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

Originally Posted by PAn8tv

Iraq Takes Major Step toward Opening Negotiations for Accession to the World Trade Organization

12 October 2006 - Recently, Iraq reached a new milestone in its ongoing bid for accession to the World Trade Organization (WTO) by submitting written responses to a host of questions raised by key members of the organization.

The questions focused on Iraq’s agricultural regime, customs and tariff policies, privatization, intellectual property protection and enforcement, technical barriers to trade, as well as efforts to ensure good governance and fight corruption. They addressed the current state of affairs as well as future intentions of the Iraqi government in terms of regulatory and capacity building reforms.

The submission of Iraq’s replies illustrates consistent progress and momentum towards WTO accession and reform of the trade policy regime, despite challenging circumstances. Since filing its application letter to join the world trade body in September 2004, the pace of Iraq’s progress to date has matched and in some cases exceeded that of previously acceded countries. The USAID-funded ZDIHAR project has contributed to this progress by providing training and technical assistance to Iraqi government officials focused on WTO accession. IZDIHAR worked with the ministries concerned and assisted in compiling and organizing the information needed for the responses.

This step is another milestone on the way to convening the first formal meeting of the WTO Working Party on Iraq’s accession in Geneva, which launches the negotiation process

Good morning you all (here it is morning).

This is the best news today!!

WTO negotiations = Full membership = International Exchange Rate.

We are close!

The draft investment law, inflation and the cost of living, the views on the issue of (Iraq's transition to a market economy)
Preparation and submission of Natam : Yassin
Welcome to this episode of the new (economic report), prepared by Nazim Yasin, and we offer through interviews with the officials and analysts some of the paragraphs of the draft investment law, and the issue of inflation and the cost of living, in addition to the issue of (Iraq's transition to a market economy).

- The draft investment law ...
Economists expected to contribute legislation investment law in resolving many of the economic problems besetting Iraq at the current stage.
To talk about the most important paragraphs in the draft Investment Law. the Radio Free Iraq correspondent in Baghdad Laila Ahmed following interview with the Chairman of the Legal Committee in the House of Representatives Haidar Al-Ebadi, who responded to a question regarding the first paragraph which provides that the adoption of foreign investors on local employment.

(Interview)

- Inflation and the cost of living.
One analyst said in an interview told (economic report) on the cost of living in Iraq, especially in Kurdistan it is the relatively low salaries to employees of government departments is one of the reasons that lead to the spread of the phenomenon of corruption. He called to reconsider the scale of salaries paid to staff of the State to enable them to cope with the burdens of inflation and immunized against the bribery charge, pointing to the large gap between the salary rates in general and distract from the additional allocations to some officials in the civil service.
With comes listen to the interview by the correspondent of Radio Free Iraq in Sulaymaniyah, Mostafa Karim Saleh analyst with Adham Miran.

(Interview)

- Views on the issue of (Iraq's transition to a market economy) : Part III.
The (economic report) in the earlier episodes of some of the views of academics and economists raised in a symposium organized by the expanded Faculty of Administration and Economics at the Mustansiriya University in Baghdad recently witnessed extensive discussion of the various proposals regarding the process of Iraq's transition to a market economy.
Recent research by participants in the symposium pros and cons involved in the mechanisms of transition to a market economy through a study of similar experiences undergone by the other States and the presentation of some important aspects, such as privatization and investment, financial and legal reforms.
In the third and final part of this offer. briefing correspondent of Radio Free Iraq in Baghdad Jassim, who attended the symposium excerpts from the intervention Dr. Falah Hassan Thoeni Vice President of the Iraqi economists, who believed that the transition to a market economy governed by the appropriate atmosphere and conditions for the transition now incomplete ...

(Interview)

(Conclusion)

Originally Posted by Nomrah I

Economic expert : the high rate of the dinar as a deliberate government policy

The dollar had reached in the auction the Central Bank today dinars in 1470 compared to 1471 dinars yesterday.
Translated version of Aswat al Iraq :: Aswat al Iraq um=1

ummmm ...so 1471 is low, but 1470 is high???

GCC currencies 'undervalued'



Currencies are undervalued by as much as 27 per cent in the GCC region, where soaring revenue from oil exports is putting pressure on fixed exchange rates, a report said.

Most countries in the world's top energy exporting region are enjoying large current account surpluses with oil prices surging to record highs over the past two years.

While in theory that should cause exchange rates to appreciate, members of the Gulf Cooperation Council -- Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman -- are keeping their currencies pegged to the dollar.

Using the price of a McDonald's Big Mac burger as a measure of purchasing power, the Dubai Chamber of Commerce and Industry concluded that currencies in all six countries were undervalued.

The riyal in Saudi Arabia, the largest Arab economy, is undervalued by 23 per cent, the chamber said, using a light-hearted test devised in 1986 by the Economist magazine to determine whether currencies were trading at appropriate levels.

The dinar of Bahrain, the Gulf's smallest economy, is undervalued by 27 per cent while the dirham of the UAE is the least undervalued, at 12 per cent.

Kuwait allowed its dinar to appreciate 1 percent within a trading band in May to offset the impact of the weakening dollar on inflation. The study found the Kuwaiti dinar was undervalued by 16 per cent as was the Omani rial.

Qatar's riyal was 20 per cent below its real value, according to the study.

Gulf countries are preparing for monetary union in 2010 and are unlikely to revalue their currencies before then, regional central bankers have said.

GCC currencies 'undervalued' - Middle East Business news related to travel, food, hotel, real estate, health, oil and more

If currencies of these countries are undervalued despite being appreciably higher than Iraq's, what can one expect Iraq to do in the next few years taking into consideration the neighbours' currency values?

(Voice of Iraq) - 10-13-2006 | This issue was sent to a friend

The imposition of curfew in Mosul
Mosul / Nina / media spokesman said the police command in the province of Nineveh, that the absolute ban on the imposition of curfew this morning on the city of Mosul in both right and left

Sotaliraq.com

Originally Posted by postcon

GCC currencies 'undervalued'

( snip )

Using the price of a McDonald's Big Mac burger as a measure of purchasing power, the Dubai Chamber of Commerce and Industry concluded that currencies in all six countries were undervalued.

( snip )

the chamber said, using a light-hearted test devised in 1986 by the Economist magazine to determine whether currencies were trading at appropriate levels.

( snip )

If currencies of these countries are undervalued despite being appreciably higher than Iraq's, what can one expect Iraq to do in the next few years taking into consideration the neighbours' currency values?

are there any McDs in Iraq? if so it would be intesting to know the local price of a big mac....

Originally Posted by clueless

are there any McDs in Iraq? if so it would be intesting to know the local price of a big mac....

i think i read recently where they were goin in. since they havent adjusted prices yet it really wouldnt tell you anything.

I listened to a conference call from and by freedinar tonight, they are very pro and believe, the rv is upon us. BUT they state that some Dr. cant remember his name, they are working closely with says the reval will be very small and work its way up to a dollar over a period of a year. I know what I think and want, why would someone who has nothing to gain by making this statement, say such a thing, or it it just like assholes and opinions everyone has them? what are your thoughts
benzboy

Sotaliraq.com

The reality and the requirements of the advancement of the Iraqi economy - Thamir Mahmoud Ani

[13-10-2006]
The reality and the requirements of the advancement of the Iraqi economy
Thamer Mahmoud your life-13 / 10 / 06 / /

Iraq is a developing country that is characterized by the large oil on the oil sector in the formation of the first of its gross domestic product, with the contribution of the oil sector in 1980 about 61.1%. while the contribution of the agricultural sector 4.7%, the industrial sector 4.5%, and the service sector 10.2. After eight years of the Iraq-Iran war in 1988 ie, the contribution of the oil sector to 31.1%. while the contribution of the agricultural sector to 14.6%, and the contribution of the industrial sector to 13.5%. while the contribution of the service sector to 4.8%. After the imposition of the economic embargo on Iraq (1991), the contribution of the oil sector decreased significantly, amounting to 0.06%. while the contribution of the agricultural sector to 32.3%. In 2002 before the occupation of the oil sector contribution of nearly 5% after the Memorandum of Understanding between the Iraqi government and the United Nations (oil for food and medicine), The contribution of the agricultural sector and industrial respectively 27 and 8.1% and the contribution of the service sector to 18%.

After more than three years of the occupation, this year 2006, the contribution of the agricultural and industrial sectors amounted to 6.5 and 1.5% which is very low, while the contribution of the oil sector more than 70% of GDP.

That change in the contributions of these sectors does not reflect the structural change in the Iraqi economy, but reflecting the political and economic circumstances experienced by the economy.

The economic blockade imposed by the United Nations on Iraq after its occupation of Kuwait in 1990 led to the stoppage of oil exports and the decline of industrial and agricultural production and degradation of the performance of the productive sectors and other service, which led to the deterioration of the gross domestic product. As a result of the decision of the United Nations in 1996, signing of the memorandum «» oil-for-food program that allowed Iraq would export part of crude oil, where GDP rose in 2002 to $ 24.5 billion, or 59.2%; After the American occupation of Iraq, the deterioration of the GDP is very high, reaching 2005 to 8.1 billion dollars as a result of the destruction of the infrastructure of the Iraqi economy and the dismantling of state institutions, especially the army and security institutions, which led to the resolution of a security vacuum and anarchy disturbance.

The average per capita GDP in 4219 reaching USD in 1979, the highest rate reached this variable in the history of Iraq and is considered a relatively high rates in developing countries, then declined significantly to 485 dollars in 1993, while $ 700 in the year 2005.

That evolution in the financial capacities of Iraq after the lifting of the economic embargo in 2003, with prospects for the future increase with the increase in oil prices and increased production and export, the donors are reluctant to move forward in the implementation of its commitments or pledges new commitment, As a result, we can not rely on external aid Iraq in pushing the process of development and reconstruction.

On the other hand, there can be no reconstruction and development in isolation of providing stability and internal security, in particular, the breadth of economic sabotage Shell installations lot of critical facilities in the sectors of oil, electricity and other services. and caused serious damage to the economy, as well as the human cost resulting from this.

It is very important for the development of the oil sector must also think seriously review previous economic vision and modernization to ensure rely on our own, It should stop the rush to rely on overseas and imports to meet local needs. The caution of a reliance on financial returns and neglect of the productive sectors.

Iraq today has become, according to studies issued by the international centers task, at the end of the list of countries in terms of standard of living, education and health, including the least developed countries, in terms of volume, unemployment approaching 30% of the labor force, as there are two million jobless people out of seven million is the size of the labor force in Iraq. If we add disguised unemployment is 20%, then the total rate of 50%.

That arrangement variables related to the production rates of the various sectors has not changed in more than thirty-five years, where did not play a technological advances, export or manufacture any role in the increase and diversification of domestic production, In 2004 decreased demand for investment is also where the proportion of total investment to GDP by 7.7%.

And for the advancement of the Iraqi economy and development capabilities, The development of productive capacities in the agricultural, industrial and service, and others, the main factor for economic growth, It can mobilize domestic resources to finance economic activity and not to rely on aid or foreign aid, and work to attract foreign investments that could support the development process. It is through the development of productive capacities, Iraq will be able to compete in international markets.

The development of productive capacities is carried out through three interrelated processes and continuous and capital accumulation, technological progress and structural change. The process of capital accumulation to be preserved away from the natural capital, human and material, increased. As technological advances is the introduction of new goods and services and the use of methods and equipment or new or improved skills for the production of goods and services, The adoption of new and improved forms of organizing production. Structural change is the change in the composition of production within sectors. This change often occurs through investment and innovation and technological progress, In the Iraqi economy, the contribution of the oil sector is the largest in the gross domestic product. while the contribution of the agricultural and industrial sectors are relatively low when compared with that sector, The structural change of the Iraqi economy meant the rise of the contribution of the commodity sectors (agriculture and industry) in GDP and in turn lower the contribution of the oil sector for the benefit of these sectors.

