Thread: Archive News - Iraqi Dinar Think Tank - 28/03/10 - 21/06/10

New Iraqi parliament to convene June 14: presidency official

Iraq's new parliament will convene on June 14 for the first time since March 7 elections that have yet to produce a new government, a presidency official said on Tuesday.

http://www.zawya.com/Story.cfm/sidAN...ncy%20official

Central Bank: It is difficult to manipulate the Iraqi banking system

Adviser to the CBI, Sunday, that the laws and regulations, control and the presence of bodies of the audit and follow-up made the manipulation of the banking system can be difficult, noting that Central did not stop dealing with any of the banks and his development and not to create an environment counter to them.

The appearance of Mohammed Saleh told (Voices of Iraq) that the central bank "did not stop its dealings with any Iraqi bank and that nothing in the law such a case, but our job to monitor the work of those banks and foster its development and its financial position", as our "preservation of the banking and development and not to create anti-environment in Iraq."

According to Salih, the bank-monitoring comes under the "regulations and in accordance with the Central Bank Law No. 56 of 2004 and the Banking Act No. 94 of 2004 without any difference between the National Bank or the government, where are all under the supervision of the Central Bank of Iraq."

And Saleh, said that "central banks are not allowed to come out of its borders, as designated under the law, where the bank levied on the offending" a fine is also imposed on the trust bank rates drop his investments is the legal contexts in the Central. "
Concerning the presence of irregularities in the operations of banks explained that "the existence of laws and regulations, regulatory bodies to check and follow-up made the manipulation of the banking system of Iraq is difficult," noting that such bodies "monitoring the situation now in Basra Private Bank, Bank of Iraq government to Oukuahma in a common problem for violating the law and regulations."

The security forces arrested last month on the Iraq branch bank manager Basra Hassan Kubba while trying to escape after a theft carried out in collusion with the National Bank of Basra, The investigation is still ongoing to determine the fate of the amounts described as "massive", without specifying the value.

And Saleh, said that "some banks, whether the capacity to have failures and Tlkwat and irregularities as well as government banks and must look to the issue into account the objective of our control is to protect the financial system in Iraq, not Iraq's interest to put its financial system to the risk in this sensitive transitional stage", and thus there were "A lot of rumors that must be addressed, and should strengthen the financial system and not work against him, whether my family or government."

On the issue of Warka Bank Ahli and the decision of Bank of Iraq to stop its dealings with Saleh pointed out that the central "did not stop dealing with Warka Bank, The issue of banks is an issue related to transactions between banks which is not within his purview, either the central His work on correcting and evaluating the work of banks and if there was a violation, we We will work to stop it, and if there was a need for support Fsndamanm right direction."

Some of the media last week quoted a bank manager Abdul-Hussein Iraq Yasiri announcing the suspension of trading with Warka Bank civil violations against the backdrop of a financial result of taking money out of the ceiling limit.

http://ar.aswataliraq.info/?p=227449

The Central Bank prohibits companies from mobile Bid in foreign currency

The Iraqi Central Bank to prevent mobile phone companies to participate in the auction of foreign currency after its adoption on the Iraqi dinar. A source at the Central Bank of the reporter (news agency of the news) on Saturday:

"It was decided to prevent the participation of media companies, mobile phone (Asiacell) and (ether) at an auction because their purchases of foreign currency to cover imports not represent the private sector in dollars."

The source pointed out that this move comes after the adoption of mobile phone companies on the Iraqi dinar instead of the U.S. dollar. The mobile phone companies have been subjected to the demands of the Iraqi media and communication to change tariffs contact from the dollar to the dinar and the calculation of a minute into the second.

http://www.ikhnews.com/go_ar.php?id=1275734204

Iraq oil minister 'not very happy' with OPEC compliance
Iraq's Oil Minister said on Monday current crude prices were fair and not too high to hinder global economic recovery, but added that he was not very happy with OPEC members' compliance with production quotas.

Hussain al-Shahristani said he was comfortable with current price levels which were high enough to encourage investments, adding that there was no need for an emergency OPEC meeting before October.

