The Dinar Daily, Saturday November 15. 2014
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  1. #1

    The Dinar Daily, Saturday November 15. 2014





    The Exchange Rate of Foreign Currency in Economic Feasibility Studies

    Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

    Estimate the shadow price of foreign currency:

    1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

    The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

    * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:


    • Export-outputs.
    • Outputs marketed locally that substitute imports.
    • Imported inputs.
    • Inputs produced locally that usually go to exports.
    • Foreign labor.


    According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

    In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

    In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

    2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.

    The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:


    • The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
    • The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
    • The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
    • The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
    • This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.


    And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

    3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.



    The Republic of Iraq – Ministry of Planning

    and

    A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...

    In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.

    1) the SIGR report…


    2) the Gold Article…


    3) the IIER report…


    I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.


    Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.


    Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.


    I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…


    Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??


    I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the
    CBI.iq website for “real” info on rate change.

    The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.


    Referring to an Enorrste post from today on
    THE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )

    “…I have never found a single article from the CBI or the IMF that equates “delete the zeros” to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”


    Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??


    Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s
    DINAR OBSERVER DAILY
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________

    THIS REPORT WAS SENT TO CONGRESS LAST MAY. IT PLAINLY SHOWS IN THIS REPORT THEY EXPECTED THE DINAR TO REVALUE AT AROUND A DOLLAR IN 2013.

    We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 94 of the massive SIGR report.





    BGG ~
    This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
    __________________________________________________ ______________

    I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…

    1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.

    2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.

    3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.

    I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.

    4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..

    __________________________________________________ ______________

    AND

    Coins put on the market !!



    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara "The project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find metal coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century

    waradana.com

    And

    CBI is preparing to issue a monetary metal parts



    Metal coins from the category of 25 fils were in circulation until the nineties of the last century

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.

    http://www.iraqhurr.org/content/article/26666313.html

    and

    Another "FLASHBACK"...

    Economists Divided Over Deletion Of Zeros

    By Amina al-Dahabi for Al-Monitor.

    The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…

    …Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.

    The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.

    ARTICLE LINK



  2. #2

    Re: The Dinar Daily, Saturday November 15. 2014

    House of Representatives held its 29-Jubouri, headed by the presence of 206 deputies



    (Independent) ... the House of Representatives held its 29th President of the Council, headed by Saleem al-Jubouri, and the presence of 206 deputies, with parliamentary source said that the meeting will be sworn deputies who hold government positions and replacements for those who have held a ministerial or vice president positions performance.

    He said the source of the (independent) on Saturday, "The House of Representatives held on Saturday, its 29th, headed by Chairman of the Board Saleem al-Jubouri and the presence of 206 deputies," noting that "the meeting will be sworn members of Parliament who hold government positions and replacements for those who have held ministerial positions or to the Vice President of the Republic. "

    "The meeting will see the second reading of the draft law of accession of the Republic of Iraq to the international railway agreement in the Levant and elbows attached to him." (End)


    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sandbox=0&sl=ar&tl=en&u=http://www.faceiraq.com/inews.php%3Fid%3D3234762&usg=ALkJrhgdEHw1CJ1XTJ_LZaUnRezi2zvqxA

  3. #3

    Re: The Dinar Daily, Saturday November 15, 2014


    Parliament urges the government to speed up the enactment of laws, notably the 10 parties, oil and gas

    Twilight News / urged the General Secretariat of the Council of Ministers and the Ministry of State for Parliamentary Affairs Council of Representatives to speed up the important laws that have already referred as one of the priorities of the Iraqi government legislation.

