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

Iraq military advisor training mission taken on by ‘Big Red One’
Tuesday, 19 December 2006

Brig. Gen. Dana Pittard and Brig. Gen. Terry Wolff explain to members of the edia the plan for training the Iraq Force by using advisors from the U.S. Army’s 1st Infantry Division.BAGHDAD — An entire Army combat division has been given the mission of training U.S. military advisors for duty within Iraqi Army and Police units, a senior U.S. military official said here Sunday.

The U.S. Army’s 1st Infantry Division, based at Fort Riley, Kan., is now responsible for training U.S. advisors for service in Iraq, Brig. Gen. Dana Pittard, commander of the Iraq Advisory Group, told members of the media during a news conference at the Combined Press Information Center.

The change represents “a huge investment,” Pittard said, noting two brigade combat teams based at Fort Riley also are committed to training advisors.

Pittard said he works in tandem with Brig. Gen. Terry Wolff, commander of the Coalition Military Assistance and Training Team, who also attended the press briefing. Pittard and Wolff, oversee the military advisors that support the Iraqi Army, the National Police, and the Department of Border Enforcement.

“We really cover two different areas, but have very, very similar goals, and that is to support the Iraqi Security Forces,” Pittard said.

Wolff said his organization’s some-460 advisors principally help train the Iraqi Army and Navy and also assist these forces in building their logistical capabilities. A portion of Wolff’s advisors are assigned at some 21 Iraqi military and police training centers and schools, he said.

A total of about 5,000 U.S. advisors are now assigned to training or mentoring duties with Iraqi Army or police units, Pittard said.
“We’re excited about where the transition teams have come from and where the transition teams are going,” he said.

A good news story is that some Iraqi security units have already reached high readiness levels, Pittard said. Consequently, embedded U.S. trainers in those units are being reassigned to other duties, he said.

Ongoing training of Iraqi Security Forces is “conditions-based” and keyed on improving the readiness and professionalism of those forces, Pittard said. A year ago, there were just two trained Iraqi Army divisions and a couple of brigades. Today, there are 10 Iraqi Army divisions and about 36 brigades, he said.

“They don’t have to be coaxed to fight,” Pittard said. “They will fight. And the (U.S. military training) transition teams are part of that.”

(Courtesy of Gerry J. Gilmore, American Forces Press Service)

Iraqi government ’detached’ from people, Kurdish politician says

12/19/2006 German Press Agency
Baghdad (DPA) - A prominent Kurdish parliamentarian has accused the Iraqi government of being "detached" from the people, reports said Tuesday. "The Iraqi government is based in the protected Green Zone plus there are disputes among politicians that have led to deterioration and have triggered more rage in the street," the pro-government newspaper al-Sabah quoted Mahmoud Othman as saying.

"The Iraqi street is now left to the militias, terrorists and gangsters," Othman said. "This is unacceptable."

The Kurdish politician, who had been a member of the Iraqi governing council after the fall of Saddam's regime, warned "it will get more difficult to find solutions if more time passes."

Attacks in Iraq have risen sharply during the last three months. The US military's quarterly report to Congress said violence was up 22 per cent. It said that 68 per cent of the attacks were directed at US forces, but that Iraqis suffered the "overwhelming majority of casualties."

dpa German Press Agency

MSNBC - Video Front Page


This is talking about the booming Iraqi economy on msnbc.

currency against the dollar
(Voice of Iraq) - 12-19-2006
This issue was sent to a friend

A sudden rise of the Iraqi currency against the dollar. And doubts the existence of manipulation


