Iraq Dinar

Statement by the IMF 13 Dec. 2011

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement after a meeting with H.E. Nouri Al-Maliki, Prime Minister of Iraq in Washington today:
“It was a pleasure to meet Prime Minister Al-Maliki today. Over the past several years, Iraq and the International Monetary Fund have engaged in a very successful partnership, anchored by successive IMF-supported economic programs. This partnership has facilitated substantial debt relief and helped achieve macroeconomic stability, including a strong dinar, low inflation, and a resumption of economic growth, in a very challenging political and security environment.
“Prudent fiscal policies are essential to maintaining macroeconomic stability and fostering inclusive growth. In this context, I am very encouraged by the government’s new budget proposal for 2012 that was recently submitted to the Iraqi Council of Representatives. The proposal aims to restrain the growth of current spending, thus freeing up resources for infrastructure investment and social support, while limiting the size of the budget deficit. The proposed budget would allow the current Stand-By Arrangement (SBA) to continue to provide a safety net to the budget in case oil revenues were to fall sharply.
“Promoting policies that lead to more inclusive growth is central to our engagement with Iraq. We are working closely with the Iraqi government to rebuild its essential economic institutions to help improve economic management and public service delivery. The current SBA offers a framework for Iraq’s structural reform agenda, by promoting better public financial management, including the management of Iraq’s hydrocarbon resources, and developing a financial sector that can support private sector activity and job creation. We look forward to further progress in these areas.
“We remain committed to helping Iraq in its efforts to foster sustained and inclusive economic growth, generate viable employment opportunities, and improve living standards for all Iraqis. An IMF staff mission is scheduled to meet the authorities in January to discuss progress under the program and next steps.”

Cramer on the Iraq Dinar

Next year’s Budget consistent with the conventions of the International Monetary Fund

The Ministry of Finance has prepared a budget in 2012 in line with the agreement with the International Monetary Fund and the amounts necessary for lifting the value of its investment.

The Deputy Minister Fadhil Nabi told the Kurdish news agency (Rn) that his ministry has worked to raise money value compared to the value of investment funds within the budget value of Lot 2012. ”

He added that “the balance of 2012 is ready for submission to the House of Representatives after Eid al-Adha holiday. He said,” the budget in 2012 will focus on development projects with ease in the proportion of operational projects. ”

He called on the Iraqi Central Bank last October and the Ministry of Finance to review the operational part of the budget in 2012.

Economists and experts predict that the budget of 2012 may be delayed in the House of Representatives because of political differences between the parliamentary blocs arise with a discussion of financial budgets annually.

Iraq, which is a member in OPEC, relies on oil revenues to finance about 95% of the annual budget. The estimated budget for Iraq in 2012 is up to $ 112 billion, including 17 billion for security and arms, up to 36% from last year, but a deficit of $ 20 billion.

Baghdad announced in (18/9/2010) that Iraq’s budget for next year 2012 will amount to $ 112 billion, up 36% from the current year budget 2011, but a deficit of $ 20 billion and it has been allocated $ 17 billion for security and armament.

Iraq Pads Currency Reserves On High Oil Prices

Iraq depends on oil revenues for about 95 percent of its budget.

September 07, 2011

BAGHDAD -- The Iraqi Central Bank has announced a large increase in the country's foreign-currency reserves, RFE/RL's Radio Free Iraq reports.

Mudher Muhammad Salih, an adviser to Central Bank Governor Sinan al-Shabibi, told RFE/RL on September 6 that the bank's reserves "are now at about $58 billion."

He said that was an increase from the $50 billion in foreign currency reserves it had at the end of 2010.

Salih added that the bank had recently succeeded in controlling the inflation rate, which he said in recent years had increased at a high rate and was 7.1 percent in July.

He said the Central Bank would continue to obtain different foreign currencies and increase its overall amount of foreign-currency reserves in order to protect the value of the Iraqi dinar, which he said was a "main goal" of the bank.

Iraq's foreign-currency reserves are 45 percent in dollars, 45 percent in euros, and 10 percent in British pounds.

Iraq depends on oil revenues for about 95 percent of its budget and the increase in foreign-currency reserves thus far this year is due to higher world prices for oil. Iraq has earned some 34 percent more from oil through the first five months than it had budgeted.

