you can add that I have missed, or correct if I have misstated.


Mods, I realize this is not exactly “news”, but merely somewhat of a re-hash and synopsis, and if you feel it should be in another thread please move it.

I like it!!!! Now if those pesky Iraqis would only agree and move on this then we would all be happy !!!! :0)

worf

Originally Posted by CharmedPiper

Tomorrow October 5 sounds like a great day to reval...don't you think!!!

this weekend might be fun. monday the 8th is a national holiday in the usa so banks are closed here. 3 day weekend.

Voices of Iraq : MEETING-lift
Kawthar wrote : On Wednesday, 04 October 2006 12:42 PM-BT

The adjournment of the meeting of the House of Representatives to visit Hall-commerce
From the hushed Abdulamir
Baghdad - (Voices of Iraq)
Announced by the Speaker of the Parliament Mahmoud Almshahadani today, Wednesday, adjourned the session for half an hour to visit the Hall of electronic him, which is scheduled to convene its parliament in the coming days.
He said Almshahadani "will uphold the parliamentary session for a half-hour visit to the Hall commerce and learn how to use."
During the morning session of the parliament to discuss the continuation of the investment law, which was postponed a vote to be held on Thursday, October 12, October 1st. " He said the first deputy, Khaled al-Attiyah of the United Iraqi Alliance list today during the meeting "tomorrow will be listening to the proposed amendments to the law will then be held on Thursday, October 12 October first."
The investment law has met with considerable reservations by members of Parliament with respect to the number of years Almsathat granted to investors. Dharbeh and exemptions.
In the letter of the law to exempt foreign investor from taxes for a period of ten years, and that the duration of the investor Almsatha 50 years.
On the other hand, it denounced the Kurdish list in the House of Representatives today, the attack on three relatives of Deputy Samia Aziz, the Kurdistan Alliance.
The Speaker of the House of Representatives, who read out a statement of condemnation at today's meeting, "The home of Deputy Samia Aziz surprises before (terrorists) in the second of this month, which led to the death of her nephew, Khaled Ibrahim, and his uncle Sadek, I explained sister, and she said the three bullets in the head. "
Condemned Hamid Majid Moussa, deputy of the Iraqi List the incident and said that "communal violence and racial together."
On the other hand, said Mahmoud Almshahadani automatic Ada to the House that it is necessary to meet the deadlines for the start of the parliament sessions, which were identified in the ten in the month of Ramadan.
He said Almshahadani during today's meeting "must stick to the limit all the dates start of meetings that we have set in ten in the month of Ramadan therefore action would be taken to the member who will be delayed from that date, certain actions will be taken against him will be determined in the parliament."
He added : "The meeting will be held at ten and record the names of those present at 10:00 and ten minutes, If a quorum will be meeting for half an hour and if a quorum after two half will be meeting and will hold parliament caused a delay in holding the meetings. "
The today's meeting had begun to 12pm local time for the city of Baghdad.
H n

hold up your partyin quite yet...

Originally Posted by worf

I don't want to rain on anyone's parade here, but that seems to favor the gradual appreciation through trade and the economy, not a sudden rise in the value of the dinar. Am I missing something here? I sure hope so. Like so many others of us here, I need it to raise suddenly and quickly right now!!! :)

worf

worf

The dinar is "artificially" low at this point, I think Adster might be able to contribute to this, once it is reval'd it will start at a higher rate which is not artificially high or low....which has been discussed to probably be around 1.48 and then it will rise from there based on economic and demand factors...verify with this with a more seasoned member but this is what I gathered from the discussions on the forum.

The first page : Parliament defers Territories Act





Evidence-up
The Iraqi parliament postponed its meeting scheduled today to a second reading of a draft bill submitted by the coalition on the common (the mechanisms and procedures for the formation of regions). The council had ended last Tuesday, a first reading of the draft law submitted by the coalition unified support of the Kurdistan Alliance, which is expected to go into effect 18 months after approval in Parliament. After completion of the second reading of the project, which is expected to take place today, the project will come to a vote after four days. On the other hand, the first deputy chairman of parliament, Sheikh Khaled al-Attiyah said an agreement between the parliamentary blocs including "the formation of a committee to amend the Constitution in accordance with Article 142, that is the completion of the procedures within a period not exceeding one year from the date of its establishment.

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The prime minister-Press release

(Voice of Iraq) - 04-10-2006 | This issue was sent to a friend

The name of God the Merciful
The Republic of Iraq

Prime minister
Media Bureau

Wednesday 4 / 10 / 2006
Press statement

Prime Minister Nuri al-Maliki full morning the President and members of the martyrs and political prisoners in the House of Representatives.
During the meeting, and emphasized the importance of this sector and provide what can to alleviate their suffering.
He promised to meet the sovereignty proposals submitted by the delegation to ensure the rights of the families of the martyrs and political prisoners, including the formation of the martyrs and political prisoners and bringing a percentage of seats allocated for pilgrims to Makkah and work within the mechanisms adopted to improve their living conditions.