- Baghdad (votes)
The dollar? Foreign currency conundrums which depend the most money in the economics of the world has lost its mind in Iraq after the fall of the former regime have become transaction was publicly and without little control or financial control of a court.
Witness the dollar these days is dramatically reduced for reasons which may unaware citizen causes, and rising food prices and increases market Flamingly after the sharp decline in the dollar's exchange rate, she went (prospects) to the companies, Capital Region in Baghdad to know the reasons for this sudden put down to the citizen.
We met with Mr. Hamza Jawad at the director of a major financial company, and asked him :
- What causes the decline in the dollar rate?
He replied : that the sudden and rapid decline indicates the existence of hidden Iyad certain plays in the movement of the dollar, this decline is a natural process, because the natural disembark be gradual. In general, the dollar affected by supply and demand, it is known that the withdrawal of large quantities and this leads to rapid fluctuation; because circulation among citizens is not limited circulation can affect such impact on the market.
- Atqsid that this external circulation, or is it from the inside?
I can not identify bodies, and everything there that the dollar suddenly put to the market in large quantities, put tens of millions in minutes and are speculated upon by the people, and during the hour down the dollar exchange rate, I do not know who put this quantity suddenly. If I came back to economic reality, the logical dollar at this stage must be witnessing remarkable rise; because the pilgrimage season may accept and pilgrims performing Hajj Islam demand for the dollar in this period, a period of the pilgrimage be significant demand must be rising dollar rather than decreases, but contrary to what happened and this strange.
Frankly speaking, I tell you that such a sharp rise will be followed down the process and always be in this form, which presents a large quantity of the dollar then ran out of the market and the latter is aggrieved citizen.
- Do you believe that the decline in the dollar rate in this form would affect the rapid movement of the commercial market?
Affect significantly and negatively on the citizen and any decline of the dollar in general leads to harm citizens, because the citizens in general handle the dollar, but for the trade movement, it remains in Iraqi dinars, and to do so would harm the citizens.
- Going on in the Iraqi street is that one of the reasons for the decline in the dollar rate is the demand for the Iraqi dinar by the Arab countries, so what do you think?
We had heard so any that some Arab countries began circulation Iraqi dinars, I think that this is the face of health, and must be controls to prevent any leakage to the outside of the Iraqi dinar, but was not the main problem in my opinion.
In general I want to tell you that the Iraqi dinar must be measured not at the expense of the dollar or other foreign currencies such as the euro, for example, but we must measure the purchasing power of the Iraqi dinar in the interior of the country.
Now that the local market will increase the prices of commodities at risk of the dollar falling to preserve the value of goods in Iraqi dinars, which leads to increased value of the dollar. For example, the fridge بثلاثماءه sold dollars when the exchange rate (200.000) dinars, and when its rate of exchange (100.000) dinars remaining value of three hundred dollars, and the trader is trying to increase its value to five hundred dollars to balance the value of the Iraqi dinar, and this is causing a problem and the harm to the citizens that if the dollar traders offering their goods in dinars, and if the dollar rose offering their goods in dollars.
We met after a bank staff who refused to reveal the name and announced it the following question :
- What are the reasons that led to the dollar decline? What is the impact of this decline on the local market?
The new Iraqi currency that had been a source of confidence for the citizens in terms of strength and efficiency, this may be the first reason. The second reason, the opening up of trade with neighboring countries, and the confidence of those countries led to the new currency traded outside Iraq and demand has become much.
As it is known in the former foreign trade such as trade in cars and other specific dollar does not satisfy foreign merchant dinars Iraq, but now, after going down to accept the new currency trader space of the Iraqi dinar has led to strength. Also, there is a third reason is the availability of large quantities of the dollar inside the country, where a humanitarian associations and other dollar deal, all provided quantities of the dollar.
According to the law of supply and demand will shrink the value of the dollar. As for the commercial market activity is obvious this market down the dollar. Note that the withdrawal of funds has become a big business and that the movement had witnessed remarkable activity in the markets.
- What is the value of the Iraqi dinar in the neighboring Arab countries? Is it the same value in the home?
I think that the exchange rate more, as one of traders told me that the greatest value of the Iraqi dinar in the neighboring countries.
And then we met with Mr. Hamid Abdel-Hassan's home banking capital, where he made his opinion, and we thank him in the issue of climate and the exchange rate, he said : I think that this change in the exchange rate was due to the circulation space and the high demand for the Iraqi dinar, as well as there are many external transfers of up to Iraq to put an enormous amount of the dollar and the short of what I thought about the reason that the exchange rate. (End)
Major >>>
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Translated version of http://www.sotaliraq.com/

Originally Posted by michael16

MSNBC - Video Front Page


This is talking about the booming Iraqi economy on cnbc.