Economic experts welcomed the announcement about the country's currency reserves but warned that the total was still not high enough.

Iraqi economist Hilal al-Tahhan said the currency reserves should be roughly equivalent to Iraq's annual budget, which is about $79.6 billion.

Iraq's Baghdad-based Central Bank, which is an independent institution, has branches in Basra, Sulaymaniah, Irbil, and Mosul.

U.S. Hands Massive Air Base Over To Iraq

November 09, 2011

The U.S. military has handed over to the Iraqi government its second-largest base in Iraq.

Joint Base Balad -- a joint army and air force complex north of Baghdad -- housed some 36,000 American troops and contractors at the peak of the war.

A spokesman said that "with 27,500 landing and takeoffs a month, Balad was second only to London's Heathrow airport in traffic worldwide in 2006."

It was returned to Iraqi control on November 8 with the departure of the last members of the 332nd Air Expeditionary Wing, the last unit to leave the base.

Under a bilateral agreement, all U.S. troops in Iraq are to leave the country by year's end.

compiled from agency reports

General Petraeus on investing in Iraq

REPUBLIC OF IRAQ FINANCIAL SECTOR REVIEW

Source: International Monetary Fund.

Iraq’s international reserves have played a critical role in helping ensure macroeconomic stability. The accumulation of foreign exchange reserves at the CBI allowed Iraq to stabilize the Dinar, reverse the dollarization process, and contain inflation. Gross international reserves of the CBI increased from US$ 44.3 billion at end-2009 to US$ 50.6 billion at end-2010.

The authorities remain committed to ensuring the independence of the CBI. A ruling by Iraq’s Federal Supreme Court also noted that while the CBI is part of the country’s executive apparatus, it is by law independent in its decisions and operations.

Obama: Iraq war will be over by year's end; troops coming home

The oil ministry signs a memorandum of understanding with an Egyptian company to build a refinery in Mosul.

The Iraqi oil ministry signed an initial form of a memorandum of understanding with the KALAA Egyptian Company to build a refinery in Mosul with a power of 150 thousand barrel/ day.

Mr. Ahmed Al-Shamaa, the deputy minister of refining affairs shown that the memorandum of understanding provides the basics to build an investment refinery in MOSUL fed by crude oil from Najma & Kayara oil fields.

Mr. Shamaa added that one of the privileges granted to the investor according to the amended investment law is the possibility of opening gas stations affiliated with the Ministry's commitment to take advantage of oil products to be produced at the refinery. And assured that the agreement gave the company three years to put the studies and designs which will determine the possibility of the late construction according to the production peak of the two refineries. As well as Mr. Shamaa shown that the ministry took the decision of the refinery bulling because it is the best way to make use of the heavy oil of the two fields by producing the necessary oil products to meet the needs of the domestic consumption.

Iraqi Oil production reaches 2.900 million bpd.

The Iraqi oil minister Mr. Abdul Kareem liaybi announced for the new oil export capacity which reached 2.900 barrel per day and estimated to be 3 million barrels at the end of this year. And this announcement was during a celebration attended by members of the council of deputies, the deputy oil minister for refining affairs and other responsible employees in the ministry of oil.

At the same time the oil minister opened the water purification system with the capacity of 513 M3 in addition to a primary water treatment unit with a power of 1000 M3 in Midland Refineries Company. And the oil minister assured that the need for these two units came after the need in the applied projects for purified water by reversed osmosis membrane feeders for steam boilers, in addition to the isomerisation units which will qualify the fuel production and this will contribute so much in reducing the maintenance costs … in addition to reduce the time and effort.

And In relation to the exports of Ceyhan- Kirkuk pipeline, Said the spokesman of the oil ministry Mr. Assim Jihad that the oil pumping was started after a stop because of technical reasons.

As well as Mr. Jihad said that the oil ministry is keen to rehabilitate the Iraqi refineries by depending on the national efforts or the international expertise. And added that the application of the mentioned units was made according to a contract between the midland refineries company and the Lebanese company (IMCO) whom made the design, supply, setup equipments and operation, And the civil works of the project are applied by Al-Faw state company, and the total cost of the project was 18 million dollars with a time table of 14 months.

