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

Abdul Rahman Zamil, head of the executive committee at the Saudi Export Development Centre, said that the cost of exporting to Iraq had increased by 15 percent due to exporters’ inability to deliver goods directly to Iraq, London-based al-Hayat reported. Exporters are forced to use a third party, he explained.

Noozz.com | IRAQ

so do the banks open tommorow in iraq??? What do you guys think of the cbi holding an auction today and also how can they hold an auction if the banks aren't open..hmmmmmmmmmm is this a steaming pile of horse poop or what

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Economic : inflation and fuel crisis in 2006

D. Kamal Basri * * Under the Ministry of Finance Introduction : The Iraqi economy during the last months continues to rise in the inflation rate amounted to about 70% with the possibility of continuity rise. As the statistics indicate to the rise in the proportion of spending on fuel in the family budget to be about 40% of total household expenditure. Given the widespread unemployment and incomes are most stable The result is that the resulting spread of the phenomenon of inflation is the decline in purchasing power, the real income of individuals. This study tries to shed light on the causes of inflation and looking at the role of various government policies, including fiscal and monetary necessary to reduce the proportion of high and therefore mitigate the negative effects resulting from it. The phenomenon of inflation : The phenomenon can be defined as a constant rise in inflation and continued in the overall level of prices. Since the beginning of the 1990s of the last century until 2006 the average inflation growth of about 50% annually. However, I figure to 32% for the period from 2003 - 2006. In January 2006 inflation reached 20%, a record high of 53% in 2006 Maes to the deepening of the high prices of oil derivatives. The continued rise in the inflation rate to hit in July and 70% in August and 76.6% in a row. Referring to the Central Agency of Statistics in September 2006 on the indices of goods and services. We find that the number of commodities covered count price index of 446 consumer goods and services. The index of consumer prices for the month of February 2006 in Iraq (21375) basis in 1993. This means that the consumer is happening in the month of February 2006, an amount (21375) on the same goods and services that he could be purchased in 1993 at 100 dinars. The index rose from the previous month (July 2006) at a rate (15.1%) also increased by (76.6%) for the month of August of last year (2005). As in the table (1) Root In fact, there is no single cause and no one Atvser single theory can explain alone the high overall rate of prices in Iraq But one can say that the high rates of inflation, which recently witnessed the Iraqi economy can be attributed to the absence of security and stability, which is reflected in the lack of supply of goods and services and to a rise in the price of oil derivatives. In spite of the support provided by the state in 2005 to import oil derivatives, and of about $ 400 million per month (to meet the shortfall in the production of such derivatives), However, the local market has been experiencing a serious shortage in bridging the growing demand due to the entry of a large number of cars that have been imported by the private sector, and also because of constant interruptions of power and the frequent use of generators in operation, which depend on those products as well as the distribution sector Maiaaneh of big problems and the existence of administrative and financial corruption. All these factors have contributed to the rise in the overall level of prices and impacted directly or indirectly in the food basket. In line with the economic reform policy has been reduced financial allocations in 2006 to become half of the $ 200 million each month. This reduction was based on a desire of the government to gradually reduce the size of support and make prices (at least) consistent with the prices of the neighboring countries. As planned is a presidential order to end the monopoly of the state can be summed up for the import and sale of oil derivatives, and allow the private sector to work in partnership activity. However, the legislation did not go into existence and continues to fuel crisis still raging. During the recent period of 2005 stopped the imported oil from Turkey for reasons of irregular payment of financial dues of the Turkish side, This made prices more than normal market prices (non-subsidized) and because of the high prices of derivatives is the rate derivatives on the domestic spending limits 40% of the family income. This is evidenced by the statistical survey limited to the city of Baghdad, carried out by the Central Agency for Statistics in the fifth month of this year. Results and implications The phenomenon of inflation led to the production of many of the negative effects on the local economy. It is these effects, we find a reduction in the purchasing power of individuals, as well as the decline in the real value of savings and deposits (particularly if the inflation rate is higher than the rate of interest). On the other hand, the inflation is to increase the prices of locally produced goods, which results in a national decline in exports, as well as causing negative effects on the size of the investment in the national economy and discourage economic development process. Sources phenomenon of inflation and its causes : In general, the phenomenon of inflation caused by the mismatch between the growth or the volume of cash owned by individuals and the growth or abundance of goods and services available in the market. One of the most important reasons that led to the recent rise in the rate of inflation are : 1-high prices of oil derivatives : the reason for the rise increase in the cost of production of goods and services that rely on oil derivatives directly or indirectly. 2 - scarcity of oil derivatives : scarcer led to the emergence of a black market and the high Asaaramushanget (and sometimes more than the normal market price-supported). This also led to the scarcity of derivatives is that about half the local market need reimbursed from the black market. There is a statistical study indicates that increasing the supply of oil derivatives lead to lower inflation by 40% (after two months of the date of the increase of supply). Three-power outages : causing power outages disrupt the production of goods and services and thus reduce the size of supply in the market. It also emerged the need to use power generators, which use an additional form of the request oil derivatives. Four-twice the capacity of the government machinery in the implementation of projects and service degradation of the production of government services municipal services, public transport, electricity, water and health ... Etc.. Where the deterioration to hamper the production of goods and services. 5-deterioration of the security situation : the deteriorating security situation caused by the irregular supply of goods and services in the local markets (reduced working hours). On the other hand, the security problem led to difficulties in the supply of the imported border outlets and the high costs of insurance and escorts. Six-Mile phenomenon of the rise of spending and weak tendency for savings due to the policy of blockade and deprivation suffered by individuals. 