IMF expects Iraq’s economic growth to increase 9%

Added by Ibrahim Khalil on March 23, 2013. Saved under Business Baghdad (IraqiNews.com) -The International Monetary Fund expected that the Iraq’s economic growth will increase 9%. In a press statement received by Iraqi News (IraqiNews.com), the IMF stated “Despite a difficult security and political environment, Iraq managed to maintain macroeconomic stability over the past two years. On the back of rising oil production and robust non-oil activity, economic growth has remained strong at about 8 percent in 2012.” “We expect activity to accelerate further to 9 percent in 2013, as oil production increases from just under 3 million barrels per day (mbpd) in 2012 to 3.3 mbpd in 2013,” the statement added. “In 2012, inflation was contained at 6 percent, and we project it to decline slightly next year. On account of strong oil proceeds, CBI reserves reached US$70 billion at the end of 2012, while the Development Fund for Iraq (DFI) rose to US$18 billion,” the statement concluded Read more: http://www.iraqinews.com/business-iraqi-dinar/imf-expects-iraq-s-economic-growth-to-increase/#ixzz2OvU49jPF Follow us: @IraqiNews_com on Twitter | IraqNews on Facebook

Exxon Mobil Oil Corporation allocates 1,650$ billion to develop Qurna field

Added by Ibrahim Khalil on March 25, 2013. Saved under Business (IraqiNews.com) -The US Exxon Mobil Oil Corporation allocated more than USD (1,650) billion to develop Qurna Oil field in Maysan province of southern Iraq during 2013.The Head of the Joint Committee tasked with running the Oil field, Mahdi Abdul Razaq, mentioned in press statement “The US Oil Corporation has allocated more than USD (1,650) billion to increase the production of Qurna Oil field from (480,000) barrel per day into (5 40,000) Oil barrel daily during 2013.”The Iraqi official expected that the daily production of the Oil field to “reach (600,000) barrels at the end of 2013 and to hit (900,000) barrels daily at 2015.”The US Exxon Mobil Oil Corporation is one of the oil companies that works in Kurdistan Region, but the Iraqi Federal Government enlisted the US company within the black list for contracting with KRG without obtaining the consent of the Central Government. \END\ Read more: http://www.iraqinews.com/business-iraqi-dinar/exxon-mobil-oil-corporation-allocates-1-0-billion-to-develop-qurna-field/#ixzz2OpfWv9QD Follow us: @IraqiNews_com on Twitter | IraqNews on Facebook

Jim Cramer on the Iraq Dinar

Secretary Of State Kerry In Baghdad, With Concern Over Syria

by Dana Farrington

March 24, 2013 6:59 AM

Enlarge image

Secretary of State John Kerry is in Baghdad Sunday on an unannounced visit following President Obama's Mideast tour.

Alex Brandon/AP

Secretary of State John Kerry is on an unannounced trip to Baghdad Sunday, and according to an official, the buzzword of the trip is "engagement."
NPR's Michele Kelemen, who's traveling with Kerry, tells our Newscast Desk that Syria is on his agenda:

"He's ... pressing [Iraqi Prime Minister Nouri al-Maliki] to crack down on, as one official put it, 'the nearly daily Iranian flights over Iraqi territory to Syria.' The U.S. accuses Iran of shipping weapons to Bashar al-Assad's regime and is warning Iraq that these shipments are fueling the conflict and are dangerous to the region."

The Associated Press reports the overflights "have long been a source of contention between the U.S. and Iraq." Iraq promised to inspect the flights last year, the AP says, but an official says only two have been checked since then.

IMF Mission Concludes Article IV Discussions with Iraq

Press Release No. 13/87
March 21, 2013
 
An International Monetary Fund (IMF) mission, led by Mr. Carlo Sdralevich, met with an official Iraqi delegation headed by the Acting Minister of Finance, Dr. Ali Al Shukri, in Amman, Jordan, during March 2-12, 2013 to conduct the Article IV Consultation discussion. The IMF mission met with the Acting Minister of Finance, the Acting Governor of the Central Bank of Iraq (CBI), head of the Board of Supreme Audit, AbdulBasit Al Turki Said, and other Iraqi officials from the ministries of finance, planning, and oil, and representatives from the Central Bank and the Board of Supreme Audit. The team also met with representatives from the Iraqi banking and business community.

At the conclusion of the mission, Mr. Sdralevich made the following statement:
“Following the recent expiration of the Stand-By Arrangement with Iraq approved in 2010, the IMF is committed to continue close collaboration with Iraq to support its development and help the government improve the social conditions and employment opportunities of Iraqi citizens.

“Despite a difficult security and political environment, Iraq managed to maintain macroeconomic stability over the past two years. On the back of rising oil production and robust non-oil activity, economic growth has remained strong at about 8 percent in 2012. We expect activity to accelerate further to 9 percent in 2013, as oil production increases from just under 3 million barrels per day (mbpd) in 2012 to 3.3 mbpd in 2013. In 2012, inflation was contained at 6 percent, and we project it to decline slightly next year. On account of strong oil proceeds, CBI reserves reached US$70 billion at the end of 2012, while the Development Fund for Iraq (DFI) rose to US$18 billion.

