Iraqi foreign currency reserves to reach $70 billion

BAGHDAD: Iraq’s foreign-currency reserves will continue to climb after reaching $67 billion in the last three weeks amid higher oil revenue, said Mudher Saleh, deputy governor of the country’s central bank.
The reserves will reach $70 billion by the end of the year provided oil exports continue to grow, Saleh said by telephone today from Baghdad. In January, Saleh said reserves had reached a record $60 billion.

Violence and political clashes have intensified following the US withdrawal in December of the remaining troops it deployed in Iraq after the 2003 invasion that ousted Saddam Hussein. Iraq’s federal government and the self-governing Kurdish region disagree over how to manage oil revenue. Crude exports from Iraq, which holds the world’s fifth-largest crude reserves according to BP Plc statistics that include Canadian oil sands, rose in July to an average of 2.52 million barrels a day, Falah al-Amri, the head of the State Oil Marketing Organization, said on Aug. 1.

Interest rates will probably remain unchanged at 6 per cent as “it is logical and compatible with core inflation,” Saleh said. Lowering rates will “encourage the fleeing of money outside the country,” he said.
The government’s plan to remove zeros from the new dinar denominations is on hold and “may happen in 2014 or the following years,” he said. “It is not an easy process.”

Auctions of US dollars, on which Iraq imposed tighter control to curtail the impact of the dinar’s fluctuation, still sell an average of $260 million and $280 million a day, he said. About 80 percent of the dollars sold in auctions cover “visible” trade and the rest involve non-visible trade such as services, tourism and insurance, he said.

Hilary Clinton - Iraq is Projected to Grow Faster Than China

Iraq's second-biggest mobile operator Asiacell aims to raise $1.23 billion

BAGHDAD: Iraq's second-biggest mobile operator Asiacell aims to raise $1.23 billion in an initial public offering next month, it said, after pressure from Baghdad's media regulator to be listed on the bourse.

The firm, in which Qatar Telecom holds a majority stake, and Iraq's two other mobile phone companies -- Kuwait's Zain and Korek, in which France Telecom and Kuwait's Agility Logistics have stakes -- were fined for failing to issue IPOs on the Iraq Stock Exchange, Zain said in July.
The company said in a statement on its website on Tuesday that the share offer is expected to be among "the biggest ... in the Middle East region in the past year."

Asiacell will offer 67.503 billion shares, representing 25 percent of the total share capital, at a price of at least 22 Iraqi dinars (1.8 US cents) per share when the offer opens on January 3.
"This is another step closer to our share offer which is a significant development for us as a company," said Asiacell managing director Faruk Rasool. Asiacell is the second-biggest mobile phone company in Iraq by subscribers, with 9.9 million, after Zain, which says it has more than 12 million customers.

Iraq October Oil Exports

Boom time for Kurdistan oil

Growing number of countries investing in Iraq — DFA USec

November 1, 2012 3:21pm Filipino business leaders may soon be exploring Iraq's business potential after a recent study found that more countries outside of the Gulf region were involved in different businesses in that Arab nation in 2011. According to Foreign Affairs Acting Assistant Secretary Nathaniel Imperial, a study by Dunia Frontier Consultant found over 45 countries active in Iraq last year, putting $55.67 billion in investments, service contracts and other commercial activities into the country. The amount is 40.3 percent higher than that of the previous year—robust growth despite the complete withdrawal of the American forces from the country in December 2011 and increasing political uncertainties. The United States accounted for the largest share of business activities in Iraq, followed by European and Asian countries particularly the United Kingdom, the Netherlands, Germany, Italy, China and South Korea. The top sectors were residential real estate, oil and gas, electricity, water and sanitation, defense, commercial real estate and telecommunications. "Telecommunications is a new entrant in the top sectors," Imperial said in a report, adding that strong foreign participation was noted from mobile operators Korek and Asia Cell, both Kurdistan-based firms employing Filipino workers. The study noted the existence of smaller-scale projects, especially in electricity, oil and gas, that eventually led to a number of multimillion-dollar deals. — BM, GMA News

Citigroup, J.P. Morgan Chase investing in Iraq

Iraq removes central bank head in corruption probe

BAGHDAD (AP) — Iraq abruptly removed the longtime governor of the country’s central bank Tuesday after he and other bank officials were targeted in an investigation into alleged financial wrongdoing. The governor, Sinan al-Shabibi, is seen as a politically independent economist who has led the bank since shortly after the U.S.-led invasion. He has not been charged with any crime, and his lawyer insists he is innocent.

