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

Originally Posted by Inscrutable

Looks like we are still a way off for the investment law to become law.

I had an Arabic translator read the Arabic version of the investment law and the law requires that the GOI form a National Investment Committee which must be approved by Parliament and ratified by the President, no time limit is specified for this action.

Sorry to bring the delayed news but it's better to know then be waiting in anticipation for the ISX to be bought out on Monday.

What delay?

In my opinion the Investment Law is passed by Parliament on 10 october 2006 and ratified by the President on 30 november.

We only have to wait that they make it official and enact it.

Originally Posted by DayDream

he-he Sorry if this has already been posted....

The first page : , told (long) continues the policy of strengthening the dinar rate of exchange. CBE DENIES seeking to offset dollar per thousand dinars.

Baghdad/ economic affairs editor

The market is still witnessing a strengthening of the exchange rate of the dinar against the dollar and foreign currencies amid confusion and clear transactions. as the dollar remained for years the only equivalent of the commodities traded in all its different forms. While became concerned on the Downtown commercial adoption of the new equivalent of the strongest and the Iraqi dinar.

This volatile situation led to the conversion of certain parties rumors to the news reported by the satellite channels reported that the Iraqi Central Bank has sought to make the dollar exchange rate thousand Iraqi dinars, the essay, the market carrying offices Exchange hesitation in accepting the categories of the dollar. With an official source at the Central Bank told (long), that the news is completely untrue, but the bank's monetary policy aimed at not harm any parties, for that has been adopted drawdown rates very simple so as not to leave the harmful effects on the resolutions before the dollar from banks and banking companies and traders.

It should be noted that the dollar, which had reached early last month with the 1470 dinars, subjected to a reduction in the daily auction bank gradually comes to the price of the auction yesterday, the first 1435 dinars-the creation of confusion and clearly reflected on the events in general and banking mechanisms and absenteeism. For example, while the average purchase banks eligibility for the daily auction of $ 60-$ 65 million on the 14 / 15 of the last month, This low turnout of up to 865 thousand dollars on 28 of the same month, the day on which spread the Bank has sought to promote access to the dollar price of a thousand dinars.

The policy of strengthening the exchange rate within the target announced by the Central Bank of fulfilling the task of withdrawing liquidity from the market to reduce the rates of hyper-inflation index, which crossed the seventy% and the procedures adopted by raising interest rates on accounts deposited with him to hit 16%, against the insistence of private banks and government together to prosecute the commission for deposits in the Central Bank, and denied to their customers, It remained at the previous rate of 5% is carrying Governor of the Central Bank reported discomfort irresponsible policies of the banks during the meeting Bmadraeha Commissioners.

At a time when students are interested in the economic affairs of the Central Bank to open a window competitive in attracting bank depositors from the citizens to meet interest and refrained adopted by other banks pay to their customers expressed official source at the Central Bank told (long) on the impossibility of dealing with the idea while welcoming the proposal of (long) adopt a policy of preference in dealing with any bank responds to the policies of the Central Bank and in particular the lifting of benefits commensurate with the interest rate by the bank amounting to 16%. Brandishing the possibility of adopting a lower interest or reduction of the facilities for the banks insists on depriving customers of the increased interest.

Translated version of http://www.uruklink.net/

Cheers!
DayDream

Great Find Daydream!

Those 1000:1 wasn't gonna help them anyway and that they deny the 1:1000 tells us that they are looking for something different.

Any idea what that good be!

THE MONTH OF NOVEMBER

Hello everyone. I thought I would write some comments on some of the events of the last month. November was a dramatic change in the CBIs conduct of the currency auction. They removed over 1 Trillion dinar out of the economy in a very short time and then towards the end of the month reversed the trend and went into several insignificant auctions that continued the process of NOT selling dinar in any appreciable amounts. If inflation is too much money chasing too few goods, then by what ever estimate you care to use about the money in circulation, last month removed a substantial amount. I have stated before, this removal of this amount of currency is almost unheard of in the world today. Very few countries can accomplish this and still have currency reserves estimated still over 12 Billion. (Not counting the gold we know they have).