This is what I was talking about earlier. I saw this on CNBC when it aired....COME ON REVAL.....!!!

Originally Posted by CharmedPiper

MarketWatch - 2 hours ago

http://www.marketwatch.com/news/stor...56F6D156450%7D

Iraq constitution reform vital to oil companies,despite oil law

WASHINGTON (MarketWatch) -- Major international oil companies are unlikely to begin investing in Iraq for at least another year even if a new hydrocarbon law is passed in January, politicians and analysts warn.

In addition to improved security and a new hydrocarbon law, what's needed is a reformed constitution, Iraqi politicians, analysts and insiders say. Only an amended or new national constitution, they say, would create the necessary legal framework for international majors to start making deals to develop the country's vast oil reserves.

The escalating sectarian violence in Iraq continues to represent a bloody barrier to investment. In a report released Monday, the Pentagon concluded that an average of almost 960 attacks a week were waged against Americans and Iraqis this past summer and autumn, the largest number recorded since the Pentagon began issuing the quarterly reports in 2005, the New York Times reported.

But if a unified legal structure could be created, companies could sign deals and begin to work on project plans. They could wait out the violent spasms in the hopes of stability ahead, or even mitigate the risk with private security. Western oil companies have a history of working in battle zones such as Nigeria and Sudan.

Companies such as ExxonMobil Corp. (XOM), Royal Dutch Shell (RDSB.LN), Chevron Corp. (CVX) and CononcoPhillips (COP) have say currently, the country is too much of a security and legal quagmire for them to invest.
ExxonMobil would be interested in participating in Iraq, said spokesman Len D'Eramo. But only "after the establishment of a constitutional rule of law, a certain tax and regulatory regime, and a stable and safe working environment, and if the Iraqi people decide that they want international oil companies to partner with them in developing their resources."

Iraqi Oil Minister Hussein al-Sharistani said late last week the government expected to pass a new hydrocarbon law in January, which has been widely seen as a necessary step to enable the first national oil deals since Saddam Hussein was overthrown in 2003.

Legal Contradictions
But currently, Iraq's constitution is almost completely at odds with the draft hydrocarbon law on one fundamental issue: who has the authority to award exploration and development contracts. "No reliable, well-known oil company has the courage according to the constitution to come to Iraq for investment," Iraqi Vice President Tariq Al-Hashemi said last week during a presidential visit here.

"There are major loopholes in the constitution...and there is a clear-cut contradiction in the authorities between the regions and the central government," Hashemi said. The vice president said he urged President George W. Bush to support his drive for a new constitution.
Because of the contradiction, some say a new hydrocarbon law will be essentially futile unless the constitution is changed to support it.
Even if an oil company did sign a contract with the central government, the deal would be on shaky legal footing, said Mishkat Al-Moumin, ex-Iraqi Environment Minister and former law professor at Baghdad University.
"If anyone wanted to legally object, they would win the case, because (the hydrocarbon law) will be based on the old constitution," Al-Moumin said.
Saad Rahim, a top energy analyst and Country Strategies Manager at PFC Energy, said the constitution's loopholes "certainly make it possible for companies to interpret it in a manner that they can go ahead and invest."
Many smaller companies, such as Norway's Det Norske Oljeselskap (DNO.OS) and Houston-based Calibre Energy (CBRE), have signed potentially lucrative deals with the Kurdish Regional Government on massive prospects in northern Iraq because of its relative safety. The central oil ministry says it view the contracts as invalid, but that it has little authority to enforce its position, and it's constitutionally debatable.

"One of the big reasons majors are holding off right now is precisely this worry that if they were to go ahead and invest under what they see as a legitimate opening, that could later then be challenged on the grounds of the constitution," Rahim said.

Investment Prospects
Iraq's oil sector needs up to $20 billion to raise crude oil production to 3 million barrels a day from below 2 million barrels a day at present.

The country has huge reserves, third only after Saudi Arabia and Iran.
"Many companies feel that they can at least mitigate security concerns to a large extent," said Rahim, whose consultancy regularly provides risk assessment to international oil majors. "A lot of the hesitation is really about what is the lack of clear legal structure behind any investment."

"They wouldn't feel comfortable even with a hydrocarbon law," Rahim said.
Unlike the smaller independents, most of the large internationals are eyeing the bigger oil prospects further south in Iraq. Signing on with a regional government, they fear, would jeopardize their chances of getting into a bigger deal if they offended the central government.

The formation of a new political alliance block of both Sunni and Shia "moderates" might calm the sectarian violence and pave the way for a new constitution, said Louay Bahry, an adjunct scholar at the Washington-based Middle East Institute and a former political science professor at Baghdad University.

The Sunni Iraq Islamic Party is trying to form an alliance with the Shi'ite Supreme Council of Islamic Revolution in Iraq, Arab nationalists, Baathists and small Kurdish parties. The alliance is in an effort to centralize power, unify Iraq and sideline the radical Shi'ite leader Moqtada al-Sadr, whose Mahdi Army has been responsible for much of Iraq's sectarian violence.
The move toward a coalition is an attempt by Iraqis "to get together those like-minded people who want to move the process forward and deal with some of the tough issues that they have before them," said Scott McCormack, the U.S. State Department's top spokesman.
Centralization Versus Regionalism

Earlier this month, the Iraq Study Group recommended that the U.S. support centralization of power in Iraq and warned against regionalism.
Both Bahry and Rahim believe a new constitution that reduces regional authority might initially promote provincial separation, although it would be essential to longer-term stability in Iraq. But Al-Moumin believes increased international and domestic political will for a stable, unified Iraq has weakened the regionalists' position. Like the Kurds in the north who want to form their own autonomous state, al-Sadr wants to create a southern, Shi'ite province.

Rahim noted that Turkey's shared border in northern Iraq gives it the ability to block exports of oil from Kurdish Iraq, which would undermine any Kurdish stance toward separation. If the Kurds wanted to develop nearby oil reserves, their likely export route would be through Turkey. Turkey opposes Kurdish separation from Iraq because it fears that its own Kurdish population may join a national movement.

The U.S. State Department has suggested support for a revised Iraq constitution. Secretary of State Condeleezza Rice said the constitution "may in time need to be revised," she said in a recent interview. A department spokeswoman on the Iraq desk who declined to be named said oil companies had expressed concern that, "there needs to be one hydrocarbon law, rather than competing central and provincial government laws." "[/b]In terms of specific issues, oil companies have indicated they're seeking a single, commercial legal environment with clear, enforceable rules[/b]," the spokeswoman said.

If the Bush Administration supports the drive for a new constitution, it would take at least six months to a year for the process, including ratification, to be accomplished, Rahim, Bahry and al-Moumin said.

"What we need is a comprehensive, brand-new strategy for everything," starting with a new constitution, Iraq Vice President Al-Hashemi said.

If this Article has any credit at all, then we have a few more months to go. By what it says, I would say so.

Originally Posted by neno

If this Article has any credit at all, then we have a few more months to go. By what it says, I would say so.

Well, I'm thinking that's more for the little guys that already started and what about the 60 oil fields they stated starting in Jan I think.

Remember, for every good article day there's 2 bad article days. I think their just playing with us.

Originally Posted by cigarman

Well, I'm thinking that's more for the little guys that already started and what about the 60 oil fields they stated starting in Jan I think.

Originally Posted by cigarman

Remember, for every good article day there's 2 bad article days. I think their just playing with us.

Of Course. But if they need this New Constitution to be in Place for the HCL to Have any Ground to where the Big Boys feel comfortable, then we all know how long it takes to get something done in Iraq. And Now since the Old Constitution doesn't hold ground in a Court with debate, I would say it is going to be along winter and Possibly Spring too. Cause with out the Big Boys this will Die.

And it is not going to Die, cause the Big Boys will get there Constitution.

Originally Posted by CharmedPiper

Finally mainstream media has picked up on Iraq economy. I just heard on CNBC (financial network) headlines that say..."yes, you are not going to believe this but Iraq economy is booming..." I will keep you updated as they discuss it further.

Same thing on FOX early this morning.

OSOK