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

Originally Posted by kiko

The Oil investment law, completed its final stages
12 December 2006 (Iraq Directory)
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.

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.

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.

The Oil investment law, completed its final stages | Iraq Updates

Billions of dollars of foreign investment, just what they need and they are still talking!

Open that doors this week and help your own people!

this is iraqi updates again, dont be surprised if we already read this earlier and parliament has already been considering it. yes, just as i thought, i see in history everyone talkin about it. then someone posts another iraqi updates and everyone gets bent out of shape that its old. IRAQI UPDATES IS ALWAYS OLD NEWS REPUBLISHED, ITS THE HIGHLIGHTS OF THE 7 DAYS PREVIOUS TO THAT DATE YOU READ IT, IT CHANGES DAY TO DAY BUT ITS ALWAYS REPUBLISHED NEWS. IF YOU DONT WANT TO READ REHASHED NEWS DONT READ IRAQI UPDATES.

Iraqis seeing benefits from ongoing construction
Tuesday, 12 December 2006
By Norris Jones
Gulf Region Central District



BAGHDAD — Hundreds of projects are under construction and Iraqis are seeing the results, according to a top U.S. Army Corps of Engineers official.

“We’re employing thousands of Iraqis. They need to put food on the table just like anyone else and those with a job are more likely to be supporting their government,” said Lt. Col. Jonathan Revolinsky, the Officer in Charge of the U.S. Army Corps of Engineers (USACE) Baghdad Area Office, before returning to the Sacramento District this month after a six-month tour.

Revolinsky works with a number of different entities, including the Baghdad city government (Amanat), District Advisory Councils and Neighborhood Advisory Councils. “This nation is used to one person issuing orders from the top down. That mindset is now changing and Iraqis are understanding the value of hearing from people on the street, getting feedback, developing a dialogue, encouraging an interaction. It’s what democracy is all about.”

The real story not being told, Revolinsky said, is the one about ordinary Iraqis putting up with extraordinary challenges, but reporting to work nonetheless every day in an unassuming way just trying to make life better for their families.

He directs a staff of 30 U.S. military and civilian personnel along with 50 Iraqi engineers who have the goal of turning Baghdad back into a great city. “It was the birthplace of civilization and today we’re investing huge of amounts of money to rebuild 30 years of neglect as residents regain their confidence that this city has a future. It’s hard when you’ve been repressed for that many decades to stand up for what you believe and that’s the challenge we’re facing.”

But Revolinsky is optimistic and that viewpoint starts with the Iraqis on his staff. “They’re awesome individuals. They put their lives on the line every day going out in the community to oversee the work going on. They sincerely want to help their country, they want to do a great job, and it’s a shame the hardships and danger they and their neighbors have to put up with. I respect them immensely. They want to make Baghdad a better place.”

Most of the Iraqis working for USACE are educated engineers trained at Baghdad University. “They visit the projects, write the reports, provide recommendations and suggest courses of action, and our intent is to eventually transition our office over to them as we work ourselves out of a job. They’re breaking the mold of listening to dictatorial orders that they grew up with and today are solving problems on their own. I’m very pleased with the direction we’re going.”

Throughout Baghdad Province, Revolinsky’s team is managing more than 300 projects valued in excess of $1.2 billion. That work includes $300 million for three major sewer trunk lines, more than $100 million for replacing the electric distribution network in Sadr City, refurbishing 18 gas stations, renovating hospitals, building new primary healthcare centers, new courthouses, new water distribution networks, repaving roads, repair of area schools and the construction of several new ones.

Nine new fire stations have been built in Baghdad decreasing response time from an average of 15 minutes to 5 or 6 minutes. “Residents can see first hand that their government is working, that improvements to their neighborhoods are taking place, that there’s reason for hope.”

Joint operations bringing peace in Diyala
Tuesday, 12 December 2006


BAQUBAH — Inside the room sat one representative each from the Iraqi Police, Iraqi Army and Coalition Force, surrounded by maps and the busy sounds of radios chirping and voices issuing reports.
The three men conversed about problems Diyala province faces and how each of their forces could help. This joint operations center is the hub for the three forces to coordinate and combine efforts to combat the insurgency and bring peace to the region.

