Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Iraq PM opens new airport in Shiite holy city

Iraqi Prime Minister Nuri al-Maliki flew down to the Shiite holy city of Najaf on Sunday, marking opening of a new airport for civilian flights at a former military airfield.

"It is a historic moment. It is a moment that symbolises equality among all Iraqis," Maliki said in his address to the crowd gathered for the inauguration of the new Al-Hamza airport.

He said the opening of the airport was another step in the reconstruction of Iraq following the US-led invasion of 2003 and that he hoped other provinces would follow suit.

"There must be competition among other provinces when it comes to rebuilding their regions," he said.

Maliki also announced that the nearby Shiite province of Karbala would also sign a contract for the construction of a civilian airport.

The Najaf airport will be operated by a Kuwaiti company for a month when it will train Iraqi staff in managing the facility.

Millions of Shiite pilgrims flock every year to Najaf, the home of Shiite Islam's most revered shrine of Imam Ali.

The new airport is expected to boost the number of pilgrims, especially from neighbouring Shiite Iran, which has a deal with Baghdad to send 1,500 pilgrims a day all year round as part of efforts to boost trade. Most Shiite Muslims visit Najaf and later tour Karbala, which is home to the shrines of Imam Hussein and Imam Abbas.

Iraq PM opens new airport in Shiite holy city - Middle East News

Cancel orders because of the paucity of auction bids compared to the amount of Release

Iraqi central bank attributed the cancellation of an auction of remittances during the past were due to the limited amount of offers to auction the bank, compared to the amount of issuance.

An official source in the bank: that the reason for cancellation of the auction was not due to administrative procedures, as rumors spread recently, but the minimal amount of offers to auction the bank, compared to the amount of issuance. Pointing out that the bank had cancelled an auction for a private remittances (182) for that reason.

He added that the bank had issued a timely remittance of its own and defined system for this auction will be held periodically since the acceptance of tenders in (ten o'clock) and declare the results at (atheist ten morning) or after the same day.

By another source pointed out that the strategic use of the bank in an interest rate came to meet the inflationary conditions and unfavourable price shocks.

He had previously monetary policy to take a series of steps in this regard under which interest rates rose to the Central Bank of Iraq to reach a maximum rate (20%) annually in the month of January 2007.

The Iraqi Central will hold the reduction in interest rates has approved, commensurate with the evolution of the phenomenon of price moderation and the general level of prices.

It is noteworthy that the bank approved the regulations for granting licenses to banks and non-bank financial bodies in addition to the list of policies and guidelines on the classification of bank credit.

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An oil expert: Iraq qualified to be the first producer of oil in the world

Revealed an Iraqi oil expert said Iraq could assume the forefront of global oil production if adopted a national programme using its means and adopted scientific efforts to mobilize domestic and international oil industry in the development pointing out that he can with his current hit production (6) million barrels or more without Much trouble.

The former director general of oil exploration company Salem Gabriel exclusive press interview that Iraq possesses reserves in the world's first global gathering of reserve installer (115) billion barrels with probable reserves estimated at between (214 to 250) billion barrels pointing out that it could increase Production to hit (6) million barrels or more without much trouble.

The expert added that the exclusive oil imbalance in the first dealing with the deterioration of the oil wealth is that the bodies responsible at the time have been active in conducting inquiries and a large seismic surveys to identify sites contain vast depths preliminary indications of wealth in oil Watt, hesitated to update the most important guarantee for the existence of oil and conversion Of possible sites to the availability of proven oil reserves, as he put it.

Turning exclusive to what he described (available prospects for an ambitious increase in oil production and steady increase of proven reserves, he confirmed saying: go through the process of oil exploration programs, over 300 additional oil field-proven and field session, which was not yet production will be Certainly ripe, but after the tremendous effort might continue for ten years to come.

Translated version of http://www.radionawa.com/(X(1)A(K13QeA0hyQEkAAAAMGFjNTBjYTUtYjIxNy00OTlhLWE 0ZWUtNGRiMzZjNDc3MDA5bxQErBI_TeilpNvYp-JhRCKevTY1))/Ar/NewsDetailN.aspx?id=12244&LinkID=105&AspxAutoDetec tCookieSupport=1

Is the Central Bank has succeeded in achieving monetary stability?

Seeks central banks in all countries of the world based on the fundamentals of work known historically to achieve monetary stability and stabilize prices, according to the requirements of the pillars of real economic growth, which can be achieved only under condition of stability.

