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

This is another one of onedaysoon's finds on his search. It seems another version of this story was posted at one point. Thought I would post it anyway just in case this is more to the story.


Iraq : the public sector is 580 thousand industrial workers and government support 480 million Dolarbsbb weak production
2006 GMT Monday, October 23
Undersecretary of the Ministry of Finance Kamal Basri spoke about inflation and the decline in the purchasing power ...

Baghdad-Adel Mahdi

Said Undersecretary of the Iraqi Ministry of Finance Kamal Al-Basri «life», The policy of economic reform required to reduce the financial allocations to support petroleum derivatives for the current year by half, to become a $ 200 million monthly. instead of 400 per month in 2005, This is based on the government's desire to reduce the subsidy gradually, and make prices consistent with the neighboring countries.
He disclosed that the scheme had been providing for the issuance of a presidential decree, summarized end the State monopoly for the import and sale of oil derivatives, and to allow the private sector to participate in the practice activity, but this has not taken place, The fuel crisis as it is.
He explained that the recent period of 2005, have stopped importing oil derivatives from Turkey, due to the irregular payment of financial dues of the Turkish side, what makes prices more than the regular market prices are not supported. As a result, the rate of domestic spending on oil derivatives, approximately 40% of the family income, according to the statistical survey of the city of Baghdad. conducted by the Central Bureau of Statistics this year.
He pointed out that the rate of inflation in the months of July (July) and father (August) two years 70%; , and 76.6%, respectively, reflected negatively on the Iraqi economy. The negative effects, a reduction in the purchasing power of individuals, as well as the decline in the real value of savings and deposits, especially if the inflation rate is higher than the rate of interest, what led to a decrease in the volume of investment in the national economy, and discourage the process of economic development.
He added that despite the government's support for importing oil derivatives, to meet the shortfall in production internally, the local market has been experiencing a big shortage in bridging the growing demand, because of the entry of a large number of cars imported by the private sector. The constant interruptions to electricity, increased use of generators that rely on the operation of these derivatives, as well as the suffering of the distribution sector major problems, The existence of administrative and financial corruption. These are all factors that contributed to the rise in the overall level of prices, , which impacted negatively on the food basket.

Inflation
He attributed the reasons for the high inflation rate to several factors other, the most important of the high prices and scarcity of oil derivatives, power outages, impedes the production of goods and services, The downsizing of the supply on the market. weak capacity of the government machinery in the implementation of projects services. as well as the deterioration of the security situation, which contributed to the irregular supply of goods and servicesThe weakness of the structure of GDP.
He pointed to the negative consequences resulting from the weakness of the banking system to attract cash. He said that the Central Bank of Iraq, In an attempt to curb inflation, the oldest recently to raise interest rates from 10 to 12%. Observers believe, This increase was unable to make any positive impact, They are unprofitable, Valtakl impact of inflation in the capital. more interest rate, Therefore, this policy is not sufficient to maintain the purchasing power of the Iraqi currency.

Unemployment
In analyzing the growing problem of unemployment. he said that the unemployment rate is 27-30%. although the majority of the workforce is in the services sector with marginal influence in the overall GDP, while they do not exceed 2% in the oil sector, the backbone of GDP.
He said that there are flaws in the structure of the Iraqi economy, In the industrial sector, public works 580 thousand, However, the weak production, push the government to support at $ 480 million, He pointed out that government support direct and indirect in the state budget constitutes about 80% of GDP. Therefore there is a clear imbalance between the sectors of production and services sectors.
He believed that dealing with the phenomenon of inflation come through steps including the stabilization of the security of confidence in the local market. and to address the scarcity of oil derivatives, by ending the monopoly of the State, and to allow the private sector to import. The increase of interest rates in general. have a role in collecting cash, It is an established procedure in many countries stable, However, the impact will not be significant, due to the lack of a tendency to save, The absence of investment opportunities that can be fed savingsThe understanding of the rich prefer to transfer their capital abroadTherefore it is hard to imagine that the rate of interest rate role, as long as the difference between the inflation rate significantly.
The rise in the value of the Iraqi currency against the dollar would reduce the value of imports, and raising the value of exports. As exports are negligible, the economy will benefit from the policy of raising the rate of the Iraqi dinar. He emphasized that this action has positive effects, when used with other procedures, the most important financial policy, which is based on controlling public spending, The use of fiscal policy to reduce the cash, They are difficult to apply.

Translated version of http://www.elaph.com/ElaphWeb/NewsPapers/2006/10/185566.htm

Great finds onedaysoon!!

Cheers!
DayDream

BBC NEWS | Middle East | The failure of Iraq's reconstruction

How much oil?

Many of Iraq's business elite have relocated to Jordan, to operate what is left of their businesses back home.
Kamal Al-Kaisi, a businessman and academic, is a recent arrival. He fled after four people armed with machine-guns entered his house and attempted to kidnap him.

He escaped by jumping onto a neighbour's roof.
Asked why him, he said: "The mafia or gang have people to nominate a target - they give an estimate to say that we evaluate him at $100,000, or this target at $1m. "And they usually take 10 or 15% of that ransom."
Ali Damirji is a British-educated Iraqi in Amman. He has 15 shops throughout Iraq but has recently closed three of them in Baghdad because it became too dangerous.