“If the IA and IP work together more and successfully, they will be able to do a better job attacking the insurgents,” said Capt. John Baumann, 3rd Brigade Combat Team, 1st Cavalry Division, Coalition Force representative at the JOC.

Baumann, a native of Valparaiso, Ind., helps the JOC coordinate the IP and IA assets and recommends how the American forces can help in certain situations, he said.

The JOC was established by the governor of Diyala to allow the IA and IP the ability to work together, because when they coordinate, insurgents cannot exploit a gap between them, Baumann said.

When the JOC receives information on an incident in the area, the representatives of both Iraqi forces discuss how they can deal with the situation, said the IP officer who runs the JOC.

Through this discussion, the officials then decide which force or combination of agencies is needed to deal with the situation, he said. They are able to determine which forces are most suitable for a situation by tracking all IP and IA assets in the area, he added.

Baumann said the center is still growing in influence and continues to improve. The JOC is steadily reaching out to more areas in the province and will one day benefit all of Diyala, he said.

“Having a centralized control will allow quick responses of certain forces… to an area where there is a lot of activity,” said Baumann.

While the organization is still experiencing growing pains, it is beginning to be used more by commanders from both forces, he said.

And when the Coalition leaves, Baumann said he believes they will have left a lasting impression as they continue to work combined operations with the Iraqi Security Force.

“This is a good organization and something that needs to remain in order to continue security in Diyala,” Baumann added.

(Courtesy of Pfc. Ben Fox, 3rd Brigade Combat Team, 1st Cavalry Division Public Affairs)

Originally Posted by DayDream

Just curious...But when all these laws are finally put into the Official Gazette...How will we know what it says? Can anyone read Arabic?

Cheers!
DayDream

i already have someone in the wings reading it daily. the day there is a change we will know what it says.

Vice President Tariq Al-Hashmi reach Washington on an official visit to the United States last for a few days.

December 12, 2006December 12, 2006

.The Vice-President Mr. Tariq Al-Hashmi, and the delegation accompanying him, the American capital, Washington, the morning of today, Tuesday, 12-12-2006, and so, on an official visit lasting several days.
و.And he is scheduled to meet Mr. Hashemi, this evening, the President of the United States George Bush, as well as Vice President Dick Cheney and Secretary of State Condoleezza Rice, and National Security Advisor Stephen Hadley American.
.It will also meet the Vice-President of the Republic during his official visit to the United States, with a number of members of the American administration and deputies in Alkonckers. And Professor Tariq Hashimi, was held this morning, meeting with members of the delegation accompanying him, was devoted to discussion of the topics to be discussed with the American administration
Iraqi Presidency

Originally Posted by shotgunsusie

i already have someone in the wings reading it daily.

Susie on the ball......now chain that guy to the sink or sumpin so he's there at our convenience!

This is a old article but I found it interesting


Iraq must choose a monetary system to promote stability





Jordan Times







By Dr. Taher Musa


Among the many challenges the government of a truly independent Iraq is expected to face would be the choice of a monetary system that promotes price stability. This, indeed, is an essential element in any well-functioning market economy. In forming its new government, the independent Iraq would have a rare opportunity to choose the monetary system that would best suit its unique characteristics.
To determine the optimal postwar monetary policy for Iraq, the type of monetary system maintained before the war should be reviewed. From 1982 to 1998, that is even during the post-Gulf War period, when Iraq faced the United Nations sanctions that limited its oil exports, Iraq officially maintained either a peg to the US dollar or a managed float against the dollar. In practice, however, foreign currency was not widely available at the rates maintained to the general public. There was a functioning black market, under which dollars were widely available, only at high premium, relative to the officially posted rates.

The maintenance of an official peg to the dollar does not indicate Iraq's desire to price exports competitively for the United States market (in 1990, Iraqi exports to the United States comprised only around 13.6 per cent of its total exports), but rather Iraq's prominence as an oil exporter, as oil prices are usually quoted in dollars per barrel. Prior to the Gulf War, in 1990-91, oil was everything in terms of Iraqi exports. In 1990, petroleum and petroleum products made-up around 93 per cent of total Iraqi exports.

