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

Originally Posted by SoFla

Iraq is not a member of the GCC. I have a hard time with the thought that they will or are being looked at to even join. If you know of any document or article where this has been stated, please post the link.

Thanks...

Let me see if I can clarify a little bit...

New Iraq Can Join GCC: Bahraini Minister

Agence France Presse, Arab News

MANAMA, 19 October 2003 — Post-Saddam Hussein Iraq is in a position to join the Gulf Cooperation Council (GCC), either partially or as a full member, a Bahraini minister said yesterday. “I believe Iraq is in a position to join the GCC, either partially or as a full-fledged member,” Trade Minister Ali Saleh Al-Saleh told reporters.

POST-SADDAM IRAQ CAN JOIN GCC: BAHRAIN
"Post-Saddam Hussein Iraq is in a position to join the Gulf Cooperation Council (GCC), either partially or as a full member, a Bahraini minister said [Oct 18].. ..Iraq 'is a Gulf littoral state and has already sat in regional organizations alongside the six GCC members,' he said.."

New Iraq Can Join GCC: Bahraini Minister

The Gulf Cooperation Counsel is a 6 member counsel of the gulf states of Kuwait, Saudi Arabia, Qatar, Bahrain, the United Arab Emirates and Oman. They are schedualed to all come under one currency (similar to that of the Euro) in 2010. These countries all have 3 things in common...

1. They are all gulf states.
2. They all have oil.
3. They are all going to peg that new currency to the dollar.

The Gulf Cooperation Council seeks to strengthen cooperation (in areas such as agriculture, industry, investment, security, and trade) GCC members have agreed to establish a customs union in 2005 and a broader economic union (including a single market and currency) by 2010.

The presidency of the Gulf Cooperation Council rotates yearly among members. Council headquarters are in Riyadh, Saudi Arabia

Based on the news articles below we can come to the conclusion that the GCC wants Iraq and vise versa...

New Iraq Can Join GCC: Bahraini Minister

"MANAMA, 19 October 2003 — Post-Saddam Hussein Iraq is in a position to join the Gulf Cooperation Council (GCC), either partially or as a full member, a Bahraini minister said yesterday. “I believe Iraq is in a position to join the GCC, either partially or as a full-fledged member,” Trade Minister Ali Saleh Al-Saleh told reporters."

Iraq Seeks GCC Entry

Associated Press, Arab News

KUWAIT CITY, 7 December 2003 — A member of Iraq’s Governing Council said yesterday that his country wants to join the six-nation Gulf Cooperation Council and has the right to belong to the regional organization.

Ibrahim al-Jaafari, a member of the US-appointed Iraqi council, made the statement two weeks before a summit meeting of GCC leaders is scheduled in Kuwait.

“We believe that the new Iraq has to be a member of the GCC,” Al-Jaafari told reporters on the sidelines of a conference on Islamic groups and political reform. “(Iraq) doesn’t only have the right to belong, it can also offer strong backing and support for the Gulf countries.”

The council groups Kuwait, Saudi Arabia, Qatar, Bahrain, the United Arab Emirates and Oman. Iraq was never a member, but it was represented in some of the GCC’s cultural and sports organizations.

Iraq’s ties to the organization were cut when President Saddam Hussein ordered the invasion of Kuwait in 1990 and the Iraqi Army occupied the country for seven months. A US-led coalition liberated the country in the 1991 Gulf War.

“Iraq is a country that overlooks the Gulf, this is a truth... it is actually an Arab Gulf country,” Al-Jaafari said. If the regime of Saddam Hussein was an obstacle, it is gone now, he added.
Al-Jaafari said he has discussed this with all Gulf states and “found nothing but positive positions.” Ties between Kuwait and Iraq were severed until the United States and Britain invaded Iraq and removed Saddam from power in April.

Although this article states that Iraq is not ready for the GCC (this was in July of 2004), it does state that the GCC will play an important role in Iraq's future.