"The current price is also not too high to hinder the recovery of the global economy. It's a fair price," he told Reuters on the sidelines of the Asia Oil and Gas Conference (AOGC) in the Malaysian capital.

U.S. crude for July slid as much as $2.00 to $69.51 a barrel on Monday, the lowest since May 26, and was down $1.34 at $70.17 by 0804 GMT, extending Friday's drop of more than $3.00.

Oil's more than $20 plunge over three weeks last month, sparked by European debt problems, underscored market volatility from equities to commodities and the fragile state of global economic recovery, analysts said.

Al-Shahristani later said that fairer crude oil prices could be reached if members of OPEC better abided by production quotas.

"We have not been very happy with the compliance over the past few months. It's about 50 percent now," he told a news conference. "With better compliance, we should be able to reach a fairer price."

He also echoed the stand by the producer group that it had no plans for an early meeting before the next scheduled one on Oct. 14, though some members were voicing concerns about falling prices.

Libya said last month that OPEC members were talking informally about the drop in oil prices this month, and are urging each other to comply more closely with agreed supply targets.

Al-Shahristani said the right time to discuss Iraq's OPEC production quota will be three years from now when the country's output reaches 4.0 million bpd, adding it is now pumping 2.5 million bpd and will add 200,000-250,000 bpd next year.

Iraq's oil production capacity is projected at more than 12 million bpd by 2017, he said.

The impact of contracts awarded for rounds one and two of oilfield bidding in Iraq is expected to see more than 60 billion bpd of crude over 20 years, he said, adding that the country's oil supply will provide a safety valve that can help dampen price volatility.

However, Iraq will only produce what is needed and will not flood the market or influence prices in any way, Al-Shahristani said.

He added that the third bidding round for three Iraqi gas fields will open by September 1.

http://www.arabianbusiness.com/58989...pec-compliance

Asiacell participates in and sponsors the 7th Annual Media and Telecommunications Convergence Conference in Jordan

The largest private Iraqi company and the first and only mobile telecommunications company to provide coverage for all of Iraq – announced its participation in and sponsorship of the 7th annual Media and Telecoms Convergence Conference that was held under the patronage of Her Highness Princess Sumaya Bint Al Hassan on the 7th and 8th of June 2010, at the Four Seasons Hotel in Amman, Jordan. The conference was organized by the Arab Advisors Group, which is a member of the Arab Jordan Investment Bank and is a specialized research, analysis and consulting company focused on the communications, media, technology and financial markets throughout the Arab world.

The conference was attended by over 500 executives representing various local, regional and global telecom and media companies, where 46 speakers discussed the most important issues governing convergence opportunities between the media, telecom companies and content providers. The conference aimed at showcasing the telecom and media sectors on a regional level, in addition to providing major telecom and media companies with the opportunity to exchange their expertise and to familiarize themselves with the latest innovations within the field.

Asiacell’s sponsorship of the conference addressed the exceptional competition and growth witnessed in global and regional telecom markets, and aimed to present Asiacell’s experience as an Iraqi telecom company and capitalize on other companies’ experience within the region. As part of Asiacell’s sponsorship, Dr. Diar Ahmed, CEO at Asiacell, took part in a discussion panel that revolved around available opportunities of collaboration between mobile telecom operators and content providers in the Arab world, in addition to the integration of human and financial resources and the infrastructure owned by these companies in the region. Through this panel, Dr. Ahmed focused on the ideal utilization of these factors and working on unifying the efforts of telecom companies and content providers.

Asiacell’s participation also involved a promotional booth through which the company’s employees were able to interact with the conference’s visitors. In addition, Dr. Ahmed held a presentation that discussed Asiacell’s history and achievements in providing all 18 Iraq governorates with high quality telecom services within record time. The presentation also tackled the crucial role of the private sector in increasing the penetration rate of mobile services in Iraq, and covered the growing competition in the regional telecom market, highlighting that the Iraqi market is amongst the most competitive markets in the Arab world.