Iraq is not alone among oil-producing countries in choosing some sort of peg against a hard currency as its exchange rate regime. Among OPEC member countries, Iran, Libya, Nigeria and Venezuela pursue an exchange rate regime with some sort of tie to the value of the dollar. Furthermore, the countries of the Arab Gulf Cooperation Council (AGCC) which, like Iraq, obtain almost all of their export revenues from oil, maintain a de facto peg against the dollar. Algeria, which has special ties to Europe, pursues a managed peg against the euro. The exception is Indonesia, which has pursued a freely floating monetary regime since the Asia crisis of the late 1990s.

Therefore, it would not be surprising if, in anticipation of regaining its position as a major oil exporting country, Iraq were to choose a monetary regime that maintains at least a managed peg against a hard currency, such as the dollar or the euro, or some combination of the two, provided Iraq becomes totally independent from the current American-British occupation.

Oil-exporting countries can enjoy the credibility enhancing advantages of hard currency-pegged regimes without suffering the terms of trade issues associated with currency pegs faced by exporters of more diversified economies.

Current events

Although Iraq is similar to the AGCC countries, as it is an oil exporter, its current situation is quite different from that in these countries. This suggests that a most desirable monetary system may need to differ from that pursued by these countries. In particular, postwar Iraq faces a daunting debt burden. The estimations are that Iraq's current debt obligations, stemming from both claims of the Gulf War repatriations and foreign debt, are well over $350 billion. The estimations are also that even if 50 per cent of Iraq's future export revenues were diverted to servicing these obligations (three times the amount extracted from Germany after World War I), it still would take more than 35 years for Iraq to pay them off.

While there have been some fruitful discussions of possibly reducing this debt burden through moratoria and outright forgiveness, servicing its outstanding debt burden is likely to be a major feature of Iraqi public finance going forward. Thus, the situation of an independent Iraq appears to be one of a heavily indebted oil-exporting country. Moreover, the cost of rebuilding Iraq is likely to place a further burden on its public finance.

This heavy debt burden is likely to pose challenges to its monetary policy. While empirical evidence on the relationship between government deficits and inflation is mixed, recent studies have again supported the notion that in emerging market economies, fiscal deficits tend to be accompanied by inflation in the long run. The conventional explanation of this relationship is that when a government finds its fiscal situation under pressure, either due to an outstanding debt burden or to an imbalance between revenues and expenditures in the current budget, the independence of the central bank is likely to be threatened, as the government comes to view the central bank as a tempting potential source of seigniorage revenues, that is a tool for magnetising debt.

Enhancing exchange rate credibility

Since speculative attacks on exchange rate regimes are not uncommon, the public finance issues that a government of an independent Iraq will face make it imperative that steps be taken to ensure the credibility of the chosen exchange rate regime.

One possibility is that the government of an independent Iraq might initially maintain its peg under the control of a "currency board regime" (CBR) of the central bank. The CBR in mind is formally defined as a monetary regime commissioned to maintain a fixed exchange rate peg to a hard currency which, in this case, would likely be the dollar, but which also could be a basket of hard currencies, such as SDRs (special drawing rights of the International Monetary Fund). Unlike simple fixed rate regimes, a CBR is obligated to hold reserves that exceed outstanding domestic currency so as to have the capacity to redeem all outstanding currency at the announced peg.

With a fully backed CBR in place, holders of Iraqi currency would know that as long as the government is committed to the maintenance of the exchange rate peg, they would be able to convert their claims at the announced peg. The world, however, recently witnessed the dramatic collapse of a CBR in Argentina. This may indicate that currency board regimes are by no means foolproof. If the government of a truly independent Iraq faced an unsustainable fiscal situation analogous to that of Argentina, would it not also be tempted to abandon its CBR and devalue?

The answer to this question appears to be that the Argentine CBR was unique in a number of dimensions. First, the Argentine CBR was less than fully backed. In 2001, the foreign reserve backing for the Argentine CBR fell to around 80 per cent. Second, the CBR acted as lender of last resort, extending funds to Argentine commercial banks during the Mexican peso crisis of 1995. Third, the Argentine government has issued a large amount of domestic debt, giving it the opportunity to decrease its debt burden dramatically through devaluation. Finally, the Argentine peg to the dollar left its exports increasingly uncompetitive with its main trading partner, Brazil, following the large dollar appreciation in the 1990s.

