The Dinar Daily, Tuesday April 21, 2015
Page 1 of 9 123 ... LastLast
Results 1 to 10 of 82

Thread: The Dinar Daily, Tuesday April 21, 2015

  1. #1

    The Dinar Daily, Tuesday April 21, 2015

    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 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,

  2. #2

    Re: The Dinar Daily, Tuesday April 21, 2015


    US dollar USD 1166.000 1164.000

    US dollar USD 1166.000 1164.000
    Euro EUR 1250.302 1249.677
    British pound GBP 1739.322 1738.453
    Canadian dollar CAD 955.424 954.947
    Swiss franc CHF 1215.343 1214.735
    Swedish krona SEK 134.938 134.871
    Norwegian krone NOK 148.105 148.031
    Danish krone DKK 167.594 167.510
    Japanese yen JPY 9.807 9.802
    Drawing Rights
    SDR 1610.141 1609.336

    Indicative rates - 21.04.2015

    Currency Auctions

    Announcement No. (2934)

    The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq on 20/04/2015 and the results were as follows:

    Number of banks 15
    Number of remittance companies 2
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 136,025,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 136,025,000
    Total offers for selling (US$) -----

  3. #3

    Re: The Dinar Daily, Tuesday April 21, 2015

    Iraq is consistent with the International Monetary Fund to provide emergency financial assistance

    Agreed the Ministry of Finance with the International Monetary Fund to provide emergency financial assistance to Iraq, indicating that the goal is to reduce public expenditure.

    The ministry said in a statement the agency / information / received a copy of it, on Tuesday, that "Iraq agreed with The International Monetary Fund during the technical discussions and detailed that made ​​Monday, to crystallize Help Fund for Iraq under the current financial crisis, providing emergency financial assistance. "

    The ministry added that "the agreement comes within the government and Ministry of Finance plans to reduce public expenditure," indicating that "the Iraqi delegation held later talks with the Legal Department and the Department of Accounting at the IMF officials to stand on the use of the government and the Ministry of Finance for funds SDR allocations in the budget of 2015 '. "

    The finance ministry announced on Monday (April 20, 2015), said its minister meetings of art with the Multilateral Investment Guarantee institutions parties MIGA affiliate the International Monetary Fund, as a student visit to support Iraq staff of the institution.

    It is noteworthy that the drop in oil prices worldwide may significantly impact on Iraq's budget and public-dependent budget on oil exports by 95% at the time suffering from significant financial pressures due to rising public expenditure .العراق-يتفق-مع-صندوق-النقد-الدولي-
    Last edited by pinkadonai1; 04-21-2015 at 02:09 PM.

  4. #4

    Re: The Dinar Daily, Tuesday April 21, 2015

    Iraqi government attempt to finance new airplanes

    Last week, the Iraqi finance minister, Mr. Hoshyar Zebari, held a meeting with Boeing company officials to discuss the financing of the 10 new airplanes that Iraq has purchased two years ago. This purchased is valued at $500 Million, which ironically, this amount is exactly the same amount that I, and my partners, have been talking about financing the Iraqi ministry of transpiration for the purchase of 10 new commercial airplanes!! The offer that we made the Iraqis was months ago and we received no response from the Iraqi government.

    The most absurd thing about what the Iraqis are actually asking Boeing for is to have their deposit returned! By asking for the deposit money back, which is no more than $100 Million, who in the world will ever trust and deal with Iraq in the future? This is a matter of credibility issues and future trust that Iraqis do not seem to understand at all. I will not be surprised if Boeing did not cancel this Iraqi deal and moved on.

    have a suggestion for the Iraq government to consider and that is why not ask the South Korean company, Hanwha, to give the back the $2 Billion that Iraq gave them only last years for the Bismayah housing project in Baghdad? This entire $2 Billion is cash given to the Koreans should not have been given to begin with since the Bismayah project is actually an “investment” project! How can you call it “investment” when you are providing $2 billion in cash to the Koreans to implement this project? I think we all know the answer and that is Iraq will never ask for this money back since, most likely, too many Iraqi “politicians” have gotten paid from the $2 Billion and this subject will never be open for discussion!!

    The issue of selling Iraq 10 new airplanes began a year and a half ago when I received a call from a friend, within the Iraqi ministry of transportation, asking me to help the ministry to find new commercial airplanes that are ready for immediate delivery since the Iraqi ministry of transportation needed them desperately. I found exactly what they needed and I began to send the information to the ministry of transportation in Baghdad.

