" The Dinar Daily ", Sunday, 1 March 2013
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  1. #1

    " The Dinar Daily ", Sunday, 1 March 2013

    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


    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
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________


    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 84 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″..

    __________________________________________________ ______________


    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



    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.



    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.


    Crush Expected When Kuwaiti Banks Reopen Today

    March 24, 1991|From Reuters

    KUWAIT CITY, Kuwait — Thousands of Kuwaitis are expected to jam the country's banks today when they open for the first time since the end of the Iraqi occupation.

    Customers will be allowed to withdraw funds and to swap pre-invasion money for a new currency issued to make more than $1 billion in pre-invasion dinars stolen by the Iraqis worthless.

    "We expect a rush of people," said Issam Asousi, an executive with the Bank of Kuwait. He said it could be a chaotic first week because customers have a lot of questions about their accounts.

    Kuwaiti banks continued operating during the seven-month Iraqi occupation under managers brought in from Iraq, but they have been closed since the U.S.-led alliance ousted the Iraqi army from Kuwait a month ago.

    When the banks reopen today, customers will be able to withdraw up to 4,000 Kuwaiti dinars, equivalent to about $14,000 at pre-invasion exchange rates from their accounts, and to exchange a like amount for foreign currency.

    Balances of customers' accounts will go back to what they were on Aug. 1, a day before the invasion.

    Clients will not be able to exchange Iraqi currency issued during the occupation, when Baghdad pegged the rates of the strong Kuwaiti dinar to the far less valuable Iraqi dinar.

    The new Kuwaiti money will be exchanged for old at a one-to-one rate.


    BGG ~ Thanks to wmawhite for some facts on the subject.

    Hi BGG,

    Just thought I would drop you an email. I listened to the call, and was interested in what was said about Kuwait, if I may - I will add my 2 cents worth.

    You were spot on with what you said, I have a close friend who's father made a killing on the KWD. He bought from people who had fled the country and he paid pennies on the dollar (we are in Australia). He took the chance that Iraq would be kicked back out and he was right.

    When the money was reinstated, he exchanged it for AUD at a rate in the mid 3s. The interesting thing about it is, Iraq invaded in November 1990 (I think), they were kicked back out at the end of Feb 1991, the banks reopened with a brand new KWD in late March, that's not a bad time frame to get a currency designed, printed and made ready to use, also the time that the old KWD was valid was initially only for 2 months, then extended to 6, so it was valid until Sept 1991, interesting I think.

    Also the other thing that seems to be a "fact" in Dinar land is Bill Clinton used the Kuwait RV to pay off the debt. However, Clinton was not President in 91, he did not take office until 93, even I know that and I am an Aussie.

    Anyway thanks for the site and enjoy listening to your calls.

    Kind Regards,
    Last edited by chattels; 03-01-2015 at 09:34 AM.

  2. #2

    Re: " The Dinar Daily ", Sunday, 1 March 2013

    MPs Of Iraqi Forces Coalition Back To Parliament Next Monday, MP Says

    28/02/2015 9:41

    BAGHDAD / NINA / The leading figure of the Iraqi forces coalition, Chairman of the Parliamentary committee on Integrity, Talal al-Zobaie guessed "the return of members of the Iraqi forces coalition to the Council of Representatives on next Monday, after getting assurances from Prime Minister Haider al-Abadi to implement the government program."

    He told the National Iraqi News Agency / NINA / "there are intense dialogues and meetings between the leaders of Iraqi forces coalition and the most of the political blocs, intended to break the ice to out with sober laws, were agreed upon to be legislated before the formation of the government." pointing out "The government was formed on the basis of the implementation of agreements between the political blocs."

    He explained, "after the recent meetings with Prime Minister Haider al-Abadi Abadi, he assured to the Iraqi forces coalition, that he is continuing to implement the government's program, but the delay in implementing some of its paragraphs is because the government concerns about the security side significantly."

    Zobaie pointed out that the country is going through a military, security and economic crisis, therefore we have to participate in lifting the suffering of the Iraqi people, noting that "the current stage requires to be one team in order to achieve common goals, which are to save Iraq from these crises and risks surrounding it."