They have raised the exchange rate around 40 dinar in less than one month. Not a significant amount but this does make it clear that increasing the value of the dinar is on the agenda of the CBI. A good sign for all of us. They are demonstrating they are flexible and know that increasing the purchasing power for the Iraqi people is necessary.

The FIL was passed and enacted, and (we think?) reported in the news. A monumental step in allowing foreign capital to invest in Iraq. This is especially important for the ISX. Again we think that there has to be an RV to allow the stocks on the ISX to be bought at a higher and reasonable level. Just like the currency, from what I read, the prices of their stocks are just too cheap. The amount of money available just in the ME could/would buy the entire stock available.

The HCL is expected to pass soon. It seems the KURDS already have one and there have been annoucements that the Minister of Oil planned to go ahead in front of the HCL and begin leasing fields, and much activity has already started. When I was in Iraq, I talked to several KBR and Haliburton employees and they have been on the ground working now for several years. Many of the wells are refurbished and capped. They are simply waiting on transportation and storage facilities. Wheather the oil is in a storage tank or left stored in ground, either way it will increase Iraqi exports of oil dramaticly once some of their other problems are worked out. Already they are approaching 3MBD which based on what I have read, 2.6MBD was their highest production and only for a short period of time. Anyone else have other numbers? I read their OPEC quota was 2MBD.

The GOI is operating within budget. Again, An unusal occurence in the world today. Too many Govs. print money and deflate the value of their currency resulting in inflation and requiring the Gov. to print more money. This especially applies to the US. Were we have a yearly deficit in the US Gov. which requires our FED Reserve System to countered with monetary policies to help control inflation and still encourage growth.

The exchange rate. I agree with many others that a gradual rise in the exchange rate or a very small RV is not consistent with the behavior of the CBI or the needs of the economy. The money was simply held at too cheap of a level for too long. A small RV allow the stocks on the ISX to be bought too cheaply and does not give the people the purchasing power to buy foreign goods. Rasing the exchnage rate is especially important for an IMPORTING economy. As in the case of CHINA, they are an exporting economy and a low excjange rate is to their advantage.

So, to sum things up, we are sitting on the verge of an adjustment in the exchange rate and on a contining increase in oil production, rise in GNP, reduction in inflation, reduction in unemployment and hopefully as they (iraqi people) go to work, a decrease in the violence. Thank You.

PS. This next weeks auction will be very interesting.

http://www.rolclub.com/iraqi-dinar-d...y-game-15.html

The Council of Ministers yesterday, Friday, the investment law, which aims to encourage investments and the transfer of modern technologies in order to contribute to the development of the country.
.The law aims to encourage the Iraqi private sector and foreign investment in the country, through the provision of the necessary facilities for the establishment of investment projects and to promote the competitiveness of enterprises.
.The law exempted from the provisions of investment in the fields of mining and oil and gas production as well as in the sectors of banks and insurance companies, while all areas of investment will be subject to other provisions of this Act
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is this the committee they spoke of in the arabic translation?

The delegation of the Kurdistan held with the Oil Ministry and the Central Bank of Iraq

Said Minister of Public Works and reconstruction in the government of the Kurdistan Emad Ahmed, "Tekarraqd series of joint meetings between the territorial government delegation headed by Barzani Najirfan with each of the Oil Ministry and the Central Bank of Iraq to a new law to meet Kurdish demands on oil investment."
".Ahmed added that "the central government agreed to re additional amount of 482 million dollars resulting from the sale of oil price differentials in world markets to the territorial government and added to the budget for next year

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If it's a repeat, you know what to do, LOL.







يThe first page : new fiscal policy leading to a rise in the exchange rate of the Iraqi dinar




بغداد / المدىBaghdad / long
.In an unprecedented led the Central Bank of Iraq ambitious campaign to promote the exchange rate of the Iraqi dinar according to a plan designed to absorb liquidity and the reduction of inflation rates expressed at heights and clear on the prices of goods and services.
The presentation of the Central Bank through the auction, organized by the daily buying and selling of foreign currency sums of dollars, where they were able to achieve a gradual reduction of the dollar exchange rate started from 1470 dinars to the dollar to reach the price at the meeting yesterday transactions related to 1444.