    When I met with the company that was selling these new airplanes, the owner of the company told me that he had a very unpleasant experience with Iraqis in the past and he is not interested in dealing with them again. Moreover, he told me that if the Iraqis need to make this purchase, they need to talk with me only as he has no desire to talk with them directly.

    During the year and half period, I was asked, by the Iraqi side, to write letters and send all of the information about this purchase. I did exactly as the Iraqis suggested/requested and I sent them every possible document about this deal, including “pretty” colorful pictures of these airplanes among other information! I was told that Iraqis like to see pretty pictures of whatever they are trying to buy! No matter what I sent them they always asked me to send more information and not sure why that is! After all that I had provided them, and over a year and a half working on this project, we heard nothing from the Iraqis.

    Few months ago, I spoke with my partners about this issue and we came up with a new idea. This idea is to “sweeten” the deal and make it happen. We told the Iraqi transportation ministry that we would consider providing the financing for this $500 Million purchase. Still, we heard nothing back from our generous offer.

    So, why is it that I am offering to help the Iraqis with this $500 million deal and they completely ignore my/our help and now we see the Iraqi finance minister trying to convince US banks to finance the $500 Million Boeing purchase? I was offering the Iraqis to finance the exact amount and the exact number of airplane and they did not even talk with us about our offer and never responded to us. May be because we made it clear that we are NOT paying any Iraqi “officials” to get this deal done?

    Most Iraqi “politicians” not only corrupt, but very unqualified, unprofessional and uneducated and I have no idea how these people are placed in such sensitive and important positions. Iraq will never prosper as long as they have too many unqualified personnel running the show in Baghdad!

    To show how unprofessional and lazy most Iraqis are, below this article, I included a “copy-paste” a portion of “tender offering” by Iraqi ministry to build a new Karbala Airport. But, notice something very interesting here and that is today is April 20, 2015 and according to the tender below, the “dead line” for foreign companies interested in implementing/investing in this project must submit a written offer by June 25, 2013 deadline!! This date is two years passed and yet it is still on the front cover page of the Iraqi ministry of transportation’s web site. Furthermore, the two e-mail address that they have included in the offering do not work as I have attempted to write them many times and my e-mails always returned “undelivered.”

    Furthermore, Iraqis are very poor when it comes to dealing with finance and economics and they lack any knowledge and common sense in these two areas. For example,

    Iraq has borrowed $3.6 Billion from IMF on March 10, 2010 ( see article below) when the Iraqi government said it needed money while crude oil was selling at much higher price than now ($88 a barrel on the day Iraqi government received the loan compare to $54 now) So, if Iraq can not manage, and the seem to always beg foreign countries to help them, when oil was selling at more than 50% of the current price, then how will they repay the new loans that they are currently asking for from the IMF as well as the $5 Billion bond they are trying to issue when oil has dropped to this level? If indeed the Iraqi government managed to succeed in issuing the $5 billion bond, I truly believe that the investors will not see this money back. Iraqis are not known to be savvy in finance, on the contrary, they lack true knowledge/experience in international finance and economics.

    Courtesy of rcookie

  5. #5

    Re: The Dinar Daily, Tuesday April 21, 2015

    Kurdish minister unable to close down illegal oil refineries in Iraqi Kurdistan

    Posted on April 21, 2015 by Editorial Staff in Oil & Gas

    ERBIL-Hewler, Kurdistan region ‘Iraq’,— Iraqi Kurdistan minister of natural resources, Ashti Hawrami, confirms that he is unable to shut down illegal oil refineries in the Kurdish region.

    After the Kurdish member of the energy and natural resources committee in the Kurdistan Region Parliament has sent a letter to the Kurdistan Region’s Minister of Natural Resources Ashti Hawrami, asking him to close down the illegal oil refineries in the region, the Minister officially replied that its not possible to do so.

    The committee member has sent a letter to Hawrami, asking him to close down the illegal oil refineries in the region.
    n his letter, MP Ali Halo claims that there are number of illegal oil refineries near Duhok and Zakho in the north of Kurdistan Region which can affect the health of the residents in the area and the environment as the refineries are not built and run according to the standards.

    MP Halo raises questions in his letter asking why the ministry has not closed down the refineries so far and whether they have any plans to shut them or not, “I am seeking an answer.” Halo has declared that if the minister does not respond, “He will sue him as it is the second time he is sending a letter to the minister, regarding this matter”.