He has been put off reconstruction contracts by the pervasive corruption. To get $3m worth of work you may have to pay half in bribes, he said.
Corruption has been fuelled by the constant flux of Iraqi politics. Three different governments have held office since sovereignty was handed back.
And oil revenue that could rebuild the country is being lost to theft on an epic scale. When US technicians renovated the pipes and wells after the war they failed to install proper metering.
Nobody knows how much crude should be in the system.

The money that's stolen doesn't merely enrich criminals, but frequently goes out to fund criminal militias or insurgents - that means lost lives for US troops Special Inspector General for Iraq Reconstruction, Stuart Bowen Baghdad's 'missing' billions
Issan Chalabi, an oil minister under Saddam Hussein, says the Americans failed to install meters even at the offshore terminals that handle all Iraq's crude exports.

Metering would take a matter of weeks to install at the cost of a few million dollars, he said.

"Here we are talking about millions and billions of dollars. Iraq wouldn't be in need of handouts, loans, or grants from anybody."
Mr Nash concedes the metering "probably should have been done".
"But there were so many things to do one has to come up with priorities," he said.
"It doesn't do any good to have a proper metering system if the pipeline is not operating."

It is easy to run away with the idea that everything in Iraq is hopeless.
But at a trade fair in Irbil, northern Iraq, I met a business development director of Trade Bank of Iraq, pleased to announce that it had installed the first ATM in the country.
And if you want to make a fashion statement in this part of the world, get yourself some designer security gear. It's a boom product, especially in Baghdad.

Posted by: saleem on Sunday, November 12, 2006 - 05:26 PM

Kurdistan-Egypt
Egyptian company takes part in Arbil book fair
Arbil, Nov 12, (VOI) – The Egyptian United Arab Company for Marketing and Supply took part in a book fair inaugurated on Sunday at the central library within the campus of Salah al-Dein University in Iraq’s Kurdistan region.
The event offered thousands of scientific, cultural and political books in various languages.
"The main fair is devoted to the Egyptian company as well as a number of Persian and Kurdish publishers in Iraq's Kurdistan region," Mr. Karawan Mumtaz al-Haydari, the official in charge of the fair, told the independent news agency Voices of Iraq (VOI) on Sunday.
He said the fair "is offering 3800 Arabic books in the fields of science, tourism and hotels, politics and children-related science books in addition to 1,000 non-Arabic books in medicine, engineering, chemistry and biology."
Al-Haydari said the ten-day fair also showcased 390 Arabic and foreign books with CDs, noting 55% of the books are put on display upon the request of universities in Iraq's Kurdistan region.

Posted by: saleem on Sunday, November 12, 2006 - 04:32 PM

Maliki-Reshuffle
Al-Maliki calls for comprehensive cabinet reshuffle
Baghdad, Nov 12, (VOI) – Iraq's Prime Minister Nouri al-Maliki said on Sunday that he is planning to start a "comprehensive" cabinet reshuffle that would cope with the current challenges amidst a deteriorating security condition in the capital Baghdad.
The Prime Minister Maliki ” notified the parliament members in a closed-door session held today that he called for an overall reshuffle," the prime minister's office said in a statement received by the independent news agency Voices of Iraq (VOI) on Sunday.
"Mr. Maliki briefed the parliament members on latest developments of the political process, security challenges and efforts by the government to go ahead with the national reconciliation plan and with enhancing security and stability all over the country," the statement added.
Earlier, the Iraqi parliament met behind closed doors with the presence of head of the Iraqi government along with the ministers of defense and interior to discuss problems facing the nation's security.
The session was announced "closed" by Khalid al-Attiya, the deputy speaker of parliament, who chaired Sunday's session. He ordered an in-camera session due to what he called “the sensitive issues to be debated."
"Mr. Maliki urged parliament members of various affiliations to shoulder their responsibilities of building the state, face up to security challenges and push forward the national reconciliation process," the statement noted.
Baghdad had seen on Sunday a fresh wave of armed operations, which makes it even harder for the prime minister to control the aggravating security situation in the country.
Sunday's armed attacks in and around Baghdad and left over 45 people killed and 98 others wounded.
Following the session the deputy speaker Mr. Khalid al-Attiya told the independent news agency Voices of Iraq (VOI) “Mr.Maliki has spoken in the session about his intentions of making a cabinet reshuffle so as to have a better performance."
“Maliki did not specify the ministers to be involved in the expected reshuffle but said it is going to be a big shakeup," Attiya added.
Mr. Attiya pointed out that the Iraqi premier "appealed to representatives of the (Iraqi) political spectrum to steer clear of media exaggerations that might spark out a sedition."
The current cabinet "includes a number of inefficient ministers due to the background of political entente among parliamentary blocs in the government lineup," Attiya added.
"In order for the government to show a better performance it has to bring in efficient ministers," he said.
Parliamentarian Basim al-Hassani, of the Shiite Unified Iraqi Coalition (UIC), said "the Prime Minister Nouri al-Maliki spoke of persons inside the ministries, particularly security-related-ministeries, who have been proven being more loyal to certain organizations and parties."
Al-Hassani, in a statement to the independent news agency Voices of Iraq (VOI), said "Maliki underlined the need to change those persons and find experienced and efficient people who believe in serving Iraq only."
Maliki's calls came in the heels of warnings made by some political entities against security aggravations in Iraq.
Former Iraqi Prime Minister Allawi's Iraqi National Slate warned against "practices that would deepen sectarian sentiments" and of the expanding scope of operations carried out by the militias.
"With entrenching sectarianism, the quota system, the growing role of the armed militias and failure to rely on national approaches in building state institutions with undivided allegiance to the people and the nation, Iraq would lead to a worse security and political situation," The Iraqi National Slate said in a statement.
The Iraqi National Slate also stressed "the responsibility of the government and army and police forces to maintain security" and urged all parties to "observe self-control and avoid involvement in wily attempts aiming at fomenting sectarian sedition among the people of one nation."
The Sunni Iraqi Accordance Front had threatened last week to walk out of the political process after it accused Iraqi security forces of committing murders and sectarian-driven detentions."

