Archive for July, 2011

Central Bank Iraq Collecting Bank Notes

Friday, July 22nd, 2011

Central Bank Iraq Collecting Bank Notes

It has come to my attention that speculation still continues in regards to Chapter VII and whether or not it is lifted. There are some select few individuals who continue to argue that it has been lifted. I’m still not quite sure why some are still arguing that issue when I have provided link after link of credible sources that confirm Chapter VII is still ongoing.

If there are some who are not yet convinced maybe you may need more reassurance. Read on.

The Prime Minister of Iraq, Nuri Al-Maliki, was recently invited to China. The Chinese government welcomed the delegation from Iraq which was led by Prime Minister Nuri Al-Maliki and other high level ministry officials. The MENAFN news web site just published an article referencing how PM Maliki asked the President of China, Hu Jintao, for his support to get out of the UN Chapter VII. China has a permanent seat in the United Nations Security Council and has a single vote to remove the remaining sanctions against Iraq. China has a major role in this which may be the reason PM Maliki has asked for the support in being removed from Chapter VII.

China has influence and the money to help facilitate this for Iraq. In the near future, you will see PM Maliki visiting other members of the United Nations Security Council (France, Russia).

Iraq-China’s Support needed to get rid of Sanctions – Maliki
http://www.menafn.com/qn_news_story_s.asp?StoryId=1093430034&src=RSS

On 9 July posted in the Aswat al-Iraq news was a recent quote from the Kuwait Deputy Prime Minister and foreign Minister Mohammed al-Subah. It read “Iraq must complete its implementation of all UN Security Council resolutions, being the only means for it to get out of UN Charter’s Article 7,” Subah told Kuwait al-Qabas newspaper.

Kuwait calls on Iraq to implement UN Security Council’s resolutions, in order to get out of UN’s 7th Article
http://en.aswataliraq.info/Default.aspx?page=article_page&c=slideshow&id=143651

As much as some people would like to think that Kuwait is the number one investor in Iraq, they simply are not. The foreign investment in the country of Iraq has doubled in 2010 however, Kuwait is not the top investor. Kuwait has never been rated in the top 12 nor have they ever been in the top tier of private investing in Iraq. The number one country that is currently investing in Iraq is Turkey with 14 billion dollars. You can view the list of foreign countries who have invested in Iraq by clicking on the urls below.

Foreign Commercial Activity in Iraq
http://www.iraq-businessnews.com/reports/new-report-on-investment-in-iraq/

Foreign Investment Almost Doubled in Iraq in 2010
http://musingsoniraq.blogspot.com/2011/04/foreign-investment-almost-doubles-in_29.html

The appointment of Ministry officials:
The current acting Ministry of Defense Maliki Jassim al-Obeidi is not the permanently appointed MoD official. Al-Obeidi is only temporary in this position until a new candidate is selected.

The Extension of UNAMI:
The United Nations Assistance Mission for Iraq (UNAMI) will vote on the extension for the continuing mission in Iraq on 28 July. The UNAMI mission will be extended in Iraq. The mission will continue for years to come. They are currently moving their compound from one location to another. Iraq needs the UNAMI mission to continue its work to benefit the Iraqi people. They are not going away.

The Iraqi Currency Update:
The information I am getting is that the Central Bank of Iraq is currently removing the 25k notes from circulation. This is the only banknote that I am told is being removed. This is a slow and methodical process and will take 2 -3 years to accomplish this task. As stated in the last post, the actual new design of the new Iraqi currency has been completed. There are 6 new de-nominations as of now in the draft to be implemented in the future. Of course it’s always possible that all this could change as the Central bank planning committee is still in session.

In regards to the much speculated RV, nothing will occur in the month of July nor in the month of August, the start of Ramadan. Ramadan is approaching in a few weeks starting on either 1 or 2 of August depending on if your Shia or Sunni religious sect.

Thank you for reading.

American Contractor

E-Mail: ac@americancontractor.com

Skype: americancontractor

Posted by American Contractor on July 21, 2011 12:43 AM | Permalink

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3 Reasons Why Dinar Would Make For A Very Expensive Wallpaper

Tuesday, July 12th, 2011

3 Reasons Why Dinar Would Make For A Very Expensive Wallpaper

For quite some time, there have been millions of individuals who have dipped in to the anticipated revaluation of Iraqi Dinar with a purchase of the currency.

For more than seven years there have been numerous names, like Donald Trump (The person who owns the Trump International Hotel, Trump Marina Hotel and Casino and Trump Taj Mahal Casino Resort), who have engaged in its circulation by purchasing as much as they can for future revaluation.

Dinar gets a great value perceived value to every individual in all the corners of the globe when world leaders, celebrities, and famous investment advisors like Jim Cramer endorse the currency on TV. This solidifies the possibility that Iraq money can be an expensive wallpaper in the next years. Have you yet to see someone put their money where their mouth is and plaster their dinar on a wall in pictures? No.

Here are 3 major reasons why we can concretely conclude that Iraq’s currency would make an expensive wallpaper:

1. When we talk about the state of revaluation of the said currency, we can wrap up that its value is constantly inclining. Its value is slowly and constantly on the rise compared to any other currencies in the world market. Be conservative, were talking about comparing Dinar to other world currencies here.

