Thread: Iraq/Dinar News up until March 18th Midnight ctz

Originally Posted by abbey56

Hi,

Well, the postings this morning has me and I am sure a few others somwhat confused, have they finally passed the HCL or not, can someone let us know in plain English what the situation is.

The HCL has been approved by the council of ministers but has not been passed by parliament yet, this is my understanding. I think the prime minister has also approved the HCL but just waiting for parliament.

IMF extends $715 mln loan program by 6 months
IMF extends $715 mln Iraq loan program by 6 months
Reuters Alert Net - [14/03/2007]


The International Monetary Fund on Tuesday extended Iraq's $714.7 million loan accord to Sept. 28 at the government's request and said the country faced an important juncture in its economic recovery amid increased violence.

Iraq has treated the loan as precautionary finance and has not drawn down on it since its approval in December 2005.

"Despite very difficult political and security circumstances, the Iraqi authorities have taken important measures to keep their economic program on track," IMF Deputy managing Director Takatoshi Kato said in a statement.

He commended the authorities for their management of the economy, including maintaining fiscal discipline, tightening monetary policy and raising domestic fuel prices.

But the IMF said inflation was high and the central bank may need to act to prevent it from becoming entrenched, while fiscal policy should keep current spending in check, including wages and pensions.
Kato urged the government to increase its investment, especially in the oil sector, and to reduce supply constraints of fuel products.

"To that end, actions are needed to facilitate the importing of fuel products by the private sector," Kato said.

He said reforms needed to be broadened, including in the budget and financial management system.

The fund praised restructuring efforts of Iraq's two largest banks but said more efforts were needed to overhaul the four other state-owned banks.

On the same note:

Iraq: IMF Executive Board Completes Third and Fourth Reviews under Iraq's Stand-By Arrangement



Approves Six-Month Extension of Arrangement to September 2007
March 13, 2007 -- The Executive Board of the International Monetary Fund (IMF) has completed the third and fourth reviews of Iraq's performance under its economic program supported by a Stand-By Arrangement. The IMF arrangement is being treated as precautionary by the Iraqi authorities, and no purchase is planned. AS MR. KNOWLES WAS SAYING, THEY DO HAVE MONEY, THEY DON'T NEED THE LOAN

The Stand-By Arrangement in an amount equivalent to SDR 475.36 million (about US$714.7 million) was approved on December 23, 2005 (see Press Release No. 05/307). In completing the latest reviews, the Executive Board also approved the authorities' request for a six-month extension of the arrangement through September 28, 2007. Additionally, the Board also approved the authorities request for a waiver of the non-observance of a structural performance criterion. WHAT DOES THIS MEAN??


Following the Executive Board's discussion of Iraq, Mr. Takatoshi Kato, Deputy Managing Director and Acting Chair, stated:

"Iraq is entering a crucial period in its economic recovery. "IS ENTERING" , NOT " WILL ENTER" Despite very difficult political and security circumstances, the Iraqi authorities have taken important measures to keep their economic program on track.- THE SECURITY IS IMPORTANT , BUT NOT THAT IMPORTANT TO STOP THE ECONOMIC PROGRAM- The maintenance of fiscal discipline, as well as the tightening of monetary policy and the appreciation of the dinar, are commendable. The increase of official domestic fuel prices and the enactment by the Council of Representatives (CoR) of a law liberalizing the import of fuel products are important steps. The amendments to the pension law were submitted to the CoR; we look forward to their early passage into law. The government's approval of a new oil and gas law augurs well for the future of the oil sector. Progress is also being made in financial sector reform.

"Inflation, however, remains high. While this is to an important extent due to the prevailing difficult security situation and supply disruptions, the Central Bank of Iraq (CBI) may need to take further steps in order to prevent high inflation from becoming entrenched and to de-dollarize the economy. Fiscal policy should be supportive by keeping current spending, including the wage and pension bill, in check. At the same time, it is important to increase government investment, especially in the oil sector. The government also needs to reduce supply bottlenecks, especially of fuel products. To that end, actions are needed to facilitate the importing of fuel products by the private sector. The pace of structural reforms needs to be increased. Efforts to modernize the chart of accounts and the budget classification need to be stepped up, and the Financial Management Information System should be implemented rapidly. - URGENCY!!!- It is important to complete the census of public sector employees by mid-year. While the restructuring effort on the two largest banks is commendable, efforts should be made to restructure the four other state-owned banks. The modernization of the payments system needs to be expanded to cover all banks.

"The CBI's efforts to implement the recommendations of the Interim Safeguards assessment report and the Ernst & Young 2005 audit report are encouraging. The Ministry of Finance is strongly encouraged to recapitalize the CBI as soon as possible.

