Thread: Iraq/Dinar News up until March 28th 8PM CT.

Raising fuel prices
20 March 2007 (Iraq Directory)
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Iraqi Government announced that it will raise prices of oil derivatives, starting today, in response to the terms of the International Monetary Fund and Paris Club in order to write off what is left of Iraq’s debts.

Official spokesman of the Iraqi Ministry of Oil, Asim Jihad, said that the Government will raise prices of the oil derivatives, but “by less than the rate requested by the IMF and Paris Club”.

He said that fuel prices, starting from today, will be as follows: (400) dinars for a litter of Benzene (that is 29 cents) instead of the old price (350) dinars, and (350) dinars for litter of gas oil (that is 25 cents) instead of (300) dinars; adding that this increase will include other derivatives.

He explained that IMF and the Paris Club countries stipulated raising fuel prices to the level of international prices, especially to that of the neighboring countries to Iraq; that is between 750 and 800 dinar for a litter of Benzene, in order to reduce 80 % of Iraq’s debts.

He said that this raise came after negotiations about reducing the Iraqi debt, held on the 3rd of this month between the IMF and the Iraqi delegation which included the ministers of oil, Hussein Shahristani, and of the Finance, Baqir Jabr Solagh.

According to the spokesman, the Iraqi delegation managed to persuade the IMF officials of making the raise not more than 15 % due to the inability of Iraqi citizens to tolerate a larger raise. He pointed out that the Ministry of Oil had been compelled to raise fuel prices against each 20 % reduction of the total Iraqi debt which amounts to ($ 140 billion).

Minister of Finance, Baqir Solagh, had previously stated that Iraq is committed to the IMF by the Support Convention which imposes on Baghdad making a number of economic reforms, including the raise of fuel prices, while the IMF is committed to support Iraq’s demands to reduce 80 % of its debts.

Raising fuel prices | Iraq Updates

Iraq reconstruction fund meeting ends with donations said lower than expected
ISTANBUL, 20 March 2007 (BBC Monitoring)
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If donations for Iraq end, this would make terrorists stronger, said Iraqi Planning & Development Minister Ali Baban.

"Iraq Reconstruction Forum" held within the scope of the 5th meeting of the International Reconstruction Fund Facility for Iraq (IRFFI) Donor Committee (formed by the World Bank and the UN Development Group) ended in Istanbul on Monday.

At a news conference, Baban said that the forum was very fruitful.

Stating that there was an important correlation between economic relations and security, Baban noted that if Iraq achieved developments in its economy, this would also make a positive impact on security in the country.

Asked how much donation they collected, Baban indicated that the amount that they collected did not meet their expectations.

On the other hand, Iraqi Electricity Minister Karim Wahid al-Hasan said that they expected more cooperation from Turkey in regard to reconstruction of Iraq.

Source: Anatolia news agency, Ankara

Iraq reconstruction fund meeting ends with donations said lower than expected | Iraq Updates

Originally Posted by mewannapeg

Iraq reconstruction fund meeting ends with donations said lower than expected
ISTANBUL, 20 March 2007 (BBC Monitoring)
Print article Send to friend

If donations for Iraq end, this would make terrorists stronger, said Iraqi Planning & Development Minister Ali Baban.

"Iraq Reconstruction Forum" held within the scope of the 5th meeting of the International Reconstruction Fund Facility for Iraq (IRFFI) Donor Committee (formed by the World Bank and the UN Development Group) ended in Istanbul on Monday.

At a news conference, Baban said that the forum was very fruitful.

Stating that there was an important correlation between economic relations and security, Baban noted that if Iraq achieved developments in its economy, this would also make a positive impact on security in the country.

Asked how much donation they collected, Baban indicated that the amount that they collected did not meet their expectations.

On the other hand, Iraqi Electricity Minister Karim Wahid al-Hasan said that they expected more cooperation from Turkey in regard to reconstruction of Iraq.

Source: Anatolia news agency, Ankara

Iraq reconstruction fund meeting ends with donations said lower than expected | Iraq Updates

Maybe the countries are waiting for them to PASS something before they commit.lol

A little off the subject of the dinar but interesting to the region.




Russia Reportedly Exits Iran Nuke Site
By GEORGE JAHN, Associated Press Writer
60 minutes ago

VIENNA, Austria - Russia is pulling out its experts from the Iranian nuclear reactor site they were helping build, U.S. and European officials said Tuesday. The move reflected a growing rift between Iran and Russia that could lead to harsher U.N. sanctions on the Islamic republic for its refusal to stop uranium enrichment.

The representatives _ a European diplomat and a U.S. official _ said a large number of Russian technicians, engineers and other specialists have returned to Moscow in the past week, at about the same time senior Russian and Iranian officials tried unsuccessfully to resolve financial differences over the Bushehr nuclear reactor. They spoke to The Associated Press on condition of anonymity because their information was confidential.

"A good number of them have left recently," said the U.S. official, of the approximately 2,000 Russian workers on site of the nearly completed reactor outside the southern city of Bushehr. The European diplomat, who is accredited to the Vienna-based International Atomic Energy Agency, said a large number had left as recently as last week.

