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

Allawi loses paper Kurdish Pthfah against the new government of Maliki
18 / 03 / 2007


Allawi loses paper Kurdish Pthfah against the new government of Maliki

:Baghdad Kuwaiti Mazen the homeland :

A deputy Ridha Jawad Taqi, a member of the coalition is close to the leader, Mr. Abdel Aziz al-Hakim, said that the latter had received categorical assurances from Massoud Barzani, head of Kurdistan region characterized by his government-Maliki and his attempts to circumvent the Constitution.
He said Taqi> keen Barzani, the lie to what has been promoted on coordination with Allawi to form a front facing coalition bloc, denied the allegations lie about approached both Allawi and Barzani to the Saudis on the political front to support the new <.
He said the Office of the President of the United Iraqi Alliance list in a statement that the two sides discussed during the telephone conversation dimensions Barzani recent visit to Saudi Arabia and meetings he conducted.
The statement quoted Barzani as saying that his meetings with the Saudi leadership was marked by clarity and frankness He said Saudi Arabia was its positive role in support of the political process and the Iraqi people and to support the Iraqi government and to support their efforts in bringing about security and stability.
The statement said that Barzani stressed his commitment to the principles and achievements of the political process in the country and its continuing support to the Iraqi government and its officials for the success of their efforts and realize the hopes and aspirations of the Iraqi people.
Some observers believe that Hakim may face the need to move to the members of the Iraqi national bloc in the parliament, notably the Communist Party deputies, ministers of the bloc, the bargaining on the amendment next ministerial.
They pointed out that Allawi had emerged from the political process rejected by the majority of the members of the list, could not give up their positions in governmental and parliamentary, when the ministers of the Iraqi List Baltmlml Allawi contradictory positions, it was one of Ministers that the existing statements on Allawi's government posed sectarian personally do not represent the Bloc, in the position expressed spread political dissent within the Iraqi List.
In contrast, the picture looks more foggy in data loss Allawi of the paper in the Kurdish planning what is described in the media funded by the coalition parties bloc b> coup touch>, and sources close to Al-Maliki that the leader of the Iraqi List, Iyad Allawi, Mona acknowledged failure in the last endeavor to influence the political process.
It quoted sources as members of the Iraqi List accompanying Allawi Familiares current of a number of Gulf Arab states and others that the results of Allawi's visit to Saudi Arabia came a disappointing turn and was free from creditor who dreamed about Allawi, adding> that close to Allawi and Typically rushed to inform the coalition forces that the latter is not in Tamer about the situation, and Familiares addressed to serve the political process! <.

marsadiraq.com

General : Petreos optimistic progress security plan in Iraq
18 / 03 / 2007


BBCBBC

He said the new American military commander in Iraq, said that there is ground for optimism on the progress made by the security plan in Baghdad recently included the deployment of additional numbers of American and Iraqi forces in the city.

In an interview with BBC, he said General David Petreos that there are fewer cases of sectarian killings in Baghdad and the western province of Anbar due to the presence of two out of five brigades in the field now.

عودة المهجرينThe return of the displaced

He said the American leader that hundreds of families forcibly displaced from their homes at the hands of gunmen in Iraq have been returned to their homes.

He added that once the additional troops at the beginning of June next to Iraq, the American forces, in conjunction with Iraqis, will be in a position to strengthen its grip security in the country.

It is noteworthy that the American administration had promised to send 21 thousand additional troops and new equipment to support the troops currently stationed in Iraq, and that number will be about 170 thousand component upon completion of sending reinforcements.

"Difficult days"

But General Petreos he must provide political and economic support if the military operation to stabilize and succeed in Iraq.

The General Petreos has approved in the first press conference held on the 8th of this month after assuming command last month that the security campaign in Baghdad witnessed a "very difficult" but at the same time expressed confidence in the reduction of violence in the country.

He pointed out that progress has been significant political in recent weeks but there is a need to do more to narrow divisions in the country, stressing that "there is no military solution to the insurgency in Iraq."

