Academy: Iraq’s exports did not match the size of its natural resources

07/27/2013 12:00 AM

Baghdad – Mostafa Hashemi
said academic economic d. Majid Baidhani: What issued by Iraq of raw materials, sulfur and some animal products, dates, does not rise to the level of potential possessed by the country’s natural and human resources, noting in a statement (morning) to the need for attention to the subject of the development domestic production to suit Iraq’s exports with its resources on the one hand and the items imported from the other side.

, and stressed that the possibility of the country achieving self-sufficiency of a large number of goods and materials imported if they were solving the problem of electricity, indicating that the constituents of the state of industry is the presence of raw materials and hands labor market and are currently available and encourage the establishment of national production and covers the need of the market as it provides a lot of money as possible to get lost in the import of inferior materials and cheap goods.

He pointed to the need to protect the Iraqi products to compete with foreign goods entering Iraq without restrictions.

Called to take advantage of the vast oil fiscal revenue in the establishment of industrial projects and various agricultural.

He added that the diversification of sources of national income and lack of dependence on oil as the sole source of income Honhma that Ertkie the level of the economy, which depends on oil as a resource essential to the country’s budget, representing about 85 percent of the rest of the other economic sectors.

demanded Baidhani cut interest rates for loans, industrial and agricultural because of its direct impact in the development process and contribute to the advancement by sectors. noting the importance of developing five-year plans and decimals and long-term economic development – social shaping the country’s economy, stressing the need for expansion in export after the development of the local industry and by strengthening marketing activities and support the activities of advertising abroad.

7-26-13 Stryker: Stryker Blog 07. 26. 2013: Iraqi US$& Gold Reserves verses Exchange Rate.
QUOTE “Central Bank has $76 billion of cash reserves and 7 billion dollars in gold reserves, distributed in the Bank for international settlements as a cover for the Iraqi currency. ”
CBI to bolster gold reserve due to decrease gold price
Let’s see,
Iraq had $10 billion in reserves in 2003 at an exchange rate of 1477 dinars to each $1 US dollar.
Iraq has $83 billion in reserves now…… at an exchange rate of 1166 dinars to each $1 US dollars.
Revaluation of the dinar over 10 years: 311 dinars or a 126. 6723842% appreciation or 1. 26% revaluation annually, each 10 years.
Growth of Iraq reserves over 10 years: $73 billion for a total reserve of $83 billion to cover the Iraqi currency or a total of 830% appreciation or 8. 3% annual growth over each of the past 10 years.
Increase in Iraqi M2 (money supply) of 8. 3% annually, if you believe that number to be correct?
As you can see the dinar has revalued at a yearly pace of 1. 26% but the reserves have increased at 8. 3% each year and so the CBI SHOWS an average increase in the money supply just to balance out the annual reserves at the same pace, 8. 3%. Are they growing the reserves at a record pace to keep up with money supply or are they trying to show the increase in money supply to artificially keep the dinar value down? I believe it to be the latter, here I will explain!
So if you look at this math you must ask yourself; why has the dinar revalued at all if the reserves and the M2 keep balancing each other out?
The answer is simple, if you look at the August 31, 2012 Inspector General’s Report to the US Congress it stated on page 79 that due to the stability of the “market rate” of the dinar as of January 17th, 2012 the CBI revalued by a TOKEN of 4 dinars. A TOKEN to me means that there is much more to come but yet they should not have increased it at all because of the increase in money supply, ACCORDING to the CBI it is increasing at the same rate as the reserves, unless they are hiding the real value from everyone. But they wouldn’t do that right? Wrong!
Let me explain further: We have also heard that the market rate has increased to as much as 1320:1 US$but yet the CBI did not devalue the dinar at all. That is a decrease in value by 154 dinars to each dollar for an extended period of time I must say and according to many articles, so again you must ask yourself this question; why?
Why if the CBI increased by 4 dinars did they not decrease the value when times are tough? It is because it is a smoke screen. The only way to hide something is to artificially balance it in the first place.
We continue to read about the physical dinar banknotes in the market place falling apart and the CBI saying that they will replace it with new ones but the shop owners and taxi cab drives say that the CBI has not replaced them.
Does the CBI have it to replace, I’m sure they do but not for much longer in my opinion because most of it is out of their country now, we investors have it. We have also read here lately that countries have shown much interest in the dinars, so what’s to say they haven’t been speculating on them too?
Here is my theory in a nut shell, they have increased their M2 to keep up with the ever growing auction sales and not with the market itself, they have US dollars to help that out. This is why we have read about the weathered and worn out dinars in the market place for 2 years now come September.
Add Iraq’s other wealth into the equation or find out that the real money supply inside Iraq’s borders are really only 25 or 35 billion dinars now and the dinar outside their borders will in fact be another world reserve currency, like we have read about. Either way this proves that the Iraqi dinar is undervalued and there really is a way to make a lot of money on the internet for the little guys and gals like us.
Have a great day.