    According to a statement from the General Secretariat of the Council of Ministers stated for "Twilight News", that the Council of Ministers decided in its meeting held last Tuesday urged the House of Representatives to pass the laws of each of the political parties and projects, and to prevent the use and spread of Occlusive weapons, and the law of freedom of expression and peaceful protest, and the project General Authority to monitor the allocation of federal revenues, and crimes of informatics, and the establishment of civil and health institutions, and to exempt Iraqi and foreign executing projects of investment companies from taxes and fees, and modulated, and the organization of transplantation of human organs and prevent trafficking, and amendment First Law Property Claims Commission, and the Federal Court Supreme.

    http://www.dinarupdates.com/newreply.php?do=postreply&t=14745

  4. #4

    Re: The Dinar Daily, Saturday November 15, 2014

    Abdul-Mahdi announce the possibility of return to production fields of Kirkuk after the agreement with the Kurdistan Regional



    Long-Presse / Baghdad Said Iraqi Oil Minister Adel Abdul-Mahdi, said on Saturday that the ministry could reproduction rights to Kirkuk stalled since last March, after oil deal with the Kurdistan region, as he emphasized the need to address the decline in oil prices quickly.

    Adel Abdul-Mahdi said during a press conference held at the Oil Ministry headquarters in Baghdad on the sidelines of a workshop organized by the ministry with a number of conservatives and attended (range Press), "The oil production of the province of Kirkuk was disabled since last March due to cut oil-bearing pipes," stressing " we can re-post this production agreement with Kurdistan. "

    He said Abdul-Mahdi, that "this Agreement shall be performed in order to produce and export the Kurdistan region oil enters the finance department of the Iraqi state," noting that "the security forces and the support of the popular crowd now progressing at a fast pace in some provinces, including Kirkuk, which includes oil wells controlled organization (Daash) on part of it. "

    Abdul-Mahdi said that "complete control of the security forces on those wells will raise Iraqi oil production significantly," pointing out that "we have new plans in collaboration with the provinces to increase oil production and development of oil firms."

    Abdul-Mahdi, and called for the need to "address the decline in oil prices rapidly through increased production and strengthening of other sectors," pointing out that "This conference aims to build a new relationship with the oil-producing provinces and needs to be a set of legislation for the involvement of local government decision-making on oil policy." .

    And Abdel-Mahdi, that "this conference will be the new gateway and easy for those provinces to visit the ministry and discuss and debate periodically Per matters relating to oil," noting that "the ministry is seeking to raise the red tape and costs, where the correspondence drag on for months between the ministry and the provinces."

    The North Gas Company announced that, in the (October 21, 2014), for low current rates of production to less than half the rates normal, attributing it to a combination of factors most notably stopped exporting oil from the Kirkuk oilfields to the Turkish port of Ceyhan since last March and the deteriorating security situation in the country.

    It is noteworthy that the Kirkuk oilfields production decline, from 670 to 25 thousand barrels per day, after the control of the organization (Daash) to Mosul and other parts of the country, some of them in the province, on the tenth of June, as oil pumping stopped from Kirkuk to the Turkish port of Ceyhan since last March due to "sabotage" attacks against them.

    It is noteworthy that unit security tensions in Kirkuk rose, after gunmen seized control of the organization (Daash) on Hawija and the areas of Riyadh and Abbasi and Zab as well as Bashir village, which lies on the outskirts of the city, and the displacement of nearly three thousand of the children of the village al-Bashir, which includes more than 1150 homes.

    The oil minister, Adel Abdul-Mahdi, announced on Friday (November 14, 2014), that the agreement between Baghdad and Erbil does not constitute a "final solution" to the outstanding issues, but is the "beginning" of the broad comprehensive, just and constitutional between the two solutions, and as he emphasized that the agreement if it has been applied The re-development will ensure tens of billions of dollars lost by Iraq during the 2014 to the Treasury, confirmed that the logic of "mutual profit" will double the value of profits "unforeseen and direct" and will increase the benefits of shared benefits flowing in the interest of the whole country.

    Announced Oil Minister Adel Abdul-Mahdi, in (November 13, 2014), agreed with the President of the Kurdistan Regional Government to the Federal Government to transfer $ 500 million for the region, and among the agreement to ensure that the Government of the Territory put 150 thousand barrels of crude oil per day at the disposal of the government Federal, regional president stressed that the government will visit Baghdad at the head of a delegation to develop a "comprehensive" and constitutional solutions to resolve outstanding issues.