).Al (short) from official sources in the Central Bank, said that this policy would continue to thrive and become the Iraqi dinar currency of choice in daily dealings. With those sources expressed its confidence in achieving this policy even finishing off phenomenon (dollarization).
.The financial sources noted that government agencies, companies and several parties overestimated the adoption of the dollar currency dealings content in the market, including played an influential role in the exacerbation of the situation inflationary and this policy comes in the wake of several warnings by the Central Bank pointed to the escalation of the situation to the inflationary rate of 76.6% during the month of August last year compared with August 2005. it depends on the impact of an interest rate increase granted كز.With the bank issuing of the bonds amounted to Release hundred billion dinars rewarding benefits are paid through the 182 days, But the reluctance of banks to respond to civil actions that carry the Central Bank to adopt a policy to strengthen the exchange ambition and confirmed in a statement pursuit and determined action to reduce the inflationary situation at various levels.
ة.On the other hand, currency exchange market witnessed weak demand for the dollar and other foreign currencies, including advances of the price of the Iraqi dinar prelude to potential Anaaksh on the prices of commodities and services in the local market.

No date. Can't remember if or how many times this was posted



Translated version of http://www.almadapaper.com/

I went to Chase bank @ 2920 & Spring Cypress and purchased 500K yesterday; the rate I was charged was .00078250 and with a $5.00 service fee it cost me 391.25 USD.

I will be able to pickup next Tuesday and I requested small denoms. I let you know what I recieve.

Thanks!
JK

Since we are at a lull in postings right now I thought I would add to something I posted this Thursday...

Currency Exchange: As of 18 November the Iraqi Currency Exchange has received NID 5.328 trillion of the 6.36 trillion total. Of this amount 2 trillion will be used for reserves. Also NID 2.834 trillion is in circulation or nearly 65% of the 4.36 trillion total. The exchange has completed one month of the three month period (15 Oct 2003-15 Jan 2004).

And have since found this...

The exchange rate remains stable and reserves continue to grow. The exchange of
the Iraqi dinar to the US dollar has remained close to 1,475 at the daily auctions, which have
been conducted free of any restrictions. The (net) international reserves of the CBI, which
reached $11.5 billion at end-2005, grew further to $12.7 billion by end-April, above
projected levels under the SBA and comfortably above the program floor (performance
criterion) of $7.5 billion. Currency in circulation grew by 27.9 percent in 2005, and by a
further 6.1 percent in the first quarter of 2006 (Table 4). The economy remains
predominantly cash-based, with cash comprising nearly two thirds of total broad money,
which is growing more slowly

These policies should contain the overall government deficit to 6.3 percent of
(revised) GDP. The primary deficit for 2006 will continue to be subject to a performance
criterion measured in ID billion as envisaged at the time of the SBA approval. By the end of
2006, we aim to hold the equivalent of at least ID 3.3 trillion in assets in the DFI. To keep the
option of domestic financing open and to maintain a market indicator for interest rates, we
will continue the regular bi-weekly issuance of treasury bills.

To help fight inflation the Central Bank of Iraq (CBI) will strengthen monetary
policy.
http://www.imf.org/external/pubs/ft/...06/cr06301.pdf

So based on these figures up to the 1st quarter of (April) 2006 the money in circulation should be 3,897,560,000,000. Right? So in 2 years time they ONLY added 963,560,000,000 (almost a trillion) into circulation. I can't see how they would've added too much more into circulation since April, but this gives us a basic idea of whats out there. And from last months auctions they are back around to the 2.834 trillion from Jan '04.

Just thought I'd throw this out there FYI.

Cheers!
DayDream

I had to edit out the Arabic (can't seem to get this process down)


Translated version of http://www.almadapaper.com/


الحدث الاقتصادي : الاستثمار الاجنبي..Event : Economic foreign investment. بين الحاجة والحذر (1-3)Between the need caution and (3 - 1)


Baghdad / d. Jamil Mohammed Jamil Skinner
. Issues of foreign direct investments and indirect bulk of the attention from a lot of specialists, businessmen and governments of developing and developed countries alike for more than half a century. اAlthough the focus of controversy in this case about the feasibility of this type of investment from the point of view of developing countries through a number of the main issues.