"Corruption and violence need to be brought under control to unlock Iraq's oil wealth. More forceful actions are needed, especially in the area of smuggling. In this respect, the implementation of oil metering projects should be finalized as soon as possible. The authorities' intention to join the Extractive Industries Transparency Initiative is welcome.

"Progress in settling arrears with private creditors is commendable. However, further progress is needed towards resolving non-Paris Club official claims," Mr. Kato said.


- do you guys see this as a stick in their A** ?? The whole review is based on " as soon as possible" , "immediately" , " the pace needs to be increased"...

Who says these are bad news??

Originally Posted by Wm.Knowles

the last statement is very interesting. "balances in excess of legal reserve requirements". What this is telling me is that money (probably USD) is piling up in the local banks in excess of reserve requirements and loan demand. Exactly what you would expect under the assumption that the local banks have been trading their dinars (removal of currency from the economy) for USDs. A very good sign in that the banks have excess liquidity and this should make those that are intertested in bank stocks happy. And is what you would want should there be a reevaluation of the currency and demand for dollars should increase. They have a lot of MONEY!. Thank You.

Just a question. Where are the banks in Baghdad? Are they in the green zone, or scattered around like they are here? Does anyone have any idea what the security is like for them? I'd think the banks would be a pretty juicy target for the nutballs.

Originally Posted by ourhouse37

Just a question. Where are the banks in Baghdad? Are they in the green zone, or scattered around like they are here? Does anyone have any idea what the security is like for them? I'd think the banks would be a pretty juicy target for the nutballs.

i personaly believe they are in the PM office and perhaps a few branches in parlament,that way they can just show up every now and then get thier money and off they go on another vacation

The high demand for dollar and the depreciation of the exchange rate.

The demand for dollar in a meeting today, Wednesday, auction of the Central Bank of Iraq, recording the volume reached 56 million and 600 thousand dollars against 47 million and 10 thousand dollars.

Such Talyat purchase by 18 million and 960 thousand dollars in cash, 37 million and 640 Crystal dollars in the form of remittances outside the country, the Bank has full coverage at the exchange rate amounted to 1277 dinars low one point on the exchange rate yesterday of 1278 dinars.

While he did not make any of the 15 banks participating in the auction, offers to sell the dollar.
The economic expert as far Sadiq Abdul Razzaq News Agency (Voices of Iraq) Independent that the return of the policy of raising the price of the Iraqi dinar again after a break of two weeks coincides with the announcement of the Central Bank continued its own economic containment deficit in the country by reducing the dollar exchange rate and increase the rate of interest after they reversed this policy in the past period, limited improvement in containing a small proportion of inflation resulting from higher prices of fuels which impact on the overall other sectors of the economy.

Version traduite de la page http://www.aswataliraq.info/?newlang=ara

Originally Posted by Offshore-Wealth.com

Funny,

Are you trying to corner me Neno. LOL Seriously, I have always heard that normal is where it left off at the time of invasion, this is generally considered normal as this was the last rate of exchange, and the one most were accustomed to for many years, actually from 1986 to 2003, so this is why it is referred to as normal. Hope that helps.

Good luck to all, Mike

Iraq: Exchange Rate as of January 31, 2007

Date Exchange Rate
September 08, 2003 2.53758
April 30, 2002 2.53758
April 30, 2000 2.43852
April 30, 1999 2.38074
April 30, 1998 2.38881
April 30, 1997 2.3558
April 30, 1996 2.21848
April 30, 1995 2.04504
April 30, 1994 2.26323
April 30, 1993 2.26004
April 30, 1992 2.34852
April 30, 1991 2.39924
April 30, 1990 2.46985
April 28, 1989 2.48283
April 29, 1988 2.32407
April 30, 1987 2.46269
April 30, 1986 2.73556

there you go!!

Maliki urges regulation of Iraq's oil wealth

Baghdad - Prime Minister Nouri al-Maliki fears the Americans will torpedo his government if parliament does not pass a law to fairly divvy up the country's oil wealth among Iraqis by the end of June, close associates of the leader told The Associated Press on Tuesday.

The legislature has not even taken up the draft measure, which is only one of several US benchmarks that are seen by al-Maliki as key to continued American support, a crucial need for the survival of his troubled administration.

US State Department spokesperson Tom Casey denied the administration would withdraw support. "The notion that we have in any way shape or form threatened to bring down his government over this law is simply untrue," he said in Washington.

Aside from the oil law, the associates said, American officials have told the hardline Shi'a Muslim prime minister that they want an Iraqi government in place by year's end acceptable to the country's Sunni Arab neighbours, particularly Saudi Arabia, Jordan and Egypt.

'The oil law has not moved forward'
"They have said it must be secular and inclusive," one al-Maliki associate said.

