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

Sorry, this was all I could copy from Noozz on current Iraqi Dinar News, May be helpful, maybe not.


Iraq: Currency forecast
(EIU) Oct 19 2006

...end-2005) to satisfy dollar demand, and, although it is prepared to raise local-currency interest rates to stem the pressure on the dinar, there are likely to be limitations on its willingness and ability to use this as a monetary policy tool. Given the present...

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Circulation of Iraqi Dinar Growing, says IMF
(Noozz Editorial) Aug 18 2006

The exchange of the Iraqi dinar to the U.S. dollar has remained close to 1,475 at the daily auctions, which have been conducted free of any restrictions. ...

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Economic Analysis - Dinar Stable Despite Inflation
(Business Monitor International) Jun 12 2006

...a strong reserves position suggests the dinar's peg to the dollar remains safe. The exchange...However, will the CBI be able to maintain the dinar peg in the context of high inflation? Rising prices are eroding the real value of the dinar, and increasing the risk that Iraqis will...

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Bankers cautious of suggestion to equate Iraqi dinar with US dollar
(Noozz Editorial) Jul 03 2006

...zeroes” be taken from the value of the dinar to bring to level with the US dollar. Al...would be held this month to discuss the dinar value raise which would include specialists...capable of moving to a phase of equating the dinar with the Dollar?” Zuheir Al...

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Iraq: Financial services
(EIU) Oct 03 2006

...foreign-currency letters of credit. This followed other significant steps such as the establishment of a new currency, the New Iraqi dinar (NID), and the launching of daily foreign-exchange auctions by the CBI. However, the parlous state of the Iraqi banking sector...

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Iraqi Central Bank’s Policies Stabilize Iraqi Dinar
(Noozz Editorial) Jul 13 2006

Al-Basri said that the central bank maintained control over the dinar’s exchange rate which fluctuated between 1,473 and 1,480 dinars...along with economic reform programs have contributed to the dinar’s improved exchange rates. Also helpful, he added, were external...

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Iraq: Basic data
(EIU) Oct 03 2006

... 1 mann=6 hogga=24 okiya=25 kg 1 tughar=20 wazna=80 mann=2 tonnes Currency New Iraqi dinar (NID) since October 1st 2003. The average exchange rate in 2005 was NID1,470:US$1. Exchange rate on September 20th 2006 was...

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Iraq: Country risk summary
(EIU) Sep 22 2006

...until 2008. Currency risk Stable: Although Iraq will probably be able to maintain the peg of the New Iraqi dinar to the US dollar, security problems and economic vulnerability could easily undermine the relative stability of the currency...

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Country Report Iraq September 2006
(EIU) Sep 11 2006

...continues to see stability of the New Iraqi dinar against the US dollar as a major policy...increase rates further (primarily using the dinar deposit facility) to stem pressure on the...interest rates to stem the pressure on the dinar, there are likely to be limitations on...

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Central Bank of Iraq Seeks to Apply International Standards for Capital Adequacy
(Noozz Editorial) Sep 25 2006

...four trillion dinars of the old currency with the new which ended in January 15 2004. This endeavour helped regain trust in the dinar and significantly improve the exchange rate. Another important procedure is the recent approval to grant licenses...

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Consequences of Raising Interest Rates in Iraq
(Noozz Editorial) Aug 31 2006

...inter-bank differences, commercial banks offer 15% interest on short-term, 17% on medium-term, and 19% on long-term loans in Iraqi dinar. If the current inflation rate in Iraq was the result of the high demand and high levels of consumer satisfaction...

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Debate Over Iraq’s Daily Dinar Auction
(Noozz Editorial) Jun 16 2006

...daily auctions where 15 major banks take part, had kept the dinar exchange rate steady but not the inflation rate. ...another economic expert said that the only way to maintain the dinar’s real exchange value was to develop the industrial and agricultural...