Parliamentary economic: File investment does not rise to the size and status of Iraq

07/27/2013 12:00 AM

Confirmed that the political and security situation and routines disrupted activation
of Baghdad, Omar Abdel-Latif
Although the investment environment fertile enjoyed by Iraq as a result conditions experienced during the past decades and that consumed infrastructure, but that the issue of investment did not yet at the required level, which amounts to ambition .

has classified Arab Institution for Investment Guarantee and Export Credit Iraq on the list of Arab countries most attractive for foreign investment last year, coming in twelfth place worth 1.27 billion dollars and the share of 2.7 percent.

committee of economy and investment in the House of Representatives promised this rank weak for a country the size of and the potential of Iraq, especially that the country has a high potential to qualify for the top ranks first in the list, attributed the lack of activation environment File investment in Iraq to the required level to the political and security situation as well as the administrative routine.

Committee member Jassim شنكالي stressed that could Iraq to occupy mattresses in advanced the list of countries most attractive for investment in the world, adding, "but that the administration failed to file investment in the country and put the country at this site."
said شنكالي in an interview for "Center Brief for the Iraqi Media Network," that "Iraq enjoys a geographical distinctive and natural resources are many and great, as well as Other factors that will put the country mattresses very advanced in this list, "noting that the location of Iraq geographical link between the continent of Asia, Africa and Europe makes it a focus of investment countries of the world.

said MP for the coalition of Kurdish blocs that what makes Iraq’s investment environment distinct is its need for each elements of infrastructure due to the conditions experienced by during the previous regime. cautioned شنكالي on the need for Iraq to real leadership manages file investment and working for the benefit of the country away from personal interests and partisan so that they can develop the reality of investment in the country,

noting that the intervention Permanent by intermediaries and beneficiaries led to escape capital as well as the failure to implement and enforce laws properly what caused finding obstacles standing in the face of the investor.

was the report of the Arab Association for Investment Guarantee and Export Credit has shown that the Arab countries attracted foreign direct investment worth $ 47 billion last year.

The report noted that the rise came as aggregate to many factors, increased flows of foreign direct investment received by the 14 Arab countries which Emirates, Algeria, Morocco, Egypt, Tunisia, Kuwait, Oman, Bahrain, Libya, Qatar, Palestine, Mauritania, Djibouti, Yemen, while decreased flows to 5 Arab countries are Saudi Arabia, Sudan, Jordan, Iraq, Lebanon.

While in Somalia flows stabilized at the same levels as last year. According to the report, has replaced Saudi Arabia ranked first among Arab largest host country for foreign direct investment (FDI) inflows totaling $ 12.2 billion, and the share amounted to 25.8 percent of the total investment flows, followed by the UAE ranked the second $ 9.6 billion and a 20.4 percent stake, then Lebanon in third place worth $ 3.68 billion and a 7.8 percent stake.

the report pointed out that the solution in Iraq ranked the 12 Arab worth $ 1.27 billion and a 2.7 share percent, followed by Bahrain ranked 13 worth $ 891 million and the share of 1.9 percent, then Libya ranked 14 worth $ 720 million and the share of 1.5 percent, and Qatar ranked 15th worth $ 327 million and a share of 0.7 percent, and تذيلت list respectively, Palestine, Mauritania, Djibouti, Somalia and Yemen.

part, said a member of the Committee on the economy and investment parliamentary Ibrahim stirrup in his speech, "Center Brief for the Iraqi Media Network," said the investment environment fertile for Iraq could be extended to 3 decades to come, the result of what passed by the country’s conditions wars and political and economic blockade has led to the collapse and stop everything related to the reconstruction of infrastructure, noting that the country needs a huge reconstruction operations in the sectors of agriculture, industry, health, education, housing and others.

