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

I wasn't sure how to 'bump' a post so I just reposted if this is okay with the mods?

Ministry Of Oil: No Change to Fuel Price

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21 June 2006 (Baghdad: Al-Iraqiyah TV)

The Ministry of Oil has confirmed that there will be no fuel price increases, particularly to petrol, and that statements printed in newspapers reportedly quoting Engineer Mutasem Akram, the Deputy Oil Minister, were inaccurate.

The erroneous news stories led to unprecedented queues and congestion at petrol stations at a time of optimism that the fuel crisis was improving.

A Ministry source confirmed that previous price levels still apply; that is, 250 ID per liter of petrol, 125 ID per liter of diesel oil, and 1,000 ID per 12 kilo bottle of LPG.

Rumors that the cost of petrol would rise to 350 ID per liter were an immediate setback to the huge efforts being made by the new Oil Minister to improve the current bad situation.

The dilemma facing the new government, and the Oil Minister in particular, is that officials from the World Bank, the IMF, Lending States and Donor States are calling on Iraq to lift fuel subsidies in exchange for continued assistance via loans and financial grants.

Conversely, Iraqi citizens expect further government help and not the further burden of fuel price increases.

http://www.iraqupdates.com/p_articles.php/article/8822

Is this a good or not so good thing??? I don't quite understand this article....

I thought that if there was an increase to fuel price then that could make the r/v happen faster to satisfy Iraqi citizens? *sigh* I just want the darn thing to peg LOL. Hopefully before the ISX opens. Which by the way, is there any official article stating that the ISX is and will actually open on world markets in July? (just wondering because skeptical family members want to know lol)

Cheers all,

Rob

I am no economic genius, however i do have an economics & finance degree. It woudl seem sensible to me that Iraq woudl not wish to change their rate until - All the debts that are being forgiven have been finailised and papers signed. THe push from Bush would seem to tell me that Iraq are really trying to get as much funds over their boarder and converted to ID before the reval.

If the funds promised are to be used to help rebuild the country, then most of the equipment will be bought in USD. However if iraq know they are going to reval, then they would want it in hard cash ID so that after the reval their purchasing power will have substantially increased and they woudl be able to afford to import more than if they had left it in USD. With the amount of rebuilding that needs to happen, i think they are playing it smart and not doing anything until they land as much $$$ into their bank accounts and convert it back into dinars. I am sure we are not the only ones that want to build wealth due to the reval. My bet is that the iraqis are going to look after themselves first, and we are just clinging on for the ride.
My 2 cents :) Hayden

Interesting, Haydenh, makes sense. They're certainly making good headway on getting that debt forgiven. Hey, this gives me an idea....I wonder if I could call my credit cards and ask them to forgive my debt? Or do you have to be a country to get to do that, lol?

On another note from another forum, someone who claims to know something from a source they will of course not name, made a statement I don't understand in answer to speculation as to when and how the dinar will peg.

What he wrote is simply: end of every month of 2006 at the dejure rate

I tried to register at that forum so that I could ask what that means, but they seem to be having some script problems, so my registration wouldn't go through.

Does anyone here know what that means?


Caroline

I believe that person was being sacastic. They are implying that the Reval will always be about the end of the next month coming up on the calander. Right now, for us, that would be June or July. This way, it will always be just out of reach- never attained. As for the rate, "dejore", I'm betting that's their poor French transliteration for "de jour" (sp?) meaning, "of the day"- like "soup de jour" / soup of the day. Example: we've heard everything from 0.0685 to 1:1 to what.... $3.00 or so. Therefore the "dejore" rate would be whatever rate is in vogue at that time. It could be different depending on how long this drags on. Just my take on it.
Blessings On YOU! AL

Wow!! Look at the Post Count #2158 Very Big Interest Here.

Originally Posted by neno

Wow!! Look at the Post Count #2158 Very Big Interest Here.

Hmmmmmm....wonder why! lol!

http://www.strategypage.com/dls/arti...0668233654.asp

Trends In Iraq You Don't Hear About
by James Dunnigan
June 8, 2006
Discussion Board on this DLS topic


There are a number of trends in Iraq that you hear little, or nothing, about in the mass media. For example;


The economy. GDP doubled from 2003 to 2004, and was up double digits in 2005. Inflation and unemployment have both been falling steadily. Yes, the terrorists are still at it, but in the background you will notice all those people going to work, all the new cars and all the new construction. While big companies have stayed away from Iraq, and all those nasty headlines, smaller firms have been more aggressive. Life goes on.


