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

Please excuse if article has already been posted. Thank you

A Law for Investment in Iraq
Ali Al-Fikaki Al-Hayat - 19/12/06//T

he Iraqi Presidency Council issued Investment Law No. 13 of 2006, containing provisions for regulation, rights and encouragement for investors, encompassing Iraqis and non-Iraqis, designed for the phases of establishment and operation. The law aims to attract and encourage investment and the transfer of modern technologies to the country; to encourage both the Iraqi private sector and foreign investment in the country; to protect the property rights of investors and their profits, and the expansion of exports and enhancing the competitive edge at home and abroad.

The law covers all branches of investment, production and service activity, except for the extraction and production of oil and gas, banks, and insurance companies. However, it did turn out that the extraction activities for other minerals, in addition to the mineral refining and oil refining sectors, are covered by the law like other branches of industry, investment and other sectors like agriculture and tourism, health, etc.

(omit....)


The rights, privileges and facilities in the new law include the following:

(1) Enjoying a tax exemption for a period of ten years from the year of operation, with an exemption on import duties for importing the requirements in the establishment phase, and the phases of expansion, development and modernization of equipment and machinery, means of transportation and materials, and the operational phase of the import of raw materials and intermediary and spare parts.
(2) Allowing capital and earnings in and out of the country and the opening accounts in banks inside and outside Iraq.
(3) Circulation in the Iraqi market for securities, bonds, equities, and the setting up investment portfolios.
(4) Rental of the land needed for the project for the period of 50 years; a renewable term. The right to own land also in housing projects.
(5) Facilitating the investor's enjoyment of additional advantages, especially according to the international bilateral agreements between Iraq and its government, or according to multilateral agreements. Including the right of the foreign investor to sell his project in whole or in part.

(Omit...)

After nearly half a century of providing tax exemptions and generous assistance to the industry in Iraq, starting from the 1950s, the result was loss-making government projects that could only be resolved by selling them off. Project administrations, enterprises and factories became addicted to State assistance and protection. The projects were powerless to face up to competition, at home and abroad, accompanied by a qualitative and quantitative underdevelopment, and in terms of price, with unsustainable spin-off industries that feed key inputs into these sectors. They failed to catch up with the demands of the market for constant modernization and the fragmentation of demand. This also includes obsolete and marginal factories and declining investment rates from year to year, while the country gradually lost its ability to attract investments, and many bureaucratic complexities, and many of them administrative constraints, which prevent opportunities for progress, repressing the speed of response and wasting time and effort.

To what extent will the new law in this new phase achieve its objectives in attracting investments?

This depends primarily on the availability of advanced infrastructure, which, in turn, includes all the social, political and material factors, and not only the roads and bridges, and electricity and water; but also, the conditions of the parts and components manufacturers and the conditions of secondary, spin-off industries, and the availability of government management skills. Not to mention the tax system and the availability of transparency and the system of macroeconomic management, and the rates of education, training and the country's reserve of the educated, engineers and technicians, and population characteristics.

(Omit....) Very long article

Originally Posted by boomcreek

My thought is, since everyone looks to CBI for the "official" exchange rate, it has and can also be used as a decoy to what is actually going on. It's possible that most people are not familiar with the other sites that track this kind of thing, as to what is really going on. The CBI isn't in the reporting part as a business where FX is.

I think it's just supply demand law in play. They realize they can make more money by raising the price. It seems they have a lot of buyers. I do not think it has anything to do with an actual rate of dinar, just the high demand for it.

Originally Posted by lazyasL

i posted this yesterday on another site and didn't get much response...maybe someone from here might have an opinion........

Question?

On FXConverter - Currency Converter for 164 Currencies: I have been tracking the movement of the dinar. Something interesting is going on.

On Sunday, December 24 the CBI rate was 1352, and the conversion was $753.920 per million

On Monday, December 25 the CBI rate was 1345, and the conversion was $753.920 per million

On Tuesday, December 26 the CBI rate was 1338, and the conversion was $754.318 per million

On Wednesday, December 27 the CBI rate was 1325 and the conversion was $755.173 per million

Today there is NO change in the CBI rate, still at 1325 and the conversion jumped $17.12 to make the conversion at $773.292 per million……….WHY?

Now today (Friday December 29) still NO change in the CBI rate (which we know will be the same for the next few days) at 1325 and the concversion jumped $14.28 to make the conversion at $787.573 per million.....THOUGHTS

FXConverter - Currency Converter for 164 Currencies

because of the rise in the dinar of 10%, currency investors are taking note and its causing SUPPLY AND DEMAND issues. too much demand for it and lower supply of it. you will see this continue until they set the rate.

