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

Originally Posted by Maddawg

Kind of ironic. Most of us here want to Stay Home and Watch TV because we have spent numerous years Working the daily grind and Busting our Tails.

YES AND IF YOU GOT A KNOCK AT YOUR DOOR ONE NIGHT AFTER A LONG DAY AT WORK AND SOME DUDE SAID "HEY I'LL GIVE YOU 100 BUCKS IF YOU GO PARK THAT CAR ON THE SIDE OF THE ROAD" YOU WOULD SAY "BEAT IT JERK"

WELL THAT IS THE ONLY WAY TO STOP THE YOUNG "ANGRY" MEN FROM SETTING THESE BOMBS - JOBS!!

Originally Posted by rvalreadydang

ahhhhh, we have the magic of google translate

Nope...Won't work with a photo of the page and thats how they post it.

Cheers!
DayDream

Quote:
Originally Posted by Dinar-Excited
The Oil investment law, completed its final stages
The Iraqi Oil investment law, completed its final stages
12/12/2006

Source: Translated by IRAQdirectory.com

Iraqi Prime Minister Nuri al-Maliki said that his government had completed the preparation of a law encourages foreign investment in the oil and gas industry in the country and will submit it to Parliament for ratification. "](I believe this part of the article is new dated 12/12/2006, but the rest of this article is a repeat of an old article. We've read this lower part a few days ago about needing another week to 10 days.
I believe there combining old articles with new ones to confuse everybody, or keep everybody from really knowing what's going on.)
{THOSE SNEEKY FOXES, THEY CAN'T OUT FOX ROLCLUB} But members of the Committee, which is working to prepare the law, were more cautious; they pointed out that they have done most of the work but they need another week or ten days to complete.{REPEAT OF OLD NEWS ARTICLE}

There are foreign investments with billions of dollars to exploit the third largest oil reserves in the world, pending the adoption of an appropriate legal framework [/color]

http://www.iraqdirectory.com/DisplayNews.aspx?id=2741

Dinar-Excited

Originally Posted by day dreamer

KEEP THE FAITH EVERYBODY

Nearly everything I've read posted on here today is rehash of old news and has been posted in some cases several times. They are definately doing the regurgitation shuffle. Probably shouldn't add that in with the farm jig or the kitty wiggle though. : )

Don't know if it's a slow news day (i doubt it) or if it's the proverbial misinformation train. We have seen this happen before.

DEC 8 PDF FILE
Page 17
The Role of Private Capital
In addition to government revenues and international aid, another possible source of
funding for Iraq’s reconstruction is private investment capital, whether from individuals
and businesses within the country or from abroad. According to the International
Monetary Fund, Iraq received a small net inflow of private capital, about $100 million,
in 2004. In the following two years, however, that net flow turned negative—
indicating that more private capital was leaving Iraq than entering it—by about $3.6
billion in 2005 and $1.4 billion in 2006.
In its projections for the 2007-2010 period, the IMF projects that the net flow of private
capital will once again turn positive, totaling about $4.2 billion over those four
years. That projection assumes an improved security situation and a more favorable
climate for investment than now exist (PASS ALL THE LAWS AND RV NO PROBLEM FOR INVESTMENTS THEN), which would be consistent with the IMF’s projection
of increased oil exports through 2010. If those conditions do not materialize,
it is unclear how much private capital will enter or leave Iraq in the next few years.RV RV RV RV NOW

Originally Posted by One Oar

Quote:
Originally Posted by Dinar-Excited
The Oil investment law, completed its final stages
The Iraqi Oil investment law, completed its final stages
12/12/2006

