Thread: Iraq/Dinar News. before Febuary 2nd 2006

Originally Posted by neno

I totally Agree. This is funny, as at the Job today we were all discussing this very scenario. The only thing that gets me about the GCC in 2010 is we were trying to figure if it will be a whole New Currency Printed. Or since Iraq has established by then the NewIraqDinar. If it itself might be the one currency that is unified to all. Any Comments about the future currency at that time, welcome. Makes wonder and how high in value it could become.

Neno, I think it will be a new currency like the euro is. I believe when that time comes they will peg it to the perceived (I will call it the OPEC dollar) to the US dollar. Those holding the NID will have to exchange them for the OPEC dollars at the established exchange rate at that time. What I "believe" is that the NID will try an adjust itself to the expected OPEC dollar prior to that event. The year 2010 is GCC proposed date but it could change due to the political climate.

Originally Posted by im1vestr

Neno, I think it will be a new currency like the euro is. I believe when that time comes they will peg it to the perceived (I will call it the OPEC dollar) to the US dollar. Those holding the NID will have to exchange them for the OPEC dollars at the established exchange rate at that time. What I "believe" is that the NID will try an adjust itself to the expected OPEC dollar prior to that event. The year 2010 is GCC proposed date but it could change due to the political climate.

The Euro situtation was the deciding game for the debate we had. But as we wondered about Iran, Syria, S. Arabia and others that are valued very low compared to Kuwait, Jordan and also decided that the NewIraqDinar will have to fall inline there somewhere at that time.

It is just a Interesting Subject that will come to Parr.

Just found this old info and thought I'd post it for reference....

Document of the World Bank
Economic and Social Development Unit
Middle East Department
Middle East and North Africa Region

CURRENCY EQUIVALENTS
Iraqi Dinars (IQD) per one U.S Dollar (US$)
Average exchange rates for the period
2001 official rate 0.3109
2001 market rate 1929
2002 official rate 0.3109
2002 market rate 1957
2003 official rate 0.3109
2003 market rate 1957
2004 1460
2005 H1 1465

siteresources.worldbank.org/IRFFI/Resources/CEMEXsum.doc


Cheers!
DayDream

Originally Posted by neno

The Euro situtation was the deciding game for the debate we had. But as we wondered about Iran, Syria, S. Arabia and others that are valued very low compared to Kuwait, Jordan and also decided that the NewIraqDinar will have to fall inline there somewhere at that time.

It is just a Interesting Subject that will come to Parr.

I've seen this term 'fall inline' mentioned before. I don't think that is important at all. Whenever they decide on the new combined currency, they can simply establish the exchange rate of the respective countries' currencies accordingly. Just like the old dinar was traded for new dinar at one rate, while the Kurds' swiss dinar traded for new dinar at a higher rate.

Originally Posted by spirit

I would like to thank all those who post regularly to keep RC members informed about the progress in this investment.
I am one of those who read everyday but seldom post.
I understand the CBI holds daily auction
But who determines How much dinar would be bought back at each auction
Assume that on an auction day no bank shows up to offer to sell their dinars, what can the CBI do if they are determined to buy dinars back? Lower the rates as an incentive until they find a taker?
Thank you

Hi Spirit,

Like you, I am an avid follower and 'appreciater' of Rolclub posters, but an infrequent poster.

With all due respect to all posters, I believe that we possess an incomplete understanding of the meaning of the currency auctions held by the CBI. I believe this because we have only been taking notice of the currency auctions. The CBI also hold security auctions at some frequency. The CBI offers two types of securities differentiated by the length to maturity. When auctioned off, they serve to contract the Dinar supply. When these auctions are held, and not enough bidders participate, the CBI simply increases the 'interest' rate they will pay to buyers of these notes. Their banking system is patterned after our "Federal Reserve".

As a quick aside to the prior poster who noted with interest that the contested budget is defined in dinars - mega WOOT!

The CBI link to the securities section appears below.

Securities Auctions

Iraq oil law would distribute revenues


A high level Iraq government committee has hammered out a proposed law that would give the federal government authority over distribution of oil revenues, The New York Times reported Saturday.

