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

10% is the proportion of implementing projects in Iraq
02/01/2007
Source: Translated by IRAQdirectory.com

The Minister of Planning and Development Cooperation, Ali Baban, announced that the Iraqi government has allocated $ 10 billion from the budget of next year for the implementation of investment projects in governorates and regions and the promotion of development at governorates that suffer from insecurity, deterioration of services and widespread unemployment.

He said in a speech, during a workshop held by the ministry and attended by a number of representatives of ministries, provinces and companies to discuss ways to expedite the process of implementing investment projects and developing the regions, that the security situation will improve only when the Iraqi economy returns to its usual activity through the implementation of investment projects and services in the provinces.

Many of the ministries of the State failed to implement the platform of the investment projects for only a very modest achievement rates reached 10% of the overall achievement of the project until the end of the year.

The minister stressed that "this can not be tolerated", and that the ministry is determined to solve this problem, to reduce the widespread unemployment and raise the standard of living of the people and provide services to them.

He pointed out that there are many reasons formed obstacles to the implementation of investment projects, mainly: the deterioration of the security situation, the interruption of the production process, the widespread unemployment, the administrative matters including the instructions of the Ministry of Finance, the granting of allocations in late times of the year and other reasons.

He stressed that the ministry will put plans and proposals, after discussing them with the appropriate ministries, the concerned government departments, provinces and other relevant authorities, then present them to the government to solve all the problems and obstacles that hinder the implementation of these projects for the advancement of the Iraqi economy.


He added that the ministry has prepared a new mechanism for implementing investment projects and developing regions in due time.

He pointed out that the implementation of these projects will substantially help in improving the security situation by creating employment opportunities for the unemployed, improving the standard of services and raising the standard of living of the individual.

The Minister explained that the Energy Committee in the Cabinet had reached the final stages of the oil law legislation, which provides for the allocation of oil revenues to the provinces according to the number of residents; legislating this law will help in improving the oil sector, and distributing its revenues to the citizens, as well as preserving the unity of the Iraqi people.

The workshop was attended by agents of the Ministries of: Municipalities, Trade, Finance, Planning in addition to the representative of the Vice-President of the Republic, and a number of representatives of the governorates of the country and other relevant ministries.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2866

Originally Posted by kiko

Economic Inflation is the prominent event in 2006

The phenomenon has grown more frightening and threatening to disrupt production sectors
02/01/2007
Source: Translated by IRAQdirectory.com

Iraqi economy experts find that the economic inflation phenomenon, which has begun to increase and had reached a frightening threat to the Iraqi economy, is one of the most prominent events in the country during 2006.

They emphasized in an opinion poll: "When the inflation rates in the countries of the world rise, they will rise to varying fractional, and this will compel the governments to make adjustments and changes in the economic decision, but the phenomenon in Iraq have taken another foreshadowing form, if it is unleashed, it will disrupt all productive sectors".

The economic expert, Dr. Madhar Mohamed Salih, said: "The dangerous phenomenon of inflation experienced by the Iraqi economy is one of the most serious economic phenomena because it is still continuing without finding any radical solutions to eliminate or control it effectively", pointing out that "part of the State policy to eradicate this phenomenon was to raise interest rates and other measures which are considered procedures for controlling and not eliminating it".

He explained: "The things that could be considered high profile events during 2006 is the fruitful movement of the Iraqi government for rescheduling the debt of commercial banks and foreign private sector to the government and quenching them with an international bill equivalent to the conditions of the Paris debt, amounting to 20 billion dollars".

Dr. Mohammed Risan, from the Economic Studies Center, said: "the economic inflation is one of the most prominent economic phenomena experienced by Iraq in 2006. It began to grow from the beginning of the year and continued without taking effective steps to stop or reduce the rate of its growth; which means that the country will live a serious economic crisis if effective steps were not taken to deal with it".

He explained: "The decision of the current Iraqi government to raise the prices of fuel by 125% compared to its prices last year, had a significant effect in raising the prices of foodstuffs, consumer goods and others; which created the appropriate environment for the growth of the phenomenon of economic inflation", pointing out that: "This did not come from the vacuum, but from the pressure imposed on Iraq by the International Bank and the IMF to reduce its debt, in exchange for raising the fuel prices without seeing the negative side, which Iraqis would live as a result of international resolutions that have more negatives than positives".

