Thread: Iraq/Dinar News. 09/05 to 01/14/07

Currency revaluation now on the IMF agenda
The International Monetary Fund is to host a multilateral meeting of the US, EU, Japan, China and Saudi Arabia to discuss global financial imbalances early next year. Officials told a press conference at the Dubai International Financial Centre that both currency revaluation and measures to stimulate economic growth in the GCC will be on the agenda.
Saudi Arabia: Tuesday, December 19 - 2006 at 09:29

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'There are two ways to tackle global imbalances,' said IMF Deputy Managing Director, Takatoshi Kato: 'Increasing the rate of growth in the surplus countries, or a revaluation of exchange rates. This sort of multilateral consultation is new for the IMF.'

Currency revaluation speculation is normally focused on the Chinese Yuan but the Saudi Riyal is also increasingly under scrutiny these days. Indeed, the $200 billion US trade deficit with China is smaller than its $250 billion trade deficit with the Middle East oil producers.

However, IMF officials note that 80 per cent of export revenues in the Gulf States are US dollar denominated and 70 per cent of imports. This suggests that any possible upward revaluation in the GCC currencies would likely be a modest movement, five or at most 10 per cent.

Revaluation implications
But for countries whose exchange rate has been pegged firmly to the US dollar for more than two decades even the mention of the word 'revaluation' is unsettling to a cozy status quo. It could have serious implications for liquidity flows.

On the one hand, a stronger Riyal or UAE Dirham would make Euro-priced products cheaper, dampening consumer price inflation. There would also be a one-off currency gain for the owners of local real estate. But on the other hand, the region would become more expensive for some tourists and the inflow of foreign money might falter as assets would be more expensive.

Even putting revaluation on the agenda will be enough to make many potential investors sit up and think. For if you know a currency stands a good chance of being revalued then investing before that valuation change is a sure-fire hit, and worth leveraging.

It has to be pointed out that the alternative strategy mentioned by the IMF Deputy Managing Director of raising rates of GDP growth in the Gulf countries is much easier said than done. Indeed, it is hard to imagine how the super inflationary current growth rates could be stimulated much further without placing an unbearable strain on the local financial systems whose stock markets have already crashed from wanton speculation this year.

Monetary union
However, the wheels of financial management turn slowly. Oman has recently questioned the viability of 2010 as the year for a scheduled monetary union in the GCC. As all these currencies are pegged to the US dollar this is not such a big deal in any case, but the creation of a GCC central bank with policy authority is a difficult political issue.

The UAE Central Bank has suggested that a more limited currency union might be achieved without a central bank with the fixing of currency rates and issuing of currency rather than an institutional union. This is practical so long as the dollar peg is maintained.

And in that case a one-off revaluation of the GCC currencies at the same time as this more limited currency union might make good sense. It is certainly a more sensible way to address structural oil imbalances than trying to over stimulate the booming economies of the GCC.

Currency revaluation now on the IMF agenda | News Feature

What does this all mean please??

Iraq: Iraq-Currency
Posted by: saleem on Sunday, December 24, 2006 - 01:41 PM

Iraq-Currency
Dollar demand up in Iraqi central bank auction
Baghdad, Dec 24, (VOI) – Demand for U.S. dollars was up to $11.635 million in Iraq’s Central Bank auction on Sunday compared with $1.250 million in the previous session.
The central bank covered all bids from banks at $1.485 million in cash and $10.150 million in transfers abroad, all at 1,352 dinars to the dollar, down eight dinars from Thursday.
Nine banks taking part in the auction offered to sell $2.150 million which the bank bought at 1,350 dinars.
The Iraqi central bank runs a daily auction on Sunday through Thursday.