    Soran Omar, MP from Islamic Group, told Millet that a group of MPs wrote to Hawrami several times asking him to shut down the illegal oil refineries in Kurdistan region without getting a positive response.

    Omar added “there are a number of illegal oil refineries near Duhok and Zakho in the north of Kurdistan Region which are refining smuggled oil can affect the health of the residents in the area and the environment as the refineries are not built and run according to the standards”.

    Despite the side effects of the non-standard and illegal oil refineries, experts believed to have negative impacts on the economy of Kurdistan Region as they are not fully committed to the laws and instructions of the government.

    “The Minister only replied to our last letter saying Ministry of Natural Resources didn’t give license to those oil refineries and its duty of security authorities to close them down” added Soran Omar.

    Despite the side effects of the non-standard and illegal oil refineries, experts believed to have negative impacts on the economy of Kurdistan Region as they are not fully committed to the laws and instructions of the government.

    Read more about Ashti Hawrami and Kurdistan oil

    Copyright ©, respective author or news agency, | |

    Courtesy of rcookie

  6. #6

    Re: The Dinar Daily, Tuesday April 21, 2015

    Blending problems slow Lukoil plan to boost Iraq production
    Dania Saadi

    Lukoil’s plans to increase production at its West Qurna-2 oilfield in southern Iraq have been curtailed by the government because of difficulties in adjusting the country’s export crude blends, an executive said yesterday.

    West Qurna-2, in which Russia’s Lukoil has a 75 per cent stake, produces heavy oil.

    Iraq traditionally exports Basrah Light, a crude that includes heavy blends. But an increase in production of heavy crudes such as the one from West Qurna-2 has affected Basrah Light’s API gravity, which is a measure of the crude’s density.

    “The issue they [Iraqi authorities] are facing is because it [West Qurna-2] is heavier than Rumaila and Zubair [oilfields], it is making the overall blend a little bit heavier,” said Gati Al Jebouri, senior vice president at Lukoil Overseas. “As a result, to maintain the stability of the export blend at the moment they are curtailing production at a number of fields, not only West Qurna-2.”

    He was speaking on the sidelines of the Middle East Petroleum and Gas conference in Abu Dhabi.

    Rumaila and Zubair are southern oilfields that produce heavy crudes.

    Currently, West Qurna-2 oil production is little more than 350,000 barrels per day, has a production capacity of 450,000 bpd and a target production plateau of 1.2 million bpd, he added.

    To solve the heavy blend problem, Somo, Iraq’s state organisation for oil marketing of oil is promoting a new blend, Basrah Heavy, besides its traditional Basrah Light crude, following complaints from traders about the quality of Basrah Light.

    Somo released this month the first official selling price for the Basrah Heavy grade for May loading.

    “It has to do with Iraq’s desire to maintain a stable export blend, which was creating significant difficulties at the end of last year and early this year,” said Mr Al Jebouri. “They are currently working hard on getting the Basrah Heavy, but to do that SOC [South Oil Company] has to make some changes and create infrastructure in the south to enable the Basrah Heavy to be exported. They are forecasting to do that through one of the SPMS [single point moorings] and they are hoping to do that in the next two months.”

    Mr Al Jebouri expects Iraq’s oil production growth rates to slow down in 2016 and 2017 because of the oil price slump. International oil companies (IOCs) such as Lukoil that are developing the country’s large fields are paid in oil that is equivalent to the money they are owed in cost recovery and remuneration fees.

    This means that Iraq needs to give IOCs about double the amount of oil compared with last year, when oil prices were twice as much as today. Brent has dropped from about $115 in June last year to about $60 per barrel owing to an oil supply glut and weaker demand in Europe and Asia.

    “Around 25 to 30 per cent of their [Iraqi] budget is paid as cost recovery for IOCs. That’s not sustainable,” said Mr Al Jebouri.

    That is why the Iraqi government and IOCs are in talks to amend their working programmes.

    “Every year we are effectively working with the Iraqi government, with the ministry of oil to agree what development they are capable of financing and what development they would like to achieve,” said Mr Al Jebouri. “In this process of reviewing the work programmes and reducing the capital expenditure, it will lead to a postponement in production. I see significant reduction in those [oil production] growth rates for 2016 and 2017, unless there is an increase in oil prices.”