POST 26 JULY / JULY 2013 13:40
BAGHDAD / Center Brief for the Iraqi Media Network ( IMN) – A member of the parliamentary Finance Committee that there was no economic damage from the use of the euro in some commercial exchanges rather than the U. S. dollar.
The MP Hassan al-Bayati’s ( IMN), That “Iraq used to rely mainly on the U. S. dollar but adversely affected the euro as needed and the agreement stipulated in each contract. ”
And rule out al-Bayati, “be of the order has no negative impact on the value of the Iraqi dinar during the next phase” .
He said that “some European countries require Iraq to the euro to Tazizaammeltha national globally. ”
He called a number of economists, the government in an economic conference on Thursday to reduce the euro to trade instability in the countries of the European Union.
It is noteworthy that the Iraqi dinar exchange rate has been rising against the U. S. dollar relatively rid Iraq of the provisions of Chapter VII of

CBI in a strong position and can maintain the value of the dinar

07/27/2013 12:00 AM

Head of Mission of the International Monetary Fund (morning):
BAGHDAD – Hussein ثغب Tamimi
stressed the IMF on the need to adopt the process of economic reform and broad, as Usher strengths and imbalances in the joints Economic came in a report the Fund’s Article IV of 2013 on Iraq, which is the assessment annual appreciation on the part of the International Monetary Fund (IMF) to the economies of the Member States in the Fund,

and issue a report accompanied by my assessment of the latest economic developments in those countries, and the expectations of experts Fund for growth in the overall economy as a whole three to five years following the date of issuance of the report.

The section on Iraq, the report is based on the consultative meetings held with the Iraqi side, and the Iraqi private sector and members of the Iraqi civil society, in March of 2013.

economic reform, structural and widespread
head of the IMF mission to Iraq Carlo Sdrallweg in an interview ( morning): Iraq needs to formulate structural economic reform agenda and widespread, and even more importantly, it needs to follow up the implementation of that agenda with all its contents.

There is still a lot of work to be done in the area of public finance, not only in improving the management of the budget, but more important than that to be in the area of improving growth and poverty reduction as well, and pointed to the importance of raising the quality of spending, and this can be achieved, In the first place, by eliminating waste, and direct expenses to the poor even more.

Indicating the need for Iraq to focus on increasing the level of provision of electric power, and the restructuring of state-owned companies owned by the state, and streamline regulations to help ensure its focus on helping the private sector rather than the imposition of restrictions upon, and pointed out that Iraq needs as well as to revive agriculture, including reform of the system PDS has contributed to the decline in domestic agricultural production through large food imports.

We recognize and are aware that all these measures are difficult to perform, and will require time. Therefore, the need for requiring the adoption of a realistic approach and settled to achieve all that.

in question (morning) on exposure of the private banking sector in recent times to attack by the pretext of money laundering and illegal transfer of funds.

Do you see that building?
said in answering We are not aware of any specific cases of money laundering particular, but we recommend that the Central Bank of Iraq to redouble its efforts in promoting a stable financial sector and safe.

In this regard, the commitment of the Iraqi Central Bank Governor on behalf of, and to strengthen the work of the Banking Control encourages us to push for the implementation of this recommendation.

In our view, a lot of work still to be done to improve control over the banks, and examples,supplying banking supervision cadres better, and training courses better, and outsourcing joint (with other government agencies) "co-sourcing" of the functions of the Department of Control banks to the Central Bank of Iraq, to
improve the framework for the
addition to expand the reach of the regulatory business to include government-owned banks to the state.

Moreover, the improvement of the framework for combating money laundering and the financing of terrorism, in line with the recommendations of the Financial Action Task Force for the Middle East and North Africa (MENA FATF),

along with the continuous efforts in strengthening errands control carried out by the Central Bank of Iraq on combating money laundering and the financing of terrorism, it would be that would help in addressing the concerns of money laundering and financing of terrorism and processed.