Source: Translated by IRAQdirectory.com

Iraqi Prime Minister Nuri al-Maliki said that his government had completed the preparation of a law encourages foreign investment in the oil and gas industry in the country and will submit it to Parliament for ratification. "](I believe this part of the article is new dated 12/12/2006, but the rest of this article is a repeat of an old article. We've read this lower part a few days ago about needing another week to 10 days.
I believe there combining old articles with new ones to confuse everybody, or keep everybody from really knowing what's going on.)
{THOSE SNEEKY FOXES, THEY CAN'T OUT FOX ROLCLUB} But members of the Committee, which is working to prepare the law, were more cautious; they pointed out that they have done most of the work but they need another week or ten days to complete.{REPEAT OF OLD NEWS ARTICLE}

There are foreign investments with billions of dollars to exploit the third largest oil reserves in the world, pending the adoption of an appropriate legal framework [/color]

http://www.iraqdirectory.com/DisplayNews.aspx?id=2741

Dinar-Excited













Nearly everything I've read posted on here today is rehash of old news and has been posted in some cases several times. They are definately doing the regurgitation shuffle. Probably shouldn't add that in with the farm jig or the kitty wiggle though. : )

Don't know if it's a slow news day (i doubt it) or if it's the proverbial misinformation train. We have seen this happen before.

and it bites!! lol you find something you at first think is great, then come to find it's dated today but you have seen it about 3-5 days ago lol
oh well only a few hours for the tommorow news to start, and I hope we see some more great NEW news

IMF changed the way they list countries financial position in the fund. I wonder if we can glean anything from Iraq's


Iraq and the IMF -- Page 1 of 6

Is the staff salaries sufficient to provide the necessary requirements?
المصدر: الزوراءSource : Zawra
12 / 12 / 06
نوري صبيحNouri Sobeih
1 الدراسية وسنوات الخدمة وتقييم اداء الموظف وتجمع على أساس النقاطOne proposal to increase the salaries of the staff which will be introduced in January 1, 2007 to five degrees from the 10th to reach between 40% to 60%, whether it will be after these increases to reconsider a new salary scales for staff on the basis of the certificate seminars and years of service and the assessment of the employee's performance or accrued on the basis of points
2 ـ أعادة العمل بنظام العلاوات السنوية والترقيات ومقدارها بالسنوات وقيمتها المالية.Two re-introduction of annual increments and promotions, and the years of financial value. منذ التغيير في 9/ 4/ 2003 م ولحد الان، لعدم وجود الدرجات الوظيفية الشاغرة وعدم توفر الاعتماد المالي!!3 re-calculate and entitlement bonuses previous annual before the application of Administrative Order (30) Supplement in the January 1, 2004, bonuses subsequent annual and especially grades First Second Third Fourth, the Fifth, six, - seventh, eighth, ninth, the tenth / ranks tenth, as we were given these ranks tenth because it considers (promotion) and PROMOTE) from one degree higher degree, but arrived so, under Administrative Order to the Ministry of Finance No. 38546 in the 27 / 12 / 2005 containing the "the staff member who obtains book thanked the granted forward to a period of one month on each book acknowledged, excluding grades all, ranks tenth because it considers (promotion) To instructions from the Ministry of Finance according to notifications References administrative and financial in government ministries since the change in the April 9th, 2003 and so far, to lack of the grades the vacant and the lack of financial appropriation!!
4 -we hope when legislation peace new salary As stated official source at the Ministry of Finance the cancellation of the principle of "the housing issue", which mean the arrival of many of the campaign certificates the prep and college graduates who the functional to first class / b just as was in place in the orders and instructions financial Yugoslavia, and there was too much of employees in the government were in the first class / b were landed According to the case law of the Chambers to two degrees or more, according to peace new salary and it should be within the third class in tenth place, but what we say to those who created system "the housing issue" were reserved third class of the graduates of and campaign certificates from Bachelor's Degree and above, the second, and the first and left the fourth degree for college graduates who artistic and the prep.
5 Why not been adopted handed staff salaries proposed by the Office of integrity, which is the basis adopted by the Ministry of Finance, which increases the salaries of the staff within the peace staff salaries by 50 70% of all grades from first to 10th, as the real justice in the distribution of increases of Finance for all and Aitrk a psychological impact and the sensitivity between the degrees granted by the Ministry of Finance and degrees again not granted, high prices and inflation and the difficulty of living and provide the basic needs include all personnel of all grades, without distinction.
6 Are these increases in staff salaries would also retired or not, especially if we know that there is a law to make the salaries of retirees, 80% of the salaries of their peers in the post, as well as staff to be sent to retirement who are waiting for the activation of this law, and giving the staff member who referred to the retirement salary bonus years of service as a valid previously
7 Seven raise the tax on the salaries of staff in the salary scales referring to ten degrees.
8 ـ the value of the salary class / ranked original salary (nominal) in addition to fixed allocations by the Ministry of Finance Kalzojih, children, and suggests that every ministry and, depending on the nature of work allocations professional staff deserve to be exercised employee of this work already, Kkhatorh, infection, remote areas and the geographical distance from the centers of cities, and the provision of financial provision by the Ministry of Finance to the ministries.
unifying peace salaries of staff in all the organs of government, the House of Representatives and the Presidency and the Council of Ministers and Ministers are Pedrjthm, on the basis of the government program, "political" to the government of Mr. Nuri Al-Maliki point "25" (the development of effective mechanisms to control spending and address the financial and administrative corruption and activate the constitutional articles of this pledge and commitment by)
in the case of distribution of land for housing staff and the granting of mortgage loans, and the distribution of financial advances, how the remainder of the salaries of staff of ten degrees, Would amount (salary) little to sustain life in inflation, the rise in prices, for the purpose of providing food, clothing, housing and participate in the "diesel" station eligibility for the provision of electricity, oil and gas, transport, and social obligations other miscellaneous.
We appeal to the Minister of Finance esteemed for consideration of these proposals and fairness to the staff through the issuance of the orders and instructions that serve the ministerial segment administrative staff, and enable them to secure a decent living, and published in this newspaper.