    Lukoil is also looking at investing in Iraq’s petrochemical industry and the Al Nasiriya integrated refinery and field project, he added.

    The Al Nasiriya project envisages the development of the Nasiriya oilfield, which has more than 4 billion barrels of oil, alongside the construction and operation of a 300,000 bpd refinery.

    Courtesy of rcookie

  7. #7

    Re: The Dinar Daily, Tuesday April 21, 2015

    Infallible head to Turkey today for an official visit

    BAGHDAD / Source News / .. early Tuesday, said a political source revealed Fuad Masum, the president will travel to Turkey this evening on an official visit.

    The source told / Source News /, "The president will travel Fuad Masum, this evening, to Turkey at the invitation of Turkish President Recep Tayyip Erdogan."

    He added, that "the infallible will hold bilateral meetings with his Turkish counterpart and the head of the Turkish parliament to consolidate the Iraqi-Turkish relations and discuss files economic and security and political situation in the region" ./ ended / h
    Last edited by pinkadonai1; 04-21-2015 at 02:12 PM.

  8. #8

    Re: The Dinar Daily, Tuesday April 21, 2015

    Abadi announce accommodate all the displaced people in Anbar, Baghdad and the southern provinces

    BAGHDAD / Source News / .. announced Prime Minister Haider al-Abadi, on Tuesday, to absorb all the displaced people in the province of Anbar, Baghdad and the southern provinces, and as he emphasized that some of the statements Almahbth of determination and intimidations media led to the recent wave of displacement.

    Ebadi said in a statement received / Source News / copy of it, "it was to accommodate all the displaced from Anbar, Baghdad and the southern provinces in record time," noting that "the government and local authorities and residents mobilized its efforts for this purpose."

    He added that "the wave receded and the displacement of many families began to return," adding that "some inhibitory statements of determination and intimidations media, led to a state of panic and fear and damage to citizens and therefore the recent wave of displacement."

    Abadi said the need "not to exaggerate and race in the cast statements that have negative psychological and moral impact on the citizens," ./ ended / h
    Last edited by pinkadonai1; 04-21-2015 at 02:13 PM.

  9. #9

    Re: The Dinar Daily, Tuesday April 21, 2015

    National Business Council calls on Iraq to join "the bank's Asian Investment"

    BAGHDAD / Source News / .. called the Iraqi National Business Council, the Council of Ministers to join Iraq to "Asian Investment Bank."
    The head of the National Business Council Iraqi Karim Mohammed al-Shammari, said in a statement from the Council and the Agency / Source News / received a copy of it, on Tuesday, said that "Iraq's accession to this bank is a big step towards development, has joined many countries, including Britain, Germany and France, in addition to Arab countries, including the United Arab Emirates, as well as Iran, which looked upon as founders and Egypt made a request to join. "

    He stressed that the "National Business Iraqi Council, which includes the elite Iraqi businessmen and different terms of reference of the private sector, and out of concern for the reconstruction of Iraq and prosperity submit a proposal to the Prime Minister Haider al-Abadi, to join this bank, which is largely in solving Iraq's many problems, which was established for it this project ".

    He said the "Asian Investment Bank as possible to help Iraq in support to bridge the large gap in the various infrastructure services, as well as electricity, energy, environment and others."
    He pointed out that the "Asian Investment Bank actually began working in 2014, and is the authorized capital of the bank's $ 100 billion, and the initial capital of $ 50 billion, and the headquarters of the bank in Beijing."
    And adhered to the agreement establishing the bank 27 countries, including 20 countries from Asia and the Pacific, and believed a large number of experts that the bank, which is China created a potential competitor to the International Monetary Fund and the World Bank, which are dominated by US Altdh.anthy / p

  10. #10

    Re: The Dinar Daily, Tuesday April 21, 2015

    Agriculture recognizes the loss of control over their projects due to lack of budget

    BAGHDAD / Source News / ..
    acknowledged the Ministry of Agriculture Kurdistan loss of ability to control the agricultural projects in the province because of a lack of allocated to cover the expenses of control and supervision of the project budget, which threatens food security.

    Sincerely Ahmed said Director General of the Ministry of Finance said the ministry had informed about securing the budget for the project is viable for the delay
    He said there was a need for workers to serve the ministry Nurseries and secure control of poultry and greenhouses projects and this will reflect negatively on food security and health risks resulting from it.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts