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

Final form of state employees' payroll
04/12/2006
Source: Al-Sabah

Finance Minister completed forming state employees' payroll which would apply from next January, a top level source at the Minister said He added that the payroll includes increase salaries of employees at fifth to tenth degree of 60% and payroll consists of ten degrees instead eleven.

Finance Minister thinks based on studies of economists that degrees which included in increasing would remove to other situation helps the meant employees to face difficulties of life, and the Ministry relied on new standards as service's years, academic attainment and personal status.

Finance Ministry included increase amounts in budget of 2007

http://www.iraqdirectory.com/DisplayNews.aspx?id=2697

Expect a higher exchange rate!

The dropping of the dollar caused by the low interest rates
04/12/2006

An Iraqi economic expert attributed the recent decline in the value of the dollar against the Iraqi dinar to the lowe interest rate. Dr. Taha Fakhri, member of the Iraqi Institute for developing the economy, said: "The decline in interest rates is the reason behind the slight decline in the dollar in governmental auctions and commercial transactions".

He added: "This decline is also caused by the weak consumers demand on imported goods due to the deteriorating security situation, which compelled the State to finance some important deals".

He pointed out that: "The slight rise or decline of the dollar does not obstruct the growth or value of the dinar which is expected to become stronger than before with the introduction of the balance of 2007 and the strategic application of the new monetary policy announced by the government last year".

He explained: "The decline will be reflected on the value of the precious metals whose prices will rise as a result of the fall in the dollar, which gives an opportunity for those who hold commercial transactions, such as automobiles and heavy equipment, to invest them".

Fakhri said: in some cases the decline in the dollar rate is linked to America itself through the entry of imported goods and the exit of funds from it.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2698


They are telling us it's coming. I am gonna fasten my seatbelts!!

Originally Posted by jedi17

ok...now we can say that the cbi is posting rates later by about an hour...no update yet

This non posting could be a good thing and in process for the distribution of lower denominations. It could be or mean several things but the best part is that we know, to a certain degree, that the rate is moving in the direction we are desiring, although slow. Let's see what the next few hours and then the next couple of days or weeks bring.

After reviewing the latest stats from the cbi, they have foreign reserves, probably mostly dollars, of around $6.9trillion dinars. They can use these to redeem their dinars. The higher oil prices enabled them to stock up from the oil sales.

Yes, they show about $9.5trillion outside of banks but with almost $7trillion, they can easily redeem them. Just imagine when oil production picks up and their foreign reserves skyrocket!

I have no idea what the $18.3trillion Investments is made up of but I can assure you that it increased another $4trillion this year! This is another area that the Iraqis have $$$ that are foreign assets of the cbi.

Overall, they have been building a nest egg with the little oil production they are producing today. Just imagine when it increases over the coming months and years! Watch out!!! Remember, oil is and will be their largest industry and have substantial reserves of 115billion barrel with only 10% of the country surveyed! They have less than one thousand wells drilled versus the zillions in the state of Texas!

Folks, if you add in the debt forgiven, they are in great shape to take this country and make it the Babylon described in the Bible. Although we would like a fast rise, and they need one, the are sucking some people to turn in these valuable dinars of the future. With the GCC around the corner, the upcoming events are going to be interesting for all those who hold dinars!!!

My take on this.

Negative phenomena have emerged during the past period
04/12/2006

Montasser Al-Amara, Chairman of the Iraqi parliamentarians Federation and member of the Economic Committee in the former National Assembly, called the government to: "establish a high national council of Iraqi economy", saying that: "the Council must have the highest decision in the Iraqi economic aspect, and must include specialized Iraqi experiences and competencies from all blocs, political movements and independents".

He added: "This project must be started as soon as possible, and must be accompanied with a center for strategic studies formed of specialists, technocrats, university professors and economic experts, whatever their views are, for the purpose of planning and counseling".

Al-Amara explained: "The deterioration of the Iraqi economy and the negative phenomena that have occurred in it is due to the lack of centralized economic decision and that Iraq lacks the healthy economic climate".

