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

WASHINGTON (Reuters) - Iraqi Prime Minister Nuri al-Maliki on Friday told President Bush he aimed to improve security in Baghdad by targeting "all sources of violence", including insurgents and militias, a White House spokesman said.

Bush and Maliki, who took office seven months ago as head of Iraq's Shi'ite-led coalition government, spoke for 30 minutes on Friday afternoon via a secure video link, said White House National Security Council spokesman Gordon Johndroe.

During the conversation, Maliki outlined plans for a national conference on Saturday in Baghdad that is designed to halt mounting sectarian violence that has raised fears of civil war, Johndroe said in a brief statement.

Maliki "talked about his desire, and the desire of many in Iraq, for a larger core of Iraqi political leaders to come together for the common objective of stabilizing Iraq and promoting the rule of law," he added.

"The prime minister also talked about providing greater security, in particular in Baghdad by going after all sources of violence, including insurgents and militias," he said.

Bush reiterated his support for Maliki, and said he was encouraged by his recent meetings with Iraqi Vice President Tariq al-Hashemi and Abdul Aziz al-Hakim, leader of the powerful Shi'ite Supreme Council for Islamic Revolution in Iraq, according to the spokesman.

Hashemi told Al Jazeera television on Friday that Bush had called for decisive action to halt the bloodletting when they spoke earlier this week.

The conference will bring together Kurdish, Shi'ite Muslim and Sunni Arab politicians from Baghdad's ruling coalition, and figures from Saddam Hussein's former Baath party, who have lived abroad since the U.S.-led invasion in 2003.

They are likely to discuss issues ranging from the presence of U.S. and other foreign troops to sectarian militias.

Bush, facing growing criticism over the war, is considering options ranging from a short-term increase in U.S. troop strength in Iraq to changing the mission there from fighting insurgents to supporting Iraqi forces.

http://today.reuters.com/news/articl...News-newsOne-8

Dinar soars: Iraqi currency hits 2-year high
Dinar soars: Iraqi currency hits 2-year high
11/12/2006
Source: The Chronical Herald

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

SARAH

Originally Posted by cigarman

Bad thing is there's another article written today stating that the Iraqi oil union wants the HCL dismantled. They feel to much is given to the foreign corps. and it steals the wealth from Iraq. Truth be known their probably right.

It was a day before the others. Remember they (Iraq) Change often. Plus I believe that same article you are referring too, said things like certain important people of Iraq was not present. Hug-Wash. Those certain Important People are the ones working it out for enactment.

Originally Posted by neno

In the Tax Thread Please.

More like , In the ARE YOU FRIGGIN NUTSSS??? Thread. Jmho.

Dinar boosted by growing confidence in Iraq recovery
Reuters, 01.12.04, 6:36 AM ET


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By Suleiman al-Khalidi

BAGHDAD, Jan 12 (Reuters) - Iraq's dinar currency climbed back to 1,500 to the dollar last week, the postwar high reached a month after the fall of Baghdad, helped by growing confidence that the country is on the path to recovery, traders said.

The dinar has risen steadily in recent months after falling back to 2,200 last year on concerns about security. It was at 2,000 during the final year of Saddam Hussein's rule.

Currency traders say that for the first time since the end of major combat last April more Iraqis are holding on to the dinar as a savings vehicle after years of hoarding dollars.

"Before, at the end of a working day, I wouldn't keep my Iraqi dinars and would change them to dollars. Now I am increasingly keeping my holdings in the dinar," said hotel owner Alaa Jabari.

Demand for the dinar has been boosted by a surge in currency smuggling which has seen hundreds of millions of dinars taken to Kuwait, Jordan, Egypt and the other Arab states, traders said.

"There is strong demand from neighbouring countries. They think the dinar is undervalued compared to the dollar and they expect the dinar to rise in the medium and long term," said Mohammad Hassan al-Jashmae, who runs a currency exchange firm.

Bankers say that by pushing the dinar to around 1,500 to the dollar, Iraq's central bank has attained its initial target to bolster the local currency, a step towards beefing up the incomes of state employees whose salaries are now paid in dinars.

The dinar is also being helped by a glut of dollars in the market from U.S. Army payments to contractors and thousands of Iranian Shi'ite pilgrims visiting the country's religious shrines, along with the sales of dollars by speculators.

"The supply of dollars in the market exceeds demand ..and currency speculators from neighbouring countries are changing their dollars to dinars... there is a surplus," said Ali Jamil, a currency trader.

Confidence in the new currency is being underpinned by a widespread perception that Washington will pump billions of dollars into reconstruction projects this year.

"America is saying: I want to restore your economy. Before the war U.N. sanctions were pushing the economy towards more deterioration," said Zuhair Ali, a currency trader.

Last October the central bank implemented a U.S. plan to replace the old currency with new notes printed in Britain. The old dinar bearing the face of Saddam Hussein will cease to be legal tender as of January 15.

As the new currency began to be introduced, the central bank began intervening in the foreign exchange market for the first time in years, selling dollars from the country's oil revenues to strengthen the dinar.

The limited circulation of the new currency as compared to the open-ended printing of old notes by Saddam's political leadership has also helped the dinar.

"Printing is limited, it's not like before when it didn't have any value and was printed in abundance without meaning because somone high up in Saddam's circle wanted to pump in money for the war effort," said Firas Shabaan, another currency trader.

For many Iraqis the strengthened dinar is a sign their potentially rich country is on the path to recovery.

Many remember the 1980s when the dinar was worth three dollars before war and sanctions caused its collapse.

"We have our dignity ... Our dinar will go back to its strength one day when one dinar was worth three dollars because we are a very rich country," said dealer Alaa Mandalawi.