In the story reported out of Baghdad, Iraqi Planning Minister Ali Baban, a member of the Sunni-dominated Tawafaq party, was quoted as saying that the proposed draft law would ‘give us the basis of unity in this country.’
Equal distribution of oil revenues has been a key issue in escalating sectarian violence in Iraq, where the oil-rich regions are dominated by the majority Shia population or Kurds in the north.

While those two groups insist they should control the revenues, the minority Sunnis, who lost power when the late president Saddam Hussein was ousted, charge they are being cut out of benefiting from the nation’s resources.

The draft law will go before the cabinet ‘early next week,’ quoting Oil Ministry spokesman Asim Jihad.

The draft would call for the Iraqi prime minister to oversee contracts and review contracts already signed under Hussein or by the Kurdish government, Jihad said.

The United States has been demanding that the Iraqi government take control of the country’s oil reserves to help cool down sectarian bitterness.

source: Khaleej Times




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Posted on Wednesday, January 24

Mahmudiyah project helps boost local economy


Mahmudiyah’s mayor wants to chart a new course and believes a signature project for his community would be welcome news.

Mayor Muayid Fadil Hussein Habib is viewing several possibilities including a Vocational Technical College, a soccer stadium, and a vegetable and fruit processing factory.
"My hope is that we can convince Iraqi and American officials to invest here in a facility that will have a meaningful impact for decades to come," Muayid said. "These projects would employ local people not only in the construction phase, but would benefit our area and help the local economy as a lasting legacy," he noted. He was also hopeful that a facility like a Vocational Technical College would encourage other small industries to open in his community, such as a new cement plant or metal fabrication shop.

"We need to boost our local employment opportunities that will benefit not only Mahmudiyah, but the surrounding villages." He was hopeful farmers in his areas could qualify for low-interest loans so they could expand their agricultural opportunities including fish farms, poultry and beef operations. "If we can help them with the start-up costs, they will be able to repay those loans with the profits. It’s another way to help the local economy," Muayid said.

David Schmidt with the U.S. Army Corps of Engineers recently met with Muayid to discuss those possibilities, as well as ongoing work in his city. Schmidt encouraged the mayor to work through his Iraqi officials and the Baghdad Provincial Reconstruction Team to determine what was possible and to identify funding.

Ongoing work includes repairing the community’s water treatment plant, rebuilding Mahmudiyah’s Market, school renovations, a new primary healthcare center, and electrical distribution upgrades.

Regarding such projects, Muayid asked that local contractors be utilized. Schmidt said his office is interested and willing to schedule a meeting with local contractors to provide them training on how to prepare bid proposals -- the documents and references that are required. He also suggested that someone in the mayor’s office attend so they could offer that information to others in Mahmudiyah. "It shows them the steps necessary to qualify for the work," he added.

Schmidt complemented the mayor on his interest in economic development. "This is a definite priority for all -- business and job creation is something we’re all interested in," Schmidt said.

"We need new projects offering long-term benefits," the mayor noted. "This is how we’re going to build a new Middle East. Such efforts will encourage trust and friendships we’re all looking for."

Source: Blacknathem News




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Posted on Wednesday, January 24

Iraqs Minister of Industry on visit to UK


Iraqs Minister of Industry and Minerals Fowzi Hariri highlighted here Monday the great potential of his sector to develop the Iraqi economy.

Hariri is currently visiting the UK heading a 10-man delegation to discuss with British industry chiefs how to help develop Iraqs industry and mineral resources.
In a news briefing at the Foreign Office, he said that despite the deteriorating security situation, 230 factories around the country are working in sectors including engineering, petrochemical, pharmaceutical and textiles.

The Minister was hoping that with the move towards market economy and privatisation, Iraqi industries could enter into a privatisation programme in future.

He stressed the need for a phased programme to revitalise and rehabilitate the Iraqi industries so that they become more competitive and productive.

Then the plans for ending the government monopoly will begin leading to a privatisation programme, Hariri added.