It also represents a merger or trade openness considered one of the most important trends in the direct development of productive capacities, since the goods and services that could be exported to Iraq in a competitive global market is determined by the goods and services they can produce and the efficiency of this production. It should be noted that the structure of production geared towards the exploitation of natural resources, particularly oil. Therefore, the structure of exports, the result also directed this way. Conversion away from primary commodities and manufactured goods is about to slow, sporadic and sometimes depends, he concentrated on the production of inferior products in most of the skills, based on intensive use of labor, The production of export products is very weak in the local production systems. and even when these are products they are isolated and did not have any links or production forward a strong background the rest of the Iraqi economy.

The restrictions limit the development of the productive capacities of commodity and service sectors in Iraq are represented in the case of infrastructure of the economy and weak institutions, companies and demand restraint, The infrastructure of the lowest and worst quality in the areas of transport, communications, energy, in particular electricity, on the world level. This low level of infrastructure is a reflection of poor maintenance of existing facilities and a lack of investment in new facilities, especially after the destruction in whole or in part during the occupation of Iraq, and this also reflects the state of public investment. There is increasing emphasis on the importance of institutions in economic growth and enhancing the productive capacities. The focus is on this side of the capabilities of the Iraqi state since the capacity of the state is vital for the effective implementation of public policies.

We can not fail to mention here, that there is a similar need to focus on the nature of the private sector and institutions by which entrepreneurs in this sector. From this perspective, Iraq suffers from serious institutional weaknesses and clear, I am domestic financial systems huge liquid reserves, where there is a financial surplus of over $ 13 billion cash balance of the reserves the Central Bank of Iraq, but the level of credit to the private sector and projects is very weak and unable to enhance the productive capacities of the Iraqi economy.

And also stop the development of the productive capabilities of commodity and service sectors over the ability of the Iraqi state, the building of institutions capable of creating projects tend towards a high degree of investment, learning and innovation. It is certain that for small and medium-sized significance because it is used by domestic revenues and therefore they represent intermediary linking the activities of the primary sector and industrial activities. The projects or large companies are better equipped to provide the necessary resources to achieve higher rates of capital accumulation and innovation, economies of scale and associated effects on learning.

Knowledge systems are the same importance of the financial systems in the development of productive capacities, as it is not confined to the creation of knowledge that can be used in the production (such as research centers), but it also involves the establishment of institutions to build bridges with users and strengthen the linkages between them. Iraq needs at the present time to develop national strategies coherent and well-designed for technological learning in order to increase access to technology and improve the efficiency of imported technology. and take advantage of the linkages Global Knowledge.

Can also develop the productive capacities of the constituent economic sectors of the Iraqi economy without addressing the existing constraints on the demand side, given that the demand is an important source of economic growth. as strong domestic demand in the United States of America, Japan, China, India, have contributed greatly to economic growth in 2005, Thus, the weakness of domestic demand growth is a major constraint in the production capabilities in Iraq, The slow domestic demand and accompanying unemployment and poverty is one of the major deficiencies تشوب investment climate in Iraq.

From here it can be concluded as follows :

1 - There is room for the new forms of industrial policy, which recently developed in advanced countries and developing countries and developed based on the mixed model based on the market, where private enterprise and government together to create a kind of integration between the public and private sectors.

Two-it is important that the Iraqi Central Bank to convert part of the cash reserves to invest funds for the management of sovereign national wealth more actively a trend that may enhance the assets market in Iraq at the expense of the dollar.

3-acting within the framework of the specific timetable to use oil revenues for investment in activities that contribute directly to economic diversification and development of non-oil exports, and a policy of selective support or stimulate development activities and direct support and incentives for activities that contribute directly to achieving the goal of economic diversification.

4 - The presence of a large domestic market in Iraq, where infrastructure and economic and human data are important pillar for the growth of the productive and service activities are able to compete in foreign markets.

5-Adherence to at the present time and under the difficult circumstances through which Iraq is a strategy of price-support away from the strategy of income support, In this connection it is necessary to continue to work on ration cards to Iraq to improve economic conditions and political, as difficult now a careful distinction between the deserving of the ration card and those who did not deserve to compensate financially support himself, since entering into this subject at the present time would add another problem to the many problems of Iraq.


* Professor of Economics at the University of Baghdad and the Director of the Department of Economic Relations of the League of Arab States.

This Dr has been wrong all the time, so I hope he is wrong this time also