Translated version of http://www.alzawraa.net/home/index.php?option=com_content&task=view&id=4880&Ite mid=73

Originally Posted by smcquiller1

I didn't mean to set off any alarms. I read on another forum that we will not see an rv untl mid to late January because Maliki was being replaced by a new prime minister, who will take over in January and the rv will come after that. I just had not seen or heard anything of this sort from all the news that we have been getting here. I am sticking with the 15th or around that time. If that date passes, oh well, so have others. I will be here until it happens. I wasn't sure if anyone else had read or heard this. I should have posted this in the rumor section but wanted to let everyone know that i was just seeking clarification since I mentioned a pm on this site. Happy dinaring eveyone

Well as late as yesterday no one told the Bush Administration about this!


denial from White House of Iraqi move to oust al-Maliki
Posted: 12/11/2006 4:02:38 PM



WHITE HOUSE (AP) - The White House is flatly denying a report that key Shiite leaders are maneuvering to oust Iraq's prime minister.

Press Secretary Tony Snow tells reporters there's no move afoot to "dump" Nouri al-Maliki.

An Associated Press dispatch from Baghdad quotes Iraqi lawmakers as saying Shiites are holding talks on a new alliance because al-Maliki has been unable to end sectarian bloodshed.

The alliance reportedly would be led by Abdul-Aziz al-Hakim, who met with President Bush last week, though someone else would likely be prime minister. The AP report quotes a senior aide to al-Maliki as saying, "We know what's going on and we will sabotage it."

Asked what's wrong in the story, Snow said, "Basically, everything."

Snow adds the president has full confidence in al-Maliki. Earlier this month, at a meeting in Jordan, Bush called al-Maliki "the right man for Iraq".

Few months old but a very good read...