Political action

He added that the American forces and the Iraqi security forces can not solve the problem of violence in Iraq without a political action by the Iraqi leaders and reconciliation with the affected communities.

Petreos He pointed out that the security campaign in Baghdad will take months and that "the large" continue, but there are already encouraging signs of progress.

He said that the objective of this process, not only the restoration of security in the Iraqi capital, but also improve the living conditions and basic services to the population.

It also condemned Petreos gunmen who launch attacks on Shiite religious shrines depicting them as "paid assassins without humanitarian

The Falun commander of U.S. forces in the Gulf have reported logical soldiers of the United States and the coalition during the ceremony held at the aircraft hangar at the command in Tampa, Florida, "The situation in Iraq is dangerous and time is of the utmost importance."

He said that American and Iraqi forces involved in the security campaign began last month and the American army and the Member States to Dr. North Atlantic also launched a new operation against Taliban fighters in Afghanistan.

وHe said Falun "Despite these challenges, there are many things that are on our side."

He added : "We have enormous capabilities in our country and in coordination with our allies and the emphasis there is nothing we could not accomplish little."

The killing of some 3100 American soldiers since US-led forces invaded Iraq in March Nations in March 2003.

The Falun is the first naval officer who administers the Central Command headquarters which combines elements of both branches of the American army since its inception in 1983. The Falun is by the post commander of the Pacific Command

General Petreos believes that there must be political and economic support if the military operation in Iraq to stabilize and to succeed

marsadiraq.com

Shahrastani told Lucky : foreign investments in the Iraqi oil sector limited
18 / 03 / 2007

Shahrastani told Lucky : foreign investments in the Iraqi oil sector limited


Vienna (March 16) and the agency (Lucky) Italian news was Iraqi Oil Minister, Hussein Shahrastani, expressed the belief that his country has "enormous oil wealth is much greater than some imagine." It said that "a committee of senior jurists and experts and advisers in the ministries of oil and justice is putting the final touches on a comprehensive bill to regulate and ambitious oil and gas sector in the next stage, based on the development of a comprehensive national strategy for the development of the existing oil fields and intensify prospecting and encourage foreign companies to invest giant in the energy sector. " And across minister Shahrastani, in a statement to the correspondent of the Italian Agency (Lucky) expressed hope that "Iraq will regain its prominent role in international forums as one of the biggest oil-exporting countries in the world, and reach annual production capacity to about five million barrels per day over the next few years, specifically in the beginning of the year 2010." However, he said that "Iraq's current production of crude oil is still limited as it was before the fall of the former Iraqi regime, especially in the western areas." It also complained of "poor export oil through the northern ports or transfer to the Turkish port of Ceyhan, in view of the vulnerability of pipelines to sabotage operations by terrorist groups." And on the challenges facing the reconstruction of the oil sector, the Minister explained that "the southern oil fields, which are supervised by the national oil company, has started to recover, gradually, and the current plan focuses on increasing production to higher levels during the current year. " The minister said that Iraqi production at the current stage is still almost at the level of two million barrels per day.

He hoped the arrival of Iraq's production to five million barrels over the past three or four next after the success of the strategy of national and foreign investments. Regarding evaluation of the results of the meeting of oil and energy ministers in OPEC, welcomed the Iraqi minister of oil, the Vienna agreement to extend the line of production currently in place and of 25.8 million barrels per Iraq today without the quota, and said, "in fact, are the meetings of the Ministerial Council of OPEC often extremely important, because the provision of large quantities of oil for global consumption is a major factor in the stability of the market and balance the prices reasonable and acceptable levels of producing and consuming countries alike." He Shahrastani to "several factors contributed to the extension of the current production ceiling of the OPEC members highlighted the existence of sufficient quantities of crude oil in the market, and the decline in world demand for oil because of the warm weather which dominate the surface of the Northern Hemisphere, where there are major consumers of oil."The minister said the presence of large oil fields in the northern region of Iraq, and pointed out that the development had advanced stage.

