Thread: Iraq/Dinar News up until April 10th 11pm ctz

Originally Posted by shotgunsusie

marsadiraq.com

Quote:
Stopping inflation solutions are required to deal with the rise
06 / 04 / 2007
Interpretation morning

The Iraqi economy is currently suffering from worsening inflationary pressures, which reflected negatively on Iraqi citizens by reducing the purchasing power due to the rise in prices, which means reducing the quantities of goods and services Can obtained the same amount of income at different times sequentially. For example, if a citizen can obtain certain goods and services earnings in the past year, they will find themselves unable to purchase the same set of goods and services in the current year the same income as a result of high prices. This will compel citizens to demand an increase of their salaries and wages, especially the salaries of state as long as the state employees can not increase their salaries for themselves, based on the law, unlike the private sector, which could face higher prices rise in the prices of goods and services. Overall, May will increase the salary increase in the prices? Some States have applied this procedure, But Can Iraq do so? Iraq is a country with oil and the price of crude oil has risen in the international market, which means an increase in the financial resources of the state and this can increase staff salaries, but can do so only on the basis of specific circumstances may not be available in the Iraqi economy to the least for the time being. The conditions required for the application of this procedure are : 1. Increasing the number of workers in the private sector, to at least double, from working in the public sector. If we look at the Iraqi economy, we will see that the number of workers in the public sector has doubled in the past two years; first because of the weakness of the private sector in providing job opportunities and secondly because of the high salaries of state employees that will attract more citizens to submit requests for appointment or return to the job, and this will lead to inflation of the number of workers public sector and consequently low productivity. 2. Must reduce the annual inflation rate to no more than 10% and therefore the required increase in salaries must be limited and can be provided by the Ministry of Finance, but when the inflation rate was very high, the number of public sector employees and the number of retirees will increase also, as is the case in Iraq, it will be difficult the Ministry of Finance must bear the large amounts required to increase salaries to be equivalent to the rates of the high prices. 3. The State must have the ability to provide the increase in salaries through local resources such as income taxes and increase income public institutions through increased prices for goods and services provided to citizens or through reduced public spending and convert it into salaries so that they do not lead to increase salaries to increase the money supply and thus aggregate demand Hence prices higher again. In the Iraqi economy, we find that the salaries and retirement benefits make up a great deal of public expenditure and if we add the amounts of government support for fuel and the ration card, water, electricity and health, will be all that a large proportion of public expenditure. On the other hand, we find that the local revenue remains weak; whether tax revenues because of the security situation and the weakness of private activity, which is the basis of the tax, or income of some public institutions that provide goods and services, which require support from the Ministry of Finance to pay its employees. We find all this that the increase in staff salaries may lead to an improvement in the standard of living in the short term but will increase inflationary pressures in the medium term, as happened after the salary increases in 2003 and 2004

First the article speaks of reducing inflation to no more than 10% across the board secondly the articles warns against increasing the money supply.

We have watched the CBI reduce the supply over 7.7 Trillion dinar but the exchange rate has not followed any graduated formulation, which IMO and everyone else’s is the antibiotic to heal the Iraqi economic woe I. E. raise the rate.

From the half-year activity of the CBI one can conclude that the CBI controls this rate despite market forces in fact they are resisting market forces. This resistance is showing itself in the inflation rate [that's a textbook IMF summary on inflation of an emerging market] I know its been said that the impact of interest rates and small exchange rates adjustment can be delay its results for six months, but its been over six months now and surely proves that the CBI increases have done very little if anything to combat inflation.

Two choices exist; one is to increase the rate in more fevering graduated leaps [20-30 pips/week] or a bold adjustment.

The recent remarks by the Kuwaiti Central Bank Governor might provide insight into a CBI mindset, recently as Kuwait pondered revaluing their currency they were concerned about warding off a speculative run on their currency. I believe this is a common concern among central bankers.

When Iraq began to adjust their rate folks took notice and still are so the idea of 20-30 pips a week certainly would be an upheaval in speculation, leaving only one viable alternative;

The bold adjustment remains the only real choice and its what I still expect in the near term. This article screams of a coming Bold adjustment.

Thank SGS for bringing this article to the forum.

الةIsland


قال .The Minister of Industry and Minerals Iraqi Fawzi Hariri, the government decided in its plan for economic development, the granting of investment capital in the domestic and foreign enterprises and industrial companies for periods ranging between 10 and 20 years.





.Hariri added in a press conference that the resolution was the first step of this kind on the road to joint cooperation between the Ministry and the local and foreign investors for periods ranging from 10 to 20 years, in the framework of the government's plan for economic development.





03.This is the first time the Iraqi authorities put major companies to local and foreign investors since the fall of the regime of former Iraqi president Saddam Hussein in 2003.





وأكد .Hariri stressed that the Ministry was preparing a phased plan until late 2007 to identify the volume of investment participation limited time for the Iraqis and foreigners, pointing out that the investor will develop the capacity of the companies concerned through training courses.