For his part, sought the Central Bank of Iraq over the past years to achieve this based on the independence provided by its new No. 56 to have written in 2004 during the past five years, important steps on the path to actual cash management after it was exercising its decades of work as a point of issuing cash only and was followed fiscal policy And try all means to redress errors committed by such a policy, therefore, was to deal with that background courtyard of the Ministry of Finance, against these transformations Does the Central Bank has succeeded in achieving monetary stability?

We have witnessed the Iraqi economy during the years of siege marked decline in the value of local currency as a result of increasing the supply of cash in return for disruption of production in many joints economic and this in turn led to a wave of unemployment, which coincided with inflation to announce the entry phase of the Iraqi economy recession inflation which increased the The difficulty of the role of monetary policy, especially with high sensitivity towards the crisis by real market in goods and services and negative vibrations caused by speculation by the theory of expectations.

The latest political change witnessed by Iraq changed economically both at the management level college (albeit very slowly) Ibex-level goals, however, that change brings with it a paradox is visible is the slow pace with home and abroad to the extent that make some people describe what happened chaos Or economic chaos, and despite the fact that this problem does not lie at the core theme of this article but it is very important to clarify images of the event macro economic terms ultimately led to the return of the Iraqi economy into a spiral of inflation, particularly since the recession in late 2005, which necessitated the CBE face of these developments through a set of tools following the lifting of the two interest rate (discount rate) and raise the value of Iraqi dinar against the U.S. dollar.

We have raised the monetary policy followed by the Central Bank extensive arguments between academia and popular both among supporters have agreed with the need to combat inflation (which exceeded 50%) in various ways, and one against which it considers disruptive for investment, which could contribute to tackling unemployment, which exceeded 50% including underemployment, and away from this controversy more important thing is to assess whether such a policy, the Central Bank has succeeded in achieving monetary stability, particularly after the passage of nearly two to implement that policy?

In order to share with the reader in determining the answer to the question above should clarify the following main points:

-- The basis of inflation rates decreased significantly from 32% to 29% in the year-end 2007 as the annual report of the Central Bank, meaning inflation is the basis of prices of goods and services excluding fuel prices, lighting, transport and communications as they fall within the responsibilities of fiscal policy specifically according to officials at Central Bank And that prices could rise and rates greater than current figures if the bank did not intervene through the current tight monetary policy.

-- Reduction in cash from the multiplier to 1.2% 0.9% during the year 2007 despite the higher balances of deposits in one hand and high-density bank on the other result of a rise in banks approved by the Central Bank, which reached up to forty banks as well as overcome many Banks, especially private banks index for capital adequacy, set by the Banking Act in force by 12% as a minimum, while the ratio ranged in private banks, for example, between 25% and 574%, and this demonstrates the disruption of a large part of the liquidity and thus contribute to reducing the rates of inflation.

-- Lower interest rate bank from 20% in the year-end 2007 to 16% in the first of July 2008 but the credit extended by banks is still very low, which reflects the unwillingness of banks to provide credit result of the security situation and fears of bad loans as well as the existence of investment Security is to invest in the Central Bank and at high prices reached the limits of 20% on remittances treasury.

-- A reading of the relationship between the rates of improvement in the value of the dinar and the devaluation of the dollar, which was the Central Bank of hand and rises in prices on the other Painting shift in the relationship between the two separated since the movement in prices for the movement of foreign currency in the speed and direction, and this was confirmed by the Central Bank data While A decline in the value of the dollar by 20% during the period 2005 - 2008 note rising prices by more than 100% for the same period.

-- Halt the production of many products of local industrial, agricultural and others who enjoy the competitiveness and comparative advantage in foreign trade due to the relative decline in eighths of them, which led to bring those imported from international and regional outlets for them according to world prices, lifting the index of commodities traded in the domestic market International price levels at which lost product Iraqi competitive with other states, particularly with lower prices on imported goods cheap dollar.

Based on seniority can say that the management of monetary policy in Iraq witnessed during the past five years has changed markedly through the shift in the use of monetary tools of indirect monetary tools to indirect monetary tools to influence the liquidity and this thing is calculated to cash management in Iraq despite our agreement or Differences with the results achieved by monetary policy in place and if so important in the long run more important thing is the near-term results achieved by that policy so far as may be referred to the success of an interest rate of price signals in generating consistent with the requirements necessary to confront the phenomenon of the inflationary, by We further believe that raising the exchange rate of Iraqi dinar against the dollar did not achieve any significant results, especially with the secession movement in prices for the movement of the exchange rate, as articulated by statements issued by the Central Bank and the question here is why, if the bank continues its policy of lifting the value of Iraqi dinar?