Originally Posted by bluezzguy

Yes, I agree BC, the market SHOULD be setting the price. But, for so long, it seemed like nothing affected the CBI.. all the months of exchange rates in the 1470's. Now, finally, movement, and as you said, momentum.

I might be wrong, but in Iraq case the market is not seeting the price. The reason is because Iraqi Dinar is not traded in FoRex. So, I believe, CBI controls the dinar until then.

Originally Posted by greatstuff

They're holding the price until the 7th (CBI are). We won't know their next move until the 8th (January). Meanwhile, the market is moving on and the rate is down to 1269.72 according to Oanda. Now we have several days to speculate as to what will happen on the 8th!

You forget to mention the fact that the CBI would honor any/all pricing moves, guaranteed coverage. Are they telling the world " Let's see what the market dictates and see if there is support for a dramatic revaluation?"

I think that is what they are telling, by Jan 8th, no matter if Bush is calling the shots or not. No matter if the CBI is the smoke screen or not. Maliki has already announced the 3 laws going into effect. All peoples win, mainly the Iraqi's. 3500 per person anually would be an insult at current levels. Thier forex is a standing example (ie current rate 1293) pegged to multiply currencies the CBI NOW knows the world has faith.

us.

REVALUATION IS WITHIN DAYS, not weeks, not subtle changes, they HAVE to have it..

Sweeping, the amounts allocated for the implementation of development projects within budget in 2007

Mr. Jabr Al-Zubaidi, the Minister of Finance and the keenness of the ministry's readiness to release the amounts allocated to projects in accordance with architectural controls and conditions prepared for this purpose and within budget by calling the ministries to start implementing urban projects and prepared for the service in 2007.

The source in the ministry that the minister of finance ministries and bodies called on all concerned to start implementing programs Urban prepared for this year, he prepared his ministry to release the amounts needed and allocated to them.
.Pointing out that the ministry has controls and conditions for the disbursement of funds and implementation of all projects before the end of the year 2007 and within the time specified.
.Stressing that the ministry said is the premise of maintaining state funds spent on the best form will be taken all the necessary steps towards a ministry or a delay in the implementation of its programs, the recovery of the amounts allocated to it as surplus and invest in other projects to serve the citizens.
.He pointed out that the resolution was the result of the failure of a number of ministries in the disbursement of the funds earmarked in the budget of 2006, adding that he has allocated $ 400 million to increase staff salaries.
.On the other hand An official source at the ministry said that the signing of the bilateral agreement with the State of Malaysia relating to the settlement of debts on Iraq, according to the Paris Club, which happened in Iraq to reduce the 80% of this debt.
The source added that the number of countries that were settled its debts on Iraq has 52 state, pointing out that there are only a small number of these countries, and discussions with the continuing, stressing that some of these candidate countries to sign bilateral agreements soon to put an end to the settlement of Iraq's debts at the end of this year or the first quarter of next year after the settlement of the bulk of the private sector's debts to Iraq.

Originally Posted by shotgunsusie

because of the rise in the dinar of 10%, currency investors are taking note and its causing SUPPLY AND DEMAND issues. too much demand for it and lower supply of it. you will see this continue until they set the rate.

I agree with this 100%!!!!

Just look around, pretend to be buying Dinar right now.... you will see quite easily how hard it is to get (well not really hard, but $pendy!).....

The market has "Sprung" to life and we are seeing it unfold right before our eyes!

I am grateful to you Susie for your patience and persistence throughout these last few stages.....Thanks for all your posts and the ability to shed off the Naysayers!

Thank you.

Originally Posted by barmurphy

Would you know what the US equivalent would be it it went to 1000

a million would give you $1000.

Originally Posted by sallyl

I did ask my friend and she said that she had ordered dinar this way before and the person that she talked to on telephone banking was familiar with the dinar (and her requests).
My friend didn't push for any answer apart from the question "Why have they run out of dinars?" and that was the answer she got.

She was so amazed that she phoned me straight away as I am the one that usually keeps her informed of what is going on.

That's all I can give you, as that's all I have.

HERES A BIG WET KISS FOR YA FACE!!!!!!!!!!! WOoTTTTT!!!!!!

It's seems so ironic to me that Sadaam's lenching is at the very end of the year and at such a time as this!. ALL the pieces of the puzzle are in place. Strategically, it's the PERFECT time for an RV. Just before the Jan 2 fiscal year begins for Iraq, the FIL AND the HCL supposedly enacted. No real word on the 35k handout other than it appearing they are telling them to wait to cash in. Sadaam's lenching would be the perfect time for the restoration of wealth to the Iraqi people. Thanks to all of you serious investigators for posting your news finds and speculator opinions. YOU ARE APPRECIATED!!!
A HAPPY AND PROSPEROUS NEW YEAR TO ALL!!!