Blog posts tagged with 'Iraq'

Oil and Gas draft law back on tables- Tuesday, October 30, 2012

The Kurdish Globe

Both ministers agreed the meeting had been positive

Last week, the hall of the Iraqi Council of Representatives once again hosted the gathering of the high ranking energy officials from Kurdistan Region and Baghdad for choosing a draft oil and gas law to be approved.

Kurdistan Regional Government's Natural Resources Minister, Iraqi Oil Minister, representatives of the Iraqi political groups and a representative of the Kurdistan Parliament met to share ideas about the issue.

Although the decision of choosing the draft should be the authority and responsibility of the parliament's oil and gas committee, due to the sensitivity and political disagreement about it, the committee cannot make such a decision without a political agreement and a green light from the political groups.

Qassim Mohammed, decision-maker at the Iraqi parliament's oil and gas committee, says "we don't see this as interference in the parliament's work and we thank them for assisting us in resolving this issue."

Both ministers agreed the meeting had been positive and were hopeful that they would have positive results.

Ashti Hawrami, KRG Minister of Natural Resources announced in a press conference that Baghdad would transfer the funds to KRG related to the payment of the oil companies producing oil in the region.

Baghdad had accumulated debts of IQD 1.5 trillion (approximately US$1.25 billion) for the region's oil producers. However, this crisis was relived on September 13th after Erbil and Baghdad signed a 9-article agreement for ending the problems.

According to the agreement Baghdad would release the payment to the KRG and the latter would resume its exports and increase the amounts as well.

Following this agreement Baghdad release part of the payments and KRG increased the exports from 140,000 barrels per day to 200,000 bpd.

Fazil Nabi, Iraqi deputy oil minister says that Kurdistan Region's oil companies payments for next year has been fitted into the country's 2013 budget draft, the amount of which is US$644 million.

Kurdistan Region has passed its regional oil and gas law in 2007 and since then it has signed some 50 production sharing contract with international oil and gas companies. This comes at a time when the Iraqi parliament could not pass the draft oil and gas law drafted the same year, and has since then been put on hold due to political disagreement between various political groups in Iraq and especially between Erbil and Baghdad.

Baghdad authorities have been claiming that natural resources have to be managed centrally and have labeled KRG oil deals illegal. KRG officials however, argue that according to the constitution Iraq is a federal country and federal regions have the right to manage their natural resources in the benefit of all the Iraqis.

Now the Iraqi parliament has three different drafts for oil and gas laws, one of which should be chosen and approved by the parliament.

Iraqi and Kurdish oil ministers have agreed to continue meetings till they make a decision in this regards.

Dinar is served; Investors caught between Iraq and a hard place- Sunday, August 26, 2012

Dinar is served

Investors caught between Iraq and a hard place

Thousands of Main Street investors, fed up with a stock market that has barely moved in more than a decade, are seeking out heftier returns in more exotic investments.

And then there is Ryan Williams.

Williams, 35, of Bakersfield, Calif., has abandoned US stocks and bonds for one of the chanciest investments on the map: the Iraqi dinar.

The small-business owner said he has been buying Iraqi dinars regularly since he was first turned on to them around 2005. His last purchase: just this month.

“There’s risk in anything,” he told The Post in a recent interview, explaining why he gave up US stocks and bonds in favor of the world of currencies. “I think our economy has shown us that.”

Iraqi dinar investing figures in the plot of “Hit and Run,” starring Kristen Bell, above, giving Hollywood heft to a potentially explosive bet.

Williams is not alone in investing in the currency of the war-torn country. There is a growing number of dinar devotees betting that the currency — currently pegged at 1,165 dinars per US dollar — could one day spike in value if Iraq’s new government gets on its feet, begins profiting from its massive oil supplies and revalues its currency.

The exotic investors point to currency spikes in West Germany following World War II and in Kuwait following its 1990 invasion as proof the strategy works.

The potential for riches has opportunity-hungry investors so eager for information that Paul Christopher of Wells Fargo said he gets more questions about the controversial paper than any other currency except, more recently, the euro.

“I don’t get many currency questions as frequently as I get questions about the dinar,” Christopher, the chief international investment strategist for Wells Fargo, told The Post.

Indeed, knowledge of the once-obscure currency trade is reflected in “Hit and Run,” a new movie starring Bradley Cooper and Kristen Bell.

Bell, who plays a university professor in love with a former bank robber, derides Cooper’s dinar deal as a “get-rich-quick” scheme.

Wells Fargo’s Christopher agrees with Bell’s assessment — and not just because of the ongoing geopolitical turmoil that could tumble the current government.

The Iraqi dinar isn’t held by US banks or traded by major currency exchanges, so interested investors must locate dealers who will deliver the investment in paper form.

That means higher risk for fraud, which has been increasing around this trade in recent years, according to warnings from the Better Business Bureau.

But it also means higher markups to buy the currency, plus storage fees. Selling the dinar could also be pricey, given the lack of big, institutional buyers.

At dealer DinarTrade, for example, buying 1 million dinars will cost $1,020, according to the website. But selling them back will earn you just $810, said DinarTrade founder Ali Agha, citing the unfavorable exchange rate by the Central Bank of Iraq.

Still, Agha, one of the few dealers rated favorably by the Better Business Bureau, doesn’t see interest in the trade fading anytime soon, given the degree to which mom-and-pop investors — who make up the bulk of his clientele — have been burned by stocks and real estate.

“Main Street doesn’t believe in the stock market anymore,” Agha said.

IMF Press Release: IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq- Thursday, August 2, 2012

IMF Press Release: IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq

IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq
Press Release No. 12/286
August 3, 2012

The Executive Board of the International Monetary Fund (IMF) approved on July 20, 2012—on a lapse-of-time basis1—a seven-month extension of Iraq’s Stand-By Arrangement (SBA), to February 23, 2013.
The SBA had been scheduled to expire on July 23, 2012. The extension, which had been requested by the Iraqi authorities, will provide them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime.
The two-year Stand-By Arrangement (SBA) in the amount of SDR 2.38 billion (about US$3.58 billion), was approved by the IMF's Executive Board on February 24, 2010 (see press release 10/60). The IMF's Executive Board completed the first program review on October 1, 2010 (see press release 10/373), and the second review on March 18, 2011 (see press release 11/90). At the time of the second review, the program duration was extended by five months to July 2012, along with a rephasing of program disbursements based on a shift in financing needs. Total resources currently available to Iraq under the arrangement amount to the equivalent of SDR 1307.24 million (about $1.96 billion).
1 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

Bankers are preparing the country‚Äôs entry of global banks a real incentive to invest- Tuesday, July 31, 2012

Bankers are preparing the country’s entry of global banks a real incentive to invest

Translation: welcomed banking experts to enter the international banks of the country by opening branches fixed it, pointing out that it would pay the wheel of investment as well as the introduction of technology of modern banking.

announced that Arab banks to open branches in Baghdad and the provinces, while there are international banks other Kalawrobeh and American

Expressed willingness to open branches in Iraq during the coming period. The director of government banks in the Ministry of Finance Crescent Taan entry of international banks of the country by opening branches in a profitable business for both parties because the investment market in Iraq in need of capital-in the foreign banks as the latter aims to achieve profits.

said Taan (range): The sector banking system in Iraq is Ghaderaly keep pace with evolution in fact the investment witnessed in the economic sectors, pointing out that it is necessary to enter the banking world as it has large amounts of capital that will promote major projects as well as create competition with local banks in addition to training Iraqi personnel in place.

and called on the government to the need to legislate legal protection of these banks as well as tax exemptions.

to the counting banking expert as Abdul Hadi Central Bank Law New catalyst main entry of these banks of the country, pointing out that their presence will support expertise to a large extent through the transfer of technology advanced banking to local banks.

said Abdul Hadi’s (long): The banking system in Iraq has seen significant outage to keep pace with evolving global banking is the latest state of confusion in Iraqi banks is very large, pointing to the need to issue instructions by the central bank provides to direct banks to invest in addition to the adoption of methods of credit long-term.

For his part, said financial expert, Farouk Ramadan (range): The work of international banks in Iraq is a clear indication of the strength and durability of the Iraqi economy, explaining that he had not been affected by spring Arab.

He Ramadan: The cash reserve achieved by the Central Bank amounting to $ 60 billion has not been achieved on Iraq as well as to the seriousness of the decisions of the Central Bank increased the capital of the banks that have had a significant impact on the willingness of international banks to enter Iraq.

Meanwhile, the economic expert, Bassem Jamil Anton that the global crisis and economic recession, which witnessed some European countries during the recent period and the need of the country for construction, reconstruction and investment projects to make the banking world are racing to open branches in Iraq, noting that it seeks to take its role in funding projects and benefit from the profits realized, pointing out that it will be transferred international experience in banking to banking sector which leads to the development and promotion.

said Anton Iraq has elements of great economic is mineral-extractive existing in the ground such as oil, gas and phosphate, in addition to the investment environment fertile that are lacking most of the world, prompting the investment companies to come for the purpose of investment, bearing in mind that international banks started to open branches in Baghdad and the provinces.

He added that the world in a state of saturation for projects and service construction, there has been a worldwide economic depression, while Iraq because of war and the siege imposed on it in the nineties of the last century, led to an urgent need for infrastructure projects, service and health projects and processing power, making the eyes of corporations and international banks tend to Iraq out of the global economic crisis.
It is reported that Abu Dhabi Islamic Bank and the banks of the Lebanese and Kuwaiti announced in the last period to open branches in Baghdad and the provinces, while there are banks, other global Kalawrobeh and the U.S. expressed its readiness to open branches in Iraq during the coming period.

Expert: Iraq will be the most developed countries in the global oil economy- Wednesday, July 25, 2012

Expert: Iraq will be the most developed countries in the global oil economy

translated: Stated that alternative energy can not compensate for the needs of the oil during the next fifty years

Said Academy specializes affairs oil that opening up the technological world is witnessing led to be the economics of oil and gas, the cornerstone of the growth processes of producing countries, stressing that this concept is to make the oil markets, the upper hand in the organization of economic policy for the various joints, advanced industrial countries, and while he believes that the stage the current through which Iraq require more strategic planning, stressed the need to find a tool or a driving force for the advancement of economic destruction, saying that oil is the most prominent of those tools and the driving means toward economic transformation towards achieving progress in sustainable development rates in the country.

The head of the IT department of oil in the University of Technology, Dr. Khaled Al Ajami al-Rubaie during his speech for the (morning):

You need the economic boom in the various industrial sectors to finance financial in order to create the infrastructure, where the oil stream President for the construction of many of the vital sectors, so the driving force to achieve those gains are oil class basis, which is the most prominent factors to encourage and move the process of investment in various sectors of business and services and thus achieve an economic renaissance comprehensive in all areas of production.

He said al-Rubaie said the world and the Next Fifty Years will not be able to dispense with the oil and gas as the main reservoirs of energy, He noted that the ratio of these two elements in various areas of the world amounted to more than 63 percent of all the key elements of energy, this means that the oil can not be replaced by any element of another during the time periods ahead, which calls for the exploitation of those for the rehabilitation of all industrial facilities, commercial and agricultural and tourist revenues that come to the country for the sale of petroleum in the world.

Iraq relies by more than in some cases, the proportion of 90 percent on oil imports in the previous Moisnath coverage, and to establish strategic projects task, and to cover operational expenses of the general government sector.

And warns the concerned of the dangers of this matter on the economic reality in general, and stress from time to time the need to find outlets other investment of non-oil, and increase production rates, and reduce the imports of industrial lead to the migration of big money abroad, stressing at the same time the importance of rehabilitation of public industrial, agricultural, and to the extent that they can Aanaachehema of production and competition and thereby enhancing the financial resources of the country and reduce the near total dependence on oil.

According to al-Rubaie that despite the great interest which the world is witnessing the subject of alternative and renewable energy, but it can not compensate for the demand for oil and gas in the global markets in the coming years, likely to increase rates of demand gradually over the next few years until you reach the highest ratios in 2020, warned at the At the same time the possibility of being affected by oil prices, many of the factors that lead the result to lower prices in world markets, especially the wars and the political situation volatile faced by countries of the year and in particular OPEC (oil producing countries), as well as pressure on those countries which usually hinder the plans and the specific production ceilings and built on a broad base of considerations.

However, al-Rubaie said that among the factors affecting the price of world oil is the financial and economic crises experienced by the world, as happened in 2009, and price fluctuations in the seasons of summer and winter, and increase the number of factories, the giant in the developed countries, as well as environmental factors and natural disasters that control is other world oil prices.

Is based on spring to a number of studies and research in his assertion that Iraq will stand at the forefront of countries with economies in an oil firm in the coming years, so having many of the qualifications the task that stands in the forefront of oil reserves and high potential physical, human and openness to the world, pointing out that all those combined features will play a vital role in Iraq to stop at the forefront of countries that have oil sobering economy in the region.

Explains Rubaie said oil licensing rounds, the four witnessed by the Iraqi oil sector is a sign of progress confident towards creating economy oil is strong, and the formation of science policy tries to Iraq crystallized in its strategy in the medium and long term, stressing that these tours will be reflected positively on the economic reality in its entirety for all provinces Iraq, praising the timeshare itself, including its oil ministry’s efforts said it was excellent in increasing the volume of oil investments, calling on them not to stop at a certain level to raise production but also to contribute in bringing about economic integration in the areas of refining and the provision of derivatives and exported in the construction of petrochemical industry that require more effort and hard work.

Economic Committee Member: Iraq accession to WTO is important; Iraq will join soon- Monday, July 23, 2012

Economic Committee Member: Iraq accession to WTO is important; Iraq will join soon

Erbil / range
MP for the National Alliance, Abdul-Hadi al-Hakim that the date for changing the currency has not announced by the Central Bank of Iraq to be exact, but it may take some time until it is no small.

The MP added Abdul-Hadi al-Hakim, Vice Chairman of the Parliamentary Commission on Higher Education during a meeting with PUKmedia:

Already announced the Central Bank set of images for the purpose of and put it on the new currency refers to a number of monuments of Iraq, some important and some are repeated and some are of little importance, therefore, presented to the bank group of the symbols of Iraq’s cultural, historical, I think it is more important than chosen by the Iraqi Central Bank.

and about putting pictures the parameters of the Kurdistan region to the new currency said Rep. Wise: Yes, certainly will be more than a symbol of the Kurdistan region on the face of new Iraqi currency, noting that the central bank is not obliged to display images selected by the members of the House of Representatives for a vote and the right choice according to the conviction of its experts.

Emir of Kuwait is keen on the stability of Iraq- Friday, July 20, 2012

Emir of Kuwait is keen on the stability of Iraq

BAGHDAD - (translated) Morning confirmed the Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah during a meeting with Transport Minister Hadi al-Amiri keenness of his country's security and stability of Iraq. reported official KUNA news agency that the Emir of Kuwait, received at Bayan Palace yesterday and Transport Minister Hadi al-Amiri and his entourage. "and stressed Kuwait's Emir the need to strengthen the common interests between the two countries and promote the form in which the benefit of the two countries, noting that Kuwait is interested in Iraq's stability and security. witnessing Iraqi-Kuwaiti relations are positive developments as it announced Kuwaiti Ambassador in Iraq to the insured in the April 30, 2012 that his country will open soon consulates in the cities of Erbil and Basra as well as the offices of the embassy in the number of Iraqi provinces, and confirmed that the Kuwaiti side touching seriousness of the Iraqi government to close the outstanding issues between the two countries since the nineties of the last century. stressed morning, according to the agency, his country's keenness to resolve all outstanding issues in the interest of the two countries, As the two historical relations and strong. As a result of the improvement in relations agreed Kuwait with Iraq to shed compensations for Kuwait Airways that is created Airlines joint worth the amount of compensation, which amounted to about $ 300 million, also re-Kuwait flights to Iraq, where landed in Najaf airport on April 17 last year, the first Kuwaiti plane after 22 years on the last trip to Iraq, while confirming the company (airline) it will twice weekly to the airport can be increased, as well as other trips to the rest of the airports in the country, as Minister of Public Works Minister of Planning and Development Minister Kuwaiti Dr Fadhel Safar recently, dispensing the fourth phase of the port of Mubarak the Great, which was expected to reach the number of berths to 60 Marina, and only only three phases the first to reach the number of berths to 24 Marsa only, pursuant to the agreement recently between the two governments Kuwaiti and Iraqi. has also led the visit of Prime Minister Nuri al-Maliki to Kuwait on March 14 last year to the parties' agreement on the maintenance of border markers, and lay the foundations and frameworks common resolve all files, timetables short, while Foreign Minister Hoshyar Zebari, who accompanied Maliki on the trip to what has been agreed upon is significant progress in relation to the exit of Iraq from Chapter VII.

Finance Committee: Delete the zeros of the local currency begins early next year- Friday, July 13, 2012

Finance Committee: Delete the zeros of the local currency begins early next year

Diyala July 14 (AKnews) - Translated:  The parliamentary Finance Committee, Saturday, that the process of replacing the currency and delete the zeros of which will be gradually beginning of next year, noting that the process takes two to three. said committee member and MP for the Iraqi List, Hassan Auzmn told Kurdistan News (Rn) that the CBI will withdraw the existing currency early next year gradually and keep trading currency current grant citizens enough time to replace the currency. " He Auzmn replace the currency and delete the zeros experience successful and useful for the Iraqi economy through their success in a number of other countries, pointing out that "The operation will contribute to ease carrying banknotes among citizens and will not have any negative impact on the Iraqi economy (according to him). has not ruled out Auzmn attempts forging new currency afterthought: the security measures to be taken to protect the currency will mark easily between the old currency and the new currency. announced the Finance Committee Parliamentary early July of this that the budget next year 2013 will be the new currency after deleting three zeros from the current currency, saying that the reluctance of traders and companies from trading in Iraqi currency behind the adoption of the Central Bank project to delete zeros. Some economists that Iraq is not formatted for the time being to delete the zeros of Iraqi dinar, pointing out that the deletion needs to security and political stability as well as economic stability. : Mahmoud al-Jubouri, the Open: Peace Baghdadi


Government wants CBI to carefully delete zeros and reveal the financial details of the project- Saturday, June 30, 2012

Government wants CBI to carefully delete zeros and reveal the financial details of the project

translated:   Revealed the House Financial Committee, Sunday, prompting Prime Minister Nouri al-Maliki for the Central Bank to wait to delete the zeros of the Iraqi currency, noting the presence of several foreign companies vying for printing the new currency.

Member of the parliamentary Finance Committee for “Haitham al-Jabburi,twilight news,” Prime Minister Nuri al-Maliki asked the Central Bank to wait to delete the zeros of the Iraqi currency.

“The Finance Committee met Wednesday with the Deputy Governor of the Central Bank and was discussing the deletion of zeros and print new currency”.

“We’re afraid that in the process of delivering the money to the banks for the purpose of manipulation and blackmail citizens but time is exceeded, this case after the approval of the Central Bank to be there 10 years forward allowed the old Iraqi currency delivered.”

The “new currency contains 36 cases of fraud while ensuring that current currency contains 8 just so it is expected that the new currency forgery difficult.”

He said the new currency would consist of categories of paper and metal paper ones are groups of 200 dinars, equivalent to 200,000 dinars a $ 180, 100, 50 and 25 dinar JD either metal is half dinar JD and a quarter and 100 Fils and 50 Fils, 25 Fils is the smallest coin equal to 250 dinars “.

“Been subject to national symbols such as Helicobacter and civilization of ur and the castle of Arbil and waterfall geli and Mosul Dam”.

He noted that “there are offers of mnsharkat Swiss and Russian and Brazilian compete in terms of price and quality for printing the new currency would be subject to discussion, presentations by competent Central Bank to determine who qualified for printed money.”

The CBI had earlier described, delete zeros from the currency project as “a new infrastructure of the country is no less important than other infrastructure.”

The Deputy Governor of the Bank, said Mohammad Saleh appearance that the project reflects the harmony of speed angashza ministries and competent State departments away from institutional work, ‘ isolationist value for the independence of the Central Bank if the independence high coordination with other economic institutions to build Iraq. “

Import of 60 armored vehicles for the transfer of funds between Iraqi banks- Wednesday, June 20, 2012

Import of 60 armored vehicles for the transfer of funds between Iraqi banks

Translation:  Finance 60 US-made armored truck, to transfer money between Iraqi banks. The sources said the reporter Agency (dinars), "The Ministry of Finance has imported 60 trucks armored American made, dedicated to the transfer of funds between banks in Baghdad and the provinces, adding that the new trucks armored and can not be breached even improvised explosive device., The sources added, quoting a Force Personnel Protection and the Ministry of Finance he new trucks were imported due to the worn out old trucks. Iraq has witnessed many incidents of theft of money banking during the transfer process during the deterioration of security after the 2003 World especially in Alosth region and west of it.

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