None of these conditions necessarily apply to Iraq. Nevertheless, there are perceived costs to maintaining a CBR. First, the maintenance of the CBR requires the holding of adequate foreign exchange reserves. This could put a further burden on Iraqi public finance conditions if superior returns are available domestically. Second, a standard CBR would preclude any flexibility, so the Iraqi central bank would be unable to engage in lender of last resort activity or moderate countercyclical policy.

Instead of launching a formal CBR and incurring these costs, Iraq could just pursue a managed peg. However, the credibility of such a peg would be hindered by the pressured fiscal situation that the Iraqi government will inevitably face. At a minimum, an announced peg is likely to be tested by speculation, leading to increases in risk premium on Iraqi borrowing. At worst, the peg could collapse dramatically, leading to financial turmoil. Because of the exposure to these difficulties, it would be imperative that a managed exchange rate peg regime be tailored to limit concerns about Iraqi monetary policy. Some concrete steps that could be taken to ensure credibility of the peg include giving the Iraqi central bank a strong mandate to maintain price stability and retaining its independence from the Iraqi treasury (Ministry of Finance) and government.

Instead of a pegged exchange rate, the government of an independent Iraq might also consider an explicit inflation-targeting regime. A typical inflation-targeting regime would include central bank independence with an explicit inflation target as the goal of monetary policy.

A number of emerging market countries appear to have been successfully pursuing inflation targeting, including some countries with extensive primary product exports. However, as in the case of a managed peg regime, the credibility of an inflation-targeting regime is only as strong as the government's willingness to maintain it. Again, the fiscal burdens faced by the government of an independent Iraq could put pressure on the Iraqi central bank to pursue policies such as purchases of government securities that could undermine the achievement of the inflation target.

The government of an independent Iraq is expected to face a significant number of economic challenges. A critical issue is the determination and management of the country's outstanding liabilities and the costs of financing the rebuilding of Iraq. No less important, however, is the need to institute a monetary regime that promotes price stability, the most positive environment in which to meet the other challenges. With the likelihood of returning to its role as a prominent oil exporter, Iraq could benefit from some forms of exchange rate peg.

Its pegged regime could range from the formal launch of a CBR to a managed peg. A CBR would greatly limit monetary flexibility, but it would also, at least partially, address the credibility issues that will arise due to Iraq's fiscal pressures. Such a regime appears to have worked well in the case of postwar Bosnia. A managed peg regime would allow for limited countercyclical policy and lender of last resort activity, but it could expose the monetary regime to speculative attacks. If a managed regime were chosen, it would be important to introduce concrete institutional features, such as central bank independence and a mandate of price stability to ensure its credibility.

Finally, an inflation-targeting regime is another alternative. While oil-exporting countries usually choose some form of a hard currency peg, other primary-product exporting countries have used an inflation-targeting regime with apparent success.

The writer is bank economist, former chief of the United Nations Economic and Social Commission for Western Asia programme in money and finance and author of the books "Readings in Modern Banking and Finance" and "Risk Management in Banking and Finance". He contributed this article to The Jordan Times.

Originally Posted by MrsCK

It's good to see those 17 year old getting into dinar's. My son was 16 last year - sold his old Xbox and games - then purchase $300 dollars of dinar in Dec. 2005. He asked and I told him it was a risk but if he wanted to know more he need to do his own research "google son" - well he came back and said "sounds good" - now he is a member of Rollclub and will be able to PICK whatever College he wants after graduation in May.

I was never a great student B/C average, but this is a big part missing from schools... is the teachings of money and how money works.... good for him/her to be somewhat money wise at a young age

Originally Posted by AlwaysDreaming

I have purchased quite a bit from Chase and have only received 25,000 notes although I always request small notes. I started purchasing from them in October. I just purchased 1 million yesterday and they just called to say it was there for me to pick up. It was hard to find a branch here in the Phoenix area that would sell though.

What branch is that. My brother lives in Phoenix and has not been able to find a Chase that will sell dinars. Can you please tell us the address . Thank you.

what is the biggest swing ever in a countries currency price,
in a 24 hour period, up and down?