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Who’s to blame for $145 oil?
Crude oil has risen 77% in the last 12 months, triggering fears of global recession. But is OPEC to blame for the crisis, or have prices been driven up by the speculators?

On 2nd January Richard Arens, a lone trader on the New York Mercantile Exchange, paid significantly over the odds to snap up 1000 barrels of crude oil. When he sold them a few moments later - at a US$600 loss - the speculator was out of pocket but he had secured his place in history as the man who pushed the price of oil to a record US$100.

Today, while the Gulf's oil-producing states can look forward to a US$1bn-a-day petrodollar surplus, oil consumers in the West are looking for someone to blame for crude oil that has topped US$145 a barrel.

And the heat is on risk-takers such as Arens, who buy a commodity like oil when they think the price is likely to rise, and they'll be able to sell for a profit.

OPEC says that soaring demand and supply constraints are underpinning the rise; in the US and Europe, politicians are calling for the reining in of speculators blamed for flooding the oil contracts market and distorting the real cost of the commodity.

On Capitol Hill, irate Democrats have called for rules compelling traders to take delivery of crude oil, a move which would paralyse the market. In Europe, leaders have proposed a worldwide ban on oil trading by speculators, blaming the latest spike in crude prices on manipulation by hedge funds.

Oxford Business Group (OBG), a London-based research and consultancy unit, suggests that large amounts of speculative investments in oil may be having a "significant impact" on oil prices. As the global economic slump deepens, investors are increasingly looking for exposure to commodity prices rather than more traditional assets such as equities or bonds - and this shift could be the reason that 2008 consumers are facing unprecedented pain at the pumps, it said in a report.

On July 11 total trading volumes on Dubai Gold and Commodities Exchange (DGCX) touched a record new high of 14,066 contracts, registering the exchange's highest overall daily value of above US$978m.

"There's no doubt that we are in a commodities super-cycle, and interest in commodities is at an all-time high," Malcolm Wall Morris, CEO of DGCX, tells Arabian Business. "Market sentiment can be that commodities are not correlated to other asset classes such as fixed-income and equities, so for risk management purposes or investment purposes they can offer an opposite to those markets."

The exchange's recently launched crude oil contract, the West Texas Intermediate (WTI), is its star performer - and set a new record with 3871 contracts traded equivalent to over US$562m. On the same day, Brent crude closed at US$144.49, up 32.3% since the beginning of the year. Oil futures reached a record US$147.27 a barrel on July 11, and have risen 87% in the past year.

"The high oil price has already triggered a long-term change in not only the finance world and the general economy, but the lives of every single person on this planet," says Aalaeddine Chahbi, a hedge fund manager with Dubai-based Evolvence Capital, which manages around US$1bn

"Over the last year, between 60 and 70% of the volume traded was traded on a speculation basis, meaning it was not oil intended for consumption or for reserves. That's a really big number, and I know that theoretically it can sometimes be even bigger than that because you can buy and sell more than what is actually consumed. One thing's for sure - funds in general have a significant role in this price appreciation."

And as the price of oil rises higher, it may become more difficult to explain away by pointing to rising demand - which has been increasing relatively moderately until now.

Who?s to blame for $145 oil? - Energy - ArabianBusiness.com

Skinner: Mr. Maliki's statements to the German magazine Der Spiegel have been misunderstood

Announced the official spokesman for the Iraqi government Dr. Ali Skinner that Prime Minister Nuri al-Maliki confirmed that his statements to German magazine Der Spiegel have been misunderstood and had not been translated transfer minutes on the vision of Senator Barack Obama candidate the American presidency for the withdrawal of U.S. forces from Iraq.

Skinner explained that Mr. al-Maliki confirmed the existence of an Iraqi vision stems from the reality of Iraq need security, as the positive developments of the security situation and the improvement seen in Iraqi cities makes the subject of withdrawal of U.S. forces within prospects and timetables agreed upon and in the light of the continuing positive developments on the ground and security that came within Strategic Plan for Cooperation and developed by Mr. Maliki and President George Bush and the Iraqi government appreciates and values the efforts of all the friends who continue to support and supporting Iraqi security forces.

