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

40 Ambulances provided for Health Department


Health ministry specified 40 modern ambulance cars for Anbar & Daiala health department through the offered Japanese donation to the ministry as 20 car for each department.

A source at health ministry said that, the mentioned cars supplied with the most modern medical tools with a high qualities, each one worth 110 Iraqi million Dinars.A source declared that the transporting car process from Om Qasar port then conveyance to Daiala and Anbar provinces carried out by sending a drivers belongs to the ministry after the mentioned healthy department apologized to received it from the port.
Source: Al Sabaah




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Posted on Monday, December 11

Originally Posted by Lakeway

The currency nears its peak value since being reissued in 2004. With the state buying to curb inflation, the strength may be temporary.Iraqi dinar builds head of steam amid nation's chaos - Los Angeles Times


Thoughts??

ok whats up with this statement in the above article ? Last time i looked 1000 dinar was not even close to these others currency. and those 3 countries ranger from .26 to 1.40 to 3.30ish

"The central bank is widely believed to be trying to force the exchange rate down to 1,000 dinars per dollar, in line with the Saudi riyal and the Jordanian and Kuwaiti dinars."

Bolani Participates In Manama International Conference


Interior minister Jawad al-Bolani participated in the "Third Strategic Studies International Institution Conference" in Bahrain yesterday.

In a press statement he mentioned that, some money which goes under nominates and titles as supporting Iraqis by the societies and organizations reach to the terrorists and gangs hands then share in killing process against the citizens.On the other hand, he stressed on the necessity of controlling money which coming for Iraq and offer real supporting for the state as Iraq have a mainly positive role in offering stability and constancy in the region.Worth mentioning that the a compounded delegation included National Security Advisor Dr. Mowafaq al-Robai'ee, Interior Minister Jawad Bolani, Foreign Minister Hoshiar Zibarri and Vice Ministers Advisor.
Source: Al Sabaah




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Posted on Monday, December 11

Originally Posted by artin

HI WORF,

Kan you please explein to me how kan i buy a iraq dinar?

Thanks

I sent you a PM.
/K

KNCNA: On Iraq Study Group Report


PRESS RELEASE
After a long wait for a fresh idea to the deteriorating state of Iraq, the so called expert analysis of the Iraq Study Group failed to offer any fair and just solutions.

The report failed to recognize that one goal of the war to bring institutional democracy to Iraq and the Middle East, while it recommend to review the Iraqi constitution which goes up against the basic principle of democracy and the vision of President Bush for new democracy in the region.

Members of the ISG did not visit Kurdistan Region which is considered a huge shortcoming by the Kurds. The report plays to the wishes of the Turkish and Arab governments and ignore the rights of their only ally in Iraq, Kurdish people. The group did not visit Kurdistan nor consult with the Kurdish leadership.

The report ignores the wishes of 80% of Iraqis who participated in democratic elections. It recommends reviewing of the constitution to appease minority Iraqi Sunni population and neighboring countries.

The Kurdish leadership wholly dismisses the report because it does not recognize the Iraqi constitution which is the major factor to keep Iraq together. Some major recommendations which contradict the rights of the Iraqi people and especially the Kurdish people are:

RECOMMENDATION 26: Constitution review. Review of the constitution is essential to national reconciliation and should be pursued on an urgent basis. The United Nations has expertise in this field, and should play a role in this process. This is against the core principle of democracy. The people of Iraq overwhelmingly voted for this constitution. Changing the constitution without going through the right process set up in the constitution is very dangerous and sets back the process of building a democratic society and culture in Iraq and consequently for the region.

RECOMMENDATION 28: Oil revenue sharing. Oil revenues should accrue to the central government and be shared on the basis of population. No formula that gives control over revenues from future fields to the regions or gives control of oil fields to the regions is compatible with national reconciliation. This will take away the right of the regional government to exercise their rights according to the Iraqi constitution.

If the Kurdish leadership give up this right in drafting the new Iraqi national oil law where the Shiite and Sunni in agreement against the Kurds to give the power on the oil revenue to the central government then it will be another economic disaster for the Kurdish people to secure their future in rebuilding the Kurdistan region.

RECOMMENDATION 30: Kirkuk. Given the very dangerous situation in Kirkuk, international arbitration is necessary to avert communal violence. Kirkuk’s mix of Kurdish, Arab, and Turkmen populations could make it a powder keg. A referendum on the future of Kirkuk (as required by the Iraqi Constitution before the end of 2007) would be explosive and should be delayed. This issue should be placed on the agenda of the International Iraq Support Group as part of the New Diplomatic Offensive. This is against the constitution and it gives in to the pressure from Turkey and the Arab countries also support the continuation of Arbaization policy.