    Zobaie called government to prepare for making important decisions, leading to re-things to the real normal and not to follow the procrastination policy, which did not succeed in the previous government that has made Iraq an open arena for terror, slaughter and murder, hoping this government does not become an extension for the previous one. "

    He added, "Some laws teased objections and controversy between the political blocs, will be amended, to satisfy all the political blocs, so that they are the source of justice among the Iraqi society."

    MPs of the Iraqi forces coalition and members of the National Bloc (Watania) suspended their attendance the House of Representatives on the background of the kidnapping incident of MP Zaid al-Janabi and the murder of his uncle and a number of his bodyguards in the twelfth of this month.


  3. #3

    Re: " The Dinar Daily ", Sunday, 1 March 2013


    Peshmerga repel ISIS attacks on Mahkmour front
    By RUDAW

    ERBIL, Kurdistan Region – Islamic States militants launched two attacks on Peshmerga forces at the Mahkmour front early on Sunday.

    “Islamic militants attacked our forces around 4 am today in the Sultan Abdulla area. The fight continued for about half an hour. The second attack happened around 5 am, and our forces retook control of the area,” Muslih Bradosti, the Peshmerga commander at Mahkmour, told Rudaw.

    A numbers of ISIS fighter were reportedly killed and wounded. Meanwhile, at least 15 others are believed to be hiding in mosques and houses in the area with no way to escape



    YPG ready for hostage exchange with ISIS
    By RUDAW

    Zohat Kobani

    ERBIL, Kurdistan Region – Leaders of the People’s Protection Units, or YPG, have announced they are ready to exchange prisoners with the Islamic States in an attempt to save the lives of Assyrian Christians held by the militants.

    Zohat Kobani, a representative of the Democratic Union Party in Europe, made the announcement in an interview with Swedish News channel TT. Kobani said at least 600 ISIS members are currently being held by his Syria-based ethnic Kurdish party that oversees the YPG.

    Earlier this week, Islamic States fighters attacked a number of Christian-populated towns and villages in Syrian Kurdistan, capturing an estimated 250 Assyrian Christians in Hasaka province. Most of the Assyrian hostages are believed to be children, women and the elderly.

    The Assyrian Federation told Rudaw in an earlier interview at least 15 Assyrian hostages were executed after the attack.

    ISIS has yet to comment on a possible prisoner exchange for the Assyrians.


  4. #4

    Re: " The Dinar Daily ", Sunday, 1 March 2013

    Reserved for oil and gas

    Badr bloc's: the oil agreement between Arbil and Baghdad was temporarily


    Revealed MP Badr arrows Moses bloc on Thursday that the differences between the Governments of Kurdistan and the federal and especially oil, are still continuing despite the formation of the new government. Moses In the press her with "direction Press" confirmed that the Arbil did not fulfill their obligations with Baghdad over oil deal being was temporary and subject to many variables, according to parties' commitment to the terms of the Convention, noting that the recent agreement to ensure the export of Kurdistan 250 000 barrels per day from the fields and for two months in order to Kurds pay the employees' salaries.

    He added that the federal government pass today difficult circumstances because of the large fiscal deficit in Mozantha as well as the fierce battle being waged against the hardest criminal gangs all these things pushed Kurdistan to exploit and raise the proportion of their demands through pressure on the federal government, noting that the Kurdish officials acting on Iraq booty and trying to get a bigger financial gain from it.

    It is said that the Kurdistan Alliance MP Ares Abdullah revealed that the payment of the rights of the oil companies operating in Iraqi Kurdistan problem by the federal government is the main obstacle to the completion of the oil agreement between Baghdad and Erbil. Abdullah said during the interview, "the direction of the Press" that the government of Kurdistan be asked to pay dues of these companies in 2014 and companies operating there or let the Kurdistan sell certain quantities of oil to these companies to pay what Bzmtha of debt, noting that the two sides have yet to agree on a mechanism. Rahim Ali al-Lami



    Kurdistan region endorses the political and scientific program to remove obstacles to the implementation of the oil deal with Baghdad


    KRG announced on Thursday endorsement of the scientific and political program to remove obstacles to the implementation of the oil agreement with Baghdad. A statement by the Kurdistan Democratic Party that "the region's president, Massoud Barzani met on Thursday evening at the headquarters of the province with the main political forces in Kurdistan to discuss several economic and political issues, security and discuss the current situation in Iraq and the Kurdistan regional government and the financial crisis."