Agriculture. For thousands of years, Iraq was a food exporter. But as oil became a larger part of the economy over the past half century, agriculture declined. Now, for the first time in half a century, Iraq is exporting food. Agriculture has come back big time, mainly because many of the regulations government bureaucrats have piled on farmers for decades, have been eliminated. A farmer can now make a lot of money, growing food in the most productive agriculture land in the region.


Currency Exchange Rates. The Iraqi currency (the dinar) trades in a narrow range, against the dollar, that is controlled by the Iraqi Central Bank. For the last few years, the exchange range has been around 1,470 dinars to the dollar. But the dinar floats against other local currencies (like the Kuwaiti dinar and the Iranian rial), and has gotten stronger against both of those currencies. That's a big deal, as it means that the Iraqi economy is getting stronger, and people, in and out of, Iraq, have confidence in the Iraqi economy, and currency.


U.S. Bases Taken Over by Iraqi Troops. Since last Fall, over fifty U.S. bases have been transferred to Iraqi control. American troops are moving to larger, consolidated, bases out in the countryside. These require fewer troops to defend, and keep U.S. troops out of sight. Iraqi soldiers and police are taking care of security in many areas where American used to do it. This is why you keep hearing reports of plans to pull most American troops out of Iraq in the next 12-18 months.


Refugees. Before the U.S. invaded in 2003, it was believed there might be millions of refugees fleeing Iraq. Didn't happen that way. Over a million people (mostly Sunni Arabs) have fled the country, but that is a relatively recent phenomenon, linked to the growing power of the Shia dominated government, and the fear of retribution for decades of atrocities against Kurds and Shia Arabs. More surprising has been the number of refugees returning to Iraq. So far, it's over 1.2 million people, most of the them Kurds and Shia Arabs.


Tourism. The holiest shrines in Shia Islam are in southern Iraq, and in the last three years they have seen a growing flood of pilgrims. Over 12 million so far, and increasing as Shia Moslems kept away by Saddam's police state for decades, make long deferred trips. Some stay longer, mainly religion students. For the last three decades, Shia religious scholars and teachers have been fleeing Iraq for places like Iran. But now there are over 12,000 religion students in southern Iraq, attending hundreds of newly established schools. These pilgrims and students spend a lot of money as well, helping to feed economic growth in the south.


Media. Iraqi has gone from police state, to media madhouse, in three years. Under Saddam, media was tightly controlled. Since Saddam, hundreds of newspapers, magazines, radio and TV stations have appeared. Talk radio and investigative reporting are all the rage. The gangsters and politicians hate it but, so far, have been unable to stop or control it.


Health and Education. More hospitals and schools are open and operating than ever before.


Democracy. It's thriving, and contrary to popular opinion, it's not an alien concept in Iraq. From the 1920s to the 1950s, Iraq had democracy. A military dictatorship was established in 1958, in the name of progress, and that was the end of democracy. The Baath Party was going to make things so much better, as long as everyone did what they were told. Iraqis are not stupid, and there are older Iraqis who remember the old democracy. Yes, it may have been ramshackle, but compared to Saddam and all that came after 1958, democracy is a lot more popular these days.

Originally Posted by Caroline

Interesting, Haydenh, makes sense. They're certainly making good headway on getting that debt forgiven. Hey, this gives me an idea....I wonder if I could call my credit cards and ask them to forgive my debt? Or do you have to be a country to get to do that, lol?

On another note from another forum, someone who claims to know something from a source they will of course not name, made a statement I don't understand in answer to speculation as to when and how the dinar will peg.

What he wrote is simply: end of every month of 2006 at the dejure rate

I tried to register at that forum so that I could ask what that means, but they seem to be having some script problems, so my registration wouldn't go through.

Does anyone here know what that means?


Caroline

Yes Caroline. It is a legal term:

De Jure

[Latin, In law.] Legitimate; lawful, as a matter of law. Having complied with all the requirements imposed by law.

De jure is commonly paired with de facto, which means "in fact." In the course of ordinary events, the term de jure is superfluous. For example, in everyday discourse, when one speaks of a corporation or a government, the understood meaning is a de jure corporation or a de jure government.

A de jure corporation is one that has completely fulfilled the statutory formalities imposed by state corporation law in order to be granted corporate existence. In comparison, a de facto corporation is one that has acted in good faith and would be an ordinary corporation but for failure to comply with some technical requirements.