Skinner emphasized that statements by the Prime Minister or any of the members of the Iraqi government should not be understood as endorsing any candidates from the American presidency.

Translated version of http://nahrain.com/news.php?readmore=17839

Parliament begin discussing the supplementary budget amounting to 21 billion dollars

Said media source in the House of Representatives, the Council began, Sunday, the work of its first reading of the supplementary budget bill for the current year, public, which hits (21) billion dollars.

The source said the Independent News Agency (Voices of Iraq) that the parliament "has today (Sunday), the work of its thirty-eighth session open within the current legislative separated, the first reading of the supplementary budget bill for the general public (2008), headed by Sheikh Khalid al-Attiyah, First Deputy Chairman of the Board, The presence of more than (160) deputies from various parliamentary blocs. "

The Iraqi budget for the current year (2008), which was approved by the House last February, more than (48) billion dollars, an increase of $ (18%) from last year's budget (2007). The supplementary budget amount (21) billion dollars, and approval is the total budget for the current year of approximately (70) billion dollars.

This figure constitutes an important breakthrough in the history of the budgets of the Iraqi state, were the result of the rise of Iraq's resources from oil exports.

The source added that the media's agenda today's meeting "also includes the second reading of the First Amendment of the Bill of Haj and Umrah, and the second reading of the draft Law on the Ministry of Water Resources."

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Work resumes at Iraq refinery in once-violent area

An oil refinery in Iraq's western desert has resumed production, the government said Sunday, as part of an outreach to an area once controlled by Sunni insurgents.

And in the country's south, a new airport opened in Najaf in what the prime minister said was a key step in the reconstruction of a country devastated by war.

Hundreds of thousands of pilgrims, mostly Iranians, travel to Iraq every year to visit Shiite shrines in Najaf and another holy city, Karbala. The new airport is expected to boost the numbers of pious tourists.

At a ceremony, Prime Minister Nouri al-Maliki described the $250 million airport as a vital element in Iraq's economic development. A military airfield was renovated for the new airport, and several flights were expected to land on Sunday.

"We were determined to face the terrorism that was about to destroy Iraq. The strong will of the federal government has fought and defeated it in all of its forms," al-Maliki said.

Separately, the U.S. military said, American soldiers killed two armed relatives of a provincial governor during a raid in Salahuddin provice against al-Qaida in Iraq.

The military says in a statement that the soldiers were acting in self-defense when they shot the relatives of Hamad Hammoud, governor of Salahuddin province. It says the slain men showed "hostile intent."

The raid happened Sunday in Beiji in northern Iraq. The deputy governor, Abdullah Hussein Jabarah, says the slain men were the son and nephew of the governor. The U.S. military said a financier for al-Qaida in Iraq was wounded and captured.

The refinery, located near the Syrian border in the once-violent Anbar Province, was closed in 2005 due to deteriorating security. Its rehabilitation is part of efforts by the Shiite-led government to boost services and win loyalties in the nation's Sunni heartland.

The refinery is expected to generate local jobs and meet needs for fuel and other petroleum products in the region, which was once the main stronghold of al-Qaida in Iraq.

Armed Anbar groups began an uprising against al-Qaida last year to halt attacks that claimed hundreds of civilian lives. The Anbar movement was hailed by the U.S. military as vital to helping root out insurgents _ a key element in bringing violence in Iraq to its lowest level in four years.

Washington and Iraqi leaders now want to deepen Anbar's support with political pacts and development projects such as the refinery, which began work on Friday.

The 51-year-old refinery will have an initial capacity of processing 16,000 barrels of crude a day, said a statement from the Oil Ministry. Two more production units will be added to reach 70,000 barrels a day, the statement added without mentioning a specific timetable.

Iraq's three main oil refineries are running at roughly half the 700,000 barrels daily capacity before the U.S.-led invasion in March 2003.

In 2006, the ministry built another refinery in the Shiite holy city of Najaf, about 100 miles south of Baghdad. It has a refining capacity of about 20,000 barrels per day.

At least two other refinery construction deals are being negotiated.

Iraq has the world's third-largest known crude oil reserves _ an estimated 115 billion barrels _ but it suffers acute refinery shortages following years of U.N. sanctions and war.

The shortfall has forced Iraq to turn to imports from neighboring Iran, Kuwait and Turkey.

Washington Times - Work resumes at Iraq refinery in once-violent area

Demand for dollar drops in Sunday’s auction

Demand for the dollar went down in the Iraqi Central Bank's auction on Sunday, reaching $113.9 million compared to $124.845 million on Thursday.