Sergei Novikov, a spokesman for Rosatom, Russia's Federal Nuclear Power Agency, confirmed that the number of Russian workers at the Bushehr plant had dwindled because of what he said were Iranian payment delays. He would not say how many had left.

In a commentary, Iranian state television criticized Russia for what it described as a policy of procrastination in constructing Bushehr.

"Double standard stances by Russian officials regarding Iran's nuclear issue shows that Russians are not a reliable partner in the field of nuclear cooperation," the commentary said.

The nuclear reactor outside the southern city of Bushehr is not part of Iran's dispute with the U.N. Security Council and the reactor itself has no potential military use.

The Russian departures are formally linked to a financial dispute with Iran but have a strong political component, linked to international efforts to persuade the Islamic republic to freeze activities linked to uranium enrichment, which can produce both nuclear fuel and the fissile material for nuclear warheads.

Although the reactor is 95 percent completed, Russia announced this month that further work would be delayed because Iran had failed to make monthly payments since January. It said the delay could cause "irreversible" damage to the project.

Because of the delay, Russia also indefinitely postponed delivery of enriched uranium fuel it had promised to provide Iran by this month.

Iran, which denies falling behind in payments, was furious, convinced Russia _ which has long blunted a U.S.-led push for the U.N. Security Council sanctions _ was now using the claim of financial arrears as a pretext to increase pressure for it to heed the council.

Voices of Iraq: Iraq-Currency

Tuesday, March 20, 2007 - 05:10 PM

Iraq-Currency
Demand for dollar down in daily auction
By Dergham Mohamed Ali
Baghdad, March 20, (VOI) – Demand for the dollar was down in the Iraqi Central Bank’s daily auction on Tuesday, reaching $56.899 million, compared with $88.015 million on Monday.
In its daily statement, the bank said it had covered all bids, which included $13.265 million in cash and $42.634 million in foreign transfers, at an exchange rate of 1,277 dinars per dollar, unchanged from Thursday.
None of the 12 banks that participated in Tuesday's auction offered to sell dollars.
Ali al-Yasseri, a trader at the auction, told VOI "the decline in today's demand for the dollar was due to expectation that the exchange rate will go down at least one tick tomorrow."
The Iraqi Central Bank runs a daily auction from Sunday to Thursday

HMMMM!!!

Cheers!
DayDream

Originally Posted by apwerner

Posted by "rvalreadydang"
"....it can be said for all investors from the Arabs and foreigners, you enter now it will be a golden opportunity for you."

OMG!! Y'all see this? I can't believe I just read this. Now I'm totally excited!!!

It was the talk today at the DayJob as some of my co-workers seen this part at the bottom of that article posted by rvalreadydang. It is nice to see that printed.

Kinda like some inside leaks here.

Originally Posted by shotgunsusie

i read that out loud to my brother and niece yesterday. theyve yet to get excited because all i do is say its comin and it never happens, lol.

It'll happen. It will. It's just hard to know what will happen because nothing is set in stone with them. They say one thing and do another. Sheeeesh.

Originally Posted by neno

It was the talk today at the DayJob as some of my co-workers seen this part at the bottom of that article posted by rvalreadydang. It is nice to see that printed.

Kinda like some inside leaks here.

It's just such a direct statement that it surprised me. How often do we see it quoted that the reval is coming so we need to buy in NOW? Not often. Maybe I shouldn't be afraid to hope after all.

Originally Posted by apwerner

It's just such a direct statement that it surprised me. How often do we see it quoted that the reval is coming so we need to buy in NOW? Not often. Maybe I shouldn't be afraid to hope after all.

As I always tell my freinds, "Dont be afraid to become Rich".

Cha ching anyone? The IMF have always held the key to a reval. Follow them and they will lead you to a pot of gold.

International Monetary Fund Document

© 2006 International Monetary Fund August 2006

IMF Country Report No. 06/301

page 53, paragraph 8

8. ...Finally, the CBI will consider the possibility of a gradual appreciation of the Iraqi dinarif needed, which could have a positive effect on both inflation and the process of dedollarization.


http://www.imf.org/external/pubs/ft/...06/cr06301.pdf

__________________________________________________ ______________________


IMF Executive Board Completes Third and Fourth Reviews under Iraq's Stand-By Arrangement, Approves Six-Month Extension of Arrangement to September 2007


Press Release No. 07/48
March 13, 2007

"Iraq is entering a crucial period in its economic recovery. Despite very difficult political and security circumstances, the Iraqi authorities have taken important measures to keep their economic program on track. The maintenance of fiscal discipline, as well as the tightening of monetary policy and the appreciation of the dinar, are commendable.

"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.

"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.

Press Release: IMF Executive Board Completes Third and Fourth Reviews under Iraq's Stand-By Arrangement, Approves Six-Month Extension of Arrangement to September 2007

__________________________________________________ ________

IMF, Iraq agree to extend $715m loan accord to September

MENAFN - 18/03/2007

(MENAFN) The Deputy Managing Director at the International Monetary Fund (IMF) stated that...Iraq has regarded the loan as a precautionary finance and it didn't draw down on it since its approval in December 2005.

However, due to the high inflation rates, the central bank might adopt serious measures to prevent the rates from becoming rooted, he said.

http://menafn.com/qn_news_story_s.as...yId=1093146673