Iraq 'not healthy enough' for GCC
Thursday 15 July 2004, 11:56 Makka Time, 8:56 GMT

Don't expect Iraq to join the Gulf Cooperation Council (GCC), says Iraq's president. At least not yet.

It is unrealistic for Iraq to ask to join the six-member council due to the current political situation said Iraqi President Shaikh Ghazi al-Yawar on Wednesday.

"I believe this request is unrealistic," Yawar told reporters in Baghdad after meeting with members of the country's new appeals court.

"We in Iraq are not in a position that would allow us to impose upon our brothers (such a request)."

He said Iraq faces a lot of problems and is in no position to join "a very organised and healthy body," like the GCC, which groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Economic quarantine

Yawar likened a request by Iraq to join the GCC to someone with a severe cold asking to come into your home.

"Maybe, in the future, when Iraq recovers, by then, these countries will be ready to accept the democratic Iraq. We will play an important role," he said.

The GCC and its member countries have welcomed the interim government installed by US-led occupying forces.

Before Saddam Hussein's invasion of Kuwait in 1991 and the end of diplomatic ties between Iraq and the GCC states, Baghdad was granted the status of observer during some of the council's summits and meetings.

Furthermore given this table, we can see that the 6 gulf states are equally divided economicaly in reguards to their currency...

1 US Dollar = 3.75020 Saudi Riyal -current banknotes:1,5,10,20,50,100,500
1 Saudi Riyal (SAR) = 0.26665 US Dollar (USD)

1 US Dollar = 3.64000 Qatari Rial - current banknotes:1,5,10,50,100,500
1 Qatari Rial (QAR) = 0.27473 US Dollar (USD)

1 US Dollar = 3.67450 Utd. Arab Emir. Dirham -current banknotes: 5,10,20,50,100,200,500,1000
1 Utd. Arab Emir. Dirham (AED) = 0.27 215 US Dollar (USD)

----This space officially reserved for Iraq ----

1 US Dollar = 0.37701 Bahraini Dinar -current banknotes:1/2,1,5,10,20
1 Bahraini Dinar (BHD) = 2.65245 US Dollar (USD)

1 US Dollar = 0.38599 Omani Rial -current banknotes: 1,5,10,20,50
1 Omani Rial (OMR) = 2.59074 US Dollar (USD)

1 US Dollar = 0.29353 Kuwaiti Dinar -current banknotes: 1/4,1/2,1,5,10,20
1 Kuwaiti Dinar (KWD) = 3.40681 US Dollar (USD)

Iraq seeking GCC support

By TARIQ KHONJI

IRAQ sent out an appeal to the GCC and Iran yesterday, calling for their help in rebuilding a secure country.

Their role is vital in restoring order and helping to strengthen Iraq's ability to function and defend itself, said Foreign Affairs Minister Hoshyar Zebari.

"We believe that Iraq and the GCC countries are very close to each other in terms of culture and identity and we hope that this will lead to significant co-operation among our countries," he said.

Gulf Daily News

Published: 11/12/2006 12:00 AM (UAE)
Leaders pledge support to Iraqis

By Duraid Al Baik, Foreign Editor


Riyadh: The Gulf Cooperation Council's 27th Summit called for a solution to the problems facing Iraq from within the country and pledged all possible support to the Iraqis

Gulfnews: Leaders pledge support to Iraqis

So, as you can see the GCC is definitely a viable option for Iraq, and Iraq will be a key player in the GCC. Who has the largest (potential) oil reserves in the world...Iraq. If you had a club, wouldn't you want the richest kid on the block to be a part of your club?

By Reuters
Tuesday December 26, 07:10 PM

NEW DELHI (Reuters) - State-run Oil and Natural Gas Corp. (ONGC) and its private competitor Reliance Industries Ltd. (RIL) are in talks to jointly develop Tuba oil field in southern Iraq, top ONGC officials said on Tuesday.