He pointed out: "that the Iraqi economy is dependent almost entirely on oil. This means that the economy has no clear methodology, but more than that, it depends on a chaotic one. It is not a free economy, not an oriented one or any other kind of economy which is the main reason for the economic problems, as well as being the reason why foreign investors did not enter Iraq and not the security status as claimed by the some, since many Iraqi regions are totally safe, but was not entered by foreign investors".

Al-Amara called: "that the council must include experts from the ministries concerned with this subject: Oil, Electricity, Industry and others, in order to be able to draw ambitious and strategic plans for developing the vital joints of life". He said: "The Iraqi economy has the expertise and competencies that qualifies it for the advancement, but what is lacking in this area is good governance and bold decisions".

He explained: "that those two points fall within the jurisdiction of the Supreme National Council of Iraqi Economy, which has a realistic and clear approach to run the economic resources, as well as being an important and active administrative center in making the economic decision".

Al-Amara stressed that: "the ideal policy to attract foreign capital to Iraq is to create motivations higher than the attractions found in other countries.

The most important of these motivations is a stable economic policy, because foreign investors will not risk investing in Iraq if there is no stability in the Iraqi economy".

http://www.iraqdirectory.com/DisplayNews.aspx?id=2699

The establishment of three power stations in Kirkuk costing three million dollars
04/12/2006

Director of the Electricity Department in Kirkuk, said yesterday that the Ministry of Electricity embarked on the implementation of a number of electrical projects in the city; one of which is the establishment of three stations to improve electricity in the city, costing three million dollars.

Yaljehin Ali Mahdi said: "These projects are necessary to solve the crisis in the city".

Yaljehin explained that "there are three electric power stations being worked on; they are: Imam Qasim, Al-Wasti and Mansuriyah, costing $ 1 million each, with a production capacity of 31, 5 megawatts". He pointed out that these stations are in their final stages and will be operated soon.

Yaljehin added that these stations will not reduce the hours of power cutoffs or increase it but will improve the quality of electric power.

He continued: "We have plans for 2007 to implement a number of electricity projects in the districts of Kirkuk governorate, includes the construction of stations in the areas of: Karahnger, Darman, Abbasiyah and Huwayjah to cover all the areas with electric power".

Yaljehin said that these projects are financed by many budgets like: the annual plans of the Ministry of Electricity, the budget of developing regions and accelerating the reconstruction of provinces associated to the Ministry of Finance and the budget of strategic projects within the province.

He said that the share of Kirkuk from the general funding, this year, for electric power is about 11% from the northern region, and that this ratio will increase if the generated amount of power increases.

Kirkuk produces electricity through three main stations: southern Taza, Mullah Abdullah gas station and the western station of Al-Dibs. Two new stations within Taza electric station were opened, this year, at a production capacity of 235 megawatts.

In spite of the existence of these giant stations in the city, the hours of power cutoffs increased, since the past three weeks, and the prices of AMP, which the people buy from private generators, went high from four thousand dinars to seven thousand dinars.

Faris Ahmed, one of the private electricity generators owners, attributes the high prices of AMP to the increase of the price of (kerosene), which reached 250 thousand dinars per barrel after being 200 thousand dinars.

This makes it difficult for the owners of generators to buy large amounts of it, forcing them to raise prices of AMP to cover the high expenses of fuel.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2687


Well, they can do something to increase the purchasing power!!

Still no auction, very late today.....