    The complaint came out of the meeting endorsed the seven-point strategy, supported by Kurdish forces, according to the statement reads in part: First, the meeting expressed its gratitude to the spirit of the unlimited redemption and valor of the Peshmerga on the battlefield, and the high values ​​of steadfastness and heroism and promise a source of pride for the Kurds and Kurdistan and Democrats in the region and the world.

    Second, emphasis was placed on the unity of the Kurdish political forces in Iraq and the Kurdistan region and the row to break a political and military equation in the Kurdistan region, and the achievement of political, administrative and military victories and progress towards final victory.

    Third, in order to deliver the unity of political forces of Kurdistan to the top of political trust, meeting recommended the granting of the parties involved in the cabin eighth of the Government of the county change, the Islamic Union and the Islamic Group] positions and administrative seats and quotas in the federal, regional and provincial government, according to their merits election.

    Fourth: see the people and the government of Kurdistan that the province has the right, without doubt, the extraction and sale of oil in accordance with Article 112 and 115 of the permanent Iraqi constitution within the legal process and rules and law, and the commitment of both sides General Budget Law for Iraq Fed for the year 2015 to ensure that the economy of the region, who addresses the fundamental problem of the budget and the salaries of citizens Kurdistan and the Kurdistan Regional Government to implement all the clauses of the agreement signed with the government in Baghdad, and that the Baghdad government implement those Alnpod Also, the artistic and technically differences can be addressed through dialogue and discussions. "

    The statement pointed out that "In this area was approved on the political and scientific program in order to remove obstacles to the implementation of the Convention."

    Fifth Meeting House of Representatives and the Iraqi government and the Alliance of Shiite and Sunni powers demanding that Aajalo of political disputes and technical problems in all circumstances an obstacle to the citizens of the Kurdistan salaries, as well as the support of the Kurdistan Peshmerga and insurance paid just like the army and the rest of the Iraqi armed forces.

    Sixth: to be for the presidency of the region and the government and the Parliament of Kurdistan diplomat and an international program to safeguard the largest of countries and international centers of political support, as well as to get the support of the Peshmerga in the logistics field and provide it with heavy weapons.

    Seventh: The meeting emphasized his support for the Kurdistan Regional Government, in the hope that the government will continue in its efforts to address the problem of the budget and salaries.

    He assembled according to the statement about "hope to be able to and in accordance with the tight program and greater capacity, to achieve victory Strategy on Daash as soon as possible, and that these become the basis of the root treatment of all political, economic and social problems in Iraq and the Kurdistan region, including the implementation of Article 140 of the Iraqi Constitution victories." it's over



    Masum discusses with Kurdish blocs to overcome the obstacles in front of the oil agreement

    26/02/2015 22:59

    BAGHDAD / Nina / President Fuad Masum discussed on Thursday with the heads of Kurdish blocs in the House of Representatives in relations between the federal government and the Kurdistan Regional Government and ways of overcoming obstacles to the implementation of the terms of the oil agreement signed between the two parties.

    He stressed in a statement the importance that the two sides resort to fraternal constructive dialogue as a way to reach understandings and satisfactory solutions, stressing the need of the two parties to each other, especially since there are challenges and common interests that require the cooperation of the two parties.

    Heads of blocs stressed the importance of the role of President of the Republic in the revitalization of the bonds of relationships and the convergence of views between Baghdad and Erbil, the best interests of all the Iraqi people in all their diversity.

    It was decided, at the conclusion of the meeting, the continuation of the meetings between the President and the heads of Kurdish blocs and the ministers of the Kurds in Baghdad, for the consolidation of cooperation and coordination in order to find realistic solutions to the existing problems.