It must also develop financial infrastructure, such as reporting on the historical background of credits and recordings collateral (assets guarantor), and ways of banking technology, in order to support the performance of the banking sector.

and the Iraqi dinar exchange rate and on the role of the Iraqi Central Bank in the currency auctions. In your opinion, what should the central do about it?

Sdrallweg clarified the matter, saying that we need to believe that the Central Bank releases foreign exchange system at the earliest opportunity where this editorial is possible technically.

We expect that the relaxation of regulations of foreign exchange would provide the funds needed by the Iraqi citizens in U.S. dollars, and to help the Iraqi economy, and reduces the difference in question, which fell fell sharply in fact, after the measures newly taken by the Central Bank of Iraq, which simplified market transactions, and opened it in front of customers.

This means, the minimum, the opportunity to get any Iraqi citizen on foreign exchange, if it wishes to make any transaction ongoing international legitimate, for example, for the purposes of importing goods, as well as for interest payments, or transfers for expenses family.

power bank Central
and he said we understand there همين Co يبعثان the concern on the liberalization of the foreign exchange system.

First, some have argued saying that the opening of the auction probably works on the Iraqi depletion of reserves of foreign exchange to levels dangerously low, thereby undermining the value of the Iraqi dinar.

It also does not believe that this decline in the value of the dinar will happen on the ground because the Central Bank of Iraq in a strong position with him can maintain the value of the dinar, and because foreign exchange inflows from oil revenues are too high.

The CBI has the amount and plenty of reserves amounting to the level of more than 70 billion U.S. dollars, a large sum to a degree sufficient to cover more than the value of nine months of imports, or to cover more than 104 percent of the money before the broad sense; sense that it is equal to all of Iraqi dinars in circulation in addition to deposits.

misuse of foreign exchange
and The second Alhmin is the ability of the central bank to prevent the misuse of foreign exchange in illegal activities.

We do not believe that the currency auctions are the right tool to prevent misuse mentioned. As is the case at the level of international best practices, the IMF recommends that address the concerns of money laundering through the due diligence (or conduct of the study precluding doubt) to customers, and transaction reporting doubtful the Investigation Unit (intelligence) financial, rather than restrict free access to the auction.

Accordingly, the liberalization of auction foreign exchange needs, in parallel with the editing, to be accompanied by a strengthening of errands regulatory carried out by the CBI and other government agencies on combating money laundering and terrorist financing.

Asked about the possibility of moving to a free economy in line with the Constitution Iraq?
drew Sdrallweg that Iraq did not adopt clear economic policy (economic model and clear) and live in a state troubled between a planned economy to him (router) and the free market economy.

and pointed out that the model of the current economic growth, which play a government the dominant role in the Iraqi economy, taking a its limits.

In order for any free economy to develop on a sustainable basis, the government needs to implement a combination of macroeconomic policies, good governance, and to enhance the delivery of services, and the rebuilding of infrastructure, particularly in the electric power sector, in addition to strengthening the business environment,

these measures will support the growth of the private sector, but last but not least, it is imperative for the government to know the limits of the maximum capacity, in order to leave space for the private sector to flourish.

Asked about his vision for an increase in oil production and exports? Do you agree with the official forecast for this increase?

said, assuming that the investment plans ambitious for the Iraqi government will be realized on the ground, we expect to increase oil production gradually, about 400 – 500 thousand barrels per day in each year, to 5.7 million barrels per day by the year 2018 .

However, this outlook depends on the smooth implementation of plans to develop oil fields, and the existence of a relatively stable security situation.

Any delay in the development of oil fields, or in the expansion of energy infrastructure, export, or worsening of the security situation worse, will lead to the growth rate of the lowest in the oil sector.

increased to have to say that our expectations lower to a large extent the expectations of the government, which believes that the production of oil will rise to 9 million barrels per day by the year 2018.

We tend to be more conservative; because we are less optimistic about the pace of expansion in the infrastructure necessary for export – which may be a drawback most important in the face of export, as we are more for the sake of cautious about progress on the project water injection, and increase the number of buoys "SPMs" In addition to the high level of domestic consumption.

additional investments
he stressed mentioned in our three key areas of reform in the energy sector. First Iraq, could benefit from the oil and gas law, which shows on a permanent basis, the roles of government, the private sector and the provinces and territories in the oil sector.