    The oil minister, Adel Abdul-Mahdi, arrived in (November 13, 2014), to Erbil to discuss the oil file, and to reach an agreement between the central and regional governments on the differences Alnaftyh.okan President of the Kurdistan Regional Government Nechirvan Barzani stressed, in (November 12, 2014), that Open the door to dialogue with the central government to reach an agreement and the non-recurrence of a mechanism to cut the budget and the salaries of the staff of the region in November, and expressed optimism regarding the upcoming visit to the oil minister, Adel Abdul-Mahdi to Erbil.

    The Council of Ministers of Iraq's Kurdistan region honest, in (November 12, 2014), on the legal Kurdistan company for exploration and production of oil and fund oil and gas revenues in the region, and in what was described Prime Minister Nechirvan Barzani hosted by the deputy Qubad Talabani in the region's parliament session as "positive and fruitful", He pointed out that he has reviewed the Ministry of Natural Resources plan to find a solution to the current financial crisis and the budget and staff salaries by oil revenues.

    It is noteworthy that the former prime minister, Nouri al-Maliki, instructed to cut the budget of the Kurdistan region since the beginning of the current year 2014, including staff salaries, against the backdrop of the crisis between Baghdad and Erbil.


    http://www.almadapress.com/ar/news/39719/%D8%B9%D8%A8%D8%AF-%D8%A7%D9%84%D9%85%D9%87%D8%AF%D9%8A-%D9%8A%D8%B9%D9%84%D9%86-%D8%A5%D9%85%D9%83%D8%A7%D9%86%D9%8A%D8%A9-%D8%B9%D9%88%D8%AF%D8%A9-%D8%A7%D9%84%D8%A5%D9%86%D8%AA%D8%A7

  5. #5

    Re: The Dinar Daily, Saturday November 15, 2014

    Tamimi elected chairman of the Parliamentary Committee on Agriculture and the Committee Bolani economy




    Long-Presse / Baghdad A parliamentary source revealed on Saturday, the election of MP Furat al-Tamimi, head of the Committee on Agriculture and Water parliamentary, was elected as the economic and investment commission MP Jawad al-Bolani as its chairman and MP Harith al-Harthy as his deputy.

    The source said in an interview with the (long-Presse), "The members of the parliamentary agriculture elected after the parliament session ends the 29th, which was held today, MP for the mass of citizens Furat al-Tamimi, head of the committee," noting that "the Committee elected to the post of Rapporteur of the Committee MP for the coalition salvation Representative Anbar Ghazi Gaood ".

    The source, who asked not to be named, said: "The members of the Committee on Economy and Investment elected, the National Alliance MP Jawad al-Bolani as its chairman, and MP Harith al-Harthy Vice President."

    A parliamentary source, revealed Thursday (November 13, 2014), for the selection of four heads of permanent committees during meetings led by House Speaker Salim al.

    And raised the Presidency of the Council of Representatives of Iraq, on Saturday (November 15, 2014), the 29th session of the first legislative term of the first legislative year of the third parliamentary session to post on Monday, while the meeting witnessed an end to the second reading of the bill and vote on the formation of a committee to investigate the reasons for the fall of Mosul However, the organization (Daash).


    http://www.almadapress.com/ar/news/39727/%D8%A7%D9%86%D8%AA%D8%AE%D8%A7%D8%A8-%D8%A7%D9%84%D8%AA%D9%85%D9%8A%D9%85%D9%8A-%D8%B1%D8%A6%D9%8A%D8%B3%D8%A7-%D9%84%D9%84%D8%AC%D9%86%D8%A9-%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D8%A9-

  6. #6

    Re: The Dinar Daily, Saturday November 15, 2014

    Parliament lifted its 29 to Monday



    Long-Presse / Baghdad Raised the Presidency of the Council of Representatives of Iraq, on Saturday, the 29th of the first legislative term first legislative year of the third parliamentary session session to the day after tomorrow, Monday, in the meeting witnessed an end to the second reading of the bill and vote on the formation of a committee to investigate the reasons for the fall of Mosul, however, the organization (Daash) .