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Banking and Finance - Quarter 3 2005
(Noozz Research) Jul 19 2005

...in-vestment The stability of the value of the dinar has been one of the few success stories...have effectively managed the value of the dinar. And in recent weeks the central bank has...hyperinflation and undermin-ing trust in the dinar. But with the change of re-gime, the introduction...

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Race to reconstruct starts to run its course UK groups are leaving or scaling down their work undertaken in Iraq and Afghanistan, write Chris Hughes and James Boxell
(Financial Times UK) Sep 17 2006

...high-profile contracts are now looking like one-offs. De La Rue, the banknote maker, was appointed in 2003 to print the new Iraqi dinar but has not secured further business with the country. Some investments also look speculative, or designed to gain...

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Iraq: Currency forecast
(EIU) Sep 22 2006

...end-2005) to satisfy dollar demand, and, although it is prepared to raise local-currency interest rates to stem the pressure on the dinar, there are likely to be limitations on its willingness and ability to use this as a monetary policy tool. Given the present...

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The Ministry of Finance Works on Employing Tens of Thousands of Unemployed and Finalising the Retirement Law
(Noozz Editorial) Jun 28 2006

...Finance Minister, Jaber Al Zubaidi. He said: ‘I suggested to the Central Bank’s governor to remove three zeros off the Iraqi dinar and upgrade its value to reach the American dollar’. The minister explained that for this purpose, the financial authority...

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Iraq: Country outlook
(EIU) Sep 15 2006

...end-2005) to satisfy dollar demand, and, although it is prepared to raise local-currency interest rates to stem the pressure on the dinar, there are likely to be limitations on its willingness and ability to use this as a monetary policy tool. Given the present...

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Iraqi Dinar Stagnates due to Low Demand
(Noozz Editorial) Dec 13 2005

...was the reason for the current situation. The Iraqi dinar has also been in low demand due to Amman’s wealthy Iraqi community...waiting for more favorable market conditions regarding the Iraqi dinar’s exchange rate. There is speculation that the upcoming elections...

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I know its not much, but may help in further digging.

If someone already posted this article, I apologize however it has some good things to say, so I thought I would post it.
CLM

Liberalization Strategy For Iraq's Oil-Hostage Economy
Alternative To Oil Power Dominance And Neo-Liberal Subordinate Economic Policy (Part 2/2)
By Sabri Zire Al-Saadi

--------------------------------------------------------------------------------

24 October 2006 (Middle East Economic Survey)
Monetary Policy And Oil Production

It is indisputable that maximization of crude oil production is required in the short and medium term as oil revenues are essential for financing public expenditures and imports10. This policy is also in line with the interests of both the oil consumer and OPEC countries, regardless of the pricing factors of oil exports in global markets. But while the macroeconomic policy and oil production should be consistent in order to rationalize the allocation of resources, especially oil revenues, for increasing economic growth as well as providing social services and public utilities, the present monetary policy and especially the FXR have misled economic efforts.

In Iraq, while dependence on oil revenues has been increasing, the contribution of non-oil sectors to investment, imports, and public finance has been deteriorating for more than three decades. The post-war experience has also shown that mismanagement of public finance and widespread corruption, as well as the application of irrelevant economic policies, have contributed to the prevailing miserable socio-economic and political situation11. A significant irrational aspect of the post-war experience has been the provision of (indirect) subsidies for financing increasing imports that have eroded a substantial share of oil revenues, and the elimination of the state’s support for non-oil potential exports. These policies have added to the weakness of indigenous industrial and agricultural activities. In fact, the hasty liberalization of foreign trade imposed by the orders (Laws) of the former CPA and the resulting FXR led to negative interactions with the interests of nascent domestic industries and agriculture. It has been claimed, however, that the new FXR maintains economic stability, and the apparent stable (fixed) exchange rate of the ID/$ reflects a sound monetary policy12. This affirmation needs more examination to expose the real cost of utilizing oil revenues which would justify the demand for considering oil production policy as an integrated part of the state economic strategy and government policies.

