Thread: Archive News - Iraqi Dinar Think Tank - 08/09/09 - 09/01/10

Zebari participate in meeting of Gulf Cooperation Council, Egypt, Jordan & United States

Share and Foreign Minister Hoshyar Zebari, at a meeting held in New York included representatives of each of the GCC, Egypt and Jordan in addition to the United States of America.

A joint statement issued after the meeting the importance of regional support for the government and the Iraqi people in their efforts towards the prosperity, unity and democracy in Iraq, at peace at home and abroad with its neighbors and respects international obligations.

The statement strongly condemned all terrorist attacks against Iraqis, expressing their full support for all efforts aimed at promoting peace, security and stability in Iraq.

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Iraq Central Bank Opposes Issuing Treasury Bills To Finance Projects

Iraq's central bank has opposed calls from the Iraqi government to issue new treasury bills to finance infrastructure projects.

Such a policy would drain the Iraqi banks of their assets and would eventually dip into the country's $40 billion of foreign exchange reserves, the bank said in a statement Sunday.

A massive budget deficit, estimated at nearly $19 billion this year, is adding to pressure on the government to try to find new sources of financing for its projects. The proposed issue would be to finance transportation projects as well as projects of the Baghdad municipality.
The pressure exerted by the government on "the Central Bank of Iraq to issue new treasury bills would weaken the bank's monetary policies such as curbing inflation," said the statement emailed to Dow Jones Newswires.

The Central Bank said it cannot issue new treasury bills at a time when the bank's assets would be important to check the country's soaring inflation rate, which was 10.8% up from around 7% in the previous month. For the last 10 months, Iraq's foreign exchange reserves remained unchanged without any increase, it added.

The bank had agreed earlier this year to issue $3 billion worth of yearlong treasury bonds at an interest rate of 2% to finance much-needed power and water projects. The move came after the finance ministry requested the government to issue these bonds to help finance two power deals signed last year with General Electric Co. and Siemens AG.

http://www.zawya.com/Story.cfm/sidZW...ce%20Projects/

Central Bank Governor: Iraq does not fill a budget gap of foreign exchange reserves

The Governor of Central Bank of Iraq Shabibi, Monday, that Iraq does not use its reserves of hard currency in bridging the budget gap, but the question under discussion.

Shabibi's comments came on the sidelines of a meeting of Arab central bank governors in Abu Dhabi.

The Reuters news agency that Shabibi answered a question about whether Iraq has used its reserves to fill the gaps in the budget, saying "I do not not do it. There are of course discussions. Can not be touched, but reserves to stabilize the foreign exchange."

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Advisor at the Central Bank Calls for Change of government economic rent

Revealed the Iraqi Central Bank Consultant appearance of Mohammed Saleh, speaking in a panel discussion on Iraq «the country where five million employees and pensioners and social welfare and the unemployment rate which 15 percent (25 percent among youth) and 10 million people who receive ration card, with a stop 90 percent of the plants the industrial sector and the private sector. From here Tertsm picture of the Iraqi economy: justice and efficiency too low.

He concluded that the current economic system yield and democratic and called to correct this situation, this newspaper reported that Oman is hosting discussions between Iraq and the International Monetary Fund, paving, also said the Iraqi Central Bank Consultant appearance of Mohammed Saleh, to sign a standby credit agreement under which the International Fund grants, Iraq loan low interest rate of about one percent to revitalize the Iraqi economy.

Saleh pointed out that the loan «would be conditional on reforms in the Iraqi economy, which is to complete the agreement reached earlier, which canceled 80 percent of Iraq's debt, which had not completed a final clauses», referring to « restructuring of bank governance, and equipping of Iraq on a competitive basis and adjust their accounts, which is called Balheiklp financial and operational ». The International Monetary Fund announced on 11 this month, said there was broad agreement between the Fund and Iraq, in some areas of the new program of the Fund, including public financial management the banking sector, and that the mission of the Fund would continue talks with the Iraqi authorities later this month or early October (October) the next will focus on the draft budget for 2010 and the reforms planned for the next two years. He has been clear progress was noted during the mission in late July, in relation to broad agreement regarding the main criteria for macroeconomic and structural reforms, particularly in public financial management and sector.

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Surge in CBI dollar sales on Monday

The Central Bank of Iraq’s (CBI) dollar sales increased significantly in its daily auction on Monday to reach $212.665 million compared to $50.250 million during the previous session.

“The demand hit $9.380 million in cash, covered by the bank at an exchange rate of 1,183 Iraqi dinars, and $203.285 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 16 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=119601

Investment today better than tomorrow – Minister

Investment opportunities in Iraq are better today than tomorrow, the Iraqi Transportation Minister Amir Abduljabbar said Monday.

“Investment opportunities tomorrow are better than those after that as well,” Minister Abduljabbar said in a release received by Aswat al-Iraq news agency.

He called on foreign investors to employ Iraqi experts living abroad to learn more about Iraqi society and other local issues.

http://en.aswataliraq.info/?p=119606

GCC, US, Egypt, Jordan urge Iraq to respect it's international obligations

Kuwaiti Deputy Prime Minister and Minister of Foreign Affairs Sheikh Dr. Mohammad Sabah Al-Salem Al-Sabah and his counterparts in the Gulf Cooperation Council (GCC) met late Saturday with US Secretary of State Hillary Clinton to discuss regional issues.