Dr. Sundus Abd Jassim, professor of international economics at the Faculty of Management and Economics in Baghdad explained: "The dramatic decline in the dollar exchange rate during the latest weeks is a phenomenon which should be taken into consideration because of the economic implications that could be reflected positively on the value of the Iraqi dinar".

She said: "The optimistic predictions for rehabilitating the deteriorating Iraqi economy coincide with starting the work by the budget of 2007; however, those predictions should be backed up by the State to raise the value of the Iraqi dinar versus foreign currency", adding: " the Iraqi government can eradicate the phenomenon of economic inflation through ongoing work to develop plans and programs to reduce the value of foreign currency against the Iraqi dinar".

It is noteworthy that the rate of inflation during the last year ranged between 25 and 30 per cent, while reached up to 77% during the current year.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2867


There is a solution and they know it!

What will it take to get these people to do something, anything, for themselves!? It's like they're in La La Land. I've never seen anything like this before!

Syria and Iraq in 2006: the revival of economic relations
02/01/2007
Source: Translated by IRAQdirectory.com

The effects of rapprochement between Syria and Iraq by the end of 2006 rose hopes on the possibility of reviving economic relations, the ties of bilateral trade, and increasing Syrian exports to Iraq, especially after the announcement of the opening of the two embassies, after nearly a quarter-century of estrangement. An Iraqi security delegation visited Damascus, to discuss practical arrangements to facilitate transit procedures along the borders between the two countries, which may help to promote the Syrian presence in the Iraqi market.

Trade movement retreated between Baghdad and Damascus after the American occupation of Iraq, with the United States accusing Syria to allow the passage "of combatants and weapons" to Iraq through the common borders.

Head of the conference, Ahmed Chalabi, said that security and stability in Iraq is essential for Syria to improve its share of the market, but they alone are not enough, and believed that the Syrians are keen to return as a major transit point for goods destined for Iraq as well as increase their exports. He also said that reactivating the oil pipeline of Kirkuk-Banias had been discussed, but this requires securing supplies across Iraq.

It is noteworthy that the talks were held between Iraqi and Syrian officials of the railway lines to transfer fuel from Iraq to Syria, as well as goods from Syria to Iraq via Syrian ports. Official figures show that Syria exported goods worth 261 million to Iraq in 2005 in return for 479 million dollars in 2004.

In the meantime, the European Union is financing a study of a railway link "between Syria and Iraq, across the Line of Deir Al-Zour - Syria - Mosul". Syrian official sources said that there is a project under way to extend the line starting from the east of Deir Al-Zour in Syria to the city of Al-Qa'im on the Iraqi border, including the construction of a bridge on the Euphrates River, and this would save a lot of distance between the Syrian ports and inside Iraq.

There is also a study under preparation for the establishment of a scheme to transport transit goods from Syria to Iraq, estimated by about 80 million tons annually crossing the transit through Syrian ports to Iraq.

The Syrian Railway Foundation had recently taken a number of measures aimed at stimulating the economy and activating the trade exchanges with the neighboring countries. Also the Ministry of Transport in Syria announced working on a plan for developing the railway lines and increasing their capacity to be ready for the expectations of a substantial increase in exports and imports by 10% during the next four years.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2868

Iraq is suffering from intellects and capital migration
02/01/2007
Source: Translated by IRAQdirectory.com

Iraq is suffering, from the phenomenon of migration, which include the intellects who survived the kidnapping and murder, as well as the migration of capitals presented by traders who were exposed, themselves their families, to kidnappings, theft, extortion, and even murder, which forced them to immigrate and seek refuge in several countries, like Syria, Jordan, the United Arab Emirates and others. The impact of all this, consequently, affected the national income and the Iraqi market because of the continuing threat faced by those traders in their homeland.

Haji Abdullah Farhan, a wholesaler in Alshourjah, says: "We are no longer safe in our homeland, for those of us who are kidnapped do not return, but are killed, after the kidnappers take almost all they have as ransom, and this applies to our children and families. This made many of us migrate to neighboring Arab countries, because our lives are threatened in our homeland. We are exposed to great pressure because of the deteriorating security situation; therefore, many traders migrated to get rid of this pressure".

Hussein Salam, an electrical equipment merchant, says: "I now try to liquidate my belongings to leave Iraq because things are getting worse; every morning we hear of the kidnapping of a certain merchant or one of his sons, or kidnapping a group of traders as happened in the market of Assinak downtown Baghdad.

I do not want to expose my family to such a difficult situation, and thank God, I could live in any Arab country and I am financially secured.

We will return to our country and invest our money in it in case things got better, but now it is almost impossible".

Muntasir Abdul Hameed, a trader, says: "We no longer trust any one because of the threats and kidnappings that many of us were subjected to, and this was due to the lack of safety. If there were safety, we could have continued our work and trade properly, but what is happening is the opposite, and we are living in a state of constant concern because of the current situation.

We do not know for how long this situation will continue and for how long our lives will be in danger".

http://www.iraqdirectory.com/DisplayNews.aspx?id=2869


I hope for all those people that Iraq will take all measures needed in January and that they can make a real start!

Originally Posted by Cyberkahn

Democrats swiftly rallied against the notion of sending more troops, saying Iraqis must take a stronger role in security matters.
"The Iraqis need to understand that the responsibility for the future of that country is theirs," Rep.-elect Jerry McNerney, D-Calif., said Saturday in the Democrats' weekly radio address.

I agree 100% and I'm about as opposite a Dem as you can get!

Originally Posted by kiko

She said: "The optimistic predictions for rehabilitating the deteriorating Iraqi economy coincide with starting the work by the budget of 2007; however, those predictions should be backed up by the State to raise the value of the Iraqi dinar versus foreign currency", adding: " the Iraqi government can eradicate the phenomenon of economic inflation through ongoing work to develop plans and programs to reduce the value of foreign currency against the Iraqi dinar".

Wow! If they plan on reducing the value of foreign currency against the dinar then that can ONLY mean that they are going to continue to INCREASE THE VALUE OF THE DINAR AGAINST FOREIGN CURRENCY!

Originally Posted by kiko

Economic Inflation is the prominent event in 2006

The phenomenon has grown more frightening and threatening to disrupt production sectors
02/01/2007
Source: Translated by IRAQdirectory.com

Iraqi economy experts find that the economic inflation phenomenon, which has begun to increase and had reached a frightening threat to the Iraqi economy, is one of the most prominent events in the country during 2006.

They emphasized in an opinion poll: "When the inflation rates in the countries of the world rise, they will rise to varying fractional, and this will compel the governments to make adjustments and changes in the economic decision, but the phenomenon in Iraq have taken another foreshadowing form, if it is unleashed, it will disrupt all productive sectors".

The economic expert, Dr. Madhar Mohamed Salih, said: "The dangerous phenomenon of inflation experienced by the Iraqi economy is one of the most serious economic phenomena because it is still continuing without finding any radical solutions to eliminate or control it effectively", pointing out that "part of the State policy to eradicate this phenomenon was to raise interest rates and other measures which are considered procedures for controlling and not eliminating it".

He explained: "The things that could be considered high profile events during 2006 is the fruitful movement of the Iraqi government for rescheduling the debt of commercial banks and foreign private sector to the government and quenching them with an international bill equivalent to the conditions of the Paris debt, amounting to 20 billion dollars".

Dr. Mohammed Risan, from the Economic Studies Center, said: "the economic inflation is one of the most prominent economic phenomena experienced by Iraq in 2006. It began to grow from the beginning of the year and continued without taking effective steps to stop or reduce the rate of its growth; which means that the country will live a serious economic crisis if effective steps were not taken to deal with it".

He explained: "The decision of the current Iraqi government to raise the prices of fuel by 125% compared to its prices last year, had a significant effect in raising the prices of foodstuffs, consumer goods and others; which created the appropriate environment for the growth of the phenomenon of economic inflation", pointing out that: "This did not come from the vacuum, but from the pressure imposed on Iraq by the International Bank and the IMF to reduce its debt, in exchange for raising the fuel prices without seeing the negative side, which Iraqis would live as a result of international resolutions that have more negatives than positives".

Dr. Sundus Abd Jassim, professor of international economics at the Faculty of Management and Economics in Baghdad explained: "The dramatic decline in the dollar exchange rate during the latest weeks is a phenomenon which should be taken into consideration because of the economic implications that could be reflected positively on the value of the Iraqi dinar".