The Minister and his delegation arrived here from Washington, where they met senior representatives of international companies specialised in various sectors of industry and the discussions centred on reaching a cooperation agreement with Iraq.

His discussions with the British major industrial companies, including steel producers, were covering similar aspects, he continued.

The improvement in the Iraqi industries will help develop the economy in the country, Hariri said.

In answer to a question by KUNA, he said that discussions are underway with a number of Egyptian and potential Gulf investors to cooperate with Iraq in this sector.

A round table discussion in the Gulf is planned for next month with a group of Gulf and Arab investors to examine how cooperation and investments can proceed to help Iraq.

The Minister was also hopeful that various sources in the Gulf would help in developing the Iraqi industries, including potential investors from Kuwait, Saudi Arabia, the UAE and Oman.

These investors are interested in working with the Iraqi Ministry of Industry to invest in new ventures in Iraq, he pointed out.

The Gulf investors will benefit as potential partners from such ventures and Iraq itself will also reap benefit from that, Hariri concluded.

Source: Kuna




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Posted on Wednesday, January 24

Oil law seen leading to fair competition; Iraq capable of raising oil exports
BAGHDAD (AP): A new draft hydrocarbons law will pave the way for “transparent and fair” competition in bids to develop Iraq’s oil wealth, the oil minister said Sunday as he seeks to restore the confidence of global oil companies in the national industry. The oil minister, Hussain al-Shahristani, said new oil fields will be added as new tenders will be issued according to this law for global oil companies. “The competition will be transparent and fair and companies will be chosen according to their modern technological capabilities to guarantee the highest benefits for Iraqis,” al-Shahristani said at a news conference. “We will not consider their nationalities and we will ignore any contract doesn’t achieve the highest benefits.”

Al-Shahristani refused to say how long the law will take to be approved by the parliament and didn’t release more details about the negotiating mechanisms the ministry will adopt for dealing with global companies. The oil minister also cautioned that attacks against oil installations and employees were increasing, saying that 289 oil employees were killed over the past year and 179 others were wounded.

Suffering
“The ministry is always suffering from these terrorist attacks. I call upon all honest people to cooperate with the oil ministry in order to find those who are attacking the employees of this sector and provide us with any related information,” he said.
Insurgents have frequently targeted oil facilities, pipelines and employees, disrupting exports and efforts to modernize the industry. The new law, if approved, is expected to encourage foreign oil companies with their huge investment clout and technology to quickly modernize Iraq’s oil sector and meet the country’s goal of doubling the current crude production of 2.5 million barrels per day by 2010.

The oil minister stressed that all Iraqis will share in the benefits amid concern by many Sunnis that they will lose out as the country’s two chief oil region – in southern and northern Iraq – are dominated by Shiites and Kurds, who want regional control over oil production and revenues. Iraq’s Sunni Muslims and much of the Baghdad government want to maintain national control over Iraq’s petroleum resources as was the case during former leader Saddam Hussein’s Sunni-dominated regime.

Promote
“The constitution states that oil and gas are for all Iraqis in all provinces and regions and according to this conception we drafted this oil law to help promote Iraq’s unity and prosperity of its people,” he said. Last Thursday, the ministry’s spokesman Assem Jihad told The Associated Press that the law stresses that all oil revenues will go to a central fund, then will be distributed to all Iraqis in all regions and provinces according to their populations. Jihad added that the law provided for all oil contracts signed by Saddam’s regime or by the semi-autonomous northern government of Kurdistan to be reviewed and amended if needed.

Iraq’s proven oil reserves stand at about 115 billion barrels, the world’s third largest after Saudi Arabia and Iran. On a technical matter, al-Shahristani said that a new metering system to track oil and gas flows from Iraq’s southern export ports has been fixed. Iraq’s economy has been severely weakened by oil smuggling to neighboring countries, a problem that could be checked in part by the presence of a metering system. The smuggling has created a fuel crisis that leads to occasional shortages even though Iraq is one of the world’s leading producers of oil.