Launch of the Republic of Iraq Financial Sector Review

Begins:	Sep 24, 2011 14:00
Ends:	Sep 24, 2011 15:30

On Saturday September 24, the World Bank will host a discussion on a new comprehensive report about Iraq’s Financial Sector. The report highlights the potential of the country, ongoing reforms and remaining challenges.

Opening remarks will given by the Bank’s Vice President for the Middle East and North Africa region Inger Andersen, Iraq’s Minister of Finance, Rafi El Essawi and the Governer of Iraq’s Central Bank Sinan Al Shabibi. The session will be moderated by Omer Karaspan, Knowledge Coordinator at the Bank’s Middle East and North African region.

IMF on Iraq 31 March 2011

Two-year Stand-By Arrangement (SBA) in the amount of SDR 2.38 billion (about US$3.8 billion), approved by the IMF's Executive Board on February 24, 2010. The IMF's Executive Board completed the first program review on October 1, 2010, and the second review on March 18, 2011, bringing the total resources currently available to Iraq under the arrangement to SDR 1069.56 million (about $1.7 billion). 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 from 2010 into 2011.

The Iraqi Central Bank has announced a large increase in the country's foreign-currency reserves

BAGHDAD -- , RFE/RL's Radio Free Iraq reports.

Mudher Muhammad Salih, an adviser to Central Bank Governor Sinan al-Shabibi, told RFE/RL on September 6 that the bank's reserves "are now at about $58 billion."

He said that was an increase from the $50 billion in foreign currency reserves it had at the end of 2010.

Salih added that the bank had recently succeeded in controlling the inflation rate, which he said in recent years had increased at a high rate and was 7.1 percent in July.

He said the Central Bank would continue to obtain different foreign currencies and increase its overall amount of foreign-currency reserves in order to protect the value of the Iraqi dinar, which he said was a "main goal" of the bank.

Iraq's foreign-currency reserves are 45 percent in dollars, 45 percent in euros, and 10 percent in British pounds.

Iraq depends on oil revenues for about 95 percent of its budget and the increase in foreign-currency reserves thus far this year is due to higher world prices for oil. Iraq has earned some 34 percent more from oil through the first five months than it had budgeted.

Economic experts welcomed the announcement about the country's currency reserves but warned that the total was still not high enough.

Iraqi economist Hilal al-Tahhan said the currency reserves should be roughly equivalent to Iraq's annual budget, which is about $79.6 billion.

Iraq's Baghdad-based Central Bank, which is an independent institution, has branches in Basra, Sulaymaniah, Irbil, and Mosul.

Positive Changes in Iraq

Upon Saddam Hussein’s deposition in 2003, Iraq has undergone political and economic changes. Many believe that the re-building of Iraq’s infrastructure will stabilize Iraq socially, politically, and economically. With the new government establishing a new monetary system that encourages foreign investment, and the central bank of Iraq awarding foreign licenses, many also believe that the value of the new Iraqi Dinar banknote is poised to escalate.

More Treasury Bills on the Way

The government of Iraq will issue more Treasury bills to the secondary market. For the first time in years, the central bank auctioned Treasury bills in July. Thus far, local banks have bought 900 billion Iraqi dinars ($628 million) worth of three-month bills with coupons ranging between 2.5 percent and 6.8 percent. To improve Iraq’s local currency, the dinar against the dollar, Iraq’s central bank also plans to build up its foreign-currency reserves.

Creating viable domestic capital markets will start the process of trimming the massive pre-war debt. Iraq’s path to debt reduction along with the generosity of the Paris Club by forgiving 80% of Iraq’s debt is good news for the Iraqi economy. Iraq’s growth-oriented policy, along with Iraq’s prospects of economic stability makes investing in the dinar potentially lucrative.

The Central Bank of Iraq

For the first time in decades, the central bank of Iraq awarded foreign bank licenses to the following banks: HSBC, Standard Chartered, National Bank of Kuwait, Iranian National Bank, Commercial Housing bank, and Bahraini Arab Banking Institute. The Bahraini Arab Banking Institute is listed on the Bahrain, Kuwait, and Paris stock exchanges, and its major shareholders include the Kuwait Investment Authority, the central bank of Libya, and the Abu Dhabi Investment Authority. Granting foreign licenses and liberalizing interest rates will create a vibrant free-market economy. Iraq’s re-invigorated banking policies will positively affect the value of the dinar in the near future.