She said: "The optimistic predictions for rehabilitating the deteriorating Iraqi economy coincide with starting the work by the budget of 2007; however, those predictions should be backed up by the State to raise the value of the Iraqi dinar versus foreign currency", adding: " the Iraqi government can eradicate the phenomenon of economic inflation through ongoing work to develop plans and programs to reduce the value of foreign currency against the Iraqi dinar".

It is noteworthy that the rate of inflation during the last year ranged between 25 and 30 per cent, while reached up to 77% during the current year.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2867


There is a solution and they know it!

Hello everyone. Nothing new in this article that we have not discussed many times before. We want to thnk Kiko for this since it does support the idea of inflation being related to the exchange rate. Basically, what was stated in the SBA reported last summer. They set the currency rate too low to start and sold dinar in abundance to build their (CBI) foreign currency reserves. A trade off. The currency is stilll too cheap. At 13 dinars to the USD penny, there is no way they can justify such a cheap currency for very long. If they don't raise the dinar, then they can undo the removal of the currency they apparently have been working on last year. Too many people know about this now and the "street" is already involved. So, lets see what happens in the next round of auctions. Thank you.

HOW ABOUT A HUGE WOOOOOOT FOR THIS ARTICLE.......WE ARE COMING FULL CIRCLE FOLKS!!!!

THE BOOM OUTSIDE BAGHDAD December 26, 2006 -- UMQASR, IRAQ

WHILE the American political elite is using Iraq as an ex cuse for fighting internal political wars, a different reality is taking shape in parts of this war-torn nation. Wherever some measure of security is assured - that is to say in more than 80 percent of Iraq - towns and villages long left to die a slow death are creeping back to life.
Nowhere is this slow but steady return to life more startling than in Um Qasr, in the southeast extremity of Iraq on the Persian Gulf. Four years ago, this was a jumble of rusting quays, abandoned houses and gutted buildings. By the spring of 2003, its population had dwindled to a few dozen, along with hundreds of stray dogs. There was even talk of abandoning it altogether.

Today, however, Um Qasr is back in business as a port with commercial and military functions. Hundreds of families that had left after the first Gulf War in 1991 have returned - joining many more who have come from all over Iraq.

The boom in Um Qasr is part of a broader picture that also includes Basra (the sprawling metropolis of southern Iraq), the Shi'ite "holy" cities of Najaf and Karbala, Mandali on the Iranian border and much of Baghdad.

When the International Monetary Fund and the World Bank reported two years ago that the Iraqi economy was heading for a boom, skeptics dismissed it as misplaced optimism. Now, however, even some of those who opposed the toppling of Saddam Hussein admit that many Iraqis share that optimism.

Newsweek has just hailed the emergence of a booming market economy in Iraq as "the mother of all surprises," noting that "Iraqis are more optimistic about the future than most Americans are." The reason, of course, is that Iraqis know what is going on in their country while Americans are fed a diet of exclusively negative reporting from Iraq.

The growing dynamism of the Iraqi economy is reflected in the steady increase in the value of the national currency, the dinar, against the three currencies in direct competition with it in the Iraqi marketplace: the Iranian rial, the Kuwaiti dinar and the U.S. dollar, since January 2006.

No doubt, part of the dinar's strength reflects the rise in Iraq's income from oil exports to almost $40 billion in 2006, an all-time record. But oil alone does not explain all, since both Iran and Kuwait are bigger exporters than Iraq.
The fact that civil-servant salaries have increased by almost 30 percent, with a further 30 percent due to come into effect early next year, also has helped boost demand.

But a good part of the boom is due to an unexpected flow of foreign capital. This has been facilitated by the prospect of a liberal law on direct foreign investments, which exists only in such free-trade parts of the region as Dubai and Bahrain. None of Iraq's six neighbors offers such guarantee for the free flow of capital to and from the country.

Since the fall of Saddam Hussein in 2003, the number of private companies in Iraq has increased from a mere 8,000 to more than 35,000 this year. Each week an average of 60 new companies spring up in Iraq's booming areas. A good part of the investment in southern Iraq, including in Um Qasr, comes from Kuwait and the United Arab Emirates.