    Kurdistan: Kurdish ministerial committee in Baghdad address any disagreement oil agreement

    February 27, 2015

    Friday February 27, 2015 08:55

    Twilight News /
    said the Kurdistan Alliance bloc member, on Friday, the committee formed by the province, which includes the Kurdish ministers in the federal government will address any defect in the application gets the oil agreement with Baghdad.

    Said Najiba Najib, in an interview with “Twilight News”, “The Kurdistan Region is committed to applying the oil agreement with the federal government items and there is no tendency to breach the terms of the agreement, did not issue any position from the region indicate that he may abandon the oil agreement.”
    Najib added that “the oil agreement in the interest of the province and the federal government,” pointing out that “the region’s commitment to the agreement prompted him to form a committee of ministers of the Kurds in the federal government that would follow up and develop treatments for any controversial points stand out in the application of the oil agreement.”
    The agreement, which issued by the Iraqi Council of Ministers on the second of December last that the Kurdistan Region to deliver at least 250 thousand barrels of oil a day to the federal government for the purpose of export, the export of 300 thousand barrels per day by the federal government of the province of Kirkuk fields through the pipeline oil in Kurdistan



    MP: Any Export of Oil Outside SOMO Is Out Of The Constitution and Contrary To The Laws

    28/02/2015 11:08

    BAGHDAD / NINA / A member of the parliamentary Commission on oil and energy, MP Ibrahim Bahr al-Ulum called the government and the Kurdistan to abide by the constitution and not to export oil outside SOMO Company.

    He said in a statement to the National Iraqi News Agency / NINA / today that "the parliamentary committee on oil and energy urges the center and the region to abide by the Iraqi constitution.," stressing that Iraqi oil export ports are governed by SOMO Company and any export outside SOMO is out of the Constitution and contrary to the laws. " ****

    He said that "Oil and Energy Committee will investigate the cause of exporting oil tanker from Kurdistan and empty it in Israel when the committee confirms news about this topic."

    Trade sources and ship tracking data confirmed that the oil tanker from Kurdistan blocked, for months, to unloading its cargo in Texas under a lawsuit filed by Baghdad and it sailed back to the Mediterranean Sea and delivered its cargo to Israel.


    IMO, the Kurds have not agreed that the constitution says so or to such control by SOMO / Baghdad - chattels


    Kurdish oil deal with Baghdad hangs by a thread


    To those unversed in Iraqi politics, the oil deal between Baghdad and the Kurdish region in December might have seemed to usher in an era of amity and cooperation. The United States, under envoy Brett McGurk, tried tirelessly to broker this agreement, and both the Americans and the Iranians have worked this year to salvage it. The spectre of a more sinister mediator sits at the table – the threat of ISIL drove the two sides together last year. Yet even as fighters of the so-called Islamic State torched wells at the Khabbaz oilfield, near Kirkuk, on Friday, the accord was sinking deeper into trouble. Baghdad was to pay the Kurds about $1 billion per month from the federal budget, while the Kurds would export 550,000 barrels per day of oil via the Iraqi state marketing organisation. But with trust in shorter supply than oil, the Kurds complain that Baghdad is “bankrupt”, while the federal government points to their failure to export the agreed quantities. With the deal hanging by a thread, Iraq’s future is again imperilled. The prime minister Haider Al Abadi said in February that the agreed payments to the Kurdish region would not be made until it met the oil export targets. But so far, the industry publication Iraq Oil Report suggests that only 145,000 bpd has been transferred – nearly all from the Kirkuk-area fields. Kurdish capacity should now be sufficient to produce something close to the required target, after allowing for domestic consumption. But, as pointed out when the deal was struck, it is not clear whether oil from Avanah (part of the Kirkuk field) and Bai Hassan – able to produce 150 000 bpd between them – is counted as Kurdish or federal crude. This oil accord is quintuply critical. It is needed to sustain Iraq’s financial basis, to support the Kurds’ nascent state and potential independence, and to continue the fight against ISIL. For the oil companies in the Kurdish region, their growth and even survival depends on getting paid. For the outside world, it could add more production to an already oversupplied market. On Baghdad’s side, the fiscal mismanagement and corruption under the previous administration of Nouri Al Maliki is now becoming clear, compounded by the cost of the war and the lower oil price. With a debt to GDP ratio still less than 40 per cent, Iraq is not bankrupt – but it is facing an acute liquidity crisis.