3 - 7 weakness of the banking system and the temptation to attract cash. Recently, in an attempt to rein in inflation. Senior Central Bank to raise interest rates from 10% to 12%. This increase observers estimate unable to make any positive impact, They are unprofitable Valtakl caused by the inflation of capital greater than the interest rate, Therefore, this policy is not sufficient to maintain the purchasing power of the Iraqi currency. 8-improved level of wages and pensions after the war and thereby improve the purchasing power of individuals. In the 2006 budget, increased the size of salaries and various payments by more than 90% from what it was in 2005. There is no doubt that this increase has not been accompanied by an increase in the supply of goods and services. 9-structurally weak GDP : The previous economic policies and because of the embargo and the war on the weak structure of the gross domestic product. This is illustrated by the following table : Recalling SNA to the adoption of the economy in recent years (2004 and 2005) on the oil sector alone, where the percentage of its contribution to GDP of 63% after it was 18%. He got the opposite with regard to agriculture, where the ratio from 14% to 7%. and industry from 13% to 2% increase compared to 1988 : as in the table (2) When checking the development of the working class, we find the unemployment rate is 27-30%. The greatest proportion of the labor force in the services sector with marginal influence in the overall GDP, although an estimated 2% of the labor force in the oil sector with a major impact on GDP. From this we can deduce that 2% of the labor force contributes 64% of gross domestic product. while 98% of the labor force contributes 37% of the GDP. (Sectors, which does not include the petroleum industry). There is no doubt that there are flaws in the structure of the Iraqi economy. In the industrial sector, public works 580 thousand from labor, but because of the weakness of productivity, the State supported by 840 million dollars. Government support is also estimated direct and indirect in the state budget, and 80% of the GDP. Thus, there is clear imbalance between the sectors of production and services sectors. This is the purchasing power depends on the external market to satisfy their needs. Thus exposing the economy to import inflation from an external source, and to make the balance of payments deficit to weaken the Iraqi currency. And if we take into account the amount of government support for the wages in the productive sectors of the picture is much worse. The result of all Matqdm low productivity of labor cost which is inversely proportional to the rate of prices. Dealing with the phenomenon of inflation : We will review the financial and economic tools available cash to restore the desired balance between circulation of goods and services and the cash available to individuals. Undoubtedly, the issue of security and the high prices of oil derivatives and the inability of the economy to produce goods and services competitive Pklv all influential factors in the continued rise in the rate of inflation. And can deal with the phenomenon of inflation through Mayati : First : work on Astekararalamen of confidence in the local market and the smooth flow of goods from the border outlets. Second : to address the scarcity of derivatives by ending the monopoly of the State of import and sale of oil derivatives, and to allow the private sector to import and thus can control the price rises above the market price. It is essential that the state urgently implement the law, which aims to raise the Ministry of Oil monopoly for the import and distribution of petroleum derivatives, and working to find permanent legislation for this purpose. We hope that the law allows competition in the sale of oil derivatives by ensuring that a sufficient number of independent importers from one another. Since the government has already provided a draft bill to the National Assembly the previous late 2005 Alaanh are not ratified it. It should be noted that the amount of reduction (planned), in supporting the prices of oil derivatives in the current year budget was about (25%). However, due to accumulated debts derived from the import of derivatives in 2005 and payment of allocations this year, the lack of support is more real. Third : improve the distribution of products and reduce the negative effects of the black market through the adoption of the distribution Alcabonat. Fourth : raising interest rates in general have a role in collecting cash, which is a practice in many countries stable. However, we do not believe that have a significant impact, due to the lack of miles for savings and the absence of investment opportunities that can be fed savings. Banks find no economic incentive to raise interest rates, no individuals have the tendency to save because of consumerism (as a result of the policy of deprivation in the previous preference for spending on savings). As for the rich because of lack of confidence in the Iraqi economy, their preferred diversion of capital abroad. Accordingly, it is hard to imagine that the rate of interest rate role da m difference between the inflation rate significantly. Fifth : raise the exchange rate, There is no doubt that the rise in the value of the Iraqi currency against the dollar would make the value of the imported less. The higher value of exports. As exports are negligible, the economy will benefit from the policy of raising the rate of the Iraqi dinar. Therefore I believe that this procedure has positive effects when used with other procedures. Sixth : fiscal policy, reflected controlling public spending and the use of tax policy to reduce the cash. In fact it difficult to talk about controlling spending at a time when the government is seeking to encourage investment spending tottering (in the projects in the draft ministerial provincial assemblies). Examinations of the budget items found it difficult to reduce spending on any part of its terms. The same applies to tax, there is reluctance to pay taxes starting While we take the unemployment rate, which exceeds 25%, we find that there is a need for government spending to protect the rights of the consequences of poverty and deprivation. Seventh : the sale of government bonds in order to absorb liquidity, this is not expected to significantly impact of the procedure, but no doubt that his role will be complementary to the previous treatments, which are all aimed at creating a balance between the flow of goods, services and cash flows bloc. Undoubtedly, the policy of correcting the prices of oil derivatives, the policy required them to activate, However, there is a need to link reform scheduling prices of oil derivatives, including governmental actions of : 1. The improvement of public services, especially public transport sector. 2. The expansion of the network of social protection vertically and horizontally. 3. Addressing the problem of security and reducing the impact of economic development. 4. Linking expenditure policy and support the production of goods and services. 5. Tighter control on the distribution of oil derivatives (using the Alcabonat).

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Iraq : a plan to provide quote stocks of canned food to meet emergency situations
Baghdad Mahdi Karim Al-Taee The Ministry of Trade to secure stocks quote from canned food items similar to the ration card to meet emergency conditions and rectify any situation immediately after they occur. The ministry spokesman said by the media to the "morning", He also pointed out that the ministry formed a specialized following a meeting chaired by Dr. Abdul farmer Hassan, the Sudanese Minister of Trade, the responsibility of finding a quick methods The minutes for the importation of food items packaged similar to the components of the ration card to be distributed among citizens in emergency situations. He pointed out that the Sudanese instructed a number of options to secure and increase the stockpiling Alstratiji of these materials at all DOE sites throughout Iraq and placed in refrigerated warehouses b the goal of addressing any circumstance facing difficult citizens. The minister stressed at the meeting that the duty of providing food for the population in the days of emergency is the responsibility of the government and the ministry of trade carried out in the field, especially it is the only official authorized distribution, import and securing food for the people. He pointed out that his ministry in the coming days on the supply of these materials in accordance with the recommendations of the committee formed for this purpose. He assured Dr. Sudanese citizens that this has nothing to do with the security aspect and Was a source of concern as what is calculated by the government to any emergency ... Noting that the ministry secured large quantities of items ration card usual for the coming months.