With regards to the role of the telecom sector in driving the progress of the Iraqi economy, Dr. Ahmed’s presentation revealed that the contributions of Iraqi telecom companies in the development of the national economy came only second to those of Iraqi oil companies. He stated as well the necessity of allowing Iraqi telecom companies to invest in the telecom sector’s infrastructure, which will have a significant positive impact on the development of the Iraqi market especially in light of the low penetration rate of Internet services in Iraq.

Commenting on this participation, Dr. Diar Ahmed, said: “The 7th annual Media and Telecoms Convergence Conference has granted us a unique opportunity to discuss the issues pertaining to the telecom and media sectors with the region’s foremost telecom leaders, and allowed us to share our experience as a nationally oriented Iraqi company. Our participation corresponds with our ongoing efforts towards developing and improving our products and services and building upon our success. Furthermore, we were able to showcase Asiacell’s prowess in tackling the various challenges that we regularly face in Iraq, in addition to our contributions to building the new Iraq and to advancing the position the Iraqi telecom sector within the region.”

http://www.arabianbusiness.com/press...s/detail/41583

Crisis between the Iraqi economy, the fiscal deficit and inflation rate of 9 trillion dinars / Investigations

Baghdad / Haidar al-Bakri

Iraqi paper on the threshold of collapse since 1980 To 2010 in the way of economy, finance and the crisis of inflation- 3,04.00 with 9 trillion deficit rate of real financial sweeping the Iraqi economy, the spectrum because of the lack of coordination between fiscal policy and monetary policy and the great extravagance in the issuance of paper currency and the absence of a clear strategy for most of the productive sectors gives us signals Clear to the presence of imbalance in the Iraqi economy led to the Retreat In the level of development and economic recovery as that crisis and Allkwat Mrabha which country was the primary cause of the high level of inflation but year after 2003 and the policy of openness and marked A big question about the size of the interest of the Iraqi economy harvested and whether our economy still needs to plans and strategies to promote and follow a policy of commercial arbitration.

Local funds larger than its value
According to Director of the Bank of Kadhimiya Sana Al Nuaimi from the inside One of the departments of banking for receiving funds from the citizens that "local funds Too many larger than worth pointing out that "some depositors and recipients face a significant problem in how to receive money and brought in because the amount of 10 million need to be a big bag to get it, especially since the security situation is unstable and there is a difficulty in the process of transfer, so the central bank had to act quick and serious in to avoid this crisis.

Wish The back of our currency the old
Trader says in Shorja Jabbar Jawad shop owner (gardens) at the age of 56 Years old when he was displays of ceramic products, glass and Ilmaha in the early morning I asked him: how Haji said inadvertently contained a day 30 / 40 dinars, and if he put me in astonishment What do you mean forty dinars Did you mean 40 000.
I said I believe that the dinar in the old currency, particularly mineral pool to hold them when we feel that we are well versed in good physical condition Although I carry a few of them and I hope that our currency returns the old (five Owlos, dirham and the dinar) and other other items

The interest rate was 20% 6% today to reduce inflation this fallacy large
According to an investor for the banking sector in the Iraqi Stock Exchange Hisham Mohammed, said "The decision to increase the capital of companies in three years to 250 billion dinars and Alsadran the central bank at this time was negative as investors showed no retreat at all levels of investment by 50%.

He pointed out that Subject has not been studied well and the size of the pluses and minuses involved in this resolution and that the interest rates imposed by the Central Bank of the loans granted Was 20% to reduce inflation today is 6% also to reduce inflation, there is considerable ambiguity and confusion in this policy Where the public interest as well as the resolutions of the Central Bank, as there are approximately 400 investors today have been their money into The destruction and collapse.

Central Bank monetary policy is the oscilloscope has the right to make decisions
The chairman of verbal wiped the Iraqi market for securities super Noam Kassab said "The Central Bank has the right to issue such decisions being painted is one of the monetary policy and banking in the country is also the supervisor of the private banks and government in Iraq.

He pointed out that we discuss and give opinions on this resolution in Mait_khass in the time period The question of extension to broadcast the Iraqi Central Bank To do so.