.He explained that the companies put receive bids for 45 days and then will need the ministry to 30 days to study the submissions before a decision is the right investment.





من .On the other hand, bankers said foreign banks waiting to stabilize the security situation in Iraq before entering or expanding their presence in limited.





.The Iraqi bankers and American officials in a banking conference on Iraq funded by the United States in Jordan, said that four years after the invasion, led by the United States did not develop the private banking sector, which comprises 25 banks with work permits.





.Since 2003 bought some Arab and international banks such as Bank "HP. S. Bi. CNN "and the National Bank of Kuwait and Capital Bank of Jordan, Qatar National Bank, shares in local banks.





bankers said that foreign investment is limited to seven banks did not show new investments since 2005
marsadiraq.com

So the ICI that was suppose to be done in April is now set for May. I'm beginning to believe Iraq will never get anything done.

Originally Posted by pipshurricane

RECONSTRUCTION PLAN

Iraq Says Reconstruction Meeting Set for Early MayA high-level meeting to launch a five-year international reconstruction plan for Iraq will be held in early May.Reuters A high-level meeting to launch a five-year international reconstruction plan for Iraq will be held in early May, Iraqi government spokesman Ali al-Dabbagh said on Friday.

Dabbagh declined to say where the meeting, which is expected to involve numerous governments and international agencies, would take place.

But the timing coincides with a separate conference between Iraq, its neighbours and world powers that Foreign Minister Hoshiyar Zebari said on Thursday would convene in the first week in May. He also declined to give the location of the gathering.

The International Compact with Iraq would see Iraq given international support, financial, political and technical, in return for political, security and economic reforms.

"The Iraq Compact will be held in early May," Dabbagh said.

The reconstruction plan was unveiled by U.N. Secretary-General Ban Ki-moon and Iraqi Vice President Adel Abdul-Mahdi last month.

The compact outlines targets for Iraq to hit during the next five years, including annual economic goals. It also includes legislation the government hopes to pass by the end of 2007.

At the official launch of the compact, countries would be expected to make pledges of assistance, officials have said.

Iraq has the world's third-largest proven oil reserves but needs billions of dollars to revive the sector, which is crucial for rebuilding its shattered economy.

The ministerial meeting of Iraq's neighbours and world powers will follow up talks in Baghdad last month aimed at stabilising the country.
Javno - World

الصباحInterpretation morning
التيThe Iraqi economy is currently suffering from worsening inflationary pressures, which reflected negatively on Iraqi citizens by reducing the purchasing power due to the rise in prices, which means reducing the quantities of goods and services





.Can obtained the same amount of income at different times sequentially. على.For example, if a citizen can obtain certain goods and services earnings in the past year, they will find themselves unable to purchase the same set of goods and services in the current year the same income as a result of high prices.
.This will compel citizens to demand an increase of their salaries and wages, especially the salaries of state as long as the state employees can not increase their salaries for themselves, based on the law, unlike the private sector, which could face higher prices rise in the prices of goods and services. Overall, May will increase the salary increase in the prices? Some States have applied this procedure, But Can Iraq do so? Iraq is a country with oil and the price of crude oil has risen in the international market, which means an increase in the financial resources of the state and this can increase staff salaries, but can do so only on the basis of specific circumstances may not be available in the Iraqi economy to the least for the time being.
هي:The conditions required for the application of this procedure are :
1.1. زيادة .Increasing the number of workers in the private sector, to at least double, from working in the public sector. اذا .If we look at the Iraqi economy, we will see that the number of workers in the public sector has doubled in the past two years; first because of the weakness of the private sector in providing job opportunities and secondly because of the high salaries of state employees that will attract more citizens to submit requests for appointment or return to the job, and this will lead to inflation of the number of workers public sector and consequently low productivity.
2.2. يجب .Must reduce the annual inflation rate to no more than 10% and therefore the required increase in salaries must be limited and can be provided by the Ministry of Finance, but when the inflation rate was very high, the number of public sector employees and the number of retirees will increase also, as is the case in Iraq, it will be difficult the Ministry of Finance must bear the large amounts required to increase salaries to be equivalent to the rates of the high prices.
3.3. .The State must have the ability to provide the increase in salaries through local resources such as income taxes and increase income public institutions through increased prices for goods and services provided to citizens or through reduced public spending and convert it into salaries so that they do not lead to increase salaries to increase the money supply and thus aggregate demand Hence prices higher again. .In the Iraqi economy, we find that the salaries and retirement benefits make up a great deal of public expenditure and if we add the amounts of government support for fuel and the ration card, water, electricity and health, will be all that a large proportion of public expenditure.
ومن .On the other hand, we find that the local revenue remains weak; whether tax revenues because of the security situation and the weakness of private activity, which is the basis of the tax, or income of some public institutions that provide goods and services, which require support from the Ministry of Finance to pay its employees.
نجد04We find all this that the increase in staff salaries may lead to an improvement in the standard of living in the short term but will increase inflationary pressures in the medium term, as happened after the salary increases in 2003 and 2004

< السابق<Previous
marsadiraq.com

On the economic side dominates Maliki talks in Japan and South Korea.