Middle East Economic Survey

VOL. XLIX

No 42

16-Oct-2006


Liberalization Strategy For Iraq's Oil-Hostage Economy: Alternative To Oil Power Dominance And Neo-Liberal Subordinate Economic Policy (Part 1/2)

By Sabri Zire Al-Saadi

This article was written for MEES by economic advisor Sabri Zire Al-Saadi, a UN former employee who held senior economic posts in Iraq. Email: [email protected]. Part 2 will be published next week.


The Politics And Economics Of Oil Policy

In normal circumstances, federalism and decentralization of the political decision-making processes in Iraq would substantially increase people-participation and improve democratic practices. Encouraging foreign investment would also help to attract new technology and improve the efficiency of the national economy and competitiveness of domestic industries. The intended hydrocarbons resources law to regulate the production and investment in the extraction, manufacturing, and distribution of crude oil and natural gas is important to revive the promising oil industry. However, neither federalism nor the “new” investment and hydrocarbon laws will be viable without the prior establishment of a unified long-term economic strategy where oil wealth constitutes a strategic factor. Indeed, efficient utilization of oil revenues guided by suitable economic strategy and policies would not only improve living standards but equally important reduce sectarian conflict and encourage political stability. If the self-interest demands of the federal government(s) in oil wealth remain without national economic criteria for its utilization, Iraq’s disintegration as a single-sovereign state may become a reality.

The multiplicity of factors behind the prevailing acute economic crisis raises fundamental, difficult, and controversial questions on the viability of post-war economic strategy and policies. Assessment of Iraq’s experience reveals that its long-term economic strategy should be designed to achieve two interrelated sets of objectives: first, the transformation of the oil-rentier economy into a competitive market economy; and secondly, an increase in economic growth and the alleviation of unemployment and poverty, and an improvement in standards (public education and health services). Significantly, Iraq’s past and recent experience showed that government expenditures, especially investment in infrastructure, financed by oil revenues have been the engine of economic growth and constituted the most effective instrument of the macroeconomic policies. Unfortunately, the present policies perpetuate the deep-rooted vicious circle of “the state’s high dependence on oil revenues and the Iraqi economy’s high dependence on the state”. In this respect, the program for infrastructure development and government fiscal and monetary policies should play a crucial role in shaping oil policy – not the other way round.

It is not surprising that the post-war reconstruction efforts relating to infrastructure and basic public services and the fiscal policy, as well as the FXR, have the same base and similar implications as those of the former oppressive regime, though with different decision-making players and beneficiaries. Until the role of the indigenous private sector substantially increases, Iraq’s reality will be different from that of developed countries where tight fiscal and monetary policies and the dominant culture of less regulations and less taxes are sufficient to ensure the decisive economic role of the private sector. Moreover, the envisaged new formal economic strategy and policies as well as the establishment of IDRC for the reconstruction of infrastructure would also neutralize the oil power in domestic politics and reduce the widespread corruption.


Irrelevance Policies Of Neo-Liberal Economics

The main purpose of this paper is to highlight that the Iraqi economy is rapidly entrapped in a chronic high dependence on oil revenues. If this continues, the country will suffer grave long-term economic, social, and political consequences. The adopted macroeconomic policies that have neglected the economic efficiency criteria in oil production as well as in the allocation of oil revenues among government expenditures and imports were behind the existing strong dive. Indeed, the performance of these policies has been disappointing. In particular, the economic stability, the proclaimed prime success of these policies, has been artificially manipulated only by the abundance of oil revenues1. Also, the availability of foreign currency reserves that maintain a predetermined exchange rate of ID/$ and the ability to finance rising imports has nothing to do with the effect of the government’s fiscal policy and the independence of CBI monetary policies or the results of the free flow of foreign trade and capital.2 In Iraq, expanding indigenous non-oil production capacities and improving the competitiveness of industries and agriculture can not be realized by a tight fiscal policy and independent monetary policy which is unnecessarily constrained by the (fixed) exchange rate of ID/$ and the US interest rate.