Duhuk-Tourism
Posted by: saleem on Sunday, December 24, 2006 - 01:46 PM

Duhuk-Tourism
Tourist project opens in central Duhuk
By Khedr Domli
Duhuk, Dec 24, (VOI) – A 4-billion-dinar tourist project was opened on Sunday in the Iraq’s Kurdistan province of Duhuk.
"Work on the project that includes a number of tourist utilities had started early this year," Hashim Itrochi, the director of Duhuk municipality, told the independent news agency Voices of Iraq (VOI).
Four billion Iraqi dinars equals 2,898 million US dollars.
On the prominent utilities in the project, Itrochi said the project envisages three small waterfalls, restaurants, cafeterias and a Hyde Park-fashioned pulpit in the form of amphitheater where people may criticize anything.
The project was built 950 meters along the River Duhuk that flows into the River Tigris, southwest of the city.
Itrochi said the second stage of the project, which has to do with developing another kilometer on both sides of the river that divides the city in two, is included in the plan but no date was set for its commencement.
AE



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Arbil-Parliament
Posted by: saleem on Sunday, December 24, 2006 - 03:29 PM

Arbil-Parliament
Barazani attends Kurdistan parliament session
By Abdul-Hameed Zibari
Arbil, Dec 24, (VOI) – The parliament of Iraq's Kurdistan region will hold an extraordinary session on Tuesday to host the region's President, Massoud Barazani, to speak about the outcome of his visit to the Iraqi capital Baghdad.
"The President of Iraqi Kurdistan will focus on the outcome of his meetings with political leaders and developments in the Iraqi scene," Tareq Jawhar, the media advisor in the Iraqi Kurdistan National Assembly, told the independent news agency Voices of Iraq (VOI) on Sunday.
The session will be the second extraordinary in two weeks. Last week's session was dedicated to debate the Baker-Hamilton report issued by the Iraq study group.
AE

Originally Posted by jsfletcher
Can someone help me here. I'm getting mixed messages from the last paragraph

I think i'm actually thinking along the same track as the others who responded, i think it means get r done already, lol...i also think it hints at a smaller denom to be released?

Cabinet forms committee to qualify industry companies


Minister of industry , Fawzi al-Hariri has announced the formation of ministerial committee headed by him with membership of finance and planning ministries to hold meetings to qualify his ministry's companies, as investment directorate finished files of qualifying petrochemical and fertilizers factories and bed them for investment.

Al-Hariri added that his ministry has ratified through last year contracts with coast of 300 billion diners with Iraqi ministries despite all difficult conditions it faced.He referred that coast of contracts on the filed of fertilizers has reached 86 billion diners , promising to support these contracts and allocate finance to qualify these factories , adding that there is a tendency in cabinet toward that aspect.
Source: Al Sabaah




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Posted on Sunday, December 24

ID55b to upgrade high ways in Baghdad


The Engineering and technical cadres in the Municipality of Baghdad is ready to implement project of upgrading the high ways in Baghdad (Mohammed al-Qassam – Army canal- Otba Bin Ghazown) with cost of ID55 billions.

The spokesman of the Secretariat-general said to as-Sabah that this broject is coming within an expand plan to upgrade the high ways and the main streets in Baghdad, adding that this project is one among four large projects initiated by the Baghdad Municipality to implement them at the beginning of the next year.
Source: Al Sabaah




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Posted on Sunday, December 24

3 world companies compete to gain refinery accord


Three world companies are competing to initiate implementation Koya refinery in Koyasanjaq, Kurdistan region with more than $800 millions.

The technical and engineering cadres have resumed its works in Baji refinery after a halt lasts for more than two weeks because of the military operations their.The Eng. Ahmed al-Shama', the Oil Undersecretary said that three world companies are vying now to implement the project of building Koya refinery in Kurdistan region, referring that vying world companies are US coalition, Canadian Coalition and English-US Coalition in addition to one of the competitor local companies.
Source: Al Sabaah




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Posted on Sunday, December 24

Finance Minister calls ministries to achieve projects


Finance Minister Baqer Zubaidi stressed observing and readiness of his ministry to release allocated amounts for construction projects through budget of 2007 an authorized source at the Ministry said.

He added at press statement that the Minister called all ministries to begin execution its construction and service projects which prepared for recent year, he stressed that the budget of 2007 reached to 41,3 billion dollars and it exceeds budget of 2006 9 billion dollars and the ministry allocated 8 billion dollars for security ministries to equipped by modern equipments and weapons, and allocated 400 million dollars to increase employees' salaries.
Source: Al Sabaah




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Posted on Sunday, December 24