Thread: Archive News - Iraqi Dinar Think Tank - 22/06/2010 - 04/10/2010

Iraq cannot afford any further delay

The United States has sent its big guns to Iraq in the hope of breaking the political deadlock which has been delaying the formation of a new government.

The elections of March 7 have not produced a clear winner, leading to wrangling among the leading factions mainly between the outgoing Prime Minister Nouri Al Maliki and his rival, former prime minister Eyad Allawi.

The uncertainty has led to deterioration in the security situation and threatens to obliterate the improvement in security that has been achieved in the past two years. Iraqi politicians surely can use outside mediation. But eventually they are the ones who have to come up with an acceptable settlement to the crisis.

Even the Americans realise that. "This is local politics. This is not a lot different from any other government," US Vice-President Joe Biden said as he arrived in Baghdad to meet Al Maliki and Allawi. He is being supported in this tough mission by Congress heavyweights such as Senators John McCain and Joe Lieberman.

So far, it seems Iraqis are not able to bridge the gap as each of the two competing leaders insists he has the right to lead the new government.

And this is costing the country, which strives to rebuild, following two decades of wars and international sanctions. The crisis is also leading to a justified popular mistrust in the ruling elite, increasingly perceived as favouring selfish political gains over national interests.

Moreover, the delay has diminished the chances of Iraq's speedy integration in the regional order as its leadership loses credibility.

Iraq cannot afford any further delay in forming a government. US mediation will certainly help to some extent. But the ball is in the Iraqi leaders' court. They have to accept some compromise to break the deadlock.

http://www.zawya.com/Story.cfm/sidZA...urther%20delay

Successful Baghdad Trade Show

More than 120 companies and almost 100 Iraqi business and government representatives participated in a catalogue show in Baghdad on Sunday the 20th June. The event was managed and organised by Upper Quartile and co-sponsored by the U.S. Embassy Baghdad, Baghdad Provincial Reconstruction Team, and G4S.

It was another first for Upper Quartile, a follow on from our successful Trade Mission programme. It provided a unique opportunity for local business leaders and facilitators to network. Companies participating in the event displayed catalogues and contact information in a variety of sectors including industry, health, water, agriculture, security, education, and consumer goods.

Leanne Case congratulated the group on a successful event and encouraged local business leaders to continue their efforts at developing new opportunities. The show was another example of how government and business can work together to help improve economic conditions for everyone. More articles on what we are up to in Iraq can be found at Oil Industry Skills Development and Serviced Office in Basra.

http://www.iraq-businessnews.com/?p=5229

Agreement between the provincial council of Basra and their portfolios on the removal of chief investment

A source from the Basra Governorate Council, said Monday that the Council reached an agreement with the governor on the decision to sack the chief of the city's investment issued by the governor a few days ago.

The media director of the provincial council, Hashim and coffee, told the Kurdish news agency (Akaniwz) "The Council of Basra province to reach an agreement with Cltag Abboud Mayahi, the governor and the head of the National Investment Sami Araji to wait the issue of dismissal of the chief of Basra Investment and his Deputy."

He explained, "the agreement stipulates that the committee made up of three parties, the Council of Basra and the province of Basra and the National Investment Commission, will choose a month from now the new management of the Investment Authority, said: " .. He pointed out that" it will be selected from among the seven names proposed by the governor."

"The deadline for the Commission, will allow her to see the CVs of applicants and proposals."

He pointed out that "the body which will be selected by agreement, which will be responsible and supervising investment operations in Basra."

The governor of Basra last week issued an order to replace the chief of Basra Investment Haider Ali Fadhil and his deputy, and this led to the decision to raise tensions and debates between the governor and the Basra Governorate Council decision which is considered illegal.

http://www.aknews.com/ar/aknews/2/161426/

Iraqi Govt Kicks Off $186B Five-Year Development Plan-Report

Iraq launched Sunday its 2010-2014 five-year development plan that involves the implementation of more than 2,700 projects at a total cost of about $186 billion, pan-Arab Al Hayat daily reports Monday citing Abdul-Zahra Al Hindawi, spokesman for the ministry of planning and development cooperation which is in charge of supervising the implementation of the plan.

The Iraqi government's aim from the plan is to achieve an average annual economic growth of 9.38%, develop the infrastructure, reduce regional differences, provide 3.5 million jobs and diversify the economy of the oil-dependent country, the paper reports.

About $100 billion of the projects' costs will be financed by the state budget and the remainder will be funded through local and foreign investments, Hindawi told the daily, adding that the plan will mainly focus on the oil and electricity sectors.

http://www.zawya.com/Story.cfm/sidZW...%20Plan-Report

Originally Posted by Seaview

Economist : raise zeros from the currency creates controversy economically and 30 trillion Iraqi dinars are traded in the market

Economist said that the deletion of zeros in place of the Iraqi currency to create sensation between supporters and opponents about what that might entail for the effects of the economic sector, especially the volume of currency in circulation in the Iraqi market is estimated about 30 trillion dinars.

The name Abd al-Hadi in contact with the agency, the independent press (Iba) supporters believe that lifting the zeros will create a psychological effect to the citizen through the strengthening of its currency and adopted more widely, rather than the foreign currency that is demand for it as characterized by its high value and ease of pregnancy and the difficulty of counterfeiting.