They were later joined by their counterparts from Egypt, Jordan and Iraq, and according to Secretary Clinton it was a "very productive" meeting whose aim was to "coordinate efforts to promote their shared vision of a stable, peaceful and prosperous Middle East, and to intensify their consultations as partners and friends." The GCC countries are Kuwait, Saudi Arabia, Qatar, Bahrain, Oman and the United Arab Emirates.

According to joint communique issued at the end of the meeting, the foreign ministers expressed support for Iraq as it prepares for 2010 national elections, and underlined the importance of regional support to the Iraqi government and people in their efforts to achieve a prosperous, united, and democratic Iraq that lives in peace with itself and with its neighbors and "respects its international obligations." It is worth mentioning that Iraq wants to come out from under Chapter VII, but the international community keeps reminding it that it has to comply with the remaining Security Council resolutions first before it is allowed to join the international fold.

The Ministers recognized that Iraq has made significant gains in the past year and expressed support for the Iraqi people and government as they face challenges, such as the horrific August 19 terrorist attacks on the foreign and finance ministries, and called for the prosecution of the perpetrators. "The Ministers categorically condemn all terrorist attacks and expressed support for every effort endeavoring at restoring peace, security, and stability in Iraq" and stressed the principle of non-interference in Iraq's internal affairs They welcomed the trilateral meeting among President Barack Obama, Palestinian President Mahmoud Abbas and Israeli Prime Minister Ben***** Netanyahu earlier this week and expressed their hope for rapid progress towards the resumption of negotiations between the Israelis and the Palestinians.

They welcomed Obama's "important" statement before the UN General Assembly last Wednesday when he called for the re-launching of negotiations - without preconditions - that address the permanent status issues: security for Israelis and Palestinians, borders, refugees, and Jerusalem. The ministers reiterated their call for a freeze on settlement activities and expressed their continued support for an independent, viable, and democratic Palestinian state living side by side in peace and security with Israel, with contiguous territory that ends the occupation that began in 1967, in accordance with the relevant UN Security Council resolutions, the Road Map, and the Arab Peace Initiative. They reiterated their full support for the Palestinian Authority under the leadership of President Mahmoud Abbas and the Palestinian government led by Prime Minister Salam Fayyad and their efforts to build the institutions of a future state. They also reiterated their support for achieving a comprehensive peace in the Middle East.

They encouraged Iran to engage "constructively" and expressed hope that the planned meeting between Iran and the UN Security Council Permanent Members - P5 - and Germany, scheduled to take place on October 1 in Geneva, will "begin a process that resolves international concerns about Iran's nuclear activities.

"The ministers noted their "concern" for the situation in Yemen and expressed their full support for the government of Ali Abdullah Saleh, for the unity, security, and stability of Yemen; and for efforts for a peaceful dialogue.

They underscored the importance of ensuring the security of civilians and relief workers, and the provision for the safe passage of emergency relief supplies to civilians affected by the conflict.

They reiterated their support for the Yemeni government's economic and governance reform initiatives, and their willingness to continue to assist Yemen in improving the lives of its people.

The ministers vowed to continue to meet annually on the sidelines of the General Assembly in order to exchange views and consider common approaches to key issues that "affect their shared goals for the region."

http://www.menafn.com/qn_news_story_...yId=1093273152

Iraqi Central Bank governor wants to lower interest rates

Bank Governor Sinan al-Shabibi said on Monday he wants to interest rates are lower than current levels.

Shabibi said to Reuters on the sidelines of a meeting of the Governors of Arab central banks in Abu Dhabi "We would like to drop interest rates. This is a hope."

Has been reduced by the CBI official interest rate to seven percent from nine percent in June, with the decline in inflation thanks to falling oil prices from record highs above $ 147 reached last year.

The official interest rate in Iraq indicative of interest rates in banks rather than a mechanism of direct cash because the banking sector there is limited and Rosal capital markets are undeveloped.

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Nuri al-Maliki confirms that the central government is responsible for the sovereignty of the State

Prime Minister Nuri al-Maliki said the government is responsible for state sovereignty, security and natural resources and foreign policy.

Maliki said during his meeting with a number of notables and tribal leaders maintain that security, stability and welfare of Kirkuk is important for the government, adding that the central government is responsible for state sovereignty and its right and only decision-making to these aspects.

Maliki said the government was keen to conduct the forthcoming elections in an atmosphere far from the sound manipulation and fraud, calling on all components in all governorates of Kirkuk and the broad participation in the upcoming elections because it would be to foster solutions to all problems will occur, and through the process of change and construction.

He explained that the government is about to make a change in the Constitution and it is with this change to occur within the limits, rules and constitutional rules, and be wise in the context of processors that achieve justice, equality and balance.

http://radionawa.com/ar/NewsDetailN....855&LinkID=109

Iraq gets $1.8 bln IMF lifeline

PUKmedia 28-09-2009 17:13:45

The International Monetary Fund has decided to give Iraq $1.8 billion to support the country's economy and come out of the recession caused by the global financial crisis, a senior official with Iraq's central bank said Monday.

"The money is to support liquidity and to improve growth of the Iraqi economy," central bank advisor Mudher Kasim told Dow Jones Newswires on the sidelines of an IMF-Iraq meeting in the Jordanian capital, Amman.

Kasim said that the money is expected to be spent on infrastructure projects that the country is in dire need of. A massive budget deficit, estimated at nearly $19 billion this year, is adding to pressure on the government to try to find new sources of financing.

The IMF is specialized in providing loans to member states to deal with temporary deficits in their balance of payments.

http://pukmedia.com/english/index.ph...13576&Itemid=1