Adding The market was affected by this decision and stocks fell for all sectors The encroachment of this decline to include a T T Acharka not covered by the decision because of the percentage change in stock price.

The "The decision taken by the Central Bank of Iraq Reduce the proportion of change from 20 to 10% off Turn to the most investors Starts to offer their shares for sale so you can keep these amounts in order to be able to participate in the IPO to follow up, which will come from banks for the purpose of the increase and abide by the decision When the central bank increases the number of vendors offer less prices also increase.

To worsen the security situation and economic reasons why the bank to take such decisions
The Director of the Iraqi banks in the Central Bank Khaled Shaker "Most of the decisions taken by the Bank SA tactful was under the conditions represented in the security situation and the deteriorating economic situation, these are all reasons enough to make the bank take the decisions, so that the bank makes decisions in the public interest.

He said .. Batokid we raise complaints The demands of the bank managers to the Governor of the Central Bank and the decision is up to Did you have a word with him in this resolution until such time by the Governor of the Bank d. Shabibi or advisor with the CBE I am not authorized to release.

Behind inflation and not to raise the value of the Iraqi dinar against world currencies
The expert on the financial affairs of the Star-Rubaie Baghdad University, said "the local currency of groups large and small notes and coins of denominations of (25-50 - 100) dinars in place since 2003 to now in the Iraqi market need to combine, modify, integrate and pull.

Rubaie added that "all these currencies, specifically groups great need to raise zeros and small need to raise cash value and reduce the issuance process frequently and to have the public has full confidence on the value of the real and the proof is that in 2006, was issued a coin to the market, but ignorance of the public was behind the lack of dealing with them.

.. He said, adding that "the currency of (25-50 - and 100) dinars, which were traded in 2003, and despite the high rate of inflation during the period of the previous regime in the fall I think a lot that small change and coins will return to the circulation because of the low level of inflation and have been really small coin But it soon disappeared from the local market because of the high prices of goods and reduced purchasing power of the Iraqi dinar.

Confidence in the local currency means lifting the zeros and return the real value of her
The Director of Media Baghdad Chamber of Commerce Ali Zein, "The counterfeit currency In a number of banks lead to a lack of confidence in the local currency and this is a vacuum and a large distance of monetary policy in the Central Bank on track in real lift the zeros of the coin and talk about the existence of counterfeit currency we have to file complaints made by merchants and received by a member of the Council Chamber Qasim Muzaffar we have worked on address the central bank.

Inflation because of the seriousness of the current fiscal and monetary policy
Expert in Economic and Financial Affairs Karbala University, Dr. Ahmed Hassan al-Asadi
"The continuing rise in the value of the Iraqi dinar against the U.S. dollar due to Policy in the Central Bank of Iraq through open auctions and withdraw liquidity.

Asadi said that "the increasing The seriousness of inflation on the value of Because of the Iraqi dinar Fiscal and monetary policies must be indicating that the importation of goods and services from abroad and the decline in production also led to the resort of monetary policy to support the Iraqi dinar exchange rate and I expect that the policy quiet In support of The fundamental value of the Iraqi dinar led to the high level of current inflation for 2010.

He pointed out that the absence of micro-economic policy programmed programmable clear lines summoned to the pressure on the work monetary and fiscal policy is the policy of raising current spending

Inflation does not represent a monetary phenomenon but excreted factors and causes of internal and external
According to faculty In the Faculty of Business and Economics University of Baghdad Dr. Hanaa Abdel-Hussein said "inflation suffered by the Iraqi economy does not represent a monetary phenomenon, but a magnification of another kind of thing demonstrated by a number of factors and causes internal and external, including lack of clear economic policy under the former regime in addition to the country's vulnerability to many of the crises and wars and the spread of values and bad behavior and corruption financial, administrative, and adopt a policy of openness To the outside world and freedom of handling and foreign exchange and the clear decline in the level of economic activity and eat in the level of real GDP.