The Potential of the Dinar

Prior to United Nations sanctions, the Iraqi dinar traded at 3.35 per U.S. dollar, and prior to the war in Iraq, the Iraqi dinar traded at .33 U.S. Dollars. During major combat operations, the Iraqi dinar declined to an all-time low. However, after major combat operations, the value of the dinar increased 25%. Countries such as Germany (post WWII) and Kuwait (post Iraqi invasion) experienced a similar devaluation of their currency, but both countries recovered. Today, the dinar has increased from 3,500 against the dollar during the U.S. led invasion last year to 1,170 against the U.S. dollar. Imagine the growth potential of the Iraqi dinar once Iraq recovers and begins to enjoy the potential revenue of a country rich in oil and other natural resources.

Cramer on the Iraq Dinar

UN Strongly Condemning Deadly Bomb Attacks across Iraq, Secretary-General

Appeals to Iraqis to Reject Attempts to Incite Further Violence

The following statement was issued today by the Spokesperson for UN Secretary-General Ban Ki-moon:

The Secretary-General strongly condemns the series of bomb attacks in several cities across Iraq today that reportedly killed dozens of people and wounded many others. This is a particularly heinous act as it takes place during the holy month of Ramadan.

The Secretary-General appeals to the people of Iraq to reject these attempts to incite further violence in the country. He calls upon all Iraqi political leaders to continue to work together towards achieving peace through national dialogue and reconciliation. He extends his heartfelt condolences to the bereaved families and wishes speedy recovery to those injured.