"Whatever happens, Iraq is Iraq," says a Kuwaiti businessman, building hotels in the south. "Iraq will always remain the country with the world's largest oil reserves and the Middle East's biggest resources of water."

One hears similar comments from local and foreign businessmen investing in real estate in Najaf and Karbala. Over 200 million Shiite Muslims regard the cities as holy. Najaf and Karbala have always been dream destinations for pilgrims. Under Saddam Hussein, however, few foreign pilgrims were allowed. With the despot gone, pilgrims are pouring in - and with them the fresh money.

That good business is possible in Iraq is reflected in the performance of new companies, most of which did not exist three years ago. One privately owned mobile phone company is expected to report revenues of more than $500 million this year, a sevenfold increase in three years. Another private firm marketing soft drinks has seen profits double since the end of 2003. The number of luxury cars imported has risen from a few hundred in 2002 to more than 20,000 this year.

But what about continued terrorist attacks? Most foreign investors coming to make money in Iraq shrug their shoulders. "Doing business in any Arab country is always risky," says a Turkish investor who has set up a trucking company and a taxi service. "In some Arab countries, you risk nationalization or straight confiscation by the ruler. In other Arab countries, you must give a cut to one of the emirs. Here, you face possible terrorist attacks. But such attacks are transitory."
The relatively low cost of labor is another attraction to investors. Wages in Iraq, where unemployment is over 30 percent, are less than a quarter of the going rates in Kuwait. Nevertheless, the Iraqi boom appears to be attracting some Iranian laborers from areas close to the border - people who come in for a few days to make some money before returning home.

Although Prime Minister Nouri al-Maliki's government has slowed down the pace of privatization, the foundations of the command economy created by Saddam continue to crumble.

The transition from a rentier economy - in which virtually the whole of the population depended on government handouts - to a free-market capitalist one entails much hardship for some segments of society. Many pensioners and some civil servants find it hard to make ends meet as prices rise across the board. The end of government subsidies on virtually everything - from bread and sugar to gasoline and water - is also causing hardship.

But, judging by the talk in teahouses and the debate in Iraq's new and pluralist media, most people welcome the switch to capitalism and regard it as an exciting adventure.

As trucks are loaded with a variety of imports destined for Baghdad, I ask the drivers what they think would happen if the multi-national force, led by the United States, left Iraq soon. Most shrug their shoulders.

"Why leave?" one driver asks. "Do I abandon the goods that have come from such a long way before they reach their destination?"

This amounts to a plea to "stay the course." The man in Um Qasr does not know that in the United States the phrase "staying the course" drives so many up the wall.

THE BOOM OUTSIDE BAGHDAD By AMIR TAHERI - New York Post Online Edition: Seven

STOCKWATCH DNO jumps after better-than-expected well test results in Iraq

Last Updated: 2-January-2007 09:08:27


At 10.00 am, shares in DNO were up 3.74 pct at 11.93, while the OSEBX benchmark index was 2.1 points higher at 442.5. Earlier this morning DNO ASA said its Tawke 4 well in northern Iraq had produced 8,500 barrels of oil per day during initial testing, the best flow rate of any of its fields in this region of the country to date.

Analysts in Oslo said this higher-than-expected flow rate was fuelling hopes that the discovery could hold more oil than previously thought.

"It's very positive, I don't think we were expecting this test to be quite so successful," one analyst said.

He added that while estimated reserves in the discovery were still unclear, these latest results suggest the find could be more significant than originally thought.

[email protected] ar/vb COPYRIGHT Copyright AFX News Limited 2006. All rights reserved.


Sharewatch Online Share Trading Ireland. Sharewatch, an Irish low cost execution only service offers better value and security. Irish share prices, UK share prices, US stock quotes. CFD's and Spread Betting covering ISEQ, FTSE, Dow Jones, Nasdaq, Dax

Originally Posted by CharmedPiper

HOW ABOUT A HUGE WOOOOOOT FOR THIS ARTICLE.......WE ARE COMING FULL CIRCLE FOLKS!!!!

THE BOOM OUTSIDE BAGHDAD December 26, 2006 -- UMQASR, IRAQ

Great Article. I have been carring it in my signature since it was first posted here in this thread, then moved to "History Thread". See Below. Same Article. Good find. Like How You Broke it Up CP.