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

Originally Posted by bluezzguy

Quite a graph-ic graph on how the exchange rate has changed. It does rekindle the question: Such a large move over the last 6 weeks by the CBI, yet it has not shown up in our buy rates at Chase bank. It was still at 782.90/M yesterday. It has been in the $782 range for weeks. Wondering why there is not a more direct correlation between the CBI rate and the marketplace on our end.

Randy

I believe the reason that Chase is not keeping pace with the CBI , is "why make such a small profit on the short term goal , when so much more can be made on the long term gain."
What I mean by that is, if they nickle and dime their customers by the day, it would not be near as profitable, as holding on for the R/V ( THE BIG BANG ) when people will be lining up around the block with millions to do business with them.
The R/V is eminent,and they damned well know it !!!! JMHO
Merry X-mas all

Chase is still selling the Dinar at a healthy profit and does not need to make daily adjustments with the relatively small changes in value.

Originally Posted by IITB

I believe the reason that Chase is not keeping pace with the CBI , is "why make such a small profit on the short term goal , when so much more can be made on the long term gain."
What I mean by that is, if they nickle and dime their customers by the day, it would not be near as profitable, as holding on for the R/V ( THE BIG BANG ) when people will be lining up around the block with millions to do business with them.
The R/V is eminent,and they damned well know it !!!! JMHO
Merry X-mas all

I agree. I have always thought that Chase had a "higher motive' than just doing nickel and dime business. They were one of the first involved in the Trade bank of Iraq and (JP Morgan) Chase has historicaly been involved in large international finance. (They financed the Panama Canal) So, attracting US as customers might well be part of a brillant plan to increase their deposits significantly. How many of us would have over 1 million USD if their should be a decent RV? With Chase's name out front, how many would go to Chase to do business? A big bunch! Pretty soon your talking about real money. Thank You.

Originally Posted by michael16

Head of Stock Exchange Trustees: it is time to implement the Investment Law Head of the Iraqi Stock Exchange Trustees: it is time to implement the Investment Law
20/12/2006
Source: Translated by IRAQdirectory.com

Head of the Iraqi Stock Exchange Trustees, Talib Tabatabai, confirmed that security situation is what hinders the Stock Exchange more than anything, and it is the reason behind the considerable challenges faced by the investor... However, he pointed out that the current situation is temporary and exceptional; therefore, the performance must be maintained consistently, as illustrated by general indicators, which confirms that the development in performance continues to be a salient feature in the march of the market.

Tabatabai added in a press statement: that the investment law being not activated, its members are not appointment and working by it has not started, created a great disappointment among investors in the Iraqi bourse, particularly that efforts have been made by workers in the bourse to update its performance; electronic equipment and supplies are being installed and Stock Exchange rooms are being organized for this purpose. He added that such electronic boards are used for the first time in Iraq...

Tabatabai expressed his hope that many factors will help the investments by shareholders better than it is now. In the forefront of these factors is the security situation.

Tabatabai pointed out that the number of shares that have been circulated in the month of September amounted to 4,212 billion shares, at an average of 527 million shares in a session, registering an increase of 54, 9% on last August. As for the volume of transactions in the month of September, Tabatabai said that they amounted to 8,422 billion dinar; that is 1,052 billion dinar in a session; and the number of contracts executed in the same month, increased to reach 2928 contracts for the month of August.

Tabatabai also stated that the banking sector is the main engine of the market, as this sector has achieved greater relative importance.

update its performance; electronic equipment and supplies are being installed and Stock Exchange rooms are being organized for this purpose.

I particularly like this bit.

Originally Posted by michael16

Head of Stock Exchange Trustees: it is time to implement the Investment Law Head of the Iraqi Stock Exchange Trustees: it is time to implement the Investment Law
20/12/2006
Source: Translated by IRAQdirectory.com

Head of the Iraqi Stock Exchange Trustees, Talib Tabatabai, confirmed that security situation is what hinders the Stock Exchange more than anything, and it is the reason behind the considerable challenges faced by the investor... However, he pointed out that the current situation is temporary and exceptional; therefore, the performance must be maintained consistently, as illustrated by general indicators, which confirms that the development in performance continues to be a salient feature in the march of the market.

Tabatabai added in a press statement: that the investment law being not activated, its members are not appointment and working by it has not started, created a great disappointment among investors in the Iraqi bourse, particularly that efforts have been made by workers in the bourse to update its performance; electronic equipment and supplies are being installed and Stock Exchange rooms are being organized for this purpose. He added that such electronic boards are used for the first time in Iraq...

Tabatabai expressed his hope that many factors will help the investments by shareholders better than it is now. In the forefront of these factors is the security situation.

Tabatabai pointed out that the number of shares that have been circulated in the month of September amounted to 4,212 billion shares, at an average of 527 million shares in a session, registering an increase of 54, 9% on last August. As for the volume of transactions in the month of September, Tabatabai said that they amounted to 8,422 billion dinar; that is 1,052 billion dinar in a session; and the number of contracts executed in the same month, increased to reach 2928 contracts for the month of August.

Tabatabai also stated that the banking sector is the main engine of the market, as this sector has achieved greater relative importance.

I think the statement in blue is a huge key to this reval. This electronic equiptment was probably the hold up. The first week of the new year should be very exciting!

Originally Posted by wherbie

I dont know......3.22 seems way to high to me, oh its a nice number no doubt,

I cant see it the same as Kuaite...everything in Kuaite is so much nicer...

and running smother...too much strife in Iraq now, and for the next couple of years, as Iran and its Syrian dogs will try to take over Iraq...

The corrupt Sunni's are running the Baghdad Police dept....in a city of 3 M people

and the corrupt Shities are running the Army....not to mention 60 corrupt public officials who have been kicked out of the general assembly....

oh and about 10 Billion USD stolen by corrupt officials....

that is without even mentioning Al Dwaria ...whats his face...the rag head with the beard....


but 1: 1 Might be entertained......in about a year...to me thats believeable

You did not just say "rag head" did you?

Bored at work so I went on a few converter sites, here's the results (if anyone's interested that is??)

xe.com
1 GBP = 2,714.03 IQD

Go
1 GBP = 2,712.99IQD

Halifax
1 GBP = 2,573.72IQD

Oanda
1 GBP = 2,595.48IQD

Yahoo
1 GBP = 2,714.14IQD

WASHINGTON, Dec 20, 2006 (Dow Jones Newswires)

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 views 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."

"In terms of specific issues, oil companies have indicated they're seeking a single, commercial legal environment with clear, enforceable rules," 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.

RIGZONE - Iraq Constitution Reform Vital to Oil Companies, Despite Oil Law

Wed Dec 20, 3:00 AM ET

BAGHDAD, Iraq - U.S.-led forces captured a senior al-Qaida leader who was responsible for hundreds of civilian deaths and housed foreign fighters who carried out suicide bombings, the U.S. military said Wednesday.

The leader, who was not identified, was arrested in a raid in Mosul on Dec. 14, the military said.

Senior al-Qaida leader captured in Iraq - Yahoo! News

EXCLUSIVE-Iraq officials reach tentative oil law deal-sources (Reuters) Dec 20 2006 14:27

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