By utilizing oil’s comparative advantages, public investment for the construction of infrastructure and petrochemicals and basic industries was the major factor for economic growth and employment during the period 1953-80. At present, using oil revenues to finance intensive public programs for rehabilitation of manpower and the implementation of a wide labor intensive public works program is also essential for dealing with the socially explosive unemployment problem and improving the labor market environment. If successfully performed, the task of building the required free trade and industrial zones, seaports, transportation and communication network through the IDRC, and improving the productivity of manpower would help the private sector to expand its investment capacities. Here lies the crux of the matter. In Iraq, the requirements and policies for the expansion of production (physical and manpower) capacities are very different from the policies dealing with the likely variations of short-term business cycles as practiced by developed countries. Therefore, monetary policy should be considered as a complementary part of the fiscal and public investment policies rather than a superior factor that influences the aggregate demand. Obviously, this proposition is in contrast to the present monetary policy which assumes that economic stability and private investment are necessary and sufficient conditions for economic growth; ie the independent CBI restricts the likely expansion of government fiscal policy. As Iraq’s experience has shown, inefficient public enterprises during the 1970s, 80s and 90s misused public financial resources and benefited from the easy credit facilities provided by the government which owned the commercial and investment banks.

But it is also misleading to stipulate that economic stability, ie controlling inflation and the fluctuation of foreign exchange rates, can be achieved without exploitation of the generous oil revenues. In addition, the present FXR has inferiorly linked the domestic interest rate to the US rate, determined by the US monetary authorities. What domestic economic factor justifies this policy? And why is the interest rate on ID deposits in domestic banks (12%) more than twice that for investment in dollars (5.25%) under fixed rate of ID/$? Who are the beneficiaries from the difference? Does this policy really help to check the inflation hike (70%)? Also, with a static policy, the weak (strong) US$ in the world market would induce more government spending and lead to more excess (insufficient) money supply. Does this practice support the sterilization of foreign currency flow? Unfortunately, neither the MOF nor the CBI has taken the trouble to explain these ambiguous monetary policies. In this context, it is essential to highlight the current mismanagement of the oil cash revenues by the MOF and CBI13, especially when the post-war Law of the CBI does not permit the public to question the monetary authorities’ crucial decisions14. In a democratic Iraq, it is hard to understand how the authority glorifies the accumulation of foreign reserves as if the economy were in good shape and was the result of the application of sound economic policy. Is it not a deception of public opinion on the part of the policy makers and advocates?

The NDS ascertains clearly two main issues; first, the national economy has two main characteristics: high dependence on the oil sector and imports, and an insignificant contribution of non-oil sectors and non-oil exports to GDP; secondly, oil revenues are the main source of public finance15 and, therefore, constitute the principal source of money liquidity. Analysis of the GDP composition reveals that the government’s consumption and investment demand and imports are the dominant factors that stimulate production and exports. It also constitutes the main source of money liquidity and foreign currency. Since the role of the private sector is limited in terms of its contribution to GDP and public finance, its influence in determining money liquidity is limited too. However, while the NDS appraised the independence and performance of monetary policy, it did not mention how nascent industries and agriculture activities would increase their productivity and competitiveness vis-à-vis the dumping of cheap imports and increasing cost of production. Also, while oil revenues are the main financial source of NDS, its passive policy towards the unemployment problem and the provision of public services can not be justified. Indeed, the inconsistency and shortcomings of NDS’s objectives and policies reflect the irrelevancy of the applied macroeconomic policies16. The effectiveness of the fiscal and monetary policies, however, does not mean that they are efficient and progressively leading to increase economic growth and employment and liberalize the economy from its high dependence on oil.

Efficiency Price Of Oil Production And FXR

In Iraq, there are many domestic and international economic, political, technological, and physical factors that determine crude oil production. Three main issues are of significance: first, the absorptive capacity of the national economy and the ability of the authorities to expand non-oil production capacities while maintaining economic stability; secondly, oil production should satisfy the need of energy’s consumer countries; and thirdly, in determining the level of investment in oil industry, ie expansion of production capacities and reserves, there is always the possibility of non-oil energy alternative – at least in the long run – and the uncertainty associated with the production peak of the existing oil aquifers. Such factors influence optimal production and the national investment decisions in oil industry.

Given these circumstances, the policy of maintaining optimal production of crude oil is theoretically linked to the state’s overall objective of maximum increase of economic growth, but must be practically qualified by the diversification of production activities and the production capacity peak. However, in view of the present global oil supply and demand conditions, the given analysis should be widened to include the prevailing measures and arrangements that were set to coordinate the oligopoly practice of OPEC countries. That is to say, it is also essential to evaluate the cost-benefit outcome of the collective oil price and production policies of OPEC as well as the likely role of Iraq being (another) swing player in OPEC. Such an approach would not, however, change the basic assumptions that determine the necessary oil production (revenues) which would help to modify the oil production policy and ensure effective macroeconomic policies17. It would only act as a yardstick to limit oil revenues extravagance that leads to the over-relaxation of domestic saving and constrains non-oil exports.

Now, how can then we arrive at such practical strategy and policy that compromises the reality requirements with the theoretical conditions?

It is our understanding that the (estimated) shadow price of oil production would perform this task since it expresses the relationship between the crude oil production level and Iraq’s economic growth conditions. In technical terms, the shadow or efficiency price of oil resources reflects the relative scarcity of oil that constitutes (in the practical sense) the most binding constraint on economic growth and social development. Given the exceptionally high dependence of the economy on oil exports (revenues), the foreign exchange rate of ID/US$ plays a strategic role in influencing (determining) the economic efficiency of oil production policy. Consequently, a new (adjusted) FXR must be established in order to facilitate the implementation of new economic strategy and policies that is based on a national inspiring long-term future vision18.
To justify such a proposition, we should recall the relevant basic theoretical assumptions of free market economy. The optimal distribution of the available resources of any production entity aimed at maximum profit will be achieved by equalizing profit realized from producing and selling one extra (marginal) unit from its production at a certain price with the cost of resources used in the production of this unit valued at efficiency prices, or, when abnormal profit is equal to zero, ie the prevalence of the optimal condition19. However, less efficient distribution or distribution below the optimal level leads to less normal profit. This means that if the optimality condition can not be realized, then the economic activities of the firm will be reduced and therefore utilize less of the available economic resources. Also, the summation of optimal activities of all production entities in a society means optimal distribution of the available resources and hence they will achieve maximum economic growth. However, it is not unknown for state intervention in economic affairs or any disturbance of the perfect competition in the free market mechanism being reflected in the resource distribution pattern at which the prevailing prices would are far away from the real efficiency prices.

In Iraq and elsewhere, the economic, social, and political reality needs a practical and more suitable way than the theoretical mechanism for mobilizing and distributing economic resources. The existence of widespread market imperfections resulting from the prevailing underdeveloped economic and technological infrastructures and social necessities distort the values of real prices. The price of oil is no exception, ie it does not reflect the scarcity of oil resource in relation to Iraq’s main objectives and constraints, where the surplus of the balance of payment is the key factor for economic growth and social development. Theoretically, real foreign exchange is directly linked to optimal crude oil production at which the balance of payment would be at equilibrium or at the level of where full utilization of foreign currency reserves as well as higher economic growth are achieved.

In reality, however, if oil production is less than the optimal (theoretical) level, then public oil revenues should be utilized only in financing infrastructure and public services and utilities. If oil production exceeds the optimal level, then public oil revenues must be utilized in investment projects guided by profit criterion and regulated by free market conditions.