ONGC, through its overseas investment arm ONGC Videsh Ltd., along with RIL and Algeria's Sonatrach tried in 2000 to secure the field in Iraq for production of crude oil.

A senior company official, who did not wish to be identified, said ONGC had initiated talks with RIL and Sonatrach to revive the consortium and pursue the opportunity jointly.

ONGC chairman and managing director R. S. Sharma confirmed the project was being discussed, telling Reuters: "Yes we are in talks with Reliance on Tuba field."

A Reliance official declined to comment.

The ONGC official who declined to be named said discussions were still at a preliminary stage. He said ONGC and RIL were expected to hold a 30 percent stake each in the project-specific consortium and Sonatrach would hold the remaining 40 percent.

Iraq is expected to enact an oil law that would allow the regions to negotiate oilfield contracts with foreign investors.

Iraq desperately needs foreign investment to revive its shattered economy, which relies heavily on oil export revenues. The country straddles the world's third largest oil reserves.

Analysts say if the consortium works out, it will be the first time that two arch rivals, ONGC and Reliance, work together abroad rather than competing.

"It is a great story. Cutting throats will not help. Cooperation is good for the companies and the country," said Anushree Sinha, senior fellow at National Council of Applied Economic Research.

India imports 70 percent of its crude oil demand.

Shares in ONGC ended 2.64 percent up at 888.10 rupees in a firm Mumbai market, while Reliance shares closed 0.42 percent firmer at 1,276.75 rupees.

ONGC, Reliance jointly eye Iraq oil field

An unusual because of the presence of Barzani's Kurdistan Parliament
Jayman favor of
Arbil - (Voices of Iraq)

The Kurdistan Parliament today, Tuesday, the unusual presence in Erbil Mr. Masoud Barzani President of Kurdistan.

He said the essence of Mr. Tariq Media Advisor to the President of the Parliament in a statement to News Agency (Voices of Iraq) Independent today that the "ad hoc meeting, in principle, to discuss and debate the President's visit to Baghdad and the region, which lasted months."

But he added, "and could be addressed Barzani and other issues important during his address before the parliament."

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MENAFN - 26/12/2006


(MENAFN) An American energy analyst that a plan gaining favor in Washington to distribute Iraq's oil revenue directly to its people could put $3,500 a year in the hands of every adult Iraqi citizen, AlArab Online reported.

The analyst said that his estimate was based on an oil price of $60 a barrel, $10 a barrel production costs, and the assumption that 10 million Iraqis would be old enough to qualify for a share of their country's oil wealth.

He said that the best way to administer the program may be to give the money to those who register to vote and maintain a bank account, thus promoting social involvement and stability.

However, opponents say distributing the money would be difficult due to logistical and corruption problems, but the idea has picked up advocates as the United States looks for ways to stop the chaos that has followed the 2003 invasion that toppled Iraqi leader Saddam Hussein.

Iraq produces 2.2 million barrels of oil a day and exports 1.5 million barrels, according to the Iraq Study Group Report issued earlier this month.

Estimates for current average annual income in Iraq vary widely, but top out at around $1,500 a year.

MENAFN - Middle East North Africa . Financial Network News: Iraq's oil revenue may provide every Iraqi with $3500 a year

Economic : The Oil Ministry is seeking to build the largest oil refinery in Iraq

Baghdad :

Al-Sabah Al-Jadeed An official source at the Oil Ministry said that the ministry was currently negotiating with the company (ABB hit a raw) and the Company (Howe Wacker) and the American (Stiank), in addition to one Iraqi companies to proceed with the implementation of building a refinery Mesopotamia, in the governorate of Karbala bounties south of Baghdad. "

The source pointed out that the ministry asked the companies to make some amendments to the submissions from before, "he said, emphasizing that these amendments technical, commercial and related amounts for the implementation of the project and develop methods and clear of contract.

