DrDinar Blog

This has nothing to do with a revaluation, and the current version of the Iraqi bank notes apparently will be of the same value.

According to UAE’s Al Ittihad newspaper dated March 26, 2012 replacement processes for the Iraqi Dinar banknotes will cost the country’s state budget of about $150 million or 172 billion dinars. Quite a bit of money just to change the look of the notes.

Officials want Iraqi dinar to be printed in Arabic, English and Kurdish language. The archaeological features of the country were even regarded to be part of the new notes idea. The Kurdish language is highly regarded as constitutional in terms of government transactions.

However, the cost that it would take on the process printing is said to be around $150 million – this includes print, transport, insurance and the work outside of the regular office hours. Is Iraq capable to spend this huge cash?

The said matter was alleged by Iraq’s Deputy Governor of CBI, Mohammed Saleh, when he released a statement saying, “The studies printed a new series of Iraqi currency started since 2005, and began correspondence with the Committee on Economic Affairs in the Iraqi government in 2007.”

This seems that it has taken up more than half a decade of planning. Saleh stressed that the project for the printing of the new currency will be characterized under the best security in the world.

Furthermore, Iraq just signed a contract with 4 big companies to print the notes and the coin variants of the currency. So, why take all the fuss? The idea is really simple – restructuring the currency will reduce the number of papers being circulated across the market thus, it will simplify and fasten Iraq’s payment systems.

So, when will this new Iraqi banknote look take its full occurrence? AKnews announced that the process will soon take effect this year in the month of September. In line with this, CBI plans to re-print approximately $26 billion worth of dinar.

One member of the Iraq’s economic committee of the Council of Representatives, Abdul-Hussein Abtan remarked, “The agreement includes granting the process of switching currency for a full year where both the old and new currencies will be dealt in the market during this stage.”

Abtan added, “…the process will contribute to dealing with inflation and facilitating economic cooperation with international banks and reducing social differences in the community.” This seems to detail the feared money laundering by some government officials who are also discouraging the CBI to stop the re-printing process.

Central Bank of Iraq said that it might consider requirements from the Council of Ministers as to determine whether the said project will need a law or not.

This idea from CBI was even supported by the financial committee of the Council of Representatives stating that if there would be a law to be implemented, the problem with inflation would significantly be addressed.

Well, not everyone believed that this could be a great move but, at least CBI reckons this movement as something positive to build up the economy.

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Written by DrDinar
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Iraq To Host Arab League Summit For 2012

Will Baghdad accommodate all the Arab leaders and kings in one table at the same time? Where will they accommodate the guests?

Iraq’s capital city is getting a major make-over. As part of this make-over, Iraq has chosen Al-Rasheed hotel as one of the venues for the Arab League Summit this March 29, 2012. The hotel was renovated last year after it was torn by recent war.

For Baghdad, this isn’t just an ordinary conference but, a great proclamation to the Arab world that the country is accepted (again) as one of the great players in the Arab continent given the fact that the country has been pumping around 20,000 barrels per hour – not to mention that it hit its biggest oil output of more than 3 million barrels in one day last February since 1982.

Moreover, the country bought 400 armoured Chevrolet cars from the US worth about $160,000US a pop delivered. These expensive vehicles will ferry the Arab dignitaries and leaders in the upcoming summit. In return for supplying armoured cars for the dignitaries, the country will be exempted from the annual Arab League Membership Payments.

To note, this Arab Summit will be the first meeting since 1990. So, that’s around 22 years. This gives the country the deepest drive among any other Arab countries to host the conference. Arab leaders are expected to come. Iraqi Deputy Foreign Minister, Labid Majid Abbawi also announced that the UN Secretary-General Ban-ki Moon will be present in the upcoming summit (although there have been analysts who are skeptical if UN Secretary-General will really come).

So, what’s the agenda for this year? Leaders and kings who confirmed their attendance are to discuss the economic situations of Yemen, Tunisia, Libya, Egypt, Syria and the peace and order situation in Iraq.

