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

Is it a good idea to start the `new` Iraqi economy with a note of 25,000 Iraqi dinars?

KurdishMedia.com - By Rizgar Khoshnaw

Yesterday, I read the text of Mr. Paul Bremer’s address to the Iraqi people regarding the budget and the new bank notes that will be in circulation on October 15, 2003. In detail, he outlined all of the funds to be allocated for all sectors of the economy as well as the new denominations of the incoming Iraqi dinar.

It is a bad idea to start our new economy with such large notes of the new dinar that has a low value in the international arena.
--------------------------------------------------------------------------The new currency will replace the old "Swiss" dinar-used in Kurdistan, as well as "printed" dinars that is used for the rest of Iraq. Mr. Bremer told the participants of the economic forum that the new Iraqi dinar will be printed a range of denominations: in 50s; 250s; 1,000s; 5,000s; 10,000s and 25,000s respectably.

Mr. Bremer’s decision on the new currency came after "consulting" with the Iraqi politicians. He said, "Everywhere I traveled in recent weeks, Iraqis have told me about these problems. So I have consulted with Iraqi political, economic and business leaders to find a solution." Furthermore, he said, " The solution is to print new bank notes."

I am extremely happy to hear that Mr. Bremer is helping my people, but in the back of my mind I am questioning his intentions and truthfulness. What do I mean by truthfulness? What I mean is that there is no way in the world that Mr. Bremer can convince me, and I hope other Kurds as well, that he created the new Iraqi notes, their value and he chose the denominations of the currency.
Americans at the treasury department are the ones that decide what currency will be used for Iraq, not Mr. Bremer.
--------------------------------------------------------------------------I have a very difficult time believing that the American government has given Mr. Bremer this unprecedented power to choose the new currency. When it comes to understanding finance, the Americans at the treasury department of the United States are untouchable, as they are extremely intelligent people. They are the ones that decide what currency will be used for Iraq, not Mr. Bremer.

Many Iraqis might not understand the complexity of the power, or lack of power, of a country’s currency could mean to the economy and the future trade with foreign countries, but they should study it prior to giving it their seal of approval. The value of currency is very well connected with the country’s economic strength and therefore, a strong economy needs to have a strong and stable currency. If Iraq is going to prosper; it needs both a strong currency as well as a strong economy.

In my honest opinion, it is not Mr. Bremer that decided on the new Iraqi notes, but the US government looking after its own future in Iraq. It is no secrete that the US will be the largest trading partner with Iraq in the coming years and therefore, they are looking a head to see how they can have a much stronger leverage when it comes to trading products and services with them. Of course, the US will make sure that the Iraqi currency will never be stronger than the dollar as it was twenty years ago when one dinar was equal to three dollars. They want to make sure that the Iraqis will never ever have an advantage against the Americans in every aspect.

Few years ago, when Europe adopted the new currency, the Euro, they took the dollar into consideration prior to determining its value. In the end, the Euro was trading at parity with the dollar- and now it is hovering at the same level since it’s inception. Such trading value indicates a strong and stable Europe.

One the other hand, the Turkish currency has depreciated over ten percent a year since 1997. Such decline in value has paralyzed the Turkish economy. On my first trip to Turkey six years ago, one hundred dollars was worth eighteen million Turkish Liras. On my trip last month, one hundred dollars bought me one hundred and fifty million Turkish Liras. As we can see here, the currency does affect the country’s economic strength and vise-versa.

I am fully aware of the fact that Mr. Bremer is in charge of Iraq, but to approve a nine trillion dinars budget for Iraq, to be financed mostly by Iraqi oil revenue, is ridiculous. In his speech he said, "I have just approved the Iraqi budget for the remainder of this year." I hope that our politicians in Iraq do not "just approve" whatever he tells us! He should not be the ONE man to decide what is spent and how much it in Iraq. This should be the job and responsibility of the Iraqis and not one single man. There should be a team of experts inside Iraq to set a budget that is feasible to the Iraqis and implement it. Since the Kurdish politicians have such experience, I think this responsibility should be given to them to set the budget.

Coming up with a budget for a country of 25 million inhabitants does not happen in a meeting or two or by one or two individuals. It is an extremely complex process and needs a great deal of time to have an accurate budget, or even close to an accurate one. We are talking about a country, not a small "Mom and pops" grocery store! In America, it takes hundreds of highly educated and experienced individuals many months to have a budget proposal established. In Iraq, it appears that it takes one man, a couple of meetings and few hours to determine the country’s budget! I cannot help but feel pessimistic about the future of Iraq if this is how we are going to start.

Finally, I hope the politicians and the business leaders in Iraq will study the new currency very closely prior to signing off on the new notes. I personally think it is a bad idea to start our new economy with such large notes of the new dinar that has a low value in the international arena. Our politicians need to put some serious thoughts into this before the notes are printed.

Well Saddam has gone. This was fast after the appeal I thought it would take sometime.

I hope this is a new trend for them SPEED.

Dinar-Excited

Voice of Iraq) - 12-29-2006
Irbil (December 29) and the agency (Lucky) Italian News-A government source Kurdi, "the first investment project in the oil sector has entered the implementation phase in Kurdistan, the establishment of an oil refinery, a small card barrels in 1500 for the production of oil derivatives (petrol, oil and Alcazulin) near the city of Sulaymaniyah, and a technical committee is now studying the site selection appropriate for the construction of the refinery." The source said that "investment project done by joint investment both domestic and foreign, which is the first of its kind in the oil sector, and hopefully be completed middle of next year, which will start operation initial production capacity of about 1500 barrels of oil per day." At the same 7 March Nouri deputy governor of Sulaymaniyah that "50% of the construction project Bazian refinery production capacity of 20 thousand barrels had been completed and that there are some of the equipment required for the completion of the project was incomplete and will be available after the end of the Id al-Adha holiday." He added, "the project is implemented at the expense of the Iraqi Ministry of Industry, which is one of the Iraqi government projects in the region, and if completed will be the Ministry of Oil ensure the transfer of crude oil from Kirkuk to the refinery." It is noteworthy that the Kurdish provinces suffer from almost a year of the fuel crisis and sharp especially gasoline and kerosene (used for heating) and liquid gas, which currently import these materials from Turkey and Iran. The contrast between the two governments has Iraqi and regional impact of the oil bill, which allows local governments to sign contracts with foreign companies to invest in the oil sector, where the Iraqi government maintained the right to enter into those contracts, insisted on the territorial government to give them freedom of movement in the field of oil investment.

Translated version of Sotaliraq.com
__________________
Notice the first sentence: "the first investment project in the oil sector has entered the implementation phase in Kurdistan" IMPLEMENTATION!!!!!!

Originally Posted by Seaview

SKY NEWS 03:40 GMT

News confirmed that Saddam Husseins Half Brother has also now been executed.

SKY NEWS 03:43

News confirm Saddam Husseins ex-Judge has been executed (whoever the heck he is?).

I apologise on behalf of Sky news and Myself. Apparently in the confusion after the execution of Saddam Hussein it was reported that the above 2 people were also executed.

This is incorrect - apparently the Government did not want anything to distract from the execution of Saddam Hussein and these two are going to be executed on the last business day of the EID holiday next Thursday.

At present these 2 are alive and well and rumours of there death have been greatly exaggerated . Not for long though....

By DEB RIECHMANN, Associated Press Writer 5 minutes ago

CRAWFORD, Texas -
President Bush said Friday that
Saddam Hussein's execution marks the "end of a difficult year for the Iraqi people and for our troops" and cautioned that his death will not halt the violence in
Iraq.
ADVERTISEMENT

Yet, Bush said in a statement issued from his ranch in Texas, "it is an important milestone on Iraq's course to becoming a democracy that can govern, sustain and defend itself, and be an ally in the war on terror."

In a message of assurance to the people of Iraq, Bush said the execution was a reminder of how far the Iraqi people have come since the end of Saddam's rule.

"The progress they have made would not have been possible without the continued service and sacrifice of our men and women in uniform," he said.

Bush, who has spent weeks crafting a new U.S. policy in Iraq, warned of more challenges for U.S. troops.

"Many difficult choices and further sacrifices lie ahead," he said. "Yet the safety and security of the American people require that we not relent in ensuring that Iraq's young democracy continues to progress."

When Saddam was apprehended in 2003, Bush promised that the deposed Iraqi leader would "face the justice he denied to millions." The administration blamed Saddam for hundreds of thousands of mass executions.

In November, Saddam was sentenced to death after being convicted of murder in the killings of 148 Shiite Muslims from an Iraqi town where assassins tried to kill him in 1982.

After three decades in power, Saddam was captured in December 2003 in an underground hideout on a farm near his hometown of Tikrit. Two days later, Bush remarked: "Good riddance. The world is better off without you, Mr. Saddam Hussein."

The president was briefed at 6:15 p.m. CST by National Security Adviser
Stephen Hadley about the execution procedure, and that it would go forward in the next few hours. Hadley had been in touch with U.S. Ambassador to Iraq Zalmay Khalilzad, who had been in contact with Iraqi Prime Minister Nouri al-Maliki.

Bush was asleep when the execution occurred.

"The president concluded his day knowing that the final phase of bringing Saddam Hussein to justice was under way," deputy White House press secretary Scott Stanzel said.

As his execution drew near, Saddam's lawyers filed an appeal trying to stave it off.

However, U.S. District Judge Colleen Kollar-Kotelly, who heard arguments from attorneys by phone, rejected the challenge Friday night. She said U.S. courts do not have jurisdiction to interfere in another country's judicial process.

In the 21-page request filed Friday, Saddam's attorneys argued that because Saddam also faces a civil lawsuit in Washington, he has rights as a civil defendant that would be violated if he is executed. He has not received notice of those rights and the consequences that the lawsuit would have on his estate, his attorneys said.

"To protect those rights, defendant Saddam Hussein requests an order of this court providing a stay of his execution until further notice of this court," attorney Nicholas Gilman wrote.

Bush: Execution will not halt violence - Yahoo! News

Originally Posted by Seaview

I apologise on behalf of Sky news and Myself. Apparently in the confusion after the execution of Saddam Hussein it was reported that the above 2 people were also executed.

This is incorrect - apparently the Government did not want anything to distract from the execution of Saddam Hussein and these two are going to be executed on the last business day of the EID holiday next Thursday.

At present these 2 are alive and well and rumours of there death have been greatly exaggerated . Not for long though....

I have been watching CNN ever since and waiting the Video to see for myself. But I believe that all three were executed as stated. Will see shortly. I have been scanning my sysytem. Removed 2008 cookies and 2 adwares. Didnt relize my security was down. You guys might want to do some scanning too. I use webroot.

Originally Posted by shotgunsusie

WHEN YOUVE WATCHED THE IRAQI NEWS FOR 2.5 YEARS ITS HARD NOT TO GET EXCITED FOR THESE PEOPLE, LET US ENJOY THEIR GOOD NEWS.
man, wanna tell me how to enjoy my life youre in the wrong forum.

Thank you Susie for all you do here. I know we're getting close...just like waiting for Christmas when I was a boy...seems like time moves so slow.

John

sorry if already posted

Three important laws experiencing the new year will have a significant impact in the wheel of development ... Baghdad / justice Prime Minister Nuri al-Maliki at the conclusion of a meeting of the Council of Ministers on Thursday that the new year would witness a three important laws will have a significant impact in the wheel of development

Are the retirement and investment law and the law of oil. The Maliki at the close of the session, which moved to the television that these three important laws "has been completed and will be out next year." He added : "We will also activate the work of the care of the families of martyrs and the welfare of prisoners who have been arrested and tortured at the time of the former regime, in addition to the commencement of the implementation of the housing project, which soon will be in the first stage of some categories of people." Al-Maliki did not mention those categories, however, said that "the second phase will include all the sons of the Iraqi people through soft loans from the Land Bank of Iraq." The Prime Minister said that the transfer of security functions in all Iraqi governorates will be during the month of May next. This came during the announcement yesterday, a public meeting of the Iraqi Council of Ministers which ministers reviewed the government's achievements during the last six months of this year. He announced the government's plans to complete the transfer of security functions in the governorates to the Iraqi security forces and the launch of major projects in several areas. It is noteworthy that the three governorates (Muthana, Najaf, Nasiriyah and 21) out of Iraq's 18 provinces had received all of the files of the security forces to the multinational force. Security sources had indicated earlier that the provinces of Basra, Wasit HOLD currently were preparing to take over the security file from the multinational forces. And on the economic level, Maliki said that "2007 will witness a new start and a shift to a phase of much of the economic gains accomplished by the government of national unity and to the people who elected to keep the monitor of the performance until the wishes and aspirations." The Premier emphasized the government's determination to proceed with the initiative of national reconciliation, describing the "composite sound," which will in the new year safe harbor also stressed Prime Minister Nuri al-Maliki that there will be no review or delay in carrying out the death penalty Baltageh Saddam. He said during a meeting with a number of families of martyrs : yesterday, Friday, "after the ratification of the Court's ruling, no one could unravel the sentencing." Al-Maliki added : "It is the execution of Saddam refuses to underestimate the martyrs of Iraq and dignity." The body discriminatory in the High Criminal Court announced last Tuesday to ratify the death sentence against Saddam and his half brother Barazan Al-Takriti, and head of the Revolutionary Court canceled Awwad Albandar. The body discriminatory to the execution of the sentence will be within thirty days from the date of announcement of ratification.

Translated version of http://www.aladalanews.com/

Iraq eyes security handover by year-end

* Blair pledges to work with new Iraqi government
* Britain sees foreign forces leaving Iraq by 2010

BAGHDAD: Iraq’s new Prime Minister Nuri al-Maliki said Monday that local forces should take over security responsibility from foreign troops for most of the country by the end of the year.

He was speaking at a joint press conference with British Prime Minister Tony Blair, who pledged during a surprise visit to Baghdad to work with Malaki’s new government - formed only on Saturday after five months of tortuous negotiations.

Maliki said US-led troops will initially hand over security responsibility in two provinces from next month, and denied the country was in a state of civil war despite the insurgency and sectarian violence.

“There is an agreement for the transfer of security under a timetable which starts in June when Iraqi forces will take control of the provinces of Samawa and Amara,” he said.

“The other provinces will be transferred gradually and by the end of this year most of them will (be under Iraqi security control), with the exception of Baghdad and perhaps Al-Anbar,” he said, referring to two provinces that have borne the brunt of the insurgent violence.

Blair said Britain, the closest US ally in Iraq, would work with the new government “to make the hopes and expectations of the Iraqi people for the future a reality”.

“Iraqi people are about to take charge of their own destiny and write the next chapter of Iraq history themselves,” Blair said. “There is now no excuse for people to carry on with terrorism and bloodshed.”

He said peace in Iraq, which was invaded by US and British forces in March 2003, would pave the way for the withdrawal of foreign troops. “It’s the violence that keeps us here. It’s the peace that will let us go,” Blair added. “We want to move as fast as we can, but it has to be done in a way to preserve the security of the Iraqi people.”

Maliki insisted that the country was “not in a civil war”, but reiterated his intention to disarm militias blamed for a recent surge in sectarian violence.

British officials said they expected all foreign combat troops to withdraw from Iraq within four years. It was the firmest statement yet from one of the two main allies in the 2003 invasion to topple Saddam Hussein on a date for pulling out troops from Iraq. Washington has said it is too soon to discuss such a timetable.

Blair, after meeting Maliki in Baghdad’s heavily fortified Green Zone, declined to be drawn on a timetable for withdrawal but stressed that foreign troops would pull out as fast as Iraqi forces were able to take over.

The British official said: “The aim is to take Iraq to a position where the multinational force is able to withdraw during its (the government’s) period in office.”

“During the four years, the present role and structure of the multinational force will change and come to an end,” he said, adding some troops may stay beyond the government’s four-year term in a non-combatant role to train Iraqis. Some 8,000 British troops are deployed in and around the main Iraqi southern city of Basra, though most foreign troops are provided by the United States, with 130,000 US troops deployed in the rest of the country. Agencies

Originally Posted by greatstuff

Although we hear the Euro is surging, the IQD is also gaining ground on it. The lastest rate from AME is 1747.0.

As for why we see different rates all around, it is the difference between the market rate and the CBI rate. The dinar is not on the actual ForEx but it is traded internationally. Banks and other companies trade currencies and set the market rate by the buy/sell prices they agree to between themselves.

While the rate at the CBI was steady and they were dragging their heels on the FIL/HCL et al, neither rate was fluctuating much and they were pretty close. As the CBI began lowering rates and the laws looked like coming together and contracts were being signed for foreign investment, the market began to move.

As the CBI kept going and there was more activity, the market picked up momentum. Also, as you know, they've been reducing the circulation so demand is going up and availablility is down. The supply/demand pressure heats up the price even more and, even though they're holding the price for a few days, the supply is still being reduced and that puts pressure on the price.

As Wm. Knowles said, reaching the 10% mark has begun a feeding frenzy and the market is taking on a life of it's own and pulling away from the CBI rate. Now the CBI is keeping pace with the market rather than the other way around. Even if the CBI just put their heels up and follow the market after this, the rate will continue to rise and gain momentum for some time. How long depends on the economic news: FIL/HCL, contracts signed, more oil exported, agriculture getting back on track, etc,, etc.

I hope they do a major reval but, even if they don't, they'd have to take drastic measures to stop the momentum now.

And the CBI site says 1739,063 IQD to the dollar.