He added that this project would be subject to approval by the Council of Ministers after the termination of negotiations for ratification.

He added that the project, whose design capacity of 140 thousand barrels of crude oil, will provide all types of derivatives to a number of Central provinces in which it is located.

Stressing that the direct implementation of this project will be in the first quarter of next year, adding that to be implemented Stsgrk three years, and that the cost will exceed $ 2 billion global art techniques for building oil refineries.

The source pointed out that the refineries in Iraq has suffered from benign neglect for many years by not building any refinery in Iraq since the mid-1980s. Pointing out that the ministry had prepared a plan to build a number of refineries various sizes in all governorates.

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Pump, pump, pump!

Former Planning Minister : 95% contribution of oil
(Voice of Iraq) - 12-26-2006 Former Planning Minister : 95% contribution of oil in the budget ...

Hafiz : Iraqi economy depends on the international oil markets Baghdad-Adel Mahdi life-26 / 12 / 06 / /

Basrah Refinery A member of the House of Representatives and Minister of Planning and Development Cooperation Mahdi Al-Hafiz, former Iraqi, that the oil revenues represent «source basis for the financing of the state budget by 95%, and the source of foreign currency, which provide cash cover of the national currency, as a proportion of 65% of GDP», pointing out that they «event known to all the parties».

However, he explained that the new order is in the «deterioration of economic conditions in the form of serious, particularly the productive sectors, especially industry and agriculture». Pointing out that the proportion of the contribution of industry to GDP «ranging between 1.5% and 2%, while a fall in the past, specifically in the early 1980s between 8 and 10%. Agriculture dropped its contribution to GDP to 3% after the increase of 12% in the same period ».

The keeper This means that «our economy today is the continued fluently and nature dependent on the outside world». Since it was «subject of the world oil market to determine the size of its financial resources at the sharp pendulum hand, as well as the fact that importation is the center of gravity to cover demand in the local market for vital goods, from food and consumer medicines, medical supplies and even services», «He gave this to the inability of industry and agriculture on the performance of this task». He believed that the Iraqi economy is so «recipient of external shocks, whether through export or import».

He called «keeper to take seriously the gravity of this case, especially as it is accompanied by negative phenomena, originating primarily from the subordination of the working space, including the rise in the rates of inflation and high prices». Pointing out that «inflation rate now stands at 60%, after undergone in the past few months in the case of the pendulum, as the rate exceeded 70%».

He believed that the reason for the President «that is total reliance on external market. And make this dependence Iraq now suffers from the phenomenon of imported inflation, bringing the Iraqis do not find in the market only fruits and vegetables the Egyptian, Syrian and Jordanian perhaps, with no one to industrial goods but what is imported from abroad ». The social case, it is Frey b «worsening living conditions for the largest groups of the population, which had suffered from high unemployment rates of around 50%, as well as the aggravation of the phenomenon of absolute poverty or extreme».

He pointed out that these negative features «still without addressing the real amount to a high level of a sense of national responsibility, in the circumstance is the economic performance of the State phenomena worrying whether on the level of capabilities and performance of the executive branch, or on the level of the spread of the phenomenon of corruption, which poses the past the need for economic reform at the level of policy or structural and economic institutions». The keeper that economic reform required «Covering broad, the most important address of laws, regulations and instructions that cripple the Iraqi economy, and hamper the conversion to a market economy, an active and vital».

He said : «If there is one correct view of the need now to the integration of the Iraqi economy, the global economy, it must remember that correct this trend is directly linked to increasing the competitiveness of various sectors of the national economy, especially productivity, and expand the volume of export and reducing import limits appropriate and deliberate». He said the «diversify the production base is important strategy in the first place, and should be regarded as the foundation of economic reform in the desired».