Betting on Baghdad

Investing in Iraq

UNAMI Mandate to end 31 July 2011

UNAMI Mandate

From Security Council Resolution 1936 - 5 August 2010 The Security Council, 1. Decides to extend the mandate of the United Nations Assistance Mission for Iraq (UNAMI) until 31 July 2011; 2. Decides further that the Special Representative of the Secretary-General and UNAMI, at the request of the Government of Iraq, and taking into account the letter of 28 July 2010 from the Minister of Foreign Affairs of Iraq to the Secretary General (S/2010/404, annex), shall continue to pursue their mandate as stipulated in resolution 1883 (2009); From Security Council Resolution 1883 - 7 August 2009 The Security Council, 1. Decides to extend the mandate of the United Nations Assistance Mission for Iraq (UNAMI) for a period of twelve months from the date of this resolution; 2. Decides further that the Special Representative of the Secretary-General and UNAMI, at the request of the Government of Iraq, and taking into account the letter of 29 July 2009 from the Minister of Foreign Affairs of Iraq to the Secretary General (S/2009/ 395, annex), shall continue to pursue their expanded mandate as stipulated in resolutions 1770 (2007) and 1830 (2008); From Security Council Resolution 1830 - 7 August 2008 The Security Council, 1. Decides to extend the mandate of the United Nations Assistance Mission for Iraq (UNAMI) for a period of twelve months from the date of this resolution; 2. Decides further that the Special Representative of the Secretary-General and UNAMI, at the request of the Government of Iraq and taking into account the letter of 4 August 2008 from the Minister of Foreign Affairs of Iraq to the Secretary-General (S/2008/523, annex), shall continue to pursue their expanded mandate as stipulated in resolution 1770 (2007); UNAMI Mandate Renewed-UNSCR 1770 The UN Security Council renewed UNAMI’s Mandate (UN Security Council Resolution 1770) expanding UN role in Iraq. Below the main points pertaining to the new mandate: The Security Council, Decides to extend the mandate of UNAMI for another period of twelve months from the date of this resolution; Decides further that, as circumstances permit, the Special Representative of the Secretary-General and UNAMI, at the request of the Government of Iraq, shall advise, support, and assist: the Government and people of Iraq on advancing their inclusive, political dialogue and national reconciliation; the Government of Iraq and the Independent High Electoral Commission on the development of processes for holding elections and referenda; the Government of Iraq and the Council of Representatives on Constitutional review and the implementation of constitutional provisions, as well as on the development of processes acceptable to the Government of Iraq to resolve disputed internal boundaries; the Government of Iraq on facilitating regional dialogue, including on issues of border security, energy, and refugees; the Government of Iraq at an appropriate time and in connection with progress on reconciliation efforts, on planning, funding and implementing reintegration programmes for former members of illegal armed groups; the Government of Iraq on initial planning for the conduct of a comprehensive census; promote, support, and facilitate, in coordination with the Government of Iraq: the coordination and delivery of humanitarian assistance and the safe, orderly, and voluntary return, as appropriate, of refugees and displaced persons; the implementation of the International Compact with Iraq, including coordination with donors and international financial institutions; the coordination and implementation of programmes to improve Iraq’s capacity to provide essential services for its people and continue active donor coordination of critical reconstruction and assistance programmes through the International Reconstruction Fund Facility for Iraq (IRFFI); economic reform, capacity-building and the conditions for sustainable development, including through coordination with national and regional organizations and, as appropriate, civil society, donors, and international financial institutions; the development of effective civil, social and essential services, including through training and conferences in Iraq when possible; the contributions of UN agencies, funds, and programmes to the objectives outlined in this resolution under a unified leadership of the Secretary-General through his Special Representative for Iraq; and also promote the protection of human rights and judicial and legal reform in order to strengthen the rule of law in Iraq; Recognizes the important role of the Multi-National Force Iraq (MNF-I) in supporting UNAMI, including security and logistical support, and further recognizes that security is essential for UNAMI to carry out its work on behalf of the people of Iraq; Calls on Member States to continue providing UNAMI with the necessary financial, logistical and security resources and support to fulfil its mission; Expresses its intention to review the mandate of UNAMI in twelve months or sooner, if requested by the Government of Iraq; Requests the Secretary-General to report to the Council within three months from the date of this resolution on UNAMI operations in Iraq, and on a quarterly basis thereafter on the progress made towards the fulfilment of all UNAMI’s responsibilities; and Decides to remain seized of the matter UNAMI Mandate - UNSCR 1546 In accordance with Security Council Resolution 1546, the mandate of the United Nations Assistance Mission for Iraq (UNAMI) is as follows: “… in implementing, as circumstances permit, their mandate to assist the Iraqi people and government, the Special Representative of the Secretary-General and the United Nations Assistance Mission for Iraq (UNAMI), as requested by the Government of Iraq, shall: (a) Play a leading role to: (i) Assist in the convening, during the month of July 2004, of a national conference to select a Consultative Council; (ii) Advise and support the Independent Electoral Commission of Iraq, as well as the Interim Government of Iraq and the Transitional National Assembly, on the process for holding elections; (iii) Promote national dialogue and consensus-building on the drafting of a national constitution by the people of Iraq; (b) and also: (i) advise the Government of Iraq in the development of effective civil and social services; (ii) Contribute to the coordination and delivery of reconstruction, development, and humanitarian assistance; (iii) Promote the protection of human rights, national reconciliation, and judicial and legal reform in order to strengthen the rule of law in Iraq; and (iv) Advise and assist the Government of Iraq on initial planning for the eventual conduct of a comprehensive census;

Iraq - Security Council Meeting 19 July 2011 (UN Encourages Iraq to proceed with redistribution of wealth)

TEXT OF A LETTER FROM THE PRESIDENT(between the lines)

Recognizing positive developments in Iraq, the United Nations Security Council decided, in Resolution 1956 (2010), to terminate on June 30, 2011, arrangements concerning the Development Fund for Iraq established in Resolutions 1483 (2003 ) (instrument that established the current Iraqi Exchange Rate) and 1546 (2004). The Security Council also called upon the Iraqi government to finalize the full and effective transition to a post‑Development Fund mechanism by June 30, 2011. (Determine and Establish the NEW Exchange Rate) My administration will evaluate Iraq's ongoing efforts in this regard, as well as its progress in resolving outstanding debts and claims arising from actions of the previous regime, so that I may determine whether to continue beyond June 30, 2011, the prohibitions contained in Executive Order 13303 of May 22, 2003, as amended by Executive Order 13364 of November 29, 2004,on any attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to the Development Fund for Iraq, the accounts, assets, and property held by the Central Bank of Iraq, and Iraqi petroleum‑related products, which are in addition to the sovereign immunity accorded Iraq under otherwise applicable law.

Sincerely,

BARACK OBAMA