Crucial Economic Policy Changes

The virtue of free market economy, ie optimal mobilization and distribution of resources that maximize economic growth, has been one of the main objectives for Iraq policy-makers since the fall of Saddam’s dictatorial regime. However, actual economic strategy and policies have miserably failed to revive the economy and rebuild the infrastructure, or establish a solid foundation for an efficient market economy despite the huge cost of thousands of human lives, and security, social, political, and financial spending. The mismanagement of the country’s abundant oil revenues, weak government institutions, and widespread corruption are symptoms of this failure. Since the fall of the former regime in April 2003, the growth of agriculture, non-oil industrial activities, and non-oil exports have been almost zero. The substantial accumulation in dollar reserves at the CBI have been generated only by the fortune of oil revenues. Therefore, maintaining the FXR and FER of US$/ID does not reflect sound macroeconomic, fiscal, and monetary policy nor keep up the real value of oil revenues from continuous deterioration resulting from hidden cost of free flow of imports.
In Iraq, increasing the contribution of non-oil sectors and private sector to the GDP and public finance is essential for transforming the oil-rentier economy to an efficient market economy. To achieve this long-term target, oil revenues (production) must be utilized to bring about the required economic growth, diversification, and the construction of infrastructure. However, the present policies are not efficient in utilizing oil revenues (production). Increasing oil production is essential, but to ensure macroeconomic efficiency, oil production policy should be linked to the fiscal and monetary policy so far as they reflect the scarcity of oil resources in relation to the country’s need for the reconstruction of public infrastructure. This can be achieved by the application of a flexible FXR aiming for both economic stability and economic growth. Therefore, using oil revenues to sustain a fixed exchange rate of ID/US$ and consequently associate the domestic interest rate to the US one would reduce the economic efficiency of utilization of oil revenues as well as restrict the role of monetary policy.
Essentially, Iraq needs an economic strategy and macroeconomic policies guided by a national long-term vision that aims to increase economic growth, employment, diversification, and the role of private sector, rather than rigid fiscal and tight monetary policies to regulate the (imaginary) short-term business cycle fluctuations through money-supply and interest rates as applicable to developed countries. The following economic policy issues have to be considered:

Reformulation of a macroeconomic policy to maintain both stability and promote economic growth, especially for non-oil industries and agriculture.

A gradual liberalization of the foreign exchange regime, ie the fixed exchange rate of ID/US$.

Gradual, but firm implementation of coherent structural economic reforms.

Limited and temporary import protection measures as well as export promotion incentives have to be taken to support the competitive capacities of infant indigenous industries and low-productivity agriculture.

Provision of investment incentives for the indigenous private sector and foreign corporations.

Initiation of a new economic strategy guided by a national vision, institutionalized through wide economic, social, and political public debate.

Abbreviations

CBI: Central Bank of Iraq

IDRC: Iraqi Development and Reconstruction Council

CPA: Coalition Provisional Authority

IMF: International Monetary Fund

FER: Foreign Exchange Regime

MOF: Ministry of Finance

FXR: Foreign Exchange Rate

NDS: National Development Strategy (2005-07)

GDP: Gross Domestic Product

USAID: US Agency for International Development

ID: Iraqi Dinar

WB: World Bank

Originally Posted by *CLEO*

Yes, I called yesterday and got the run-around. On bank manager said Chase hasn't exchanged currecy in years, and one quoted me a price of .00076760 - $650,000 IQD for $ 500USD.

My husband is walking in to a branch today to see if he can make an actual purchase, so I'll update this afternoon....(right now I have 8:18am Tuesday Mountain Standard time)

83rd an Union Hills branch wanted us to open an acct and deposit a minimum balance to be able to exchange.

WHAT A LOAD OF JUNK!!

Each branch must make their own rules. It's so frustrating!!!

Originally Posted by *CLEO*

83rd an Union Hills branch wanted us to open an acct and deposit a minimum balance to be able to exchange.

WHAT A LOAD OF JUNK!!

Each branch must make their own rules. It's so frustrating!!!

I do not have an account at Chase and have made many purchases of dinar. There is a $5.00 fee to do any foreign exchange.

Originally Posted by AlwaysDreaming

I do not have an account at Chase and have made many purchases of dinar. There is a $5.00 fee to do any foreign exchange.

That is the information that I got from a different branch, but the one on Union Hills must need to get membership up and are making their own rules.



PS - I wonder what the Snobsdale branches are saying?

(Voice of Iraq) - 10-24-2006 | This issue was sent to a friend

The oil in Iraq's Kurdistan, the delegation was ready to visit Baghdad soon to discuss differences
Beirut-Walid Khadduri life-24 / 10 / 06 / /

»« Al-Hayat that the draft bill of oil in Iraqi Kurdistan are ready, The Ministry of Natural Resources allocated to the Kurdish parliament in Arbil in the Kurdish region in the near future.

The draft bill differs radically Kurdish oil on the draft federal law by Iraqi Oil Minister Hussein Shahrastani to the National Energy Commission under the chairmanship of Deputy Prime Minister Barham Salih. The difference lies the President, to other things, the validity of the Oil Ministry in Baghdad to conduct negotiations and the signing of contracts for exploration and development of oil fields with international companies, while confirming the Kurdish law that these powers are of the terms of reference of the province, not the federal government. And both sides invoke various articles of the Constitution in defense of their point of view.

Shahrastani minister insists on its point of view, stated publicly several times. In another time, the effects of this subject, earlier this month, Prime Minister threatened Najirfan Barzani of the Kurdistan secession in the event of the adoption of the proposed federal law.

For his part, The Minister of Natural Resources for the Kurdistan Robert Asti four statements the day before yesterday, Sunday,, announcing the readiness of oil and convert it to the Kurdish parliament in Arbil to review it. She also spoke of data on the distribution of oil wealth and laws must prevail in the disputed areas (Kirkuk).

It should be noted that the minister Robert participated in the meetings of the National Energy Commission during the last two months, However, the deliberations of the Committee did not produce any concrete results so far, only on the general principles of the division of oil imports. It is expected that the Committee will meet after the Eid Al-Fitr to complete the discussions, especially Shahrastani promised that the completion of the draft federal law in the near future and convert it to the parliament in Baghdad. and to obtain approval before the end of this year.


Delegation to Baghdad

In Irbil, A source in the government of Kurdistan, said that a delegation headed Nigervan Barzani would travel to Baghdad after the holiday to discuss the outstanding issues between the central and regional governments. and the quest to end their differences.

The source said in press statements that «talks will focus in particular on the oil contracts signed by the territorial government, The government in Baghdad. The limit is deciding where the Iraqi oil ministry, Iraq ». The government of Kurdistan four oil agreements so far. Baghdad claims that the retreat of the Iraqi Ministry of Oil of these contracts and grants final approval, They also insist on isolating this subject (oil agreements with international companies) in Baghdad future.

The source added that the delegation will also discuss the problem of «Kurdish share of 17% of the state budget and the liberalization of the amount of $ 485 million remaining from the current year budget by the reluctant parties in the Iraqi government on the disbursement». He reported that the delegation also «touch in his meetings in Baghdad to a crisis of electricity, fuel, there has been talk of a share of the Kurdish representatives in Iraqi embassies and consulates abroad ».

(Voice of Iraq) - 10-24-2006 | This issue was sent to a friend

Hassan al-Shamri member of the Virtue Party in the House of Representatives Iraqi : there are several points of view regarding the issue of the chairmanship of the constitutional amendments because the parties several calls to assume responsibility for this Committee
24 / 10 / 2006 16:22 (GMT)
The Shamari, during an interview with "Radio Sawa" has been put up a number of mechanisms within the Commission to resolve this dispute through meetings in the coming days.


The following is the text of the interview conducted with him on October 20, 2006 :


O-there is news about the existence of differences on the chairmanship of the Constitutional Commission. Could you give us an idea of the nature of the differences and who are candidates for the presidency of this committee?

C-in fact, still views on the subject of the presidency and the constitutional amendments that are not yet agreed upon, in addition to that there is a claim by the United Iraqi Alliance of this presidency, The candidate put forward by the Alliance list is Sheikh Humam Hamudi, Another claim of the Iraqi Accord Front headed by the Committee and the person who nominated for the position is Dr. Ayad Al-Sammerai, But so far there is no agreement on the resolution of this issue.
To break this impasse, being think that the presidency will be a body because the process of the allocation of quotas devastate Iraq, The agreement to this idea, which have not been considered yet as it has not been adopted by any party so far.
The key points of resolving the issue of the presidency and assigned to one of the parties, in addition to the discussion of the files relating to constitutional amendments, I think that the Committee would return in the coming days for the meeting to begin to discuss the files that are meant to reconsider, There are mechanisms within the Committee on how the debate on the constitution-making mechanism, Is this constitution will be a one sentence of any article by article, , chapter by chapter, paragraph by paragraph, or whether it will identify the points of difference so that the debate was going on around them. all these points will be discussed and will be on the basis of the agreement on the mechanism of action is likely to be internal system for this committee to begin its work.

O-managed by the Iraqi security forces to take control of the new city of Amarah south of the country after the withdrawal of the Mahdi Army militia. What information is available to you about what is happening?

C-signed some armed clashes between supporters of al-Amarah and government forces in favor of the preserve, But the reasons for fighting, which took place in the city due to differences between the governor and the governorate and some armed elements, The members of the clans Amarah intervened in the wake of the fall of the number of victims, which belongs to the clan, which led to the escalation of the tense situation in this province.
But the government has done its part to send a security delegation headed by Minister of State for national security affairs in the framework of efforts to calm and with a view to resolving this crisis.
Sawa

Sotaliraq.com

(Voice of Iraq) - 10-24-2006 | This issue was sent to a friend

Rumsfeld : There amendments to the security plans in Iraq for the stabilization and the elimination of violence
Rumsfeld confirms that the security plan formulated by the American government aimed to help Iraq Stabilization and Security
24 / 10 / 2006 14:30 (GMT)

The Minister of Defense, Donald Rumsfeld that the United States would not hesitate to assist the Iraqi government to achieve victory in Iraq and the elimination of acts of violence which undermine the stability, However, he pointed out that this would not happen overnight. He said :
"We hope that we can cooperate with the coalition forces to help the Iraqis to be able to assume responsibility in Iraq as soon as possible."

Rumsfeld added that the amendments to the security plans and timetables established by the American government aimed at helping Iraqi officials to stabilize and willingness to take responsibility :
"Those words plans for a way to make progress to be in front of the parliament and government in Iraq set of tasks they have to do to assume the responsibility of managing the affairs of the country and provide security in it."
American officials said Tuesday that the Iraqi government agreed to a time-frame for the implementation of steps to calm the escalating violence in the country.
For his part, the American Ambassador Zalmay Khalilzad and the commander of the American forces in Iraq, General George Casey, a press conference in Baghdad to shed light on the strategy followed by the United States to achieve victory in Iraq and pointed out that Washington aimed at establishing a democratic government and multi-ethnic communities.

Khalilzad has acknowledged that the Americans realize that these very difficult task, but it is also a high degree of importance. Khalilzad had emphasized that the victory is not impossible :
"Despite the difficult challenges we face, the victory in Iraq possible, and we can achieve according to a realistic timetable. Iraqi leaders and the advancement of political objectives and security task they have agreed to it. "

He explained Khalil added that the enemies of Iraq do not want to achieve those goals :
"The forces that made up the camp of the extremists, It does not include Al Qaeda, but also Iran, Syria, working hard to prevent our success. "

For his part, the commander of the American forces in Iraq, General George Casey, the involvement of Iran and Syria in destabilizing Iraq :
"There is no doubt that Iran and Syria are continuing role, which is hardly conducive to achieving stability in Iraq and for their support for extremist and terrorist groups that operate within different Iraq."