Security Council Resolution 1483 of May 22, 2003 led to the establishment of the International Advisory and Monitoring Board (IAMB), which began operations in December 2003. The IAMB acts as an audit oversight body for the Development Fund for Iraq (DFI), also created under SCR 1483 to receive Iraqi oil proceeds, balances from the UN Oil-for-Food Program and frozen Iraqi funds. Until June 28, 2004 disbursements from the DFI were directed by the CPA in consultation with the Iraqi authorities. The mandate of the IAMB was extended under SCR 1546, and resources in the DFI are now controlled by the Iraqi authorities. The IAMB initially consisted of the Arab Fund for Economic and Social Development, the International Monetary Fund, the United nations, and the World Bank. A fifth member was later designated by the Interim Government of Iraq. For more information on the IAMB, and access to the audit reports, please visit International Advisory and Monitoring Board for Iraq (IAMB) -- An audit oversight body for the Development Fund for Iraq (DFI).

http://siteresources.worldbank.org/I...rIraqFaris.pdf

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Iraq : Director of the Center for reviving the marshes : Non-interest housing reconstruction and other projects implemented

For inclusion in their secondary
Baghdad-Mustafa Majeed
A rehabilitation center in the marsh and the Ministry of Water Resources revealed that the ministries of electricity, housing and reconstruction did not lend a fundamental concern of the projects entrusted to it in the context of marsh recovery plan for the current year due to inclusion in the secondary to those ministries which delayed the implementation of many of the important projects assigned e so far.

The center's director Kazim Ali Hashim in a statement to Al (morning) that the recovery plan Marsh approved by the Council of Ministers for the current year cost of 225 billion dinars is the highest since the fall of the regime distributed between eight and Water Resources ministries, municipalities and public works and health, agriculture, communications, education, electricity and broader TR pointing out that the two ministries delayed the implementation of the implementation of several important projects in the governorates of the marshes because of the three so far account for those projects Kajindat additional or included in the secondary them.
Kazim said :
That security grounds advanced by those ministries did not prevent the rest of the ministries of the implementation of the work assigned to the plans this year and was able to achieve the high rates of completion.
It is noteworthy that the allocations to the Ministry of Construction and Housing amounted to 50 billion dinars for the establishment of the villages in the three provinces of Missan marshes, Dhi Qar and Basra in the allocations of the Ministry of Electricity to 32 billion dinars, and is the highest budgets after the Ministry of Water Resources has been allocated 88 billion dinars.
He called on the Director of the two ministries to give projects entrusted to it within the recovery plan Marsh importance it deserves as a fundamental pillar of support for the residents in those areas that have suffered and are still suffering due to lack of basic services provided to special projects in the electricity and housing.
The ratio between the immersion of the marshes still below the required level after three years of immersion it attributed to the lack of imports water in the Euphrates and Tigris rivers in the last period.

Originally Posted by CharmedPiper

Remember Shabibi is keynote speaker 10/30 at conference which is tomorrow....It sure will be a tough room if doesn't have great economic news to talk about...I don't think we hope to, we are planning on, or as soon as we...phrases are going to cut it....! He needs proof.. Money talks and bull-dung walks (so to speak)!

Has anyone seen where they are having this meeting at???

Originally Posted by dinarmad

Has anyone seen where they are having this meeting at???

Commonwealth – Middle East –
North Africa Business Forum
Strategic Alliances, Financial Flows and Islamic Banking
30th - 31st October 2006, The Hilton Canary Wharf - London, England

Day One - 30th October 2006 Day Two - 31st October 2006


Close of day one

19:00
Gala Dinner Hosted by : Bloomberg
Keynote Speakers:
Dr Sinan Al-Shibibi, Governor, Central Bank of Iraq
HE Dr Adib Mayaleh Governor Central Bank of Syria

Commonwealth Business Council

Originally Posted by kaz

Hi Rolls Royce,
Welcome back, you have been missed! Do you know if Indira's family have received their IQD10,000 yet?

This one I can answer . . . she forgot to tell me . . .

No, they have not been distributed up North as of 3pm Eastern . . .

RR . . .

Originally Posted by dinarmad

Has anyone seen where they are having this meeting at???

Yes, I believe it's to be held in Kuwait.
Kuna site|Story page|Kuwait hosts meeting of Intl'' Compact for Iraq Oc...10/27/2006