    Erbil needs its own revenue stream. With the cut-off of the federal budget since February 2014, it has borrowed at least $3bn, about 12 per cent of its GDP, in less than a year. Its funds go towards the fight against ISIL (although central government payments to the Peshmerga military should alleviate that), and a bloated public sector. Whether quickly or slowly, the Kurdish region seems to be moving towards independence, but that would be disastrous without establishing a sustainable economy that goes beyond cycling oil revenues through a rentier system.

    Erbil and Baghdad are locked in a life-or-death struggle with a capable and barbaric enemy. And the Kurds would not benefit from the collapse of Mr Al Abadi’s government, opening the way to a more narrowly sectarian government, perhaps a comeback by Mr Al Maliki.

    Until they get the payments flowing, the Kurds cannot pay the oil companies in their region – which has already led one, Gulf Keystone, to put itself up for sale before it runs out of cash.

    Without money, the companies will not invest in increasing production capacity. That may bring some short-lived relief to a glutted oil market, but it does nothing to build the foundations of the Kurdish state.

    Erbil and Baghdad may not trust each other, but they should reflect on whether they trust Turkey or Iran, their other partners, any more. And oil revenues are more critical than ever to winning the war against ISIL, their common enemy.

    Robin Mills is the head of consulting at Manaar Energy, and author of The Myth of the Oil Crisis

    Last edited by chattels; 03-02-2015 at 12:04 AM.

  5. #5

    Cbi announcement sunday march 1, 2015


    To / banks authorized to exercise all banking -financial companies approved the conversion of all ( sale and purchase of foreign currency Regulation (26/3/9) for the year 2015 )



    Directorate-General for control of banking and credit control studies and research Banking Department

    No. 48/2/9
    Date: 02/19/2015

    To / approved the practice of banking banks all
    Remittance companies approved all

    M / Help sale and purchase of foreign currency number (26/3 / 9) for the year 2015

    Central Bank of giving his best regards ..

    Further Bamamna No. 43/3/9 dated 02/08/2015 decided the following:

    1. the amendment to paragraph (c) of our instructions referred to above to be (bank submit a written application to the Directorate General of investments which enhance the tally required to have correspondents in overseas facilities with a copy of the entry to strengthen the balance of his account in Iraqi dinars of the type (216), equivalent to the amount to be converted to that offers a detection shows the details of the amounts used, which was converted to its customers after (15) days from the date of conversion.

    2. Amend paragraph (f) to be (the banks to send monthly statements with details of foreign currency amounts transferred to the Directorate General of banking and credit control, according to the form attached hereto).

    To take necessary before you ... with appreciation ...

    Ali Mohsen Ismail
    Conservative agency

    Original Document Link:

    Here are paragraph (c) and (f) from the former announcement:

    C - the bank submit a written application to the Directorate General Investments which enhance the tally required to have correspondents in overseas facilities with a copy of the entry to strengthen the balance of his account in Iraqi dinars from type 216, equivalent to the amount to be converted, to be submitted with the request and subsequent reinforcement disclosure shows the details of the amounts used, which was converted to its customers.

    F - the bank statements sent details of the amounts transferred in foreign currency by the Central Bank of Iraq and their use to the Directorate General of banking and credit control.


    DOCUMENT...... http://www.cbi.iq/documents/Announcemen1-3-2015.pdf
    Last edited by sczin11; 03-01-2015 at 12:03 PM.