He believed that «Iraq suffers from a major problem in the policy formulation and implementation, while the difficult security situation remains the most important factor in the region and the priority tasks of national peace, but there is no reason to give greater attention to the mobilization of financial resources and management in the form of sound, according to a balanced provide an opportunity for all parts of the country and areas of benefit in the form of equitable».

Hafiz said : «If Iraq is happening today is about 17 or 18 billion dollars in cash reserves, and if the Iraqi Development Fund maintained at about six to seven billion dollars, the search must then seriously in the distribution and management of resources in the form of Rasheed».

Sotaliraq.com

Source: Saddam death sentence upheld - Conflict in Iraq - MSNBC.com

BAGHDAD, Iraq - An Iraqi appeals court has upheld the death sentence imposed on Saddam Hussein at his first trial, Iraq’s national security adviser said Tuesday.

“The appeals court approved the verdict to hang Saddam,” Mouwafak al-Rubaie told The Associated Press.

On Nov. 5, an Iraqi court sentenced Saddam to the gallows for the 1982 killings of 148 people from a Shiite Muslim town after an attempt on his life there.

Originally Posted by Dinar Cha Ching

You're right, I should've said barring a GCC currency. No, I don't think $4+ is out of the question (barring a GCC currency) once it is indisputably proven that Iraqs reserves are larger than all other ME oil producing countries. Even if you don't accept $3.22 and take the black market rate of $1.60 that was based on 2.5mbd, their goal is 6-8 mbd. Once Iraq starts to develop it's fields (90% unexplored) and add the water resources and agriculture I don't think $4+ in the future is reaching, barring a GCC currency of course. Besides Kuwait is currently at $3+ and they're going to be like a flea on an elephant compared to Iraq.

It's not reaching....All of the points are factual. look at it this way, today eventhough the oil exports are lower than before the war the income from oil exceeds the previous levels and 80% debt gone and the rest soon to vanish. Well even if they decide to raise the rate modestly to 1.20, the reality is that 3.22 is available just not realized. Under these conditions 4.00 is easy. Plus a few months back we read that all the ME nations pegged to the dollar were drastically undervalued. I'm some cases as much as 27%....so we are living in interesting times.

Originally Posted by wciappetta

It's not reaching....All of the points are factual. look at it this way, today eventhough the oil exports are lower than before the war the income from oil exceeds the previous levels and 80% debt gone and the rest soon to vanish. Well even if they decide to raise the rate modestly to 1.20, the reality is that 3.22 is available just not realized. Under these conditions 4.00 is easy. Plus a few months back we read that all the ME nations pegged to the dollar were drastically undervalued. I'm some cases as much as 27%....so we are living in interesting times.

You are right about that!

What a potential this investment got. I will try to sit on as much dinars as I can for a longer period.

I only cash in for my biggest needs!

The prime minister's statement to the press

(Voice of Iraq) - 12-26-2006
This issue was sent to a friend

Tuesday 26 / 12 / 2006

Press statement

Prime Minister Nuri al-Maliki that the whole dictatorship is gone and will not return, we are involved in the policy reforms on all directions and creating an institution for the restoration of the rights of Iraqis, they had underestimated by the regime and its lost, and to promote justice and our rights in the new Iraq.

This came devoid of care today for the ceremony at the distribution rights of their citizens and confiscated affected by the policies of the former regime who had their property confiscated illegally and outside the law.
Here sovereignty of citizens who have regained their rights during the amounts distributed to the beneficiaries, saying the government was determined to restore the usurped rights and the confiscation and lifting injustice citizens by the arbitrary policies of the former regime as soon as possible and compensate them.

He also urged the sovereignty of the solution to property disputes to hear complaints and justice for the victims of injustice and expediting the completion of the human Matbqi to Iraqis who have lost property and possessions in the era of the former regime.

He praised the efforts of the sovereignty resolve property disputes in the completion of this work and the legitimate national legal mechanisms used by the Iraqi government encourages and invites Ka Foundation of the State of law will be respected and safeguarded the rights of the oppressed.