Announcement No.(819)

D.G. of Foreign Exchange Control

The 819 daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 12/ 5 so the results were as follows :

Details Notes
Number of banks 9 -----
Auction price selling dinar / US $ 1429 -----
Auction price buying dinar / US $ 1427 -----
Amount sold at auction price (US $) 9.085.000 -----
Amount purchased at Auction price (US $) 3.300.000
Total offers for buying (US $) 9.085.000 -----
Total offers for selling (US $) 3.300.000 -----





D.G. of Investments

Daily price Bulletin buying and selling Tuesday 2006/12/5

Currency
Currency Code
Selling Price In IQD
Buying Price In IQD

US Dollar
USD
1430.000
1429.285

European Euro
EUR
1905.761
1904.808

Sterling Pound
GBP
2829.684
2828.269

Canadian Dollar
CAD
1248.472
1247.848

Swiss Frank
CHF
1196.953
1196.355

Sweetish Krone
SEK
211.167
211.061

Norwegian Krone
NOK
232.994
232.877

Denmark Krone
DKK
255.572
255.444

Japanese Yen
JPY
12.395
12.389


The above price represent reference rate and does not from any commitment on the Central Bank of Iraq.

Oil : we need $ 20 billion for development purposes
(Voice of Iraq) - 05-12-2006 Oil:

we need $ 20 billion for development purposes 14 billion barrels of production from local refineries benzene Baghdad-Tariq Al-Araji The Ministry of Oil needs for more than twenty billion dollars for the advancement by the oil sector in the general areas of the country, while the production of gasoline from local refineries more than 13 million barrels a day.

An official source at the Oil Ministry for the "morning" : The need for the advancement of the ministry by the oil sector in all productive and export share is estimated at 20 billion dollars and that this amount is too great for the Ministry's budget, which requires the involvement of global companies in the Iraqi oil sector investment as it suits the interests of the Iraqi people.

He added that many of the joints, the oil sector suffered neglect because of the policies of the former regime and the availability of a maintenance operations on the production and export units and units of refineries and pipelines, noting that the ministry had prepared a plan to promote this sector by allocating significant budget by the government, It is hoped to increase the volume of Iraqi crude oil production is the end of this year to three million barrels per day by exploiting oil fields in a scientific and correct according to the international standards.

The source pointed out that the ministry had prepared a plan to reach the Iraqi crude oil production by 2010 to 4.5 million barrels per day in particular it is able to gain access to the productive potential of this quantity and self-involvement of a number of global companies according to the investment plan.

According to the source, the success of the ministry's plan guide in the development of the oil sector in the provision of oil derivatives is access to energy production to benzene in local refineries to 13 million liters after it was several months ago up to seven million liters noting that the increase was the result of rehabilitation held by the ministry on a number of Refineries and the addition of a number of production units in a number of other refineries.

Sotaliraq.com


Well o well, RV the dinar and open that golden doors for the big boys that help you pumping!

They have so much they can't handle it and we invested in this country!

Iran to export 1m liter of oil, byproducts to Iraq daily
TEHRAN, 05 December 2006 (Tehran Times)

Iran will export one million liter of oil and its byproducts to Iraq per day for three months by the Iranian Oil Ministry, according to a memorandum of understanding (MOU) signed by the governor-generals of two border provinces of the two countries, official news agency IRNA reported.

The agency reported remarks by the secretariat of Iran governmental information dissemination council. It reported that special decisions have been taken to expedite and facilitate Tehran-Baghdad cooperation, following the formation of Iran-Iraq Cooperation Headquarters headed by Iranian First Vice President Parviz Davudi.

To facilitate export of oil products to Iraq from Iranian provinces of Ilam, Khuzestan, and Kermanshah, President Mahmud Ahmadinejad’s special representatives decided that Iran's Customs Administration should prepare the grounds for the entry of Iraqi oil trucks to these provinces.

Meanwhile, the Iranian contractor of the projects of Basra-Abadan and Abadan-Shib crude oil pipelines should speed up the implementation of the two projects. The pipelines will need credits worth $45 million, which will be supplied through internal resources of Iran’s Oil Ministry.

In addition, the two sides agreed to cut time of the projects of 400 KW Al-Hareseh-Abadan and Kermanshah-Diala power transmission lines to half from previously six and 18 months respectively.

The president's special representatives also decided to expedite the trend of economic cooperation between the two countries.

http://www.iraqupdates.com/p_articles.php/article/12352