“While we welcome the achievement of a budget surplus of about 4 percent of GDP in 2012, largely due higher-than expected oil revenues, the execution of the 2013 budget should be aligned with available financing and provide for the accumulation of adequate fiscal buffers in the DFI, which suggests to target a budget surplus in 2013. Public financial management should be strengthened, notably by phasing out off-budgetary spending practices and reliance on state-owned bank financing to support public enterprises. Approval of additional spending commitments during the fiscal year should also be avoided.

“Financial sector policies are improving, but more remains to be done. The CBI’s ongoing efforts to refine monetary policy instruments, strengthen banking supervision, and accelerate the restructuring of the banking system are crucial. In this respect, the recent steps to clean up the balance sheets of Rasheed and Rafidain in preparation for their restructuring and recapitalization are key. The CBI should also take measures to gradually liberalize the provision of foreign exchange through its auctions, with the objective of avoiding in future the turbulence experienced by the market in the past year.

“Iraq will need to address serious medium-term challenges in order to be able to create the conditions for high and sustainable growth that is necessary to improve the living standards of its people. The economy continues to suffer from severe structural weaknesses such as a small nonoil sector, high unemployment, public sector dominance, and a weak business environment. In this context, we discussed the role of economic policies in leveraging Iraq’s potential and creating an enabling environment.

“With regard to the fiscal sector, the budget must be managed carefully to maintain macroeconomic stability, meet Iraq’s large social and investment needs while continuing to accumulate buffers to address oil market volatility, and ensure medium-term fiscal sustainability. At the same time, Iraq needs to strengthen fiscal institutions and public financial management to make sure that the large oil revenues are used effectively and transparently.

“Developing a stronger financial sector development will require moving away from the current model in which weak state-owned banks dominate the financial sector and enjoy favorable treatment vis-a-vis private banks. A solid banking system that can support growth and employment will require the full financial and operational restructuring of state-owned banks and creating a level playing field for both private and public banks.

“Finally, while oil-growth is projected to remain high over the coming years, boosting non-oil private sector growth will need a long-term government strategy centered on improving the business environment and opening up opportunities for the private sector.”

UN envoy in Iraq condemns attacks on government offices

UN envoy in Iraq condemns attacks on government offices Special Representative Martin Kobler. UN Photo/Rick Bajornas 14 March 2013 – The top United Nations official in Iraq today strongly condemned the attacks targeting the Ministry of Justice and other locations in the capital, Baghdad, which killed and injured dozens of people. “Today’s terrorist attacks targeted the heart of Iraq’s democratic institutions. I condemn them in the strongest possible terms,” the Special Representative of the Secretary-General for Iraq, Martin Kobler, said in a statement. According to media reports, at least 18 people were killed and 30 others injured in what appear to have been coordinated attacks targeting government buildings. “The Ministry of Justice is vital for efforts to build a stable, prosperous and democratic country where the rights of the people of Iraq are protected and the rule of law is upheld,” added Mr. Kobler, who is also the head of the UN Assistance Mission for Iraq (UNAMI). Mr. Kobler extended his condolences to the families of the victims and wishes for a speedy recovery to those wounded.

Sales of dollar by CBI rise on Wednesday auction.

06/03/2013 16:35:00 Baghdad/ NINA /--Sales of dollar by the Central Bank of Iraq CBI rose on today's auction to 125 million and 831 thousand dollars after hitting yesterday only 113 million and 103 thousand dollars, with a stable exchange rate of 1166 dinars per dollar, as well as sales and purchase of other foreign currency showed rising on Wednesday auction. The daily bulletin published by the Central Bank said : "The demand for dollar was ranging today around 25 million and 950 thousand dollars./End Central Bank of Iraq

Iraqi Dinar Could Rise as Much as 15%

The General Secretariat of Iraq’s Council of Ministers has ruled out the replacement of the currency or cancellation of three zeros “at this stage”, and it is seeking to raise the value of the dinar against the dollar. The Secretary General of the Council of Ministers said that the project to replace the currency, dropping the three zeros, was discussed but is not a priority for the government at this time being, and “there is no real problem in this field”. He noted that replacing currency requires “large adjustments”, and the process of withdrawing the existing money is an enormous and difficult task. He stressed that some have the mistaken impression that deleting the zeros will “reduce the size of the money in circulation as a block”, but in fact it does not reduce it even by 1 percent, and while the government believes that the change of currency is a good thing under appropriate conditions, it is not a priority. The Secretary-General said the dinar should be stronger than it is now, and implied that an exchange rate of 1,000 dinars to the dollar — a rise of about 15 percent — might be sustainable. By John Lee (Source: Iraqi Cabinet)