The allegations, drawn up by a special parliamentary committee established to investigate the bank, could give new ammunition to critics of Prime Minister Nouri al-Maliki that the Iraqi leader is trying to consolidate control over the country’s institutions. Iraq’s Cabinet voted Tuesday to temporarily replace al-Shabibi with Abdul-Basit Turki, the head of the Board of Supreme Audit, until the investigation is complete, according to Ali al-Moussawi, a spokesman for the prime minister.

Iraq’s Integrity Commission, the country’s anti-corruption watchdog, is investigating the allegations.

‘‘The committee in charge of this ... found shortcomings in the work of the central bank and these findings were sent to the Integrity Commission, which has decided to withdraw power from al-Shabibi,’’ al-Moussawi said.The investigation deals at least in part with alleged irregularities involving the exchange of Iraqi dinars for hard currency, according to al-Moussawi and Haitham al-Jabouri, a lawmaker involved in the probe. About 16 bank employees are targeted in the investigation, al-Jabouri said. He said he expects arrest warrants against some could be issued soon.

Before becoming bank governor in 2003, al-Shabibi worked for more than two decades for the United Nations Conference on Trade and Development. One of his lawyers, Waleed Mohammed al-Shabibi, defended the governor’s innocence. The lawyer described himself as a relative of the governor.

‘‘These charges are politically motivated. Al-Shabibi is honest and professional,’’ said the lawyer. ‘‘The government is planning to replace him with another official who takes orders from the government.’’Al-Moussawi, the prime minister’s spokesman, denied the charge, saying there was no political motivation behind the move.

The bank governor himself could not immediately be reached for comment. His lawyer said al-Shabibi is out of the country. He declined to say where. Spokespeople for the central bank said they are not authorized to discuss the allegations. Iraq has rapidly increased its oil output following years of war and neglect, and that has translated into a sharp rise in hard currency reserves. The country earlier this year surpassed next-door Iran as OPEC’s second-largest oil producer, and its currency reserves recently topped $60 billion. But the bank’s efforts to keep the dinar stable through its sales of dollars to local banks have come under pressure, particularly over the past year.

Mudhhir Mohammed Salih, the bank’s deputy governor, said in January that he believed the civil war in neighboring Syria and international sanctions against Iran had caused a jump in demand for dollars sold by Baghdad. He said opportunistic businessmen were buying up dollars and then reselling them on the black market to customers across the border, sucking greenbacks out of the country and making it harder for the bank to keep Iraq’s dinar stable. The bank aims to keep the local currency set at close to 1,200 dinars per dollar. Salih separately confirmed he is among those being investigated, but said he has no further details.

In Iraq, UN envoy urges expansion of development programs in Basra region

6 November 2012 – The United Nations top envoy in Iraq has welcomed the expansion of UN programs in the country’s southern Basra region following a two-day visit which included meetings with local officials.

“This has been a very fruitful visit,” the Secretary-General’s Special Representative for Iraq, Martin Kobler, said in a news release, adding that he had had “excellent discussions” with the Governor of Basra, Dr. Khalaf Abdul-Samad, over the UN’s ongoing role in the development of the province.

According to a news release from the UN Assistance Mission in Iraq (UNAMI) – which Mr. Kobler also heads – the UN envoy also visited a UN Children’s Fund (UNICEF) accelerated learning programse for juvenile detainees at Basra Central Prison, which aims to deliver education and training to young prisoners for their lives after release.