Abdul Hadi said the process of lifting the zeroes will raise the value of the currency and reduces the demand for hard currency which is distinguished by force and will lead to re-balance between the value of local and foreign currency and give it market power at home and abroad.

Abizaid and Abdul Hadi either oppose the process of lifting the zeroes believe that the dinar will lose its value and depend on the price index in the local market.

And that through the gradual rise of prices would lead to high rates of inflation, so that we lift the zeroes will increase prices and rising inflation rate and have to repeat the same process again.

Abdul-Hadi We are with the postponement of the process at this time because it will create confusion in the Iraqi market and will be charged the Central Bank of huge amounts of money through the process of drawing, printing, replacement, especially the amount of currency in circulation in the Iraqi market is currently estimated at about 30 trillion dinars compared to what it was the amount of currency on our web site in 2004, which amounted to 4 trillion dinars.

He noted that the approach to stabilize the market and the national currency will be better and more effective than replacement with a new value and other currency.

http://www.ipairaq.com/index.php?nam...onomy&id=27401.

Atleast they are talking about the value of the Dinar. Let's hope it moves in our favor!

NDP specifies roles of Investment Commission

The National Development Plan (NDP) requires the National Investment Commission to bring in foreign and local investments, and execute strategic projects relying on oil revenues, the commission’s head said on Tuesday.

“The commission will work on bringing foreign and local investments to cover the NDP’s estimated budget of $360 billion over the period 2010 to 2014,” Sami al-Aaraji told Aswat al-Iraq news agency.

He noted that the NDP is big, comprehensive, and doable within five years.

On July 4, 2010, the Iraqi government launched the 5-year National Development Plan (NDP) for the years 2010-2014.

The plan was revealed in a celebration in Baghdad, which was attended by a number of Iraqi officials.

http://en.aswataliraq.info/?p=134132

Iraqi government to contract with oil wells retired drillers

The Iraqi Council on Ministers has agreed that the Oil Ministry holds contracts with retired drillers of oil wells.

“The decision comes after a request in this regard made by the Oil Ministry,” Dr. Ali al-Dabbagh, the official spokesperson of the Iraqi government, said in a release on Tuesday as received by Aswat al-Iraq news agency.

He noted that many retired Iraqi oil drillers are working for foreign firms inside and outside Iraq due to the low pensions they get.

http://en.aswataliraq.info/?p=134130

Deficit in budget not real – source

The deficit in Iraq’s 2010 budget has not yet become real six months after implementing the budget, the Iraqi prime minister’s economic advisor said on Tuesday.

“Spending in the budget is higher than the revenues, but delays in executing many projects have kept the budget’s deficit unreal,” Abdilhussein al-Anbaki told Aswat al-Iraq news agency.

He noted that Iraq’s oil exports will be increased by big margins over the coming three years, a matter that will cover deficits in budgets.

“Spending should be handled in the right way which return revenues, and represents a real addition to economy,” al-Anbaki explained.

http://en.aswataliraq.info/?p=134134

US commanders: Iraq Navy will be fully ready to defend oil rigs

The Iraqi Navy is on track to assume full command of protecting Iraq's vital offshore platforms within the next two years, outgoing US Navy 5th Fleet commander, Vice Admiral Bill Gortney said Monday.

'We are working very closely with the Iraqi Navy and within two years we will be ready to turn over the entire mission of protecting their two offshore oil terminals to them,' Gortney told the German Press Agency dpa on Monday.

He made the remark following a change of command ceremony where he handed command of the Manama-based US Navy 5th Fleet to Vice Admiral Mark Fox.

Gortney said he was very pleased with how the Iraqi Navy had been developing and performing so far alongside coalition forces which have been since the overthrow of the Saddam Hussein regime protecting the off-shore facilities.

Fox downplayed prospects of a maritime confrontation with Iran, but asserted that the coalition was ready for any contingency.

'I certainly do not expect a clash. We are not in the business of looking for trouble, but if trouble appears we know how to deal with it,' Fox said.

Both commanders stressed that the coalition is continuing to grow as more nations join the naval efforts to combat maritime threats in the region, including that of rising piracy off the Somali coast.

The 5th Fleet area of operation is the most engaged theater of operation supporting military activity in Iraq and Afghanistan, as well as carrying out counter-terrorism and counter-piracy efforts.

http://www.monstersandcritics.com/ne...efend-oil-rigs

"Shell" grant agreements to develop oil field in Iraq

The Royal Dac Shell "(RDSA) and its partner, the Iraqi state in the process of grant agreement for the drilling of new oil in the field of "crazy" the giant oil in southern Iraq, as stated by president of "SOC" government in the country, Jafar, on Tuesday.

The Iraqi source familiar with the project is working in the oil that "Shell", which took the Malaysian company owned by the government, "Petronas" for the development of the field of "Crazy", will grant agreement Engineering, supply and construction for the establishment of equipment production in the The field.

Jaafar said the agency "Dow Jones Newswires, "saying he had not yet been granted any of the agreements but they are in the "process" of grants, without giving further details.

On the other hand, the source said the Iraqi working in the field of oil companies that were invited, including "Halliburton" and "Weatherford International" and "Petrofac", for submission of bids for these two propositions. It did not provide further details.

The official declined to an executive in "Shell" to comment on the issue when the connection agency "Dow Jones" tags.

http://alforattv.net/index.php?show=...ticle&id=46592