Equally important, the economic efficiency of crude oil production should be strictly observed to protect the environment and the rights of future generations.

Moreover, the FXR must be established so as to reflect more adequately the efficiency price of oil production which would minimize the value difference between the economic-rent (world market prices) and efficiency price (shadow price) that is determined by the required oil revenues (production) for national development. If gradually put into practice, this conceptual proposition, ie to adjust the FXR in accordance with the (excess) level of oil production, would also serve the mutual long-term interests of both crude oil consumers and Iraq3.


Clarity And Commitment To New Economic Strategy And Policies

The current crucial transition of political and economic governance may be decisive in leading Iraq either to success or failure as a promising democratic and economic model in the Middle East. The existing acute economic problems, the destruction of infrastructure, the political mess since the December 2005 elections, and the difficulties of forming the new legitimate elected government without commitment to a unified economic strategy and policies are clear evidence of this. Either way, domestic and foreign political inference would be tremendous. Continuing terrorism and political instability, the obvious failure of the neo-liberal economic policies of CPA, USAID, WB, IMF, and US-advocated policies over the last three-and-a-half years, highlight the urgent need for a new economic strategy.

The new economic initiative must consider the distinctive features of the economy as well as Iraq’s long-standing objectives: increasing economic growth and employment; accelerating economic diversification; and infrastructure reconstruction. In policy terms, Iraq's economic governance requires effective fiscal and monetary policies that must be consistent and integrated with public investment which, it is assumed, will be carried out by the proposed IDRC4. Also, private indigenous and foreign investment should be promoted through economic reforms covering the banking system, financial services and privatization. The long-term aim must be to free Iraq’s oil-hostage economy and establish an efficient market economy.

Our definition of the Iraqi rentier economy focuses on its high reliance on the economic rent generated by the exploitation of natural oil wealth. The guidance criteria for determining the dependence degree are: the contribution of oil sector to GDP is more than the total contribution of the industrial and agriculture sectors; oil revenues finance public investment which constitutes more than 50% of national investment; oil revenues finance more than 50% of the government current expenditure (ordinary annual budget); and oil exports (foreign currency) constitutes more than 70% of total exports5. The ultimate success criteria are: non-oil sectors should contribute at least 80% to GDP and to government current expenditures; and non-oil exports should be at least 70% of total exports. The private sector should contribute more than 70% to GDP.

The state’s commitment to this economic strategy is a pre-condition for the success of capacity building of public institutions and the private sector. Such a firm and clear commitment would also constitute an important yardstick against corruption.

Economic Growth, Diversification, And Market Efficiency

In Iraq, increasing domestic non-oil investment (saving) and non-oil exports has been established as the main requirement for higher economic growth and employment6. Also, neither domestic savings nor foreign currency constitutes a binding constraint on growth and restricts the construction of infrastructure as experienced by most developing countries. Since the early 1960s, a strategy for economic growth and diversification aimed at reducing state dependence on oil revenues for public finance and imports has been advocated, but it was general, crude and not successfully implemented7. However, given Iraq’s new liberal political system and the need for economic reforms for sustaining the role of the indigenous private sector and encouraging inflow of foreign investment, an elaborate and modified version of this strategy should be prepared, and the economic role of the state institutionalized. In this strategy, public investment in infrastructure projects must be given first priority, and clear institutional efficiency criteria established for the allocation of oil revenues and public investment8.

Since the fall of Saddam’s regime, many economic advisors, professionals and researchers have had the privilege and liberty to analyze, evaluate, and suggest economic policies for Iraq. However, their policies have failed in practice and added more confusion to the vague economic tasks of the government institutions – prescribing such remedy statements as improving the macroeconomic conditions based on solid private micro foundation and equating economic liberalization to economic growth. The policies advocated by the foreign consultants and international agencies, coupled with the state’s economic mismanagement, have contributed to the current failure. Consequently, the post-war optimism of increasing income and employment, and improving living standards, as well as the high expectations of national investors and the business community, have quickly diminished.