But we know that the draft law of oil and gas was still under consideration since a long time, which deals with a lot of sensitive policy issues; therefore compatibility between all parties involved in the negotiations on the draft law in question is important to reach a lasting good.

Secondly, the situation requires additional investments in electric power production, and the restructuring of electric power producers, and the imposition of tariffs electric enough.

These measures are required in the energy sector to provide a reliable source in the supply of electric power to homes, businesses and industries.

All of these efforts combined will help in the development of non-oil sector, and ultimately lead to more jobs.

electric energy subsidies
The third axis is the necessity of removing the distorting fuel subsidies provided to producers.

In 2011 alone, we estimate the total volume of fuel subsidies of $ (9.8) billion U.S. dollars, or the equivalent of 5.4 percent of GDP.

This is a very heavy cost for a country like Iraq has big needs at the social level and the level of infrastructure.

The electrical energy subsidies create distortions detrimental to the economy, the wheel could discourage investment in the energy sector and in industries that require more intensive workforce, as well as those subsidies create incentives for waste and smuggling.

Therefore, it has encouraged us in our report mentioned the Iraqi authorities to reduce those subsidies, and use part of the savings to increase targeted assistance to those who most need it.

and low income of most Iraqi families, what and mechanisms of action needed to develop household economy?

Allweg he dominated both production oil and the public sector on the economy of Iraq. The government is directing the path of the income generated from oil exports to hire / Run Iraqis in the public sector, and to provide government subsidies.

In our view, the model of economic growth this take has its limits. The oil sector and the government can not create enough employment opportunities for Iraqi citizens who accelerating population growth.

In addition, it has resulted in decades of sanctions and conflict for a loss in human capital and the destruction of infrastructure, which prevents the government from providing basic services to citizens, including social safety nets that work.

reduce widespread poverty and unemployment increased, saying, We believe that the authorities Iraq should focus on the creation of an enabling environment for private sector development.

We’ve talked a lot about sound economic policies in the areas of public finance and monetary areas.

In order to develop growth, and reduce poverty and unemployment, it is incumbent on the Iraqi economy to be strong structurally.

This reality not the case in Iraq at the present time. There is a lot of things that still need to work on it, and we Anttriq in our report only to the key priorities for structural reform, including.

credits granted and between in the forefront can say that the existence of financial sector efficient and large to a sufficient degree acquires paramount importance for economic growth, and, according to what experience shows in many countries over a long period of time.

In Iraq, the financial sector is still weak, to a large extent but just to give an idea of this weakness, the percentage of "Total credit / loans to the economy," amounting to about 29 percent of GDP, compared with 55 percent in the countries of the region.

However, this figure also includes a number great deal of credit granted by the state-owned banks State-owned government companies owned by the state, so if we look at the total credit granted to the private sector, they represent only 15 percent of GDP, and this percentage is very low.

Clerics sign a document ((social peace in Iraq))

07/27/2013 12:00 AM

Included the criminalization and conviction and accounting of transmitting toxins segregation
Baghdad, Tariq al-Araji
said the presidency signed 54 elders and the reference religiously on the document "social peace in Iraq," which is scheduled to be activated in Mecca during the pilgrimage season.

includes document criminalize and condemn and hold all defaulters who blow off the toxins sectarianism and poisons discrimination in the social fabric of the judiciary and the executive under Iraqi law.

cohesion of the National Alliance
Vice President Khodair al said on the sidelines of the evening organized by the Presidency of the Republic, the presence of nearly 60 personal Senate and references Sunni and Shiite, to discuss the document of honor "social peace in Iraq "and sign it.

was the vice president has called on all political parties to commit to a document announced last May, and included the maintenance of national unity and dialogue between the political forces and away the media launch of the differences and stand firmly particularly those who incite violence and sectarianism and criminalize all terrorist activities practiced by the enemies Iraq.

said Alkhozai in his speech, "Center Brief for the Iraqi Media Network": that "the National Alliance will be more cohesive and versatile in the upcoming elections," denying what تناقله other about divisions Alliance and ineffective.