Experts
Some experts believe that oil smuggling may be funding Iraq’s insurgency. Iraq is capable of raising its crude exports to 1.9 million barrels per day from 1.6 mln bpd but is not planning to do so yet because of Opec restrictions, Oil Minister Hussain Shahristani said on Sunday. “The exporting capability from the southern sea ports of Basra and Khur al-Amaya became 1.9 million bpd,” he told reporters in oil ministry in Baghdad. “But we do not intend to raise the export rates for this month because Iraq is looking forward to commit with Opec states to defend acceptable and profitable oil prices,” he said. Iraq which sits on the world’s third biggest oil reserves relies heavily on export revenues. Its oil sector desperately needs foreign investment to revive its shattered economy.

“In accordance with the policy of Opec we will not raise export rates for the time being until we see the Opec ceiling of prices for February 1st and its effect on global prices before we decide any raise of exported oil quantities,” Shahristani said. On Friday, world oil prices rebounded from a plunge below 50 usd a barrel after a US government report showed a bigger-than-expected rise in American inventories of crude oil. Iraq’s estimated reserves of crude oil amount to 115 bln barrels, the third largest worldwide behind Saudi Arabia and Iran.
ARAB TIMES

Iraq


Published: 25/01/2007 12:00 AM (UAE)

Political tension on rise in Kirkuk
By Basil Adas, Correspondent



Baghdad: Kirkuk, the oil-rich province of northern Iraq is back in the forefront of political events in light of two developments: Turkish intervention to benefit the Iraqi Turkmen minority, and secondly the Kurdish leader Masoud Barazani's statements which asserted that Kirkuk is Kurdish land.

His statement infuriated the Turks and Sunni and Shiite Arabs. Khisro Mohammad, a member of the Patriotic Union of Kurdistan's political bureau (led by President Jalal Talabani), told Gulf News: "The escalation in Kirkuk is basically Turkish escalation."

He accused the Turks of taking advantage of the Turkmen minority to drag the Kurds into a conflict with Arabs and Turkmen.

"Turks fear an increase in light of normalising of the situation in Kirkuk under Article 140 of the permanent Iraqi constitution, meaning that the process of a self-determination referendum is approaching by the end of the current year.

"Turks fear Kirkuk joining the Kurdistan region because it will encourage 15 million Kurds in Turkey towards asserting their rights. Besides the Turkish Prime Minister sought to escalate the Kirkuk issue as the date for the next election campaign in Turkey is approaching," he added.

Mohammad said he thought those causing the Kirkuk problem, in addition to Turks, were the dissolved Baath Party members and Arabs associated with the Ansar Al Sunna organisation close to Al Qaida.

Resettle

During the visit of Iraqi Foreign Minister Hoshyar Zebari to Ankara it was reported the Turkish government refused to provide guarantees to Baghdad not to raise the issue of Turkmen in Kirkuk.

The Turkmen Front loyal to Turkey accused Kurds of murdering the Turkmen minority and sending more Kurdish peshmerga troops to Kirkuk. Major General Anwar Mohammad Ameen, commander of the Iraqi Army in the province , told Gulf News: "There is a critical political conflict between Kurds-Turkmen and Arabs which may lead to an escalation of the security situation."

Ameen revealed that Kirkuk had received hundreds of Arab and Kurdish families from hot spots in Baghdad and Ramadi. He confirmed that assassinations in Kirkuk were based on people's national identity but said the situation was under control.

Under Article 140 of the Constitution, Kurds want to resettle 400,000 Kurds who left Kirkuk as part of the Arabisation Kurdistan's region policy during the rule of former Iraqi President Saddam Hussain.

"Since the Arabisation policy led to resettling thousands of Shiites in the oil-rich governorate, Kirkuk will remain part of the united Iraq and we are reluctant to back Barazani's statements which considers Kirkuk a Kurdish region," said Talal Al Saadi, a prominent figure in the Shiite Sadr trend who enjoys great popularity in Kirkuk.

Al Saadi accused Kurdish political leaders of dragging the province into a bloody conflict through repeating statements about Kurdish Kirkuk.