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

The American Congress extends the work of the Agency of auditing reconstruction in Iraq
14/12/2006

The American Congress decided to extend the work of auditing reconstruction in Iraq done by a specialized agency in the Ministry of Defense (Pentagon), and which was supposed to be resolved next October, by adopting a final draft bill in this regard by the Parliament.

The law, which was adopted and ready to be issued by President George W. Bush, allows the audits to continue till the end of 2008, thus eliminating a provision contained in the defense budget and was not noticed till the beginning of November.

The Republican member of the Senates, Susan Collins, who was among those prepared the draft law, said that "the agency (of monitoring) returned to the American payers more than 25 dollars for every dollar spent on surveillance and investigations operations".

She added that "the verdicts and the convictions issued by the Agency against members who deluded the law makes it unreasonable to overlook these strict controls while the Americans pay billions of dollars for reconstruction projects in Iraq".

The State Department defended, last month, the closure of the Office of the Inspector General for reconstruction in Iraq in charge of supervision on how to use about $ 32 billion invested in the country, considering that it has sufficient time to complete its work by October.

Basically, the Office of the Inspector General, Stuart Bowen, was supposed to close its doors after ten months of spending 80% of the American funds for reconstruction in Iraq.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2763

Iraq considering a plan to increase the strategic stock of food
14/12/2006

Iraqi government announced today that the Ministry of Commerce is currently considering a plan to increase the strategic stockpile of food to meet emergency situations.

The government said in a statement today that the Ministry of Commerce formed a multi-purpose operation room, associated to the minister's office, and will be responsible for the storage and distribution of the ration card materials.

The statement quoted the Minister of Trade, Abdul Falah Hassan Assudani, saying: "The Ministry formed several committees to study the increase of the emergency food balance and to know the future needs of the country's population".

He added: "The objective of this study is to determine the current strategic reserve in addition to the emergency stockpile, which helps in emergencies and natural disasters", saying that "the goal of this step is to be prepared for all situations, since the ministry is responsible for the food file of the Iraqi people".

The minister disclosed that "other committees were formed to determine the actual future needs and the amounts allocated to them, as well as the nature of the increases in transport fares, which is in conformity with the approved international prices".

He pointed out that "the studies will be submitted to the Cabinet and Parliament for acquaintance and approval after checking them and explaining the usefulness of their information".

It is noteworthy that Iraq adopts the ration card system, according to which Iraqi citizen receives a monthly ration at nominal prices.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2766

Iraqi traders entering agreements with their Iranian and Kuwaiti counterparts
14/12/2006

Chairman of the Chamber of Commerce in the Iraqi city of Kirkuk, said that Iraqi traders concluded commercial and economic agreements with a number of Iranian merchants on the sidelines of an exhibition for the reconstruction of Iraq held in Iran at the beginning of last week.

The chairman of the Chamber of Kirkuk, Khalil Ismail Agha, said that high-ranking commercial Iraqi delegation "participated in the conference which was held on the sidelines of the exhibition in the Iranian cities of Tabriz and Kermanshah".

He added that the delegation discussed with the Iranian side "ways of joint cooperation between the Chamber of Commerce and a number of Iraqi traders with their Iranian counterparts, as well as the possibility of developing trade and economic relations between the two countries and ways of participation of Iran in supporting the Iraqi infrastructure through reconstructing a number of economic sectors in the country". Agha pointed out that the Iranian side is interested in" entering the Iraqi market which is considered the main market for importing a large number of goods and commodities and foodstuffs, since Iraq is one of the most important markets that receive such Iranian products". He explained that a number of Iraqi traders "concluded during the exhibition, a number of agreements that will contribute to the arrival of good quantities of different products, which will help to develop the economy and trade exchange between the two neighbors".

On the other hand, a member of the Kuwaiti investors delegation said that the delegation is currently visiting Kurdistan region to discuss investment opportunities and the establishment of a number of important projects in it.

The member of the delegation, Tariq Al-Musawi, of the Kuwaiti public warehouses company, said that the delegation consists of "a number of Kuwaiti companies came to Kurdistan, to explore and discuss investment opportunities in the region".

Al-Musawi said: "We sensed that there are good investment opportunities, and we will sign a preliminary agreement or an understanding memorandum with the competent authorities for the establishment of different storage warehouses, refrigerated, chilled and dry, and a truck parking area". He added: "The intention is to establish an integrated network of storage areas, to give a solution for traders who bring goods to the region". Al-Musawi did not specify the timing of the agreement, or the areas in which they will establish the projects he spoke about.

The delegation of Kuwaiti investors visited Dohuk governorate, and held talks with its governor, Tamr Ramadan, on investment opportunities in the region. The delegation also visited (Zakho) on the Iraqi-Turkish border to get acquainted with the region that have been identified for the establishment of a free trade zone in it.