In this context, he Shahrastani hoped the "elimination of the oil pipeline sabotage carried out by terrorist organizations from time to time, which is aimed at preventing the export of Iraqi oil from the northern fields, after the successful implementation of the security plan in Baghdad, which will be transferred to other Iraqi provinces soon." The minister admitted that the government had not Shahrastani beginning after the activation of the national oil investment, as it has not yet entered into any dialogue for a special agreements with a number of major international companies specialized affairs oil due to several reasons, foremost of which the completion of the formulation of the draft law regulating the oil and gas sectors in Iraq. But he expected the direct application of the law before the end of May next, after parliamentary approval. At the end of a modern, the minister said that "many international oil companies expressed willingness to invest in the oil and gas sectors, and memoranda of understanding have been signed with most of the international oil companies, but talks between the two sides are still limited

marsadiraq.com

Iraq hopes the international support to achieve an economic growth rate of 15.4% during 2007
18 / 03 / 2007


Iraq hopes the international support to achieve an economic growth rate of 15.4% during 2007

(Reuters-Sabah, the new (
The Secretary-General of the United Nations that the international community Ji Moon Friday to support a five-year plan for the reconstruction of Iraq and described as a tool to release the energies of Iraq. And that detect and Adel Abdul-Mahdi, Vice unveiled an international agreement with Iraq.
And agreement provides for international support for Iraq at the financial, political and technical support for Iraq to apply political and security reforms and economic.
The agreement, which was discussed more than 80 state objectives to be obtained by Iraq in the next five years include the annual economic targets. It also includes a list of laws the government hopes to approval by the end of 2007.
He said that during a meeting to discuss the agreement "must be seen as an instrument of the agreement to release the energies of Iraq .. The challenges ahead are enormous. I am sure that all of you will agree that we can not leave Iraq alone to deal with. "
And added, "It is breakfast hearts to see almost daily attacks on innocent civilians have great suffering and pain ... Away from the political violence and sectarian conflicts are exhausted the patience of a humanitarian crisis and the ability of ordinary citizens to take their daily lives. "
And stated that this is the reason that the agreement, which he described as "a framework for the normalization of" badly needs of Iraq are suffering from communal violence that rich nations except the United States were reluctant to help.
Said Robert Kimmitt, Deputy Secretary of the Treasury said to journalists after the meeting : "Success in Iraq will be achieved through a political, security and economic." He added, "There are places in Iraq are already secure enough to provide the services for the reconstruction and other essential services for the Iraqi people. We must move in this regard and we must be ready when other places were safe. ".
Said Ibrahim Gambari, Special Adviser to the United Nations on the plan that will now form a secretariat for the agreement under the joint chairmanship of the United Nations and Iraq. Kimmitt said that the expected formal announcement of the agreement by the end of April, when added to the agreement, as expected, a number of States and pledging aid.
.Under the agreement pledges Iraq strengthen its security and the establishment of the rule of law in all state institutions and the support and protection of human rights and tackling corruption and the reform of the oil and agriculture industries.
The agreement that Iraq hoped to achieve an economic growth rate of 15.4% during 2007 compared with three per cent during 2006. Expects the plan to achieve Iraq grew by 12.9% in 2008 and 2009 and 9.8% in 2010 and 5.3% in 2011.
Under the plan, Iraq will seek to increase its production of crude oil to 3.5 million barrels per day by the year 2011, thus making the proceeds of Iraq almost two examples of the export of crude oil to about $ 50 billion. The plan also aims to produce 700 thousand barrels per day of refining products by the year 2011.
Shrimp and said, "We can not expect them to do everything at once." He added that as long as Baghdad is committed to the implementation of the terms of the agreement in a timely manner, it is incumbent upon the international community to lend a helping hand.

marsadiraq.com

Iraqi navy buy new vessels worth $ 220 million.
19 / 03 / 2007


.Reuters) - The officers in the United States Navy and British on Sunday that the Iraqi navy intends to purchase 21 new ship in the framework of a plan for the purchase of new equipment worth $ 220 million to include four monitoring ships from Italy cost about $ 100 million.