RECOMMENDATION 50: The entire Iraqi National Police should be transferred to the Ministry of Defense, where the police commando units will become part of the new Iraqi Army. Similarly, the Iraqi Border Police are charged with a role that bears little resemblance to ordinary policing, especially in light of the current flow of foreign fighters, insurgents, and weaponry across Iraq’s borders and the need for joint patrols of the border with foreign militaries. Thus the natural home for the Border Police is within the Ministry of Defense, which should be the authority for controlling Iraq’s borders.

This will eliminate the Peshmarga as Border Police and the Regional Army force while they did ignore the fact they should eliminate the militias who fought against American forces and killed American soldiers Instead the ISG wishes to dissolve their allied forces. The Regional Army forces, which part of it has been assigned the task of protecting the borders, have been very effective in controlling and stopping terrorists from crossing into Iraqi/Kurdistan. This role should not be changed, on the contrary, it should be strengthened and have them better equipped and trained by the U.S., the Regional Army forces are the only protecting forces the Kurdish people have, and the Kurdish Regional Government must not give up the command of these forces to anyone until it see real stability and security in Iraq and especially in Kurdistan region, then the Kurdish parliament must approve such hand over of these forces.

Kurdish National Congress demands that the Kurdish voice be heard and direct talks must be held with the Kurdish leadership before any steps are taken to implement any part of these so called “expert” recommendations. Otherwise it will be a clear violation to the Iraqi constitution that gives the Kurdish people the right for self- determination. Although 98% of the Kurdish population voted for independence in a referendum, the KRG volunteered to remain part of Iraq to promote federalism and a peaceful coexistence. If these basic principles are ignored, Kurds in Iraq should utilize their natural right of self determination and declare independence of Southern Kurdistan.

Source: The Kurdish National Congress of North America




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Posted on Monday, December 11 @ 03:50:17 PST by admin

compare the numbers they aren't the same??? none of them are even right??
I really think this is a decoy and there trying to side track the speculators
if the articals #'s aren't right then who says the rv # they're giving below is right?

http://www.alertnet.org/thenews/newsdesk/KAR156797.htm
INTERVIEW-Iraq finmin expects dinar to strengthen 13 pct
11 Dec 2006 17:23:43 GMT
Source: Reuters

By Mariam Karouny

BAGHDAD, Dec 11 (Reuters) - Iraq's government expects the dinar to strengthen by 13 percent against the dollar by early 2007 after raising interest rates to limit the use of dollars in the economy and stem inflation, the country's finance minister said.

Minister Bayan Jabor told Reuters on Monday that the government has targeted an exchange rate to reach 1,260 dinars to the dollar in the first three months of 2007 from the current level of 1,500 to the dollar.

The 2007 $41 billion budget assumes an exchange rate of 1,260 dinars to the dollar, he said, adding the cabinet would discuss the draft budget on Saturday before hopefully sending it to parliament next week.

"There is an expected increase in the value of the dinar. The exchange rate is expected to drop from 1,500 dinars to the dollar to 1,260 in early 2007," he said in an interview.

"We will calculate the budget based on 1,260 dinars to the dollar and based on 50 dollars per barrel (of oil) and production of 1.7 million barrels per day.

"The central bank has started increasing the interest rate from 12 percent and it has now reached 16 percent."

Jabor said there were no immediate plans to raise interest rates further. The central bank increased its main interest rate to 16 percent from 12 percent on Nov. 8, according to the bank's Web site.

He said the aim of raising interest rates was to strengthen the dinar to fight dollarisation -- the use of dollars on a daily basis alongside the local dinar currency -- to stem high inflation and boost Iraqis' confidence in the domestic currency.

"It is to fight dollarisation. Every economy that depends on the dollar is considered weak," he said.

"Now I can say that Iraqis should use dinars instead of dollars. When we increase the value of the dinar it will help ease inflation, which is now at 56 percent. We expect inflation will decrease," he said.

Iraq's inflation rate hit 76.6 percent in August.

But sectarian violence is claiming the lives of more than 100 Iraqis a day and threatening to push the country into civil war. The daily violence has scared off foreign investments in the oil rich country.

A recent UN report said there was growing unemployment and poverty rates in Iraq. Corruption is endemic and state owned industries are inefficient. Oil is the main source of revenues but oil sector is suffering from years of mismanagement and violence.

"There is also a psychological factor -- Iraqis need to trust their currency when it is stable or strengthening."

The International Monetary Fund, which has backed Baghdad with a $685 million standby credit agreement, has also warned that rising inflation could undermine economic well-being and hinder the goal of improving the welfare of ordinary Iraqis.

Another problem facing the government is the high rate of unemployment, mainly among the young. Officials say the unemployment rate is between 30 and 40 percent.

Jabor said he was not worried by possible negative consequences of strengthening the dinar because the Central Bank had enough reserves to support the dinar.

"The dinar is strong -- the central bank is one of the best central banks in the region except for those in the Gulf. We have reserves of $15 billion in foreign currency other than gold, and it is only to support the dinar."

QUOTE=michael16;147891]Remember this article it was only a couple of days ago. So this reval is capable of almost anything.



According to a recent paper published last November by Dow Jones after the world economic forum in the dead sea, Iraq's income from oil exports for this year was at 35 billion dollars with a 14.3% increase from last year's total.

And that if oil export levels retain the current level and under stable prices, the coming year will witness a record income that was never reached in the history of modern Iraq and revenues will jump up to 40 billion dollars; a huge figure given the humble plans of the government and a figure that will put the government in a position where it must come up with new and ambitious plans to match the new revenue figures.
In fact and from what can be read in papers and heard from official statements it seems most government departments failed to spend the funds allocated by the government for those departments to execute their projects.

That's not because of security challenges only since there are several regions in the country that are relatively stable and where work can be done but more because of bureaucracy and corruption that make it extremely difficult to implement plans and make sure the money is spent in the right direction.

I think this was what pushed the government to announce a number of new measures to cope with the condition, perhaps the easiest measure to come up with was to announce plans for massive raises for civil servants; according to al-Sabah the raise will be as high as 60% of current payments in some cases, especially to those with lower incomes.

Another announcement followed soon, yesterday al-Sabah brought the news that the parliament is discussing a suggestion to set aside 30% of oil sales income to distribute among the citizens of Iraq. The draft law sets 3 classes of payments according to age and subsequent needs and responsibilities; from one month to 6 years, from 6 to 18 years and the third one 19 years and older.

People who migrated from Iraq, those with salaries higher that 1 million dinars/month and convicted criminals will be excluded from the payment program, the report added.

The people here met the news with some delight, hope and some skepticism too although the announcement came through the government's paper.

If this plan comes to materialize I think it can reflect positively on the security situation to some extent. The economy is part of the problem and also part of the solution and the government should move forward with reforms that involve economy and infrastructure as well as, of course and above all, security.

I personally like the idea of distributing the money directly among the population because I believe the people are more capable of making good use of that money than the government and instead of having billions lost to corruption and mismanagement that money will be used to revive the market and reduce the government's control over the economy. Plus, it will give people the sense that they do have an actual and visible share of their country's riches.

The private sector in Iraq had witnessed giant leaps immediately after the fall of Saddam; that could be seen in the form of the thousands of private businesses that were established in the course of the past three years and that had a direct positive effect on the standards of living after long years of deprivation.

It's worth mentioning that between 1946 and the beginning of 2003 a total of 8374 businesses were registered while between April 2003 and the end of 2005 more than 20,000 have been registered. During last month alone 286 new businesses were added.

Such statistics seem quite extraordinary under the current security situation which sadly continues to overshadow and limits further improvement of this aspect of life in Iraq.

On the other hand, the exchange rate of the Iraqi dinar improved significantly in the past few weeks and is now at 1410/$1 instead of 1480/1$ in early November. I am no economy expert but this looks like a good sign; it improves the purchase ability of people who get paid in dinar, which is the vast majority of course and at the same time it serves to reassure the people of the value of the national currency.

Let's imagine if the government intensifies its efforts in this direction and takes some candid and well-studied steps to offer a convenient environment for business and investment particularly in Baghdad, the heart of the country's economy. A lot of progress can be made, especially that the foreign investment law has been instated and approved which by the way looks like a good paper. This economic activity can move Iraq forward in a matter of few years and the country can catch up with what it missed.

The potential is huge; a stable climate is the key to unleash that potential.[/QUOTE]

The Iraqi investment law at a glance
Source: Niqash




The Iraqi investment law approved by the Iraqi parliament in its session on 10 October 2006 will come into effect after its approval by the president and its publication in the Iraqi Official Gazette. It will regulate the national and foreign investment process in Iraq.

Judge Dr. Wa'il Abd Al-Latif, legal expert, MP and deputy head of the Legal Committee, outlines for Niqash the most important points in the law.

Privileges and Guarantees Offered to Investors:




Taking out the capital brought into Iraq with its revenues in hard currency

Dealing with the Iraqi securities market

Leasing land needed for the project or using it on condition that the term does not exceed a period of 50 years that can be renewed

Insuring the investment project at any national or foreign insurance company

Opening accounts in Iraqi or foreign currency or both at Iraqi banks or at banks outside Iraq

Obtaining residency and facilitating investors’ entry to Iraq and leaving Iraq

Non-confiscation or nationalization of the investment project

Non-Iraqi workers have the right to transfer their salaries and indemnities outside Iraq

Exemption from fees and taxes for ten years beginning with the date of starting the project. This period is renewable. Also, furniture and assets needed for expanding and modernizing the project are exempt.


Investors’ Commitments:



Informing the commission of the date of starting work on the project

Maintaining accurate book-keeping checked by an authorized lawyer

Presenting economic and technical feasibility studies with all the maps related to the project

Keeping a record of imported materials, protecting the environment, and commitment to qualitative control systems

Complying with Iraqi laws and the action plan methodology presented by investors


Areas of investment

The law opened all areas of investment before Iraqi and foreign investors except:



Investment in the field of extracting and producing oil and gas

Investment in the sectors of banks and insurance companies

Land cannot be owned except for housing projects. It can be owned by Iraqis as separate units; otherwise, it is given for a period of fifty years, which is renewable.


Investment Commissions in Iraq

The law stipulates the formation of two commissions in Iraq:



The National Commission for Investment: It is a legal entity managed by a board comprised of nine members who have had a minimum of ten years of experience and specialization and who hold university degrees. The commission will be responsible for the formulation of the national policy for investment, the development of plans and controls, and monitors the application of controls. It exclusively specializes in federal investment projects. The government nominates its head on the level of a minister and a deputy head on the level of an undersecretary. Both will be approved by the parliament for a period of five years. The board also has four members on the level of general managers and three representatives from the private sector chosen by the prime minister.


Commissions in regions and governorates. Since the federal structure in Iraq has been approved through the law on the formation of regions, which then will enjoy legislative, executive, and judicial powers, the investment law has provided for the establishment of commissions in federal regions. Governorates which are not organized as regions enjoy financial and administrative powers, and thus the law has regulated the right of formation of investment commissions in governorates as well.


The commissions in regions and governorates have powers to grant investment licenses, encourage investment, and open branches in areas under their jurisdiction in consultation with the national commission and in accordance with this law.

Each of those commissions is comprised of seven members who have a minimum of seven years of experience and specialization. The regions’ commissions are coupled to the prime ministers of the regions, and the governorate commissions are linked to the governors and monitored by the respective governorate council. The law authorizes regions and governorates to form these commissions, which draw up investment plans in such a way that does not contradict the federal investment plans.

The law allows governorates and regions to exercise their role in encouraging investment as the national commission will be limited to the role of federal investments only and thus not take over the role for investment in the regions and governorates.

The national commission has a special budget. It has to deal with license applications within 45 days. It also has to facilitate granting licenses and use electronic correspondence.

Evaluation

The new investment law will surely make a big qualitative change in the Iraqi economy by means of incoming capital and foreign experience, which will contribute to establishing the basic infrastructure of the Iraqi economy. Iraq suffers from lack of capital available for reconstruction and development due to the accumulation of loans as well as lack of experience due to ongoing wars. This law will immensely help in meeting this need.

The Iraqi federal budget is derived to 93-95% from the proceeds of crude oil. These proceeds are spent on the subsidies for the ration cards, low fuel prices, the social welfare system, as well as the salaries and wages of workers in the Iraqi state. The remainder is not enough to realistically rebuild in Iraq an infrastructure that needs hundreds of billions, which are not readily available according to the reality of the Iraqi state that owes more than 130 billion dollars to the rest of the world, and on the other hand we cannot boost the state through the small projects that cannot achieve sustainable development. And thus, like many countries in the world, it must resort to investment.

The Iraqi economic infrastructure has been destroyed over more than 25 years since the beginning of the Iraq-Iran War in 1980. With the increase of its population Iraq may become an economic machine that will not stop for fifty years in the areas of services, housing, economy, agriculture, and commerce. This law will enable this progress by means of establishing a secure environment for investment.

That the investment law establishes the basic rules for the investor with guarantees and protection is a very good step in the field of investment, although the land problem remained unresolved or at least not in the way that we want it to be where the investor could own property except for the housing projects which are to be owned by Iraqis. In our opinion this is a tautology as every Iraqi has under the constitutional right to own property, reside and travel in any region of Iraq.

More than nine governorates, in addition to Iraqi Kurdistan, have a secure environment for investment. The growth and development of these governorates will create an incentive for governorates which lack security to seek to create a secure environment. Surely the economy, through investment, will contribute to achieving security in the country.