On his part, Osama Al-Bader, director of the national real estate company in Kuwait and a member of the visiting delegation said: "we now have two projects. One of which includes the development of an area of 104 thousand square meters of land for the construction of a compound in the city of Irbil, consists of a hotel (4 star), a commercial center, a large cinema and apartment buildings", noting that the final cost for this project "amounts to about 100 million dollars".

http://www.iraqdirectory.com/DisplayNews.aspx?id=2767

again old news but same statements different people, I do find it interesting that they say it won't do anyone any good??? (that's whay it has to be higher than the dollar so no one gets screwed.)
Raising the dinar to reduce prices in market
Increasing the value of the Iraqi dinar against the dollar may hurt imports but it will help domestic trade.
14 December 2006 (The Globe)

The news about the appreciating value of the dinar against the dollar has hit the market in Suleimaniya hard. Many will lose their jobs. People believe that neither the government nor the Central Bank can carry out such a critical decision.

Mr. Ali Abdullah of the Bank of Harem (The Regional Bank) says that attempts to raise the value of the dinar are not something new, but many preparations have been made in order for the plan to go ahead. He says that the decision was made to overcome the economic crises in Iraq.

"To increase the value of the dinar, the government has to increase exports and produce more goods," Mr. Abdullah believes.

Despite the fact that no official spokesperson from the Central Bank has ever issued such a firm decision decreasing the dollar value to 1250 ID from its previous value of 1450 ID has created an unnatural shake in the local markets.

Professor Dr. Narmeen Marouf, an economist, tells the Kurdish Globe that this move from the Central Bank aimed at solving the inflation crated due to the high value of the dollar. "If the value of the dinar goes up, the price of goods will decline sharply; they have been paid off in dollars and are sold in dinars," she says, adding that the Central Bank has also tried before to reduce prices and balance off the supply and demand in the local markets. "As the value of the dinar increases, consumers and the local merchants are the first to benefit."

At the moment, Iraq is not exporting any goods other than oil. Almost all goods in Iraqi markets are imports; hence the inflation, particularly when the value of the dinar declines for having no support, although it is quite possible for a decision as such to be made in order to reduce domestic issues. The decision will have two beneficiary forces - it will help Iraq vie for foreign markets and reduce prices in local ones.

"Since rumours started that the dinar was going to increase in value, many have faced sever financial damages," Kamaran Ali, of Money Mart, says. However, he does not believe in such a decision. "Increasing the value of the dinar" he says, "will not benefit anyone."

After 2003, the Iraqi Central Bank decided to peg the value of the dinar. Primarily, a dollar was equal to 1,450 ID, until the value of the dinar was reduced and a dollar became 1,470 ID, then 1,500, at which the price the value of the dinar seemed to stay still.

Raising the dinar to reduce prices in market
14 December 2006 (The Globe)

The news about the appreciating value of the dinar against the dollar has hit the market in Suleimaniya hard. Many will lose their jobs. People believe that neither the government nor the Central Bank can carry out such a critical decision.

Mr. Ali Abdullah of the Bank of Harem (The Regional Bank) says that attempts to raise the value of the dinar are not something new, but many preparations have been made in order for the plan to go ahead.

He says that the decision was made to overcome the economic crises in Iraq.

"To increase the value of the dinar, the government has to increase exports and produce more goods," Mr. Abdullah believes.

Despite the fact that no official spokesperson from the Central Bank has ever issued such a firm decision decreasing the dollar value to 1250 ID from its previous value of 1450 ID has created an unnatural shake in the local markets.

Professor Dr. Narmeen Marouf, an economist, tells the Kurdish Globe that this move from the Central Bank aimed at solving the inflation crated due to the high value of the dollar. "If the value of the dinar goes up, the price of goods will decline sharply; they have been paid off in dollars and are sold in dinars," she says, adding that the Central Bank has also tried before to reduce prices and balance off the supply and demand in the local markets. "As the value of the dinar increases, consumers and the local merchants are the first to benefit."

At the moment, Iraq is not exporting any goods other than oil. Almost all goods in Iraqi markets are imports; hence the inflation, particularly when the value of the dinar declines for having no support, although it is quite possible for a decision as such to be made in order to reduce domestic issues.

The decision will have two beneficiary forces - it will help Iraq vie for foreign markets and reduce prices in local ones.

"Since rumours started that the dinar was going to increase in value, many have faced sever financial damages," Kamaran Ali, of Money Mart, says. However, he does not believe in such a decision. "Increasing the value of the dinar" he says, "will not benefit anyone."

After 2003, the Iraqi Central Bank decided to peg the value of the dinar. Primarily, a dollar was equal to 1,450 ID, until the value of the dinar was reduced and a dollar became 1,470 ID, then 1,500, at which the price the value of the dinar seemed to stay still.