"The demand hit $50.690 million in cash and $63 million in foreign transfers outside the country, all covered by the bank at an exchange rate of 1,193 Iraqi dinars per dollar," according to the central bank's daily bulletin, which was received by Aswat al-Iraq - Voices of Iraq - (VOI).

None of the 17 banks that participated in the auction offered to sell dollars.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

Aswat Aliraq

Barack Obama arrives in Iraq

Presumptive U.S. Democratic presidential candidate Barack Obama arrived in Iraq on Monday for talks with Iraqi officials and American military commanders in a 5-year-old war he has pledged to end, a U.S. Embassy spokesman said.

The trip to Iraq is Obama's second after a visit in 2006 and follows a Saturday stop in Afghanistan, part of a closely watched overseas trip for the Illinois senator that will include other stops in the Middle East and Europe.

Obama has said that if elected, he would order the military to end the war in Iraq and commit more troops to Afghanistan.

Accompanying Obama is Sen. Jack Reed of Rhode Island, a leading Democrat on the Senate Armed Services Committee, and Sen. Chuck Hagel of Nebraska, a Republican member of the Foreign Relations Committee and an outspoken critic of the Iraq war.

"The senators have a busy day ahead of them, as they meet with senior Iraqi officials, coalition leadership and officials from the U.S. Embassy," Embassy spokesman Armand Cucciniello said.

They also plan to meet with troops from their home states and U.S. civilians working in Iraq, Cucciniello said.

Obama's trip comes on the heels of an article quoting Iraqi Prime Minister Nuri al Maliki as saying he backs Obama's proposal to withdraw U.S. troops from Iraq within 16 months.

A spokesman for al-Maliki has since called the remarks appearing in Der Spiegel on Saturday “misunderstood, mistranslated and not conveyed accurately."

Obama has made Afghanistan a key focus of his foreign policy, saying he would make it the central front in the "war on terror" if elected.

"The Afghan government needs to do more. But we have to understand that the situation is precarious and urgent here in Afghanistan. And I believe this has to be our central focus, the central front, on our battle against terrorism," Obama said Sunday on CBS' "Face the Nation."

"I think one of the biggest mistakes we've made strategically after 9/11 was to fail to finish the job here, focus our attention here. We got distracted by Iraq," he said.

Obama said troop levels must increase in Afghanistan.

"For at least a year now, I have called for two additional brigades, perhaps three," he told CBS. "I think it's very important that we unify command more effectively to coordinate our military activities. But military alone is not going to be enough."

Obama met Sunday with Afghan President Hamid Karzai, a leader the Democratic senator has criticized for not doing enough to rebuild the war-torn nation.

The presumptive Democratic presidential nominee met with Karzai in Kabul, the capital city, during Obama's first visit to the Asian nation.
Karzai's spokesman characterized the senator's message as pleasant.
"They're happy to be in Afghanistan. They reassured the support of U.S. people to Afghanistan," Humayoon Hamidzada said.

Karzai met with the congressional delegation that includes Obama, and they discussed the achievements of the Afghan government as well as challenges such as terrorism, corruption and illegal *****.

McCain's senior foreign policy adviser criticized Obama on Sunday for "stubbornly adhering to an unconditional withdrawal that places politics above the advice of our military commanders, the success of our troops and the security of the American people."

"Barack Obama is wrong to advocate withdrawal at any cost just as he was wrong to oppose the surge that has put victory within reach. It is a strategy for defeat, and it is the only strategy Barack Obama has ever supported," Randy Scheunemann said in a statement.

Democrat-turned-independent Sen. Joseph Lieberman, another McCain ally, echoed Scheunemann's comments.

"John McCain had the guts to argue against public opinion, to put his whole campaign on the line, because, as he says, he'd rather lose an election than lose in a war that he thinks is this important to the United States," Lieberman said on "Fox News Sunday."

The fight in Afghanistan has become a more pressing issue on the political radar. Three times as many coalition soldiers and other military personnel have died in July in Afghanistan, compared with Iraq. July's death toll for coalition troops reached 22 after the Friday death of a Canadian soldier was announced.

Nine U.S. soldiers were killed July 13 in a fight with about 200 Taliban militants in eastern Afghanistan. It was the deadliest attack on U.S. troops in Afghanistan in three years.

PUKmedia :: English - Barack Obama arrives in Iraq