He said Captain Michael Zmsenik an American member of the team working with the Iraqi navy is expected to increase the number of personnel of the Navy from 1200 to 2000 and then in 2500 by the end of 2010 within the framework of a plan to modernize.

Under the plan would spend $ 180 million to improve infrastructure, including the reconstruction of the naval base at Umm Qasr in southern Iraq.

Zmsenik said in a press conference in Baghdad, "should become independent at an operational level within three or four years. This is our goal, "adding that surveillance vessels and Navy personnel are already working with Iraqi forces led by the United States to protect the oil installations.

The Iraqi navy suffers from a serious lack of modern vessels to monitor areas that had targeted armed groups such as the oil port of Basra and the port of Khor Amaih small neighbor.

.In Iraq, the third largest oil reserves in the world.

The commander of the British Navy, Paul Marshall observation that the four new vessels Stbniha Vinkanteiri Italian company to build ships and the crew of each vessel will consist of about 35 soldiers apart.

Delivery is scheduled to ship within 18 months or two years after signing the contract.

He said Major Gerald Austlond The plan awaits the approval of the Ministry of Finance and is expected to sign the contract in the coming days.

He added that the Iraqi navy also plans to buy a number of support vessels and boats surveillance and gunboats fast by the end of 2010. He stated that the total cost of the plan up to almost $ 220 million, including $ 98 million for the four Italian vessels and the Iraqi government would pay.

He said Captain Anthony Radikin of the British Navy, "Iraqi navy needed for the expansion and thus will be able to perform all its functions ... Have plans (to buy) 21 new ship has been contracted or will be contracted to nine of these ships also will build a new base completely. "

It was already contracted to buy support vessels and three boats for control of Malaysia.

The ports of Basra and Khor Amaih are the mainstay of Iraq's economy as Edkhan 1.6 million barrels a day to get their containers, most of the government revenues.

by Claudia Parsons

marsadiraq.com

Originally Posted by shotgunsusie

marsadiraq.com

Dang, trying to figure out what this article is saying is giving me a headache. It makes me feel---------------------->

After trying to decipher Iraqi newspaper articles for the last year and a half I am beginning to have trouble reading plain english. Plain english is just too da%n clear, and I begin to wonder what I have misunderstood, second guessing myself...



.

Originally Posted by nikki

"Unexpected Level of Optimism" Among Iraqis
Nationwide Poll of Iraqis Provides Results That Surprise Pollsters, Analysts
Posted 8 hr. 22 min. ago


In a Sunday Times of London story headlined "Resilient Iraqis ask what civil war?", correspondent Marie Colvin begins her report this way:


Despite sectarian slaughter, ethnic cleansing and suicide bombs, an opinion poll conducted on the eve of the fourth anniversary of the US-led invasion of Iraq has found a striking resilience and optimism among the inhabitants.

The poll, the biggest since coalition troops entered Iraq on March 20, 2003, shows that by a majority of two to one, Iraqis prefer the current leadership to Saddam Hussein’s regime, regardless of the security crisis and a lack of public services.

The survey, published today, also reveals that contrary to the views of many western analysts, most Iraqis do not believe they are embroiled in a civil war.

Officials in Washington and London are likely to be buoyed by the poll conducted by Opinion Research Business (ORB), a respected British market research company that funded its own survey of 5,019 Iraqis over the age of 18.


The nationwide poll was conducted in mid-February and is said to have a margin of error of +/-1.4%

While the report contains fascinating poll result nuggets -- some encouraging, others discouraging -- it's impossible at this point to adequately analyze and interpret the poll results because there's no link on the Sunday Times of London Web site to all the poll questions and results, nor does the ORB polling organization post that information on its Web site.

Excerpts of the poll results as published in the Sunday Times of London:
-- Only 27% of Iraqis believe their country is in a civil war. That number divided along religious lines, with 41% of Sunnis believing Iraq was in a civil war, compared with only 15% of Shi’ites.
-- Yet 49% of those questioned preferred life under Nouri al-Maliki, the prime minister, to living under Saddam. Only 26% said things had been better in Saddam’s era, while 16% said the two leaders were as bad as each other and the rest did not know or refused to answer.
-- Not surprisingly, the divisions in Iraqi society were reflected in statistics — Sunnis were more likely to back the previous Ba’athist regime (51%) while the Shi’ites (66%) preferred the Maliki government.
-- Some 26% of Iraqis - 15% of Sunnis and 34% of Shi’ites - have suffered the murder of a family member.
-- Kidnapping has also played a terrifying role: 14% have had a relative, friend or colleague abducted, rising to 33% in Baghdad.


Here is the full Marie Colvin story.

Here is a related Sunday Times of London editorial headlined "A turning point for Iraq."

linky...
IraqSlogger: "Unexpected Level of Optimism" Among Iraqis

This is a great article. Makes me go

GO IRAQ, GO U.S.A.

Originally Posted by RfxLady

I don't know if this belongs in here, move it if you deem necessary.

New York Times
CARACAS, Venezuela, March 17

"First, Mr. Chávez said the authorities would remove three zeroes from the denomination of the currency, the bolívar. Then he said the new bolívar, worth 1,000 old bolívars, would be renamed the “bolívar fuerte,” or strong bolívar.

Finally, at the behest of Mr. Chávez, the central bank said this week that it would reintroduce a 12.5-cent coin, a symbol of Venezuela’s prosperity in the 1960s and 1970s before freewheeling oil booms ended in abrupt devaluations, after three decades out of circulation.

Gastón Parra, the president of the central bank, went on television this week to emphasize that the effect of these measures on the value of Venezuela’s currency would be neutral, neither increasing or decreasing salaries, debts nor the price of consumer goods.
Marcia



Venezuela to Give Currency New Name and Numbers - New York Times

UUUUUUUUUUUHHHHHHHHHHHHH.... RIGHT-O.... Lopping three zeros must be a good thing eh....

What ju lefties not understang mang is that that ist not a gooood thang mang...

Vive la Chavez

No matter how much you talk Chavez this is what you will see-->

IraqSide:Media
Daily Column
Iraqi Papers Mon: A Parliament on Vacation
Paper Critiques the Perks of Iraq's Deputies
By AMER MOHSEN Posted 1 hr. 45 min. ago
Az-Zaman
Az-Zaman
“A parliament of vacations and privileges” was Az-Zaman’s headline on Monday. The Iraqi newspaper published a critical review of the perks granted to Iraqi deputies and reiterated criticisms concerning the performance of the People’s representatives. The Iraqi deputies are currently enjoying a week-long vacation, in celebration of the Norouz (the Persian New Year, celebrated by Kurds and Zaraostrian minorities in Iraq.) The Norouz vacation follows a month-long halt in the activity of the Iraqi parliament, due to a succession of religious holidays. In addition to that, Az-Zaman said that sources had leaked that a “secret” session of the parliament last Saturday was in fact devoted to discussing the compensations and retirement packages of MPs.

What exacerbates the situation further, Az-Zaman reported, is the fact that many Iraqi deputies do not reside in Iraq, preferring the safety and comfort of neighboring capitals, “while the people toils in crises,” said a citizen interviewed by the paper. Other interviewees were outraged that the parliament can hardly achieve the quorum when it comes to discussing urgent and critical matters, but “when it came to (their) salaries and privileges,” the session was held with haste and efficacy.

The secretary-general of an association called “the coalition for democracy”, Raheem al-Sa'idi, went as far as to proclaim that sectarianism and patronage have voided the democratic process in Iraq. Al-Sa'idi argued that deputies can bluntly disregard their duties since they face no form of popular accountability, due to the “political deals, sectarianism and consociationalism; which have undermined real democracy in Iraq.”

On the other hand, a spokesman of the parliament told Az-Zaman that the rumors regarding Saturday’s session are false; claiming that the deputies were actually discussing “sensitive” issues that could not be made public.

Al-Mada published an op-ed by Jaleel Wadi discussing the new project to build a “trans-sectarian” front in Iraq, which aims to undermine the existing sectarian coalitions and the current cabinet. Wadi expressed suspicions as to the motives of the promoters of the “national front,” and supported al-Maliki’s policies. Wadi went as far as to identify the “political process” in Iraq with the Maliki government, insinuating that the proponents of the “national front” harbor intentions to “undermine the political process.” In the Iraqi political lingo, the “process” refers to the political institutions built following the American invasion.

An intensive debate is ongoing in Iraq to assess whether the current sectarian system should be seen as a guarantee for a stable polity or an instigator of sectarian tensions and violence. Al-Mada seems to be defending the former view. Again, it should be noted that al-Mada’s publisher, Fakhri Kareem, identified himself as a “secular” Marxist for most of his career.

In other news, al-Mada reported that the Association of Muslim Scholars has condemned the practice of exploding chlorine-filled tanks in civilian areas. Such attacks have killed and injured hundreds of Iraqi civilians in the last weeks, and the Association’s condemnation is notable because the Sunni organization is seen as generally sympathetic to the insurgency and to anti-government factions in Iraq.

In pan-Arab al-Hayat, an interview with a Sadrist leader revealed that the Sadr Current is threatening to depose al-Maliki’s government if pressures against the party persist, and if the building of an American base in Sadr City gets underway. Thamir 'abd al-‘Ameer told al-Hayat that if the government supports the building of the American base, “we will bring it down.” 'Abd al-‘Ameer went as far as to claim that the “entire political process may be threatened” by these hostile acts against the Sadrists.

With the challenge of 'Allawi’s growing “national front,” the government’s parliamentary majority is far more precarious than it was a year ago, which – potentially -- gives the constituents of the ruling coalition a larger influence over the bloc. The Sadrists’ threats against the government (which were a staple of political life in Iraq in the last year) are more credible now than ever before.

Finally, Az-Zaman reported that Sa'dun Hammadi, one the pillars of Saddam’s regime died in exile in Germany yesterday. Hammadi belonged to the first generation of Ba'this, he was involved in Arab nationalist activism since the late 1940’s. After returning from the US with a PhD from the university of Wisconsin, he participated in building the Ba'th institutions in Libya, Syria and Iraq. He filled several high positions in Iraq after the party’s ascension to power, including that of the oil minister, Prime Minister and Speaker of the National Assembly. Az-Zaman said that he was “the first Iraqi to join the Ba'th party.”