In addition, Mr. Kobler reaffirmed the world body’s role in working for minority rights across the country following his visit to a local non-governmental organization that works for the rights of black Iraqis.

“UNAMI will continue to advocate for the political participation and right to development for Iraqis from all backgrounds,” he stated.

President Barack Obama says he's confident that if re-elected he will secure within six months...

(Reuters) — President Barack Obama says he's confident that if re-elected he will secure within six months a deficit-reduction deal with Republicans equivalent to the "grand bargain" he failed to achieve last year. U.S. President Barack Obama speaks during a campaign rally in Davenport, Iowa October 24, 2012. Obama is on a two-day, seven state, campaign swing. REUTERS/Kevin Win or lose the November 6 election against Republican Mitt Romney, Obama faces a so-called "fiscal cliff" of automatic across-the-board spending cuts and tax increases set for the end of the year, before the swearing-in of a new Congress and the victor in the presidential race. "It will probably be messy. It won't be pleasant," he said of the negotiations ahead. "But I am absolutely confident that we can get what is the equivalent of the grand bargain that essentially I've been offering to the Republicans for a very long time, which is $2.50 worth of cuts for every dollar in spending, and work to reduce the costs of our health care programs," Obama said. He also said a broader long-term deal could "credibly meet" the target of $4 trillion in deficit reduction over 10 years as proposed in December 2010 by a deficit reduction commission headed by Erskine Bowles and Alan Simpson. "We're going to be in a position where I believe in the first six months we are going to solve that big piece of business," Obama said. The newspaper, the largest in the election battleground state of Iowa, is preparing to endorse a candidate in the presidential race. Obama sought to counter criticism that he had failed to offer a clear picture of his second-term agenda. Despite that, his comments did not offer specifics on how the "fiscal cliff" could be avoided, especially given the climate of legislative gridlock and partisan rancor in Washington. But Obama's time-frame for achieving a grand bargain conforms with the prevalent view on Capitol Hill that Congress and the White House will attempt some temporary fix on taxes and spending in order to work on something larger in the months after a newly elected Congress convenes. Obama also said that in a second term, "We can start looking at a serious corporate tax reform agenda," something he said was of common interest to both Democrats and Republicans.

Jim Cramer (mad money) on the Iraq Dinar

General Petraeus on Iraq

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).

UN panel pays out $1.3 billion in reparations for Iraq’s invasion of Kuwait

A pile of wreckage left behind in downtown Kuwait after looting and destruction by Iraqi occupation forces in 1991. UN Photo/John Isaac 26 July 2012 – The United Nations Compensation Commission (UNCC), which settles the damage claims of those who suffered losses due to Iraq’s 1990 invasion of Kuwait, today made $1.3 billion available to six successful claimants. The latest round of payments brings the total amount of compensation disbursed by the Commission to $37.7 billion for more than 1.5 million successful claims of individuals, corporations, Governments and international organizations, states a news release. Successful claims are paid with funds drawn from the UN Compensation Fund, which is funded by a percentage of the proceeds generated by the export sales of Iraqi petroleum and petroleum products. The Geneva-based UNCC’s Governing Council has identified six categories of claims: four are for individuals’ claims, one for corporations and one for governments and international organizations, which also includes claims for environmental damage. The Commission was established in 1991 as a subsidiary organ of the UN Security Council. It has received nearly three million claims, including from nearly 100 governments for themselves, their nationals or their corporations.