In most stable countries, attention by investors and business communities, politicians, and professional economists is focused on monitoring and analyzing stock market indicators, interest rates, foreign exchange rates, inflation indices, flow of foreign capital, and trade balance. The dominant economic policy theme is how to improve the market efficiency and increase investment. In Iraq, the business community, traders, contractors and politicians are particularly interested in increasing oil revenues (production), ie government expenditures9. For the ordinary Iraqi citizens, however, unemployment, poverty, lack of public education and health services, high inflation, and shortage of basic public utilities and essential products are their daily concern. Given the low level of private saving, consumption, and non-oil production and exports, Iraq is bound to rely heavily on oil revenues at this stage.

Oil revenues are indispensable to run the state’s functions and finance the construction of infrastructure, but most importantly such reliance raises the old question; ie how to transfer Iraq’s rentier economy to an efficient competitive market economy? To achieve this, the ultimate objectives of the new economic strategy should include: increasing economic growth based on non-oil industrial and agriculture production; increasing employment and rehabilitation of manpower; alleviation of poverty through promotion of income-generating small projects; provision of public education and health services; and the establishment of basic industries such as petrochemical, electricity and water, as well as the physical infrastructure. The viability and requirements of these objectives have been partially tested, though under non-democratic and oppressive political regimes, through the period 1953-80, and they are not fundamentally inconsistent with private business interests. In fact, such a strategy provides excellent investment opportunities for the private sector. But if the indigenous private sector is not ready to utilize them, fully or partially, the government should take the initiative to finance them from oil revenues. Accordingly, the government’s oil production, fiscal, and monetary policies are confined to consider public investment as the most essential element of the aggregate (effective) demand. Therefore, the government’s macroeconomic policies have to play an active role in influencing the investment priorities in order to bring about the desired structural changes: increasing the contribution of non-oil sectors and the indigenous private sector to GDP and public finance.

Cheers!
DayDream

Economic : Central Bank opens daily auction of remittances Khazineh denies determine the price of the dollar against the Iraqi dinar

بغداد ـ علي جاسم:Baghdad : Ali Jasim
After the price down for more than a week the dollar exchange rate rose again in the daily auction of the Central Bank of Iraq number "822" for the sale and purchase of foreign currency.
The Musdrvi bank indicated that the number of banks will contribute to this auction amounted to 10 banks between government and people.
Stressing that the price for the auction, the yacht hit 1422 dinars to the dollar, while the quantity sold by the bank fourteen million and "830" thousand dollars, while the quantity purchased by the bank million.

The source added that quantity sold in cash to banks and customers amounted to eight million and "820" thousand dollars either quantity sold for money outside Iraq, reaching six million and ten thousand dollars.
On the other hand, denied by an official source at the Central Bank of Iraq rumors on the bank sought to determine the rate of the American dollar against the Iraqi dinar value of one thousand dinars. Stressing that the issue of determining the exchange rate of the dollar against the Iraqi dinar is not arise for two reasons :
The first is that the reserve capacity of the bank not absolute and the second is due to the high price factor.
He added that control of the general trends point to rising prices for the lack of improvement, which makes dollar reduction to the value impossible at the present time in addition to the limited financial capabilities of the bank.
The source explained that the significant drop in the dollar after the fall of the previous regime was attributed to the flow of billions of dollars to Iraq and distributed to staff and open exchange and restrictions.
He pointed out that at the present time because of the deterioration of security and access to a large proportion of inflation makes the devaluation of the dollar is not expected at all.
It is noteworthy that some economists pointed out the Bank has sought to reduce the price of the dollar against the Iraqi dinar through monetary policy of which lies in the opening of the auction, the daily remittances to the treasury.

Translated version of http://www.newsabah.com/paper.php?name=News&file=categories&op=newindex&ca tid=20