, and pointed out that the country is in crisis several because of the attitudes of some politicians which reflected negatively on the overall life of security, economic and trade, noting that "the presidency of the republic and the clergy and references to baptize always to the meeting between the politicians to improve the atmosphere between them."

and the Vice President that "the responsibility now lies with everyone to fend off conspiracies taking place in the country through cohesion and unity between the spectra of the people. "

of national unity,
for his part, stressed the head of Sunni Endowment, Ahmed Abdul-Ghafoor Samarrai on the need to unite the people, alluding to target some of the preachers of the Sunni Endowment, who embrace the claims of national unity.

was Vice President of the Republic has revealed a proposal to form a committee of theologians to dialogue with the politicians to resolve the problems in the country, and warned of a campaign by some of the weak people want to destroy Iraq, asserting that "the political maturity of the Iraqi unable to overcome all challenges and threats."

revealed Samarrai killed 300 Sheikh continued to stop the Sunni at the hands of extremists during the period the past, stressing the need to adhere to Baghdad document which he described as "wonderful" and that the process be activated in Mecca is positive.

And mosques that have been overrun by including mosques (Paradise and Atkp and Faraj Ali Saleh), Samarrai said: "The Presidency of the Republic and the government worked to restore mosques to Sunni Waqf and شددتا on the need to hold negligent in this matter."

striking terror
For his part, the President of the Hajj and Umrah Muhammad Taqi al-Mawla the need to adopt all shades of the Iraqi people and one stance on issues to ensure the country’s spare evil plots hatched in secret, stressing the importance of striking
terrorism of al-Qaeda and extremists in any name whatsoever or under any title.

As Vice President of Shiite Endowment Sheikh Ali Al-Khatib, has pointed to Iraq’s ability to repel sectarianism, saying: "Iraq is the unity of factions, is able to be a sense in uniting the Muslim world as a whole",

citing that "the Islamic world and Iraq in particular has the ability to accommodate the sectarian conflicts and work to unite the people, hence the Iraqi experience should proceed to the Islamic nation, especially that most Muslim countries suffer the same Maanah the Iraqi people.
signing of the document

, in turn, announced Advisor Vice President Khalid Al Mulla said the number of signatories to the document amounted to 54 cleric and elders and a religious reference of the Sunnis and Shiites, noting that he has been working extensively on the discussion of the document to be integrated from all sides ready to be activated and signed in Mecca during the pilgrimage season.

He suggested a number of elders and clerics and scholars form a commission or committee know the good offices of the document and is working on bringing ideas between politicians and the political blocs to unite and overcome the political crisis that hit the country, while stressing Alkhozai that this matter will study within the presidency.

indicated that the MP Khalid al-Asadi has recently revealed for "Center Brief for the Iraqi Media Network," the existence of intensive contacts with all the political blocs to deliver the initiative launched by the Alkhozai, and to inform political leaders to its principles and its provisions.

said Asadi that everybody agreed on naming the document (b social peace in Iraq).

– U. S. crude oil prices moved lower on Friday amid lingering concerns that the Chinese and U. S. economies continue to battle headwinds, though better-than-expected consumer sentiment in the U. S. data curbed losses.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD104. 50 a barrel during U. S. morning trade, down 0. 97%.
The September contract settled up 0. 09%, at USD105. 49 a barrel on Thursday.
Earlier this week, a preliminary reading of China’s HSBC manufacturing PMI fell to 47. 7 in July from a final reading of 48. 2 last month. Analysts had expected the index to rise to 48. 6. A reading below 50 indicates a contraction, which continued to dampen spirits on Friday, as China is the world’s second-largest consumer of oil.
Meanwhile in the U. S. , the Labor Department said Thursday that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000, which dampened spirits somewhat though more upbeat consumer sentiment data provided some support.
The Thomson Reuters/University of Michigan consumer sentiment rose more than expected in July, hitting 85. 1 from 83. 9 in June.
Analysts had expected the index to rise to 84. 0 this month.
The report also said that inflation expectations fell to 3. 1% this month, from 3. 3% in June.
The U. S. is the world’s largest consumer of crude.
On the ICE Futures Exchange, Brent oil futures for September delivery were down 0. 56% at USD107. 05 a barrel, up USD2. 55 from its U. S. – offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.