Security Council extends mandate of UN Assistance Mission for Iraq by 12 months

25 July 2012 – The Security Council today extended the mandate of the United Nations Assistance Mission for Iraq (UNAMI) for another year, while also reiterating its encouragement of further progress on the country’s security, humanitarian, human rights and political fronts. In a unanimously adopted resolution, the 15- member body encouraged the Government of Iraq “to continue strengthening democracy and the rule of law, improving security and public order and combating terrorism and sectarian violence across the country, and reiterating its support to the people and the Government of Iraq in their efforts to build a secure, stable, federal, united and democratic nation, based on the rule of law and respect for human rights.” The Council welcomed improvements in the Middle Eastern country’s security situation, while stressing that challenges remain and “that improvements need to be sustained through meaningful political dialogue and national unity.” Similar to its previous resolution on the same matter last year, the Council also underscored the need for all communities in Iraq to participate in the political process and an inclusive political dialogue, as well as for the communities to refrain from making statements and actions which could aggravate tensions. In the resolution, Council members noted the importance of addressing humanitarian issues and stressed the need to continue to form a coordinated response to address those issues. In addition, it called for full unimpeded access by humanitarian personnel to all people in need of assistance. In the area of human rights, the Council urged the Government of Iraq to continue to promote and protect human rights and also to consider additional steps to support the Independent High Commission for Human Rights in carrying out its mandate. The Council members also called on the Government to continue its ongoing cooperation with the Kuwaiti Government, with which it fought a war in 1990-91, and meet its outstanding international obligations on that issue. Recognizing recent “positive” developments in Iraqi-Kuwait bilateral relations – such as Iraqi Prime Minister Nuri al-Maliki’s visit to Kuwait and the visit of the Kuwait’s Emir Shaikh Sabah Al Ahmad to Baghdad for the League of Arab States summit – the Council called on both States to continue “to act in a spirit that builds further confidence and cooperation, which should contribute to the strengthening of their good-neighbourly relations and enhancing regional stability.” A political mission established by the Council in 2003, at the request of the Government of Iraq, UNAMI is mandated to advise and assist in a number of areas. These include advancing political dialogue and national reconciliation, assisting in the electoral process, facilitating regional dialogue between Iraq and its neighbours, and promoting the protection of human rights and judicial and legal reform.

Surprise Oil Find in Iraq

Surprise Oil Find in IraqEnergy — By Tammam Al-Maliky on January 20, 2012 at 1:45 am
Iraq’s Oil Ministry announced on Wednesday that it has discovered a new oil field in the Missan [Maysan] province, and described it as the biggest achivement in 30 years.

According to the report from AKnews, the Iraqi Oil Minister Abdul Kareem Luaibi [Elaibi] told a press conference:

“Iraqi Oil Company and the Southern Oil Companyhave been able to make a big achievement… by finding oil in al-Dima field in Missan province [south east of Baghdad bordering Iran] though the ministry did not expect the discovery of oil in the field.”
Iraqi oil experts struck oil at at depth of 2,300 meter.

The minister added:
“They are now working on estimating the size of the oil reserve in the field before pumping is started.”

Prime Minister Al- Maliki Opens the First Floating Terminal in Basra

His Excellency Iraqi Prime Minister Mr. Noori Al- Maliki opened the first floating terminal in Basra with an exportation power of 850 thousand bpd, within the project of the exportation power increase from the southern ports.

The opening was during a big celebration attended by the deputy Prime Minister Mr. Hussain Al- Shahristani, the minister of oil Mr. Abdul Kareem Liaybi and local responsible people in addition to other representatives from the foreign companies.

Mr. Liaybi assured that the project is aiming to increase the exports from the south, and it is worthy to mention that Iraq is now exports 2, 1 million barrels and aims to increase its export capacities to higher levels in the current year. He also referred to the costs of the first step of the project that reached 1, 6 billion dollars.

Mr. Assim Jihad, the spokesman of the oil ministry assured that this terminal is the first one of the five terminals with the exportation power of 850 thousand barrels for each, to increase the exportation power which is 1, 7 million barrels now. He said also that this plan is to increase the exportation power to 5 million bpd after the contracts to develop the southern oil fields within the first and second licensing rounds.

Mr. Deiaa Jaffar the director general of the south oil company said that this terminal is the first in Iraq and it will pump oil from the FAW coastal depot to the Iraqi ports in the Arab gulf.

The Iraq Dinar