Motivation of foreign investments and their determinants and economic feasibility and social policies adopted by the foreign investments and methods of systems and management, practice and implementation of the functional activities of foreign investors..And others, The studies and research on the benefits of economic, social and political development that could have a host of behind attracting foreign investments depends to a large extent on the policy for these investments and the motives and practices of foreign companies.
.Host countries interested in foreign investments in terms of their implications, as well as the various sources of foreign investment also concerned by the effects of the corporations that these companies are investing abroad and the States generally resort to opening the doors of foreign investment to get the required funding from external sources when pw presentation of inadequate domestic sources voluntary and compulsory to meet the needs of their investment and the returns here is a profit, which is expected to obtain investor in the future for funds, which paid for the acquisition of an investment. The risk is the uncertainty surrounding the prospects achieved or not achieved the projected return on investment and cash flow takes many forms abroad, including :
.- Flows and funding institutions and international organizations.
-اGrants and aid from foreign countries.
-.- Foreign direct investment and indirect from individuals, companies and organizations and foreign fun مThat history is witness to the sincerity of the flow of funds in the past for many of the countries that are now rich nations, foreign funds have been flowing to the United States of America throughout cent and twenty-five years following independence, well for Canada, Australia and New Zealand, they were able to invest these cash flows and dividend yield exceeded the expectations of investors, the Europeans themselves. However, the picture is different for many of the developing countries at the present time, while unable to pay off its obligations and conditions worsened and worsened until the debts exceeded the hundreds of billions of dollars.
ا:The theoretical bases for foreign investment :
Based theoretical underpinnings for foreign investment on the contradictory opinions on the subject of foreign investment and the benefits or disadvantages in developing countries.
My first view is that there are advantages of foreign investment in the developing country are concentrated in the benefits of the value added to national income directly and the balance of payments in an indirect on the value added to national income, The resulting from direct foreign investment, it paid by the company to contribute (domestic + foreign), and is usually achieved through the proportional distribution of the output of the company as follows :
ر30%- Salaries and wages of local employment 30%
- 15%The salaries of foreign workers-15%
ة 30%- Direct taxes 30%
- 15%After-tax profits 15%
- 10%- Alahtlakat 10%
The sense that there is value added directly acquired national income of a developing country, a total salaries and wages and taxes, This fact does not need to prove to the contribution of foreign investment in a developing country and here it must be noted that as a developing country of its share of financial shares in the company with capital of more local share of the revenues..This is in addition to the bargaining wise to divide profits and rates of outward abroad would enhance the base of the national income. إMoreover, the intensity of resource use local economic activity in the company's contribution would enhance national income and, indirectly, by reducing the imported machinery and machinery and knowledge grounds that the proceeds are deducted from the national income, as it is known in classical economic theory through equation the following :
Y=C+I+X-MY=C+I+X-M
Know all the decline in imports M) lead to a corresponding increase in the national income (Y particularly if the economic activity of foreign investors enter in the door industries or export goods, any increase in exports lead to a similar increase in the national income, But on the other hand if all the outputs of the economic activity of the foreign investor is not equivalent to the cost opportunity for local employment, the foreign investment does not become feasible as well as in the case of the local labor force, which is the key foundation to uncover the facts about the effects of foreign investment on the economies of developing countries and justify this assertion that the share return of capital and profit is, in fact, cut off parts of the surplus value up to the non-productive, Therefore, any share received by the foreign investor's capital from the value-added of whatever size is a mere transfer of resources to developing country abroad under the guise of sharing of resources despite the unequal phenomenon, which refers to a foreign investor introduction of the means of production including many skilled knowledge artistic Works, considering that the resources within a developing country and give the equivalent size of the local resources within the foreign investor's share of the added value.
The essential difference between these two views can be in foreign investment (and regardless of the extent of increasing the value added to national income) means the possession of the economic resources of the rights of ownership to the country where the investment.
The authors opinion the second set disadvantages associated with foreign investment, including :
1.1-deliberately the foreign investment within the company contributing to guide production and pricing in accordance with their investment.
2 2-negotiated from time to time with the aim of ousting the host profits and other resources conform to the interests of foreign investors.
3 3-deepening dependence of the host countries to the State of origin of foreign investors and the consequent negative effects on the local market and the subordination of the new world order.
4- Four-try foreign investors often devote single economy of a developing country.