AE/

Posted by: saleem on Sunday, November 12, 2006 - 02:36 PM

Iraq-Currency
Sharp drop in dollar demand at Iraqi Central bank auction
Baghdad, Nov 12, (VOI) – Demand for dollars fell sharply at the Iraqi central bank daily auction on Sunday.
Demand was down $46 million to $24.880 million from $70.180 million in the previous session.
The bank covered bids which were $22.180 million in cash and $2.700 million in foreign transfers.
The dollar exchange rate was 1,465 dinars, unchanged from Thursday.
Some banks offered to sell $2.5 million at an exchange rate of 1.463 dinars to a U.S. dollar

Posted by: saleem on Sunday, November 12, 2006 - 10:26 AM

Parliament-Session
Parliament meets behind closed doors, Maliki present
By Santa Michael
Baghdad, Nov 12, (VOI) – The Iraqi law makers met on Sunday morning behind closed doors to discuss the security file with the Prime Minister Nouri al-Maliki.
The parliament 51st session “will be held behind closed doors,” said Sheikh Khalid al-‘Atiya at the beginning of Sunday’s session ordering “ pressmen and legislators’ attachments out of session hall.”
Deputy speaker Khalid al-‘Atiya, who presided over the 51st session while speaker Dr. Mahumud al-Mashhadani on a visit to Iran, said “we will turn to an in-camera session for the sensitive subjects expected to be raised in today’s session.”
The Iraqi Prime Minister Nouri al-Maliki along with two of his ministers- interior and defense- were present at Sunday’s session to answer inquiries of the law makers over the Iraqi security file.
On Wednesday, the Iraqi parliament, beset by rampant sectarian violence, voted unanimously to extend the country’s state of emergency for 30 more days as of November 1st.
The parliament Wednesday’s closed-door session was also attended by Prime Minister Nouri al-Maliki and two of his ministers.


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

Originally Posted by Mike5200

Posted by: saleem on Sunday, November 12, 2006 - 02:36 PM

Iraq-Currency
Sharp drop in dollar demand at Iraqi Central bank auction
Baghdad, Nov 12, (VOI) – Demand for dollars fell sharply at the Iraqi central bank daily auction on Sunday.
Demand was down $46 million to $24.880 million from $70.180 million in the previous session.
The bank covered bids which were $22.180 million in cash and $2.700 million in foreign transfers.
The dollar exchange rate was 1,465 dinars, unchanged from Thursday.
Some banks offered to sell $2.5 million at an exchange rate of 1.463 dinars to a U.S. dollar

MIKE IS THIS A TYPO???

Some banks offered to sell $2.5 million at an exchange rate of 1.463 dinars to a U.S. dollar

Very interesting stuff from Barbara919's post in the Marshall Plan section

Don't know how to copy and paste an individual link
..or make the quote box work






[/QUOTE] We now have the International Compact which is the same as the marshall Plan
with 20 countries particpating in the economic recovery of Iraq. The g-8 is in
this group of countries and is responsible for 65% of the worlds trade.
This alone will probabably fast track the WTO process. The members of the
International compact have every intention of increasing trade with Iraq and any
value below 1=1 is not a option.[/QUOTE]

Ref: CBI Auction

As posted earlier, the last five auctions have been the strangest. To respond to Charmpiper's question. It sounds to me they have these to place USD into the local banks at unprecedented levels and todays auction was a final "sweep the floor". Lets see what holds for the next auction.

Originally Posted by Wm.Knowles

Ref: CBI Auction

As posted earlier, the last five auctions have been the strangest. To respond to Charmpiper's question. It sounds to me they have these to place USD into the local banks at unprecedented levels and todays auction was a final "sweep the floor". Lets see what holds for the next auction.

What do you make of this from posting above.

Some banks offered to sell $2.5 million at an exchange rate of 1.463 dinars to a U.S. dollar