    A parliamentary source said in an interview to the (long-Presse), "The House of Representatives Speaker Salim al-Jubouri decided at noon today, to adjourn the meeting of the 29th legislative term of the first legislative year of the first third of the parliamentary session to be held later on Monday."

    The source, who asked not to be named, said: "The session saw the vote on the formation of a committee to investigate the reasons for the fall of Nineveh province, however, the organization (Daash) and end the second reading of the draft accession of the Republic of Iraq to the International Railways in the Arab Mashreq agreement and attached to the elbows by law."

    The House of Representatives held on Saturday, (November 15, 2014), its 29th of the first legislative term of the first legislative year of the third parliamentary session chaired by Salim al-Jubouri, and the presence of 206 deputies, while the agenda of the meeting included the constitutional right of the members of the House of Representatives who were holding performance government positions and on the bench who occupied ministerial or vice-president positions, and the second reading of a project.


    http://www.almadapress.com/ar/news/39716/%D8%A7%D9%84%D8%A8%D8%B1%D9%84%D9%85%D8%A7%D9%86-%D9%8A%D8%B1%D9%81%D8%B9-%D8%AC%D9%84%D8%B3%D8%AA%D9%87-%D8%A7%D9%84%D9%8029-%D8%A5%D9%84%D9%89-%D8%A7%D9%84%D8%A7%D8%AB%D9%86

  7. #7

    Re: The Dinar Daily, Saturday November 15, 2014

    More economic woes for Iraq due to budget failure

    With persistent hurdles delaying the approval of the 2014 budget, new ones are standing in the way of the 2015 budget, including the drop in oil prices on global markets and the deduction of the north oil revenues from Iraq’s crude oil production due to military operations following the Islamic State’s (IS) control of large areas of northern and western Iraq since June 10.

    Furthermore, the Kirkuk field’s oil production, which is estimated at 400,000 barrels per day (bpd), was excluded from the total Iraqi exports after peshmerga forces took control of the field. This resulted in disputes between the central government and the Kurdistan Regional Government (KRG) over the oil exports of Kirkuk and other oil fields in the Kurdistan region. Add to this the rise in military spending.

    According to the Iraqyoon News Agency, with the end of 2014 just around the corner and with the late budget approval and the former government’s spending of all oil revenues of the first seven months, the budget amendment and approval is becoming a hard task.

    In this framework, economist Bassem Antoine stated that the delay in the 2014 budget approval was affecting Iraq’s economic growth. He asserted that the Iraqi government has to realize the great danger surrounding the Iraqi economy, as the delay in approving the budget has led to economic recession, especially in the fields of investment and operation. Moreover, the private sector, which includes more than 4 million employees, has been crippled. Antoine stressed the importance of limiting the 2014 budget to essential spending and postponing the remaining commitments until the year after.

    Member of parliament Hareth Shanshal al-Harithi, a member of the budget approval committee, told Al-Monitor that the parliamentary committee and the Ministry of Finance have not reached any results. The ministry is in a state of confusion because it does not have the power to initiate the state budget. Meanwhile, the other ministries requested from the latter advances to cover their operating expenses, such as employees’ salaries. The Ministry of Finance will then settle the advances from the budget allocations of the ministries when the state budget is approved.

    The operating budget for 2014 was disbursed as payments allocated to other ministries by the Ministry of Finance. This has become a fait accompli. This disbursement was made from the accumulated excesses of the ministries’ budgets for the previous years. Harithi expected the investment budget to be forwarded to the next year once the 2015 public budget was approved.

    Regarding the budget deficit, Technology and Science Minister Fares Jajo said that the huge budget deficit was still surprising because the budget draft law prepared by Nouri al-Maliki’s government overstated its oil revenue expectations and carried forward burdensome financial commitments that pushed the executive authority to demand reviews of armaments contracts and military commitments.