  6. #6

    Re: " The Dinar Daily ", Sunday, 1 March 2013

    Retired smart card salaries and stopped Brent crude at {62} of $ prominent economic headlines for Sunday newspapers

    History of edits:: 2015/3/1 13:42 •
    27 visits readable

    {Baghdad: Euphrates News} circulated newspapers today a series of economic headlines that varied between Brent crude prices stopped at the {62} dollars, lower OPEC oil supply, as well as download the province of Dhi Qar previous governments neglect Ahouraha and other titles.

    Retired smart card salaries

    Futures Weekly Brent closed at $ 62
    International station for the exchange of trade in the port of Umm Qasr

    Parliamentary Finance: Japanese loan will satisfy after 30 years of Iraq's economy and serve bass
    CONTACTS Najaf expands wireless coverage in a number of radio stations
    Iraq participates acting first Arab Maritime Forum in Amman
    Economic seminar on the implementation mechanisms of the federal budget for 2015.anthy

    New Morning
    Delayed Basra exports reduces supply «OPEC» oil

    Dhi Qar previous governments bear the responsibility not to develop the marsh during the big budgets
    A government official: political agreements impede Accounting "great whales"!

    Foreign company develops pier 20 in Umm Qasr port receives .. and trading ships .anthy


  7. #7

    Re: " The Dinar Daily ", Sunday, 1 March 2013

  8. #8

    Re: " The Dinar Daily ", Sunday, 1 March 2013

    Law: no dispute about the National Guard and the need for law guarantees

    BAGHDAD - ((eighth day))MP for the coalition of law Khalid al-Asadi There are no disagreements about the National Guard between political alliances law.

    Asadi said to ((eighth day)) that "the guard who recently arrived to the Council of Representatives is free of impurities and differences and all supportive blocks his law and we are waiting for reading in the House of Representatives for a vote."

    "The National Guard Law need guarantees and not turning into ethnic or sectarian lines."

    He said al-Asadi, MP for the law that the mass of the National Guard is not opposed to the law, one of his supporters.

    The Council of Ministers voted on the Law of the National Guard and sent it to parliament for a vote. | ST |

    Last edited by pinkadonai1; 03-01-2015 at 11:45 AM.

  9. #9

    Re: " The Dinar Daily ", Sunday, 1 March 2013

    The closure of more than 50 tourist hotel in Erbil

    After the economic crisis experienced by the Kurdistan region of Iraq, and the deterioration of security in the country in general, and especially on the borders of the region and the decline of tourism, closed more than 50 tourist hotel doors in Arbil.

    Said Abu Reza owner Sirwan Tourist Hotel "It has to close his hotel because of the economic recession experienced by Arbil considered the security challenges facing the regions of the north in general."

    He added that "the closure of the security checkpoints entrants to Kurdistan and the security situation taking place in the country has led to a decline in tourism in the region, especially with preventing Arabs coming to the region from entering even if the pretext of tourism, prompting the majority of the owners of hotels and popular restaurants in Arbil, which is the capital of the province to close ".

    The Kurdistan region receives hundreds of thousands of people from different parts of Iraq, for tourism, due to the region owned by the potential in tourism and resorts are well suited to receive tourists

    Last edited by pinkadonai1; 03-01-2015 at 11:45 AM.

  10. #10

    Re: " The Dinar Daily ", Sunday, 1 March 2013

    Kurdistan: the referendum process will be preceded by the general census of the population

    The Kurdistan Alliance, Sunday, to conduct the census this year, the process will be made after the referendum process and the process of the census.

    The Kurdistan Alliance member Shirin Reza told / information /, that "the referendum process will precede the general census of the population stipulated by Article 140 of the Constitution." She added that "most of the disputed areas where there is a large number of non-natives who lived, and that the province not mind the normalization present in those areas, the requirement to be a Kurdish areas and are subject to the province."

    It is said that Article 140 of the Constitution dealing with the problem of the disputed areas, in three stages, namely normalization then conduct a census followed by a referendum the people on the fate of the areas that the independent province remain or accede to the Kurdistan region, and was due to these stages completed within a maximum period 31 December of this year, but the committee in charge of the application of article has been unable so far to complete the first phase of a 25 c Alttabie.anthy


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