Talabani blasts ‘insulting’ report
BAGHDAD (AFP)
President Jalal Talabani, a long-time US ally, made a stinging attack on the controversial Iraq Study Group report yesterday, calling it “dangerous” and insulting to Iraqi sovereignty.
The report’s recommendations were also implicitly criticised by outgoing Defence Secretary Donald Rumsfeld, who paid a defiant farewell visit to US troops and urged them to stay the course, the Pentagon reported yesterday.
Four days after the release of the report, which was hailed by many US lawmakers and commentators as pointing to a way out of the Iraq crisis, Talabani invited journalists to his Baghdad villa to denounce it.
“If you read this report one would think that it is written for a young, small colony that they are imposing conditions on, neglecting the fact that we are a sovereign country, and respected,” he said.
The president was angered by the recommendation that more US troops be directly assigned to Iraqi army units, demanding instead that Prime Minister Nuri Al Maliki be given full command of all Iraqi forces. “As a whole, I reject this report,” he said. “I think that the Baker-Hamilton report is not fair and not just, and it contains dangerous articles which undermine the sovereignty of Iraq and its consitution.”
The report – seen in Washington as an indictment of President George W. Bush’s strategy in Iraq – was written by 10 former officials working under former secretary of state James Baker.
Talabani’s most scathing attack on the report was on Baker himself, who in Iraq is seen as reponsible for the fateful US decision not to overthrow Saddam Hussein in 1991 after expelling his forces from Kuwait. “We smell in this report the attitude of James Baker in the aftermath of the war in Kuwait,” Talabani said.
Talabani said he would write to US President – whom he described as “courageous” – to outline Iraq’s objections to the study group’s advice, much of which the US leader has already discarded.
Bush’s former point man on Iraq, Rumsfeld, was unapologetic during his farewell visit to Iraq about his views and strategies in the conflict, which were broadly criticised in the report.
“The enemy must be defeated,” he added, predicting that the US “war on terror” would take half a century.

Last update on: 11-12-2006

Senior Iraqi Army Officers Training In Poland

A Polish soldier on the streets of Al-Karbala (file photo)
(epa)
December 11, 2006 -- Twenty-three senior Iraqi army officers are taking classes at a NATO training facility in Poland.


The center's director, Danish Major General Agner Rokos, said this is the first such course for Iraqi officers at the Joint Force Training Center.

Rokos said the aim of the 12-day program is to familiarize the Iraqi officers with NATO procedures, with a particular focus on the organizing of multinational military exercises.

(AFP)

Originally Posted by Mike5200

Dinar soars: Iraqi currency hits 2-year high


Iraq’s dinar currency has risen to a nearly two-year high against the U.S. dollar, as the nation’s central bank tries to fend off skyrocketing inflation by buying up the currency with dollars at its daily auctions.

Most of the money the Iraqi government earns is in U.S. dollars because oil exports are the main source of its income, and the bank has about US$14 billion in foreign assets, said Mudher Qassim, the Central Bank of Iraq’s director of statistics.
On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million U.S. dollars sold by about a dozen banks, the central bank said. Even larger amounts of dollars were sold during 10 of the auctions in November.

"Our goal is to reduce inflation, which is now running at about 50 per cent, by improving the dinar and thereby making imported goods cheaper," Qassim said, adding that more than 80 per cent of all Iraq’s tradable goods are imported, he said.

In a report in August, the International Monetary Fund also said inflation was escalating in Iraq. The 12-month rate of inflation ended 2005 at 31.7 per cent, but inflation then accelerated, with 12-month inflation reaching 58 per cent in May 2006, the report said.

Iraq’s Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 per cent from 12 per cent. Wednesday’s report from the bipartisan U.S. Iraq Study Group said that by the end of 2006, the bank will raise rates to 20 per cent and appreciate the dinar by 10 per cent.

The Central Bank’s fight against inflation could prove to be an uphill battle, however, since many observers believe the leading contributor to inflation is the high cost of security involved in distributing goods throughout the country.

On Thursday, the dinar was trading at the central bank’s auction price of 1,424 against the U.S. dollar, its strongest price since March 23, 2004, when it was at 1,420.

Source: The Chronical Herald

Sorry if already posted!


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Posted on Monday, December 11

I still like this figure. Its like asking someone how much money they have in the bank. And, this does not include gold, oil production money, selling fields of oil, (500 of them and they are selling 20) money in other countries that they are reclaiming, reconstruction funds from other countries and agri production. With 27 countries (most are oil dependent) behind them. I have always thought that this is an excellent formula for wealth. Theirs and ours. Thank You.