    Oil expert Hamza al-Jawahiri commented that there was a huge underlying deficit in the current 2014 budget due to the drop in oil exports from the northern fields. This stems from the security situation and because Kurdistan is not exporting its agreed-upon share. Its production remains outside the federal government’s calculations, resulting in a loss of more than 1 million barrels per day and a drop in prices due to vague and contradictory reasons.

    “To overcome this crisis, we need a courageous decision from a strong government that puts the country’s total imports under the control of the federal government. We also need to know whether the statements from the Kurdistan region about approaching 700,000 barrels a day worth of imports, in addition to the imports from land outlets and agricultural production, are true and whether the region has reached autonomy. In this case, Kurdistan would have to deduct 17%, which is its share of the general budget, and hand in the rest to the federal government. Moreover, an austerity policy should be adopted in all ministries and departments. The country and its budget are heading into the unknown,” Jawahiri said.

    Oil Ministry spokesman, Assem Jihad mentioned, “Both parties are trying to end the oil dispute and resolve the pending problems between Baghdad and Erbil.”
    Economic adviser to the Iraqi premier Abdul Hussein al-Ankabi mentioned, “The 2014 general budget is a fait accompli. It is no longer a budget because it was actually spent, and its approval now is just a documentation of expenses.”

    He said work is in progress to delete some of the articles from the draft law to decrease the deficit, especially because it has reached around $40 billion.
    Ankabi said the delay in the final accounts of three ministries had nothing to do with the approval of the budget, which he expected to be voted on by parliament before the end of 2014. He highlighted the importance of approving the 2015 budget before the New Year because the competent committee completed its work a while ago. He also stressed the importance of reviewing the budget as soon as possible, since the 2015 budget was based on oil prices of $90 per barrel. However, this price should be pegged at $70 per barrel as part of the austerity measures needed to decrease the expected deficit.
    (iraqdirectory)

    http://iraqdailyjournal.com/story-z9925229

  8. #8

    Re: The Dinar Daily, Saturday November 15, 2014

    Descon Engineering Company is preparing to enter the Iraqi market





    BAGHDAD / JD / .. announced Descon Engineering, construction and construction is ready to enter the Iraqi market, while confirming that Iraq is a unique investment opportunity.

    The general director of a company that has a branch in the emirate of Abu Dhabi Mohammed Iqbal Khan in a press statement to the newspaper (Gulf Times), translated Agency / JD /: that his company had been absent from the Iraqi market 25 years ago, but reconsider again because of the distinctive opportunities that exist within the Iraq.

    It is noteworthy that the company was founded in 1977 in Pakistan and is engaged in a number of Arab countries such as Qatar and the United Arab Emirates and Saudi Arabia in partnership with Olayan Company, which is one of the largest privately owned companies in Saudi Arabia.

    Integrated engineering company leader in the manufacturing and maintenance, electrical appliances and commercial storage tanks are considered, and the provision of optimal quality

    Before more than 6 years Descon company began construction of a factory for engineering equipment in Sharjah Free Zone, worth almost $ 12 million, has carried out projects in Qatar worth $ 52 million. / End / translation /

    http://www.dananernews.com/News_Details.php?ID=5308

  9. #9

    Re: The Dinar Daily, Saturday November 15, 2014

    Specialists advise calculates a barrel of oil at $ 65 in 2015 budget

    BAGHDAD / JD /
    .. after a continued decline in global oil prices and access to its lowest level until it reached $ 76 per barrel, advised a number of experts and specialists in financial and economic affairs, the federal government calculates the price of a barrel of oil at $ 65 to avoid the fiscal deficit in the 2015 budget, During their talk, calling for the Agency / JD / to the need to develop an integrated strategic plan to reduce dependence on oil and to maximize the financial resources of the state.

    Said an economist in the Office of International Economic Studies Hamid al-Moussawi, said that "the drop in oil prices in world markets was expected, and most of the oil-producing countries have taken proactive procedures for a long period with the exception of Iraq, which is made from oil prime economic resource for the country."