Sotaliraq.com

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Economic Liquidity : investment banking





The role of banks is no secret important in the organization of business and especially the import, export and special loans to ensure that exports and investment and insurance on imported materials, bank drafts and credit cards, which in turn reduce the risk transfer and cash circulation and contribute to the achievement of an important part of the mother Nee about economic transformations the same direction in order to activate the free market in light of the Iraqi modern developments and important changes that the country is going through. What is needed to why we should research in this vital area and to contribute to the development of the Iraqi economy through some trends which must Iraqi banks, civil and governmental, to keep pace with global developments in the field of banking policy, as well as in the technical aspect of the development of the methods of work. , As well as coexistence with the motivation of the market away from the bank one (monopoly), which dominated Iraq after the nationalization of private banks and foreign 1964 until 1992, a period of four decades made Iraq the policy of the bank is one of the decision is far from the mentality of political policies of the banks in the world and neighboring countries b counting that Iraq was in the forefront of countries that had achieved success in banking. In addition, banks must seek to integrate with each other and harmony with the Arab and foreign banks to maximize the capacity and enable banks in the regional and international competition. It supports directed the Central Bank through leave foreign banks with high capacities and experiences of developed and advanced technical to increase the Iraqi market expertise and capabilities advanced technology and benefit from the financial capabilities to achieve economic transformations in Iraq.

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Economic A draft bill : Iraqi oil be completed before the end of the month





Evidence-Baghdad :
The Commission charged with formulating a draft bill Iraqi oil would finish its work by the end of August this, It will be referred to the draft law, Oil Minister Hussein Shahrastani for review and approval, before approval by the Cabinet and then Parliament.
As announced by the government of Kurdistan had circulated a draft law to regulate the oil sector in the Kurdish region in order to be subject to public debate. According to the statement that the move came "on the basis of the specific rights in the Iraqi Constitution." stressing that the draft law in a first draft "includes provisions to combat corruption" in the sector. She added that regulates the operations of oil and local participation in the sector and identify ways of solving disputes and includes items penalty. The government attached to the law according to its agreement to participate in a pilot production with any potential investor.





, Have been exacerbated during the past two days, the fuel crisis in Baghdad, where citizens are expected at the mobilization stations for long hours without access to their need.
What is noticeable in the price per liter of gas oil (kerosene), which is used widely in the private generators, as the price on the black market from 500 dinars to more than one thousand dinars. what has concerned citizens to the possibility of obtaining need of this article vital for the operation of Moldathm, especially in the summer. It has also seen the price of a liter of gas has risen sharply during the last two days, similar and the price of each packet with a 20-liter about 25 thousand dinars, compared with less than 15 thousand dinars last week. Citizens and attribute the causes of the aggravation of the crisis to the failure of the Ministry of Oil in addressing the causes of corruption in Ihasseronha,.
For his part, A spokesman for the Iraqi Ministry of Oil Assem Jihad said that a delegation from the ministry is expected to leave for Jordan shortly to hold talks to settle the points on the outstanding technical specifications liquidator blue Jordanian conform with the specifications of Iraqi crude oil from fields in the south. He said that Iraq is working on activating the agreement under which the supply crude oil to Jordan signed during the visit of Iraqi Prime Minister Nuri al-Maliki to Jordan Finally, and its officials asked the Jordanians who supply Jordan with crude oil tankers by Jordanian him to the liquidator blue.
He guessed that the struggle agreement provides for the export of oil from Baiji and then north to the modern Jordan. The reason for supply Jordan Caspian Kirkuk, Basra instead of oil, the availability of larger quantities of it for export due to the interruption of exports via Turkey, Because the Basra oil is used, either for export or to supply the local market.

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Economic : Real estate deals in Iraq kept in utmost secrecy





Evidence / up :
Fish houses in the Baghdad kept in utmost secrecy. Real estate brokers do not want to check their customers Okart like that, and the owners of houses refuse to put banners with (for sale), and buyers will not disclose how much money they are able to pay. Ali Ramzi, a real estate broker in Baghdad over 30 years, The three parties in the process fear that engage in a real estate deal at the present time would make them the main target of the gunmen or the kidnappers. He adds : should it only capital on Earth where there was a fear of those in vocations to say what their real estate offered for sale. He continues : If you are a buyer, then that the kidnappers will know you cash to spend. If I Rise, captors will wait until the deal then Echttfonk Though you exited a lot of money. They also believe that real estate brokers rich, so if what we have to be near any property Akhttavena also requested a ransom to free us. Says Ramsey : Best friends in the profession was killed last month in front of his office when he was out to welcome the client. Before that, he ran the Jihad gunmen in the east of Baghdad. inside another office and severed his head in front of his twelve years and left to the head office warning to three other real estate brokers in the same street, The closed all their offices and did not return to work at all. He adds : No one knows how many workers in our profession who had been killed in the past year because the authorities do not keep such statistics. He adds : If we take house prices measure of the economy in the capital, Baghdad, in a real problem because




Prices retreated very severe in some areas, and by 75%. The situation was quite different in the weeks that followed the fall At that time when the possession of a symbolic value Palace two million dollars in the sublime, Kalmansour example, it sells it in one day. But now he finds himself lucky if he sold drugs, one month and quarter that price. After the United States led the American war against Iraq in 2003, it looks rich Iraqis living in exile to return to their country. He expected speculators confidence that foreign companies inevitably will need to hire staff Vll Associated reconstruction contracts where the flow investors from abroad in pursuit of a base in Iraq. In the suburbs, which enjoy great popularity, such as the boom in the south, for example, the taxi home of a family of about $ 300 per month. Now may be obtained on the same house for 70 dollars only. Assuming that one may wish to live in one of the most dangerous areas in the city. With laments Mohamed Althiri bad moment for the purchase of (Villa) very beautiful group of six bedrooms three years ago, is the Street is one of the most dangerous streets in the world. Althiri has chosen a businessman who has reached the age of 47 years old Villa ruler of the proximity of the airport where k he traveled regularly to Jordan. But the house is located near the road leading to the largest American military base which is the goal of continuing suicide bombings. Althiri says : paid $ 475 thousand in the June 2003 price for this house.

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Economic Private sector : persuasive. The lead role in building Iraqi economy





Evidence-Baghdad :
Rests with the bodies concerned economic sector active participation in the task of rebuilding the Iraqi economy is booming, and contribute to the reconstruction of Iraq, according to the mechanisms of the market economy, from this standpoint PARIS Iraqi businessmen to its economic non-governmental organization has met with the President of the Russian Balbal willing to tell us about the nature of the work and vision of the challenges facing the Iraqi economy when he said :
- Union of Iraqi businessmen independent organization specializing in economic affairs still seeking to build a robust economy, with the businessmen in the private sector playing a leading role. and the expansion of relations between Iraqi businessmen and their counterparts in other countries.
Union was founded in 2001 and then frozen in 2002 to solve the intersection of his vision and with the interests of the former regime, after the fall of the regime, the European activity on an extensive and there are (16) branches in the governorates of Iraq these branches contribute distinct role in the economic process through the implementation and completion of projects. The number of members of the Union (5250) associate representing all segments of business (transport, tourism, trade, industry, banks).
And a Russian weekly newspaper dealing with the most important economic problems and the vision of businessmen to these problems.
Q : What is the means to achieve the goals?
Union-wide relationship with the various communities in the provision of economic views on the overall economic activity and the holding of seminars, which entail a package of




The recommendations, proposals and solutions, and the number of symposia held by the Union of nine seminars, The Union's representatives in each economic commissions in the state and adopt our proposals and recommendations on a continuous basis at the request of the concerned bodies and branches in the governorates and have an impact in the overall economic activity and service, A large number of officials in the governorates members of the Union of businessmen and attending meetings of coordination in the provision of services and to address the obstacles and difficulties and to carry out the projects in addition to holding various seminars to improve the status of provincial service and economic and submit projects to be completed by maintaining a secure and allocations for them, In a symposium faith important economic cooperation with the Association of Iraqi banks to address the problems of the banking sector and the development of solutions or proposals to them.
Q : What is the role of women in the business?
- Of our committee to women business meets monthly to the contribution of women in business and provide opportunities suited to their social and involve women in the European delegations inside and outside Iraq to participate in conferences and attend international exhibitions, and their role, but frankly not the required standard, and includes European limits (120) of the woman.
Q : How do you see the economic challenges facing Iraq?
- After the fall of the regime begun to form delegations to visit a large number of officials, and influential figures on the march, the country's new and in the form of economic system and that views were identical after that we have to reform our economic situation and contribute to address the repercussions of the war, and already we have had representatives in a number of commissions that take it upon themselves to the contribution of businessmen in the construction and reconstruction and development and to provide Iraqi companies to contribute efficient implementation of these projects.
The Union's role in the overall economic activity and the bodies set up to deal with every sector separately but the circumstances undergone by the economy now and lawlessness, poor services and the methods adopted in the distribution of responsibilities, especially quotas, all of this essay, conditions were aggravated by the decline. Add to this the rampant corruption which led to the fact that very large numbers of businessmen and investors from investing Iraqis inside Iraq and leave their projects to other countries, This is certainly cause economic stagnation in the economic process and the increase in unemployment. The Federation is involved in (37) of the Commission of the joint committees to develop programs and proposing contracts.
Q : What other contacts with officials in the Russian state?
- The last meeting was with Dr.. Mahmoud Almshahadani Speaker of the Chamber of Deputies, which was put forward visions and European businessmen in the form of economic system and the legislation of laws prepared drafts of some ministries, the Law on the Protection of Iraqi products, and consumer protection, antitrust and corporate law.
Q : How do you respond to the rumors on the parasitic tendency for the private sector?
- Businessmen slice them national and multi-national contributions in the development of the economy and stabilize the situation and absorb and address unemployment and renowned for their patriotism because the current scale of these corporations as they adhere to their land and continue to contribute to the process despite the economic difficulties and serious risks such as assassination and kidnapping.
Q : What about relations with other organizations?
- Union's multiple relationships with a number of businessmen in the Arab country, in addition to our participation in the joint councils, which belong to them as well as our cooperation with similar organizations in other countries like Turkey, Iran, India, Pakistan and South East Asia.