Raising the dinar to reduce prices in market | Iraq Updates

The plan is not knew and preparations have to be made (like withdrawing money) for the plan go ahead.

Number like 1260 are all guesses and nobody knows yet!

I am still for a reasonable level of 1:1

Big increase in the demand for dollar
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

The demand for dollar in the auction the Central Bank of Iraq today, Thursday, recording 60 million and 250 thousand dollars, compared with 17 million and 125 thousand dollars yesterday.
Such requests for the purchase of 22 million and 750 thousand dollars in cash and 37 million and 500 thousand dollars in the form of remittances outside the bank full coverage of exchange rate amounted to 1411 dinars to the dollar, a decline of three dinars on the exchange rate yesterday.

Two of the 15 banks participating in the auction today, the largest number of banks involved in one meeting during the last two months, bids for the sale of $ 200 thousand for the bank bought full exchange rate reached 1409 dinars to the dollar, which is the first since the sale of four meetings.

He expected to Yasiri, a bank dealers with the auction in a statement to the News Agency (Voices of Iraq) Independent, to witness the auction, the return of normal circulation during the forthcoming meetings due to equal the official exchange rate with the rate of exchange in the local market.

ÏæáÇÑ- (ÅÞÊÕÇÏ) :: Aswat al Iraq :: Aswat al Iraq

Return to normal circulation with the official exchange rate!!

Are they saying that they stopped with withdrawing money and that the real exchange rate will be set for the next auction (sunday)?

Please can somebody explain this?

Originally Posted by kiko

Big increase in the demand for dollar
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

The demand for dollar in the auction the Central Bank of Iraq today, Thursday, recording 60 million and 250 thousand dollars, compared with 17 million and 125 thousand dollars yesterday.
Such requests for the purchase of 22 million and 750 thousand dollars in cash and 37 million and 500 thousand dollars in the form of remittances outside the bank full coverage of exchange rate amounted to 1411 dinars to the dollar, a decline of three dinars on the exchange rate yesterday.

Two of the 15 banks participating in the auction today, the largest number of banks involved in one meeting during the last two months, bids for the sale of $ 200 thousand for the bank bought full exchange rate reached 1409 dinars to the dollar, which is the first since the sale of four meetings.

He expected to Yasiri, a bank dealers with the auction in a statement to the News Agency (Voices of Iraq) Independent, to witness the auction, the return of normal circulation during the forthcoming meetings due to equal the official exchange rate with the rate of exchange in the local market.

ÏæáÇÑ- (ÅÞÊÕÇÏ) :: Aswat al Iraq :: Aswat al Iraq

Return to normal circulation with the official exchange rate!!

Are they saying that they stopped with withdrawing money and that the real exchange rate will be set for the next auction (sunday)?

Please can somebody explain this?

Well from what the books say the Official rate has been .30 since 2004. So if he does indeed mean returning to the official rate of .30 then this is big.

On the other hand I hope it doesn't mean a return to the official artificial rate of 1471.

Someone please tell me I'm wrong.

Originally Posted by kiko

Big increase in the demand for dollar
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

The demand for dollar in the auction the Central Bank of Iraq today, Thursday, recording 60 million and 250 thousand dollars, compared with 17 million and 125 thousand dollars yesterday.
Such requests for the purchase of 22 million and 750 thousand dollars in cash and 37 million and 500 thousand dollars in the form of remittances outside the bank full coverage of exchange rate amounted to 1411 dinars to the dollar, a decline of three dinars on the exchange rate yesterday.

Two of the 15 banks participating in the auction today, the largest number of banks involved in one meeting during the last two months, bids for the sale of $ 200 thousand for the bank bought full exchange rate reached 1409 dinars to the dollar, which is the first since the sale of four meetings.

He expected to Yasiri, a bank dealers with the auction in a statement to the News Agency (Voices of Iraq) Independent, to witness the auction, the return of normal circulation during the forthcoming meetings due to equal the official exchange rate with the rate of exchange in the local market.

ÏæáÇÑ- (ÅÞÊÕÇÏ) :: Aswat al Iraq :: Aswat al Iraq

Return to normal circulation with the official exchange rate!!

Are they saying that they stopped with withdrawing money and that the real exchange rate will be set for the next auction (sunday)?

Please can somebody explain this?

I think we need our financial/economic experts opinion on this one to explain it well what they are trying to say here.

WM.Knowles, Socata, Susie, Adster and others please explain what they are saying here?

Originally Posted by clintstella

On the other hand I hope it doesn't mean a return to the official artificial rate of 1471.

Someone please tell me I'm wrong.

I hope not Clintstella!

But if i believe wm.knowles, and i sure believe him, then returning to the old situation was very unlikely.

We have to wait on a good explanation of this one!

I hope it means something we have been waiting for!