He Zalmay Khalilzad had expressed concern at the increase in acts of sectarian violence. He said during a joint press conference with General George Casey :
"It is no longer the rebel unit the main reason for the acts of violence, but sectarian killings exercised by the gunmen Qaida and the rebels, militias and government hit squads. "

Khalilzad had explained the strategy pursued by the United States in Iraq, saying :
"Our strategy consists of three basic elements : First, he urged the leaders of Iraq's political and religious leaders who can control and influence over militant groups in Baghdad to agree to stop sectarian violence. Second, work to help the Iraqi leaders to complete a national pact reached by the main political forces in the coming weeks to agree on a number of outstanding issues which differs by the Iraqis. Third, year to convince the rebels to lay down their arms and accept national reconciliation. "

For his part, General Casey praised the performance of Iraqi forces and progress has been made in training. He said :
"The Iraqi security forces involved in the fighting effectively. During the month of Ramadan alone lost more than 300 soldiers killed in defense of their country. "

He Casey expressed satisfaction with the progress achieved by the campaign aimed to achieve security in Baghdad :
"The Baghdad security plan have been successful in reducing the number of sectarian violence. We, in cooperation with the Iraqi government and coalition forces. we strive to achieve further progress in this area. "

Casey expected Iraqi forces to be able to assume security in the country within eighteen months. He said :
"We have made strides in building Iraqi forces amounts to about 75% of the process consisting of three stages. We will need probably 18 months ago to become fully capable Iraqi forces to take over security functions. "

Sotaliraq.com

(Voice of Iraq) - 10-24-2006 | This issue was sent to a friend

Abdel-Aziz al-Hakim, the Shiite bloc that stands against any project aimed to divide Iraq

Chairman of the Supreme Council of Islamic Revolution in Iraq and the leader of the Shiite bloc, the United Alliance Abdul Aziz al-Hakim
24 / 10 / 2006 13:15 (GMT)

Head of the Supreme Council for Islamic Revolution in Iraq and the leader of the Shiite bloc, the United Alliance Abdul Aziz Hakim Tuesday that the federation in Iraq does not mean separation.
Hakim said in a speech delivered on the occasion of Eid al-Fitr before supporters in Baghdad that federalism does not mean separation, He said : "We assure everyone of the defenders of the unity of Iraq and will stand against any project to divide Iraq."
He stressed that the formation of regions in Iraq is to attain justice, He added : "We are against a central unfair lead to secession and retail."
The Iraqi Parliament has approved the formation of regions, which is refuted by Sunni Arabs because of fears of the division of the country during the meeting was boycotted by Sadri trend, the Virtue Party, and they are two of the parties a list of the Shiite coalition, as well as Vice Sunni Arabs.
The Parliament began immediately after the approval of the formation of regions considered an article of the constitution allows for the consideration of the materials opposed by many Sunni Arabs in the Constitution. On the other hand Iraqi Shiite leader Muqtada al-Sadr refused Tuesday sectarian violence between Sunnis and Shiites in Iraq and. He said al-Sadr in a sermon delivered on the occasion of Eid Al Fitr in the holy city of Najaf that he categorically rejected and denied any fighting Shiite Shiite or Sunni, Shiite any pretext. He emphasized that "our goal in Iraq get the American occupation and not fighting."
It is noteworthy that al-Sadr leads the Mahdi Army militia, which the Americans are carrying the responsibility of a large number of incidents of sectarian violence, the latest bloody clashes between elements of this militia and Iraqi police in the city of Amarah in southern Iraq.
The Iraqi army might intervene Friday to impose the respect of the cease-fire in the city of Amarah then imposed a curfew Monday, fearing renewed clashes between Sadr's militia and Iraqi police.
The clashes resulted in Amarah last week, killing 24 people and wounding 150 others.
Sawa

Sen Jack Reed is discussing the situation in Iraq on CSPAN 2 right now