A de jure government is the legal, legitimate government of a state and is so recognized by other states. In contrast, a de facto government is in actual possession of authority and control of the state. For example, a government that has been overthrown and has moved to another state will attain de jure status if other nations refuse to accept the legitimacy of the revolutionary government.

De jure segregation refers to intentional actions by the state to enforce racial segregation. The Jim Crow laws of the southern states, which endured until the 1960s, are examples of de jure segregation. In contrast, de facto racial segregation, which occurred in other states, was accomplished by factors apart from conscious government activity.

Originally Posted by Caroline

Interesting, Haydenh, makes sense. They're certainly making good headway on getting that debt forgiven. Hey, this gives me an idea....I wonder if I could call my credit cards and ask them to forgive my debt? Or do you have to be a country to get to do that, lol?

On another note from another forum, someone who claims to know something from a source they will of course not name, made a statement I don't understand in answer to speculation as to when and how the dinar will peg.

What he wrote is simply: end of every month of 2006 at the dejure rate

I tried to register at that forum so that I could ask what that means, but they seem to be having some script problems, so my registration wouldn't go through.

Does anyone here know what that means?


Caroline

Dear Caroline,
from hard experience I can tell you that if when the credit card companies call, if you say, "I have been instructed to tell you that I have retained counsel for the the purpose of bankruptcy..." they will disappear like an errant raindrop in Colorado. For a little while anyway.

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Asharqalawsat , 13 Jun 2006
Kurdish PM Nechirvan Barzani discusses security, economic issues Interview by Ma'ad Fayad

(Asharq Al-Awsat) Does your government work independently or it is linked to the federal (central) government?

(Barzani) The Kurdistan Region is part of Iraq and according to the constitution our government follows the Iraqi state. We have independence in some issues and plans related to the region.

(Asharq Al-Awsat) What are the most important points in your government program?

(Barzani) First I would like to say that we used to have two separate governments. These were later united into one government, which presented its plan to parliament. One of our priorities is streamlining the unification of the two governments. Another priority is maintaining security, providing public services, and taking care of the people's education. The important issue on which we are working now is electricity, which concerns all the people.

(Asharq Al-Awsat) What about the issue of investment in Kurdistan?

(Barzani) There is no doubt that we encourage Arab and foreign investment. We will soon have an investment law. We are waiting for the Kurdistan Parliament to endorse it. It will facilitate foreign investment in Kurdistan. The general situation in Iraq reduced the chances of investment because some do not differentiate between the internal situation in Iraq and the stable situation in Kurdistan. Our message here is that we call on the Arabs and westerners to come to Kurdistan because it is the first gate of Iraq.

(Asharq Al-Awsat) What encourages the Arab or western investor to invest in Kurdistan?

(Barzani) We believe that having an investment law characterized by transparency and security will be important to encourage any investor to come to Kurdistan. The anticipated law guarantees the rights of the investor and protects his funds. A stable security situation makes the investor feel secure about himself and his money.

(Asharq Al-Awsat) Do the Arabian Gulf investors have more incentives for being closer to Iraqi Kurdistan?

(Barzani) When we talk about the chances of investment in Kurdistan, we prefer to see our neighbors invest their money here. These are headed by investors from the Gulf region. They have the economic capabilities and they know our culture. We share the same habits and traditions with them. We also have a joint heritage of good relations with them. The investment law, which will be issued soon, allows the investor to completely own property in Kurdistan. It also provides many facilities which encourage investment in Kurdistan and other regions of Iraq.

(Asharq Al-Awsat) What is the nature of these facilities?

(Barzani) We will allocate the land they need for their projects. They will be able to bring in their money and get it out whenever they want without any complications. There will be no restrictions on them. We will also establish an investment commission through which the investor can finish all procedures without having to report to any other government department. This commission will do everything for him.

(Asharq Al-Awsat) Do you mean the Arab and foreign investor will have the right to possess property for life in Kurdistan?

(Barzani) Yes, every investor will have the right to own property in Kurdistan.

(Asharq Al-Awsat) You are planning to establish a media city in Arbil. Could you give us more details on this issue?

(Barzani) This city is still an idea. We will allocate the necessary land for it. We are preparing a feasibility study for this large project. The idea is there and we are working on it in order to translate it into practice in the near future. We are serious about this project.