Copyright 2004, Reuters News Service

GO DINAR GO!!!!!
SARAH

90 minutes a new thread will start. Same title and Back to the Thread rules. Just letting you all that Bookmark the threads, that it will change in 90 minutes are so to move the counter to History. After a r/v, you can have it all for the Celebration.

Originally Posted by DayDream

I need to apoligize to bill..didn't mean to snap but it really bugs me that I took all that time to relay what I think is relevant about the 1500 and 1450 dinar figures. I wanted to cut some articles short, but they mentioned these figures throughout them. I'm sorry I posted it now because it seems to make no sense to anyone, and I am truly sorry I wasted everyones time.
Cheers!
DayDream

Are you kidding me????

That was one of the best posts that I have seen in recent days with a true sense of research. Articles are one thing but to go back and find all of these articles to back up your points is truely commendable.

I DO NOT want to hear anyone giving grief to Dreamer for this excellent post.

Dream please know that your thoughts and insight are truely appreciated by those that have the capacity of comprehending them.

Keep the articles and insight coming...i gotta feed my little prince.

While I have a minute...

I wanted to say thank you to all for your kind words and support. It means quite a bit to myself and my wife when we came home to over 30 pms of kind words and well wishes.

My little boy healthy and perfect...thank you all once again.

Please keep the articles and the commentary coming...i wish that i had the time and the brainpower to contribute...but alas, one hour of sleep a night is fogging my brain

Released by the Coalition Provisional Authority
At the "Conference on the Role of the Private Sector in the Development of the New Iraq"
Madrid, Spain
October 23, 2003

Iraq is a uniquely attractive place to do business in the Middle East. Iraq has bright, hardworking, and resourceful people, rich agricultural resources, abundant natural resources including oil, phosphate, and sulphur, a population of close to 25 million people, and a central Middle East location. Iraq is rapidly recovering from the effects of the war and decades of under-investment. When the recovery is over, the potential of Iraq’s people and abundant resources will be unleashed in the country’s newly free markets.

The Market

Iraq has close to 25 million people with pent-up demand for goods and services they have been unable to purchase for years. Since the war, consumption has increased as a result of a significant increase in wages and the opening of international trade. A surge in investment financed by foreign donors will result in new jobs which will further accelerate consumption and growth in 2004. The recent establishment of a new, sound currency, transparent legal environment, and a friendly business environment will help ensure strong, sustained growth in the years ahead.

The Legal Environment

The new foreign direct investment law permits investment by foreigners with very few restrictions. Signed in September, it permits foreign investors to own up to 100% of enterprises in all sectors except natural resources. Profits, dividends, interest, and royalties may be fully remitted. Land may not be bought, but it may be leased for up to 40 years. Iraq recently passed a new banking law permitting six international banks to soon begin providing credit and other banking services in Iraq. Iraq is currently establishing a new set of commercial laws to assure investors of enforceable property and other rights, bankruptcy protection, foreclosure capability, and a well-functioning judicial system for settling commercial disputes. Taxes and tariffs are low. Iraq has a flat 5 percent tariff. Currently there is holiday on corporate and personal income taxes. Corporate taxes are limited after the tax holiday at 15%.

Attractive Industries

Oil and related businesses dominate the economy in Iraq. However, since the war the private sector has been expanding rapidly in retailing, wholesaling, and transport. As a result, consumer packaged goods and electronics are doing well. Construction is also benefiting from the rebuilding efforts underway. The heaviest infrastructure investments in 2004 are likely to be in electric power, oil production, refining, distribution, and water treatment. Industries such as cement, aggregates, and other construction materials are expected to do well. Shifts towards a more market-oriented economy, especially the replacement of the food basket with cash payments in 2004, will spur domestic food and beverage processing and distribution. Iraq production of petroleum, natural gas, phosphates, and sulfur will drive demand for equipment related to these industries such as drilling and pipeline equipment, excavating equipment, processing equipment, and refining equipment. Just as important as these mineral resources, Iraq has vast areas of fertile land and the most precious commodity of all in the Middle East, water. After decades of underinvestment, Iraq’s agriculture sector is poised to make the country once again the bread basket of the Middle East.


Why Invest in Iraq?

Allows US Citizens to invest in the New Iraq . Under this Order and the Coalition Provisional Government Order 39, a US citizen has the same rights to investments as an Iraqi citizen

IRAQ (PRWEB) March 2, 2004 -- Investment in the new Iraq is guaranteed under the Presidential Order 13303 removing sanctions on investment in Iraq . The new order allows for a restructuring of the banking system in Iraq . US citizens are allowed to invest in Currency, Stocks, Bonds, Real Estate and Business in Iraq .

Iraq has a new currency to replace Iraq ’s two currencies, one of which was easily counterfeited and mostly circulated in a single denomination. Banks issue only the new currency and government employees paid in cash will receive their salaries in the new currency. Until January 15, 2004 the old and new currencies will circulate freely at a fixed exchange rate. Exchange between the old and new currencies is conducted at now charge at multiple exchange points around the country.

The other financial market structures are strong:

95 percent of all pre-war bank customers have service and first-time customers are opening accounts daily. Iraqi banks are making loans to finance businesses. The central bank is fully independent. Iraq has one of the world’s most growth-oriented investment and banking laws.

The new Iraqi dinar which is printed bu De La Rue company in the US and Great Britian, is valued at just 2 tenths of one cent today. The US treasury has a strong dinar policy and is working with the CPA (Coalition Provisional Authority) to reinstate a strong decentralized banking system in Iraq . By December 2004 there will be six Western Banks in Iraq and six Iraqi Banks outside Iraq in operation. In March Three banks were given licence to operate in Iraq, National Bank of Kuwait, HSBC Bank and Charter bank of England .