To that end, al-Maliki made an unannounced visit Tuesday to Ramadi, the Sunni Arab insurgent stronghold, to meet with tribal leaders, the provincial governor and security chiefs in a bid to signal his willingness for reconciliation to end the bitter sectarian war that has riven Iraq for more than a year.

Compounding al-Maliki's fears about a withdrawal of American support were visits to Saudi Arabia by two key political figures in an admitted bid to win support for a major Iraqi political realignment. Saudi Arabia is a major US ally and oil supplier.

Former Prime Minister Ayad Allawi, a Shi'a Muslim, flew to the Saudi capital Tuesday, a day after the arrival there of Masoud Barzani, leader of Iraq's largely autonomous Kurdish region. Most Kurds are Sunni Muslims.

"Allawi is there to enlist support for a new political front that rises above sectarian structures now in place," the former prime minister's spokesperson, Izzat al-Shahbandar, told the AP.

'Too much possible foreign involvement and profit sharing'
Barzani spokesperson Abdul-Khaleq Zanganah said the two Iraqis met in Kurdistan before the trip for talks on forming a "national front to take over for the political bloc now supporting al-Maliki."

It appears certain the United States was informed about the Allawi and Barzani opening to the Saudis, who are deeply concerned that al-Maliki could become a puppet of Iran, the Shi'a theocracy on Iraq's eastern border they view as a threat to the region's stability.

Washington has been reported to be working more closely with Sunni Arab governments to encourage them to take a greater role in Iraq, particularly in reining in the Sunni insurgency that has killed thousands of US soldiers and tens of thousands of Iraqi Shi'as.

The Bush administration is believed to be trying to win support for its operations in Iraq among Arab neighbours by assuring a greater future role for the Sunni minority that ran the country until the US invasion ousted Saddam Hussein four years ago.

One al-Maliki confidant said the Americans had voiced displeasure with the prime minister's government even though he has managed so far to blunt major resistance from the Mahdi Army militia to the joint US-Iraqi security operation in Baghdad. The Shi'a militia is loyal to anti-Us cleric Muqtada al-Sadr, whose political backing secured the premiership for al-Maliki.

"They have said they are frustrated that he has done nothing to oust the Sadrists, that the oil law has not moved forward, that there is no genuine effort on reconciliation and no movement on new regional elections," said the official, who like the other associates agreed to discuss the situation only if not quoted by name because of the political sensitivities.

Passage of the oil law, which seeks a fair distribution of revenues among all Iraq's sectarian and ethnic groups, has become a major issue for the United States, which had initially counted on financing Iraq's post-invasion reconstruction with oil revenues.

But the decrepit oil infrastructure and violence have left the country producing oil at about the same levels as before the war, at best, and those figures are well below production before the 1991 Gulf War that resulted in UN sanctions against the Iraqi oil industry.

The major Sunni bloc in parliament, along with Allawi loyalists in the Shi'a bloc, openly oppose the draft measure. Al-Maliki also has lost the backing of the Shi'a Fadila Party, and independent Shi'a members are split on the bill. Those willing to speak about their opposition voice fears about what they see as too much possible foreign involvement and profit sharing.

The al-Maliki associates said US officials, who they would not name, told the prime minister that US President George Bush was committed to the current government but continued White House support depended on positive action on all the benchmarks - especially the oil law and sectarian reconciliation - by the close of this parliamentary session June 30.

"Al-Maliki is committed to meeting the deadline because he is convinced he would not survive in power without US support," one of the associates said.

Casey, the US spokesperson, noted that the oil law is a goal laid out in the Iraqi constitution and repeatedly endorsed by al-Maliki. "However, the terms of that law, the specifics of that law are up to the Iraqis," he said.

Standing in the way of forward movement is a recalcitrant Cabinet, which al-Maliki has promised to reshuffle by the end of this week. So far, however, he is at loggerheads with the political groupings in parliament that are threatening to withdraw support for the prime minister if he does not allow the blocs to name replacements for Cabinet positions. - Sapa-AP



Published on the Web by IOL on 2007-03-14 10:51:44

Originally Posted by Adster

The dinar was trading anything from $1.60 to 32 cents from 1996 to 2003. The previous rate of $3.22 per dinar was the 80s rate and the one still held on both sets of books. I have heard and read this is the rate they intend to get back to. And they will.

Iraq: Exchange Rate as of January 31, 2007

Iraqi Leader Fears Ouster Over Oil Money
By STEVEN R. HURST, The Associated Press
Mar 13, 2007 6:47 PM (11 hrs ago)
Current rank: # 5,718 of 21,110

BAGHDAD - Prime Minister Nouri al-Maliki fears the Americans will torpedo his government if parliament does not pass a law to fairly divvy up the country's oil wealth among Iraqis by the end of June, close associates of the leader told The Associated Press on Tuesday.


The legislature has not even taken up the draft measure, which is only one of several U.S. benchmarks that are seen by al-Maliki as key to continued American support, a crucial need for the survival of his troubled administration.

Aside from the oil law, the associates said, American officials have told the hardline Shiite Muslim prime minister that they want an Iraqi government in place by year's end acceptable to the country's Sunni Arab neighbors, particularly Saudi Arabia, Jordan and Egypt.

"They have said it must be secular and inclusive," one al-Maliki associate said.

To that end, al-Maliki made an unannounced visit Tuesday to Ramadi, the Sunni Arab insurgent stronghold, to meet with tribal leaders, the provincial governor and security chiefs in a bid to signal his willingness for reconciliation to end the bitter sectarian war that has riven Iraq for more than a year.

Compounding al-Maliki's fears about a withdrawal of American support were visits to Saudi Arabia by two key political figures in an admitted bid to win support for a major Iraqi political realignment. Saudi Arabia is a major U.S. ally and oil supplier.

Former Prime Minister Ayad Allawi, a Shiite Muslim, flew to the Saudi capital Tuesday, a day after the arrival there of Masoud Barzani, leader of Iraq's largely autonomous Kurdish region. Most Kurds are Sunni Muslims.

"Allawi is there to enlist support for a new political front that rises above sectarian structures now in place," the former prime minister's spokesman, Izzat al-Shahbandar, told the AP.

Barzani spokesman Abdul-Khaleq Zanganah said the two Iraqis met in Kurdistan before the trip for talks on forming a "national front to take over for the political bloc now supporting al-Maliki."

It appears certain the United States was informed about the Allawi and Barzani opening to the Saudis, who are deeply concerned that al-Maliki could become a puppet of Iran, the Shiite theocracy on Iraq's eastern border they view as a threat to the region's stability.

Washington has been reported working more closely with Sunni Arab governments to encourage them to take a greater role in Iraq, particularly in reining in the Sunni insurgency that has killed thousands of U.S. soldiers and tens of thousands of Iraqi Shiites.

The Bush administration is believed to be trying to win support for its operations in Iraq among Arab neighbors by assuring a greater future role for the Sunni minority that ran the country until the U.S. invasion ousted Saddam Hussein four years ago.

One al-Maliki confidant said the Americans had voiced displeasure with the prime minister's government even though he has managed so far to blunt major resistance from the Mahdi Army militia to the joint U.S.-Iraqi security operation in Baghdad. The Shiite militia is loyal to anti-U.S. cleric Muqtada al-Sadr, whose political backing secured the premiership for al-Maliki.

"They have said they are frustrated that he has done nothing to oust the Sadrists, that the oil law has not moved forward, that there is no genuine effort on reconciliation and no movement on new regional elections," said the official, who like the other associates agreed to discuss the situation only if not quoted by name because of the political sensitivities.

Asked for reaction to al-Maliki's concerns, Gordon Johndroe, President Bush's national security spokesman, referred to Bush's comments on Feb. 16 in which he commended the al-Maliki government for making progress in meeting some of its own benchmarks - such as moving more Iraqi troops into Baghdad and bringing criminals to justice.

"And that's good news for the Iraqi people," Bush said then. "And it should give people here in the United States confidence that this government knows its responsibilities and is following through on those responsibilities."

Passage of the oil law, which seeks a fair distribution of revenues among all Iraq's sectarian and ethnic groups, has become a major issue for the United States, which had initially counted on financing Iraq's post-invasion reconstruction with oil revenues.

But the decrepit oil infrastructure and violence have left the country producing oil at about the same levels as before the war, at best, and those figures are well below production before the 1991 Gulf War that resulted in U.N. sanctions against the Iraqi oil industry.

The major Sunni bloc in parliament, along with Allawi loyalists in the Shiite bloc, openly oppose the draft measure. Al-Maliki also has lost the backing of the Shiite Fadila Party, and independent Shiite members are split on the bill. Those willing to speak about their opposition voice fears about what they see as too much possible foreign involvement and profit sharing.

The al-Maliki associates said U.S. officials, who they would not name, told the prime minister that President Bush was committed to the current government but continued White House support depended on positive action on all the benchmarks - especially the oil law and sectarian reconciliation - by the close of this parliamentary session June 30.

"Al-Maliki is committed to meeting the deadline because he is convinced he would not survive in power without U.S. support," one of the associates said.

Standing in the way of forward movement is a recalcitrant Cabinet, which al-Maliki has promised to reshuffle by the end of this week. So far, however, he is at loggerheads with the political groupings in parliament that are threatening to withdraw support for the prime minister if he does not allow the blocs to name replacements for Cabinet positions.

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