Called Dr. Hana in the search to the need to adopt the central bank interest rates help to diversify financial market debt instruments Bojalha gradual and managed at the same time increasing levels of savings and control the levels of liquidity. Inflation Mean, disruption of energy production means high unemployment and low growth rates and deteriorating incomes and falling living standards and waste of savings, with investors and the division of society into categories of rich, affluent and poor, destitute and disabled to the forces of production, so must look for exits and break the stagnation and move the forces of production and increase supply capacity and to ensure the basic needs of the consumer are considered priorities.

The fiscal deficit is estimated (9) Dinreetraci trillion in the budget for 2010
According to Bank of Iraq adviser, and a representative of monetary policy in Iraq, the appearance of Mohammed Saleh, said that "disability is estimated in the budget for 2010 B (9) trillion IQD vary in proportion.

He added that "this figure is based on several considerations, including Asar oil is priced for the purposes of the budget 62 dollars a barrel, we Anghl that the percentage of the adoption of Iraq's exports by 99% of Iraq's imports and Mama prices barrel may increase the percentage of deficit of 20 trillion. Adding that the Central Bank of Iraq monetary policy set Bakannouna No. (56) for the year 2004 issue of inflation targeting and to address the rates rising and work to reduce the priority objectives to reach a state of lasting stability in the general level of prices, so by influencing the levels of general liquidity and control of the trends and at the same time to strengthen financial sector and balance and stability and stimulated to respond to market signals launched by the Central Bank over monetary policy.

And "The Central Bank of Iraq Ajerytadela interest rate has adopted (policy rate), which became 20% since the beginning of 2007 before declining to 15% in 2008 to stimulate interest rates overall and reached 7% in 2009.

In the economy in order to achieve levels of savings and high desirable commensurate with the level of revenue that stimulate the public and businesses to increase their deposits with banks as well as to address the levels of high liquidity in the role played by the reference interest rate to strengthen the mechanical moving cash to curb the soaring inflation of 3.04 For the year 20101.

He said he had risen at the same time, Iraqi dinar exchange rate against the U.S. dollar (by buying and selling auction of foreign currency since the autumn of 2003) at a rate of 34% in part to curb inflationary expectations as of November 2010 and the balance in the money market between the desire to retain the funds were real money dinar and the supply of such stocks by making the Iraqi dinar more attractive and more likely in the face of the phenomenon - Dollarization - and their implications for the deepening problems of replacement and hit the cash element of stability in the demand for money, which is deepening the money market disruption. In order to present the facts of the current monetary policy and results in reducing inflation and stabilization. This paper is to express some aspects of the ECB's President, and that according to the monetary framework adopted at the present time.

The trends in monetary policy in the face of inflation
He pointed Amadhr trends monetary policy in the face of inflation incoming by reversing the inflation phenomenon, the steady escalation in the price level of goods and services, which exceeded the annual rates, regardless of the bottlenecks of the overall width and its contribution to the phenomenon of inflationary monetary policy on addressing the phenomenon and reduce the levels and especially the inflationary pressures generated by the aggregate demand or total spending in the economy.

Basis of inflation are the dimensions of the two paragraphs of fuel, transport and communications of the index
He Amadhr if we exclude the two paragraphs of fuel and lighting, transport and communications index of consumer prices, an indicator of inflation, could reach what is called inflation basis core inflation Which reflects the pressure of aggregate demand in excess of 32% per year (less than half the annual inflation rate referred to in the above Then came a decline of about 13.6% annually, adding that the case of deep-rooted in the phenomenon of inflationary and that the foundation Eshrha inflation caused by demand pressures which led to the disruption of Amehal exchange market in terms of public's desire to retain cash balances over the supply of such stocks. Reflecting an increase in the speed of money circulation and an increase in inflationary expectations in the same time, as it has become the latest source of inflationary persistence of the phenomenon.

Raise the external value of the Iraqi dinar
(Ie, the nominal exchange rate) in a manner commensurate with the real exchange rate to contain inflation expectations, taking into account the trends of the phenomenon of inflationary and the level of acceptance and availability of reserves, inflation and the level of acceptance and availability of international reserves with the Central Bank of Iraq and to curb inflationary expectations referred to above and to reduce the speed of circulation money.