IraqSlogger: Iraqi Papers Mon: A Parliament on Vacation

Subject: News article by Larry Kaplow
> > I found this article in today's newspaper and thought it interesting. I had
to type this as I don't have a scanner and for some unknown reason I could not
find the article on line with our newspaper. so any misspellings is my fault not
Larry Kaplow's. He is a newscorrespondent Baghdad based since 2003.
> > The Perils of paying your Baghdad bills by Larry Kaplow. Baghdad Iraq-
Sometimes in Iraq these days it seems like you have to chase people down to give
them your money. As a Baghdad correspondant for the past 4 yrs, I use a satalite
tv service that requires annual renewal. Paying the bill is difficult. The
office moves frequently and now with a kidnaping threat hanging over him, the
manager is running the business from Amman, Jordan. Like most business owners in
Baghdad, he doesn't take checks or credit cards. So I either have to find a way
to wire him money or get money to a Jordian who would drop off the cash, which
is what I did. Financial transactions are a way of sizing up the state of a
country, its adherence to things like laws and contracts and the overall
security and value of the economy. Like the satellite company owner, hundreds of
thousands of business people and professionals have fled, draining Iraq of its
expertise and its secular middle class. For those remaining here, business is
done almost exclusively in cash, and with a careful eye on security. When the
U.S. administrators in Iraq after the 2003 invastion swapped out the old
currency with Saddan Hussein's portrait for new bills, the currency created hope
for a stable future that hasn't come. Typically, if someone buys a house or a
car in Baghdad it's a cash transaction. The buyer gathers his Iraqi dinars in
thick blocks and takes some trusted friends or family members along to help
protect him and to count out the cash with the seller's friends and relatives.
While big business owners have checking accounts or bank guarantees, the banks
are too distrusted to be of much use to most others. A couple of banks recently
started issuing debit cards, but few people have them and very few businesses
except them.
> For most Iraqis and many foreigners like me, common transactions involve
risk. Paying in csah means paying in person, a potentionally dangerous task on
Baghdad's streets. If you are an Iraqi who owns a home, there are property taxes
to be paid, also in cash. Iraqi government employees are paid in cash. Retirees
collect pensions in cash from banks. U.S. Military Officials often lament that
the weak banking system requires Iraqi troops to get paid in cash, requiring
them to get leaves once a month and take their money home-- often a dangerous
trip. Only a few Iraqi banks are capable of excepting electronic transfers from
out of the country. That complicates things for people like me, who needs
thousands of dollars a month to pay my staff and buy food and other essentials.
I receive money from my company, Atlanta -based Cox Newspapers, to a Jordanian
bank. From Jordan to Baghdad, the transfer is completed by a Jordanian contact
who transfers the funds based on - hawaleh- an honor system of accounting that
has been moving money from city to city and tribe to tribe around the Middle
East for decades. When collecting my funds in Baghdad, it can be a nerve-racking
ride back to my hotel with a pocket full of hundred dollar bills, as it was a
couple of years ago when I would hide the money in my carry-on luggage when
flying into Baghdad. In the police state days of Saddam Hussein, money was
sometimes stolen from the government-run Rasheed Hotel but you could walk the
streets with a wad of cash and never worry about crime. Now its the oppisite.
Recently in Baghdad, heavily armed gangs have robbed armored cars transporting
bags of cash between local banks and the central bank. Though the money trucks
are usually part of a police convoy, the robbers can usually out gun them with
their own convoys of masked men who many iraqis suspect must have some link with
the security forces to be able to act so brazenly. When foreign banks were
issued licenses to do businesses here several years ago, U.S. officials held it
as a sign of progress. But the omnipresent have dissuaded foreign banks from
opening here and security problems have forced many Iraqi banks to close. There
is a sectarian element to the local bank closings. Many believe Shiite militias
try to close down the banks in Sunni areas so the Sunnis will have to leave
their neighborhoods to pick up monthly pensions or make other transactions. That
forces them into Shiite neighborhoods, where they are vulnerable to attack. A
U.S. General noted recently how pleased he was that after months of security and
logistical work the Army was able to reopen a bank in a particularly bad part of
the city. I asked to embed with the unit responsible, but in the weeks before
the embed came through, the bank closed again. Complicating matters, last year
saw nearly 50 percent inflation in Iraq. Iraqis found the price hikes
frightening and infuriating. While dollars are accepted around town, Iraqi
dinars are preferred, espicially for small transactions. U.S. and International
Monetary Fund officials worried the dinar would collapse and pressed the Iraqi
Central Bank to bolster the currency and cheapen the dollar locally. Lately the
dinar has rallied.
A few months ago a U.S. dollar was worth about 1,450 dinnars and now it is worth
about 1,300 dinars. Its probably smart policy for the country but it makes
things tougher on my employees, who get paid in dollars. I pay them from a safe
I keep in my room. I also pay the hotel I live in and work from. Once a month, I
go down to the lobby and hand over cash, usually about $2700.00. And not just
any cash. When paying in Baghdad, Iraqis want the bills to be crisp and new. Any
that are worn or torn will be rejected.