Adviser to the Prime Minister said the Iraqi MP Sami military that the visit of Prime Minister Nuri al-Maliki upcoming visit to Japan and South Korea comes in response to an official invitation from both countries. :The military in an interview with "Radio Sawa" that the Prime Minister will sign the Convention on the loan granted by the Japanese side to Iraq, pointing out that the nature of the visit political investment trade :




""."The visit comes after a formal invitation sent to the Prime Minister for a long time in support of the security operation, and Japan provided a loan to the Iraqi government and it is hoped to be signed during his visit to the Prime Minister on the loan, in addition to the signing of Ministers accompanying him and Japanese counterparts on the economic and trade agreements. The same applies to Korea South Korean companies looking to contribute within the framework of the investment law passed by the House of Representatives of Iraq. Therefore, the economic side, in fact, is the dominant aspect of this visit, in spite of the presence of other political aspects to support the efforts of the Iraqi government. " :The adviser to Deputy Prime Minister Sami military nature of the delegation accompanying the Prime Minister on his Asian tour and the date of the visit, saying :





""."The delegation accompanying the Prime Minister, a group of ministers with different disciplines together with a group of advisers in various aspects is scheduled to begin his visit to the Prime Minister next week."
Radio Sawa - الجانب الاقتصادي يطغى على مباØ*ثات المالكي Ù�ÙŠ اليابان وكوريا الجنوبية

بغدادIraqi bankers watch stock prices on the screen in Baghdad Stock Exchange
06/04/2007 00:16 (توقيت غرينتش) 06 / 04 / 2007 12:16 a.m. (Greenwich Mean Time)

يه.Iraqi bankers said that foreign banks waiting to stabilize the security situation in Iraq before entering or expanding their presence in limited.
.Bankers and the whole Iraqi and American officials in a banking conference on Iraq held in Amman and funded by the United States that four years after the war in Iraq, did not develop the private banking sector, which comprises 25 banks with work permits.
.He Hussein Azri director of the Iraqi bank for trade regretted that the foreign banks have yet to commit themselves to Iraq with regard to investments, training and systems development. 2005.But David Moner official figure in the institution prosperity Almerceh funded by the Agency for International Development for the promotion of the market economy, which was organized by the banking system in Iraq, said that foreign investment is limited to seven banks did not show Percentage new since 2005.
.Monroe added that the security situation is the main obstacle even for the banks, which received preliminary approval for licenses such as the Bank Milli Iran, the Commercial Bank of Kuwait and the Arab Bank of Jordan.
.It is expected to be opened by the Bank and the return of Basil, Byblos Bank branches in the Kurdistan region in northern Iraq, where the security situation is much better than it is in Baghdad.

Radio Sawa - مصرÙ�يون عراقيون يبØ*ثون Ù�ÙŠ عمان سبل النهوض بالقطاع المصرÙ�ÙŠ

Shell oil company expects "provides the legal framework" for investment in Iraq

He said the chief executive of Royal Dutch Shell oil company will invest in Iraq only if they are fully confident of the legal framework that governs the oil and gas projects.

غير.However, Jeroen van der go head Shell said that his company was still studying law and the need to make sure that they would not be facing a different legal framework before the venture funds.

.The plethora of journalists on the sidelines of a conference in Paris that he did not have to think of the existing legal system now, but to make sure that it will continue to provide an opportunity for investment.

.He also prefers to negotiate with Baghdad and not with local governments on the oil contracts, saying that it would be entirely logical to hold negotiations with the central government.

.The government has adopted a draft law on Iraqi oil last February that would facilitate the investment of foreign companies, is also important to organize the division of the huge oil wealth among the sects and ethnic groups
Radio Sawa - شركة شل الن�طية تنتظر "تو�ر الإطار القانوني" للاستثمار �ي العراق

Originally Posted by lewscrew

I may be incorrect but IMO this was just a meeting to allow anyone to voice their opinion on the Oil & Gas Law before it goes to parliment on the 18th.
There were parliment members there but they also invited anyone that had issues or ideas about the law so it could be discussed before the first official parlimentary meeting occurs, which will most likely be behind closed doors and not open to the public like this meeting in Dubai.

Lewscrew

It did state that Parliament held the seminar but previous articles claim that government officials, parliamentarians, Iraqis and foreign experts will be in attendance as you pointed out, so it's anyone's guess for the time being.

HEY , Another Month slowly Passes with a lot of good Posts. I don't Like May because as the saying goes "May never comes" so I think MAYBE by JUNE, A true RV is in alignment.

There is some hot news going on over here right now.

http://www.rolclub.com/iraqi-dinar-d...cts-no-bs.html