Modify the interest rates Central Bank of Iraq
To bring out the financial market strong signals to changes in proportionate and desirable with the evolution of the time structure of interest rates, which would help to ensure positive returns to public depositors in the banking system and reduce the status gap between savings and investment by borrowing unequal between the supply of funds intended for loans, and demand. Explaining this matter that the benefit is not a monetary phenomenon only, but is a real phenomenon is also related to the decisions of investors and investment returns, so the spacing mentioned between desired savings and desired investment caused real interest rates negative in the years 2005 - 2006 (before becoming a positive since the beginning of 2008) , which came under the influence of inflationary expectations high compared to low interest rates cash in banks and the general financial market. The judiciary is also on the gap between savings and investment is through access to interest rates steadily Twaznip subject and contained inflation expectations, which is adopted by the Central Bank to embrace my name is installed (Nominal Anchor ) Exchange rate to stabilize inflationary expectations of the public and at the same time for the benefit of the Iraqi dinar through monetary framework adopted by the flexible exchange rate policy, but under the influence of central bank intervened in order to raise the nominal exchange rate to the level of the real thing.

The phenomenon of the spacing between savings and investment in essence, means the spacing between the productivity of investment and real return by hand, compared to returns on savings, especially when an investor to receive a real return on a regular plus a margin of inflation for prices of goods and services generated by investment is normally from its outputs, which in all cases more than interest and Istalp of return on savings over the rates of bank interest low from the perspective of the money market is not the organization, we mean the market is not legal (of Interest), which reflects the reality of actual transactions and the real value (for the price of money) no interest away from the regulatory framework adopted legal with the banking system Thdidalvaidp in cash.

http://al-iraqnews.net/new/press-inv...ons/11857.html

Security concerns, corruption keep German investors away from Iraq – consular

Security concerns and financial and administrative corruption keep German investors away from Iraq, German consular in Arbil city (Iraqi Kurdistan) said on Wednesday.

“Although security situation in Iraq is stable, the image associated with the country in German investors’ minds is about bombings and security violations,” the consular told Aswat al-Iraq news agency.

He noted that security concerns increase investment costs and minimize revenues.
“Financial and administrative corruption does not facilitate investments, and makes their present in Iraq difficult,” the consular explained.

He noted that German Government is planning to start a businessmen office in Basra province, southern Iraq.

http://en.aswataliraq.info/?p=132966

Iraq to sign investment agreement with Italy

The Iraqi Government has authorized the finance minister to sign an agreement with Italy to encourage and protect investments.

“The measure comes as indication that Iraq is open to the world as a fertile land for investments,” the Iraqi government said in a statement on Wednesday as received by Aswat al-Iraq news agency.

The release described Italy as a state that has influential international presence and economic status.

http://en.aswataliraq.info/?p=132972

CBI sells $684m this week

The Central Bank of Iraq (CBI) dollar sales in auctions for this week increased to $684.898 million compared to $617.800 million last week.

“The demand hit $22.970 million in cash, covered at an exchange rate of 1,183 Iraqi dinars per dollar, compared to last week’s $10.070 million, while foreign transfers outside the country registered $661.928 million, covered at an exchange rate of 1,173 Iraqi dinars per dollar, compared to last week’s $607.730 million,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the banks that participated in this week’s sessions offered to sell dollars.

http://en.aswataliraq.info/?p=133068

Iraq resumes oil pumping to Turkey

Iraq has resumed oil pumping to Turkey through the pipeline between the two countries after a 5-day pause.

“The process was resumed late yesterday night,” a source from the Iraqi North Oil Company (NOC) told Aswat al-Iraq news agency on Saturday.

He noted that the pumping process had been paused for five days due to sabotage in northern Salah al-Din province that caused a crack in the pipeline two meters in length.
“The crack was repaired within three days, but pumping was not resumed immediately due to a leak in southern Ninewa province,” the source added.

He explained that pumping was resumed after repairing the leak.

NOC is based is based in Kirkuk, the Iraqi oil-rich city that lies 250 km northeast of Baghdad.

http://en.aswataliraq.info/?p=133094