On the mid of April 2003, 1 USD is equivalent to 4000 IQD but when we check on its current value for the year 2011, we will be presented by the fact that 1 USD is now equivalent to 1175.5 IQD. This has been a great fact that we can look forward. Amidst the negative rumors about the downfall of the currency’s value, we still can be positive in expecting for greater value.

2. For a currency to move forward among the competition of the world market, it should have a great foundation. What do we mean by this? In order for a country to produce higher value on its currency, it should have a promising economy. Economic growth is the primary prerequisite for the currency to go farther. So, how can this economic growth be attained? There should be peace. Fortunately, Iraq has been a peaceful country for quite some time now after its horrible war with the US troops because of the cruelty of its former leader Saddam Hussein.

The US troops in Iraq are slowly being removed from the premises of the country because the country showed extensive progress. The former leaders are replaced by new deserving leaders. Its government is changed by having three new states. With this formal legislative government being continually observed, the country will have peaceful atmosphere.

3. The stock market of Iraq or popularly known as the ISX (Iraq Stock Exchange) has quite done well in the past five years. Way back 2004, it only had 15 collaborative companies but now it already has over 100 stable companies. These companies have been performing excellently in the stock market of Iraq for more than five years. This gives us an explicit idea that we can confidently invest in Iraq.

The Central Bank of Iraq has even ensured domestic price stability with accordance to the proper financial system agreed by the UN. This guarantees to a more promising profit if we invest in the country’s currency. As long as we read carefully the terms and conditions and possess the proper information then we can get the most out of every dinar investment.

There are lots of reasons that can concretely support the idea that Iraq currency would become an expensive wallpaper. Discussing all of those reasons might take us for more than 24 hours. The country is in constant progress and for the next years it will continually improve. And as for us, we just need to be aware of the possible opportunities that it can offer.

Place your bet! Given another 5 to 10 years, the currency of Iraq will be included in the list of the most expensive wallpaper in the world.

*********************************************
Written by Darren Chabluk for http://www.DrDinar.com
Consult with a certified financial advisor before investing
And only invest what you can afford to loose. This article
May be reprinted as long as this link is active.
*********************************************

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American Contractor Clearing things up!!

Monday, July 4th, 2011

American Contractor Clearing things up!!

It appears that my last post may have caused some confusion amongst a few readers and I would just like to begin by clarifying something. Dr. Sinan Shabibi is NOT under house arrest. That is not the case and it appears that I was once again, misquoted. Dr. Shabibi can not leave the country for the time being. That is all. This is not the same as house arrest. How long this order will be kept active is anyone’s guess. I have no other information on this only that I have witnessed him being served with the order. The Arabic Translation from the written order in English stated “Forced Residency”. This order was given after the meeting with the Council of Minster on June 19th. This was when Dr. Shabibi was advised not to leave the country. It is important to note that Dr. Shabibi is one of two people in the CBI that will be asked to present the Re-Denomination report to the Council of Ministries when asked in the future.

When I recently wrote that Dr. Shabibi did not attend the 2011 International Arab Banking conference in Rome, Italy I stated that because it is FACT. He was NOT there. The only thing I can tell you is to look at and review all the news articles that came out in regards to that meeting and I challenge anyone of you to find even one article quoting Dr. Shabibi from the Arab Banking Summit. Anyone saying he was there is mistaken. The confusion might stem from all the news articles prior to the Arab Banking Summit listing him as a guest speaker. However, you will discover that there is not one article quoting him at the Summit event. It is customary for him to speak at these meetings when he is an attendee. Dr. Shabibi was quoted in prior Summit meetings in 2008 and 2009.

Chapter Seven

Contrary to what a few keep saying, Iraq and Chapter Seven will most likely continue till the next review by the United Nations, in December 2011. In another twist, Kuwait’s newly planned port, will more than likely obstruct the commerce of Iraq’s only main deep water port. The Kuwait government has assured the United Nations that the new port would not violate the sovereignty of Iraq. This will continue to be an issue in the months to come as Iraq is challenged again to be released from Chapter Seven. The Iraqi port has yet to be expanded and rebuilt due to lack of funding.

There is a lot of disinformation in regards to the Erbil agreement. The word out there is that PM Maliki has to give up power and this is just not true. PM Maliki does not have to give up his power he just has to conduct Power Sharing with the al-Iraqiyah list leader Iyad Allawi. PM Maliki is against the sharing of power at this present time.

The Development Fund for Iraq
Some people appear to be confused in regards to what is happening with the DFI fund. The account which the funds are located are in the Federal Reserve Bank of New York and will remain for years to come. The fund will most likely have a name change although the name has not been revealed as of yet. 5% of the proceeds coming from the oil sales each month goes to a special account the United Nations has set up to pay for the reparations for Kuwait. Iraq still owes 25 billion dollars to Kuwait.

Contrary to what some are claiming, Dr. Sinan Shabibi has never said that he will RV the currency to meet the Iraq budget.

Another false statement made, the Iraq inflation rate is currently 7% and is rising due to increase in import prices not because they don’t have a tradable currency.

Regardless of all the disorganization and pace of a snail, Iraq continues to make progress and strides in the banking sector as well as the overall economy. I am hopeful that we will be able to speak more positively in the coming months about all the advancements and progress being made.

Thanks for reading.

E-mail: ac@americancontractor.com

Skype: americancontractor

Posted by American Contractor on June 30, 2011 9:20 PM |
http://www.americancontractor.com/2011/06/american_contractor_clearing_t.html

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