    He told / JD /: "The drop in oil prices and a decline in exports cause of Iraq's budget deficit in 2014 by 27 trillion dinars and the government will not cover it, but 25%, which is looking for other sources to cover the deficit."

    He said: "The price of oil in the budget of 2015 must be built on objective prices calculates the price per barrel to $ 65 export capacity of up to three million barrels per day," noting that "the federal and province governments deal Kurdistan on oil will enable Iraq to export oil more than 3 million barrels per day. "

    The International Energy Agency on Friday, said that the oil market has entered a new era in the light of China's economic growth slowing and the US boom of shale production makes a quick return to high prices unlikely.

    She added that the agency is reluctant to predict oil prices in its monthly report, said that prices could fall further in 2015 after falling to their lowest levels since 2010, and descends from the $ 80 a barrel.

    She continued, "While there is speculation that the high cost of oil for the production of non-traditional new equilibrium point for the price of Brent has been made in the range of 80 to 90 dollars per barrel, the balance of supply and demand predict that prices deterioration did a range of after."

    For his part, said the President of the Economic Media Center Dergham Mohammed Ali, said the current year must be considered in exceptional budget because of lower oil prices, in conjunction with the export of Kirkuk oil it stops what it may reduce speculation in half compared to last year, where the budget in 2014 prepared on the basis of the production of 3 million and 150 thousand barrels of oil per day, and the sale price of a barrel of oil (90) dollars.

    Mr Mohamed Ali told / JD /: "The price speculative right according to the significant decline in oil prices should not exceed 60 to $ 65 a barrel to get realistic reading of the budget in light of the lack of clarity readings of the oil market, and determine the production rate of two million and 700 thousand barrels a day at the most in the 2015 budget, to avoid the fiscal deficit. "

    He continued: "We have to fluctuations in oil prices are appropriate for the seriousness of the government to support the development of alternatives to find additional resources for balancing non-crude oil."

    He had warned the Iraqi industrial assembly of "catastrophe" in the country's economic resolved in the event of continued decline in global oil prices to unexpected figures, while the government and the parliament called for "support of the private industrial sector to cope with the crisis."

    Said assembly Chairman Abdul Hassan Shammari earlier told / JD / "The decline in global oil prices to below $ 90, this indicator sets off alarm bells on the single supplier of the Iraqi economy," adding that "the continuation of the decline in oil prices in world markets will reflect negatively on the operating budget in terms of increasing the fiscal deficit, making it difficult for the state how to pay staff salaries and disbursements huge. "

    He called on al-Shammari, "The federal government and the House of Representatives to the need to support the private industrial sector to cope with any potential economic crisis, through laws and legislation granting soft loans" ./ ended / 8 /

    http://www.dananernews.com/News_Details.php?ID=5306

  10. #10

    Re: The Dinar Daily, Saturday November 15, 2014

    Joker: 2015 budget will take a long time for approval



    BAGHDAD / JD / .. ruled member of the Finance Committee in Parliament MP Jamal Joker, approve the 2015 budget at the beginning of next year, while noting that next year's budget will come to Parliament later this month.

    Joker told / JD /: "The approval of the budget in 2015 based on a political point of view of the federal government and the extent of parliamentary blocs agreed upon," adding that "the budget if the observance of the rights of the three main components (Sunni, Shiite and Kurdish), the approval will be easy, But in case that there was unfairness to one of the components would execute and have plenty of time for approval. "

    He added: "The Ministerial Committee formed in connection with the preparation and drafting of the 2015 budget under the chairmanship of the Minister of Finance and my membership and ministers of planning and oil, the parliamentary finance committee told the deadline to send the budget to the end of this month, the parliament to take the House of Representatives role in discussing and approving the budget."

    He acknowledged the Joker, "the difficulty of approving the budget quickly and facilitator in the current view of the facts and circumstances," likely as "will take a long time to discuss possibly up to three or four months" ./ ended / 8 /

    http://www.dananernews.com/News_Details.php?ID=5304

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