Although, Syrian crisis is expected to be tackled in the summit, Syria won’t be at the meeting after being suspended. Who could have suspended Syria from the conference? Actually, it was the Cairo-based bloc that suspended Syria due to its dangerous crackdown on dissent. As a matter of fact, it is seeking the support from UN to oust Syrian President, Bashar al-Assad to step down from his deputy.

To the Iraqi government, Arab Summit predicts great challenges and the Iraqis are well aware about that. Is Iraq ready to meet the challenges amidst the ongoing violence in the region?

Iraqi Foreign Minister, Hoshyar Zebari released a statement in a television interview last February, affirming that the region is capable to host the summit, “We gavbe held.”

Chief of staff for the Baghdad security command center, Lieutenant General Hassan al-Baydhani even said that security forces hoped to keep the Iraqi capital “functioning” for the summit.

“We are working to keep Baghdad functioning normally during the summit, we do not put to put in place a curfew, but maybe necessity will require that. Certainly airspace will be limited only to aircraft carrying top officials visiting Iraq for the summit, with commercial air traffic set to be barred.” Baydhani added.

Prime Minister Nouri al-Maliki is also determined hoping that the Arab summit will attract more business in the region. The Iraqi government believes that a successful Arab League Summit would give Iraq the chance to reassure its neighbours that its security forces are ready to handle big events with or without the US troops.

To some analysts, world leaders are not expecting any huge stab from the conference but, for war-torn Iraq, simply holding it is a world-class victory for Iraq and it’s currency, the dinar.

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Written by DrDinar Blog
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$100.5 Billion Dollar 2012 Iraq Budget Review

At last! Iraqi parliament made up their minds. Just last February 23, the much awaited budget or should we say, overdue budget legislation, for Iraq this year was confirmed and approved under a meticulous power-sharing agreement between Kurdish political blocs, Sunni and Shi’ite personnel.

Shouldn’t these political parties be more united than ever before? As you all know, this budget legislation should have been approved earlier if not because of the disputes formed when Nuri al-Maliki, the Shi’ite Prime Minister, could not agree with two of the Sunni officials’ budget items, in fact, the disagreement between the two parties lasted until the end of January.

Well, the budget items which were discussed were not as easy as everyone would tell. The session started in the afternoon and ended until midnight. Iraq couldn’t be more serious, could they?

With 248 deputies headed by the House Speaker, Osama Najafi, these significant individuals did the voting and passed the budget legislation successfully – although, the processes and discussion for the budget items were not easy. The House projected a budget deficit of $12.6 billion.

Well, Iraq officials could not hold this deficit as a threat to their plans because it will be covered by the Development Fund of Iraq account at NYFR. Right at NYFR or New York Federal Reserve, Development Fund of Iraq account was established after the US-led invasion last 2003. This account was directed to the country for reconstruction and Iraqi programs.

To wrap it up, $14.6 billion or approximately 17 trillion dinars for Iraq’s security forces, $31.7 billion goes to the country’s investment projects, and the rest for covering citizen’s salaries and food programs.

So, if we would calculate, at about $53 billion goes to food ration items and salaries. Besides, 17 trillion dinars allotted to sustain the peace and order situation of the country is not a bad idea after all.

Truly, Iraq Parliament sees violence as one of the major threats against its goals ever since the US Troops ended their stay in the premises, not to mention that it seems to build friendship with Iran.

Furthermore, this year’s allotted budget was based on the active crude oil exports per year – the country could uphold at around 2.6 million barrel of crude oil per day with 175,000 barrels from the Kurdistan region.

As the fourth largest oil reserves on earth today, Iraq targets at a maximum of 8.5 million barrels per day by end of 2017. The country’s action towards rebuilding its oil industry is at least faster than a turtle. Will this make Iraq as one of the world’s top crude oil exporters?

No one could deny the efforts showed by the people’s representatives in the council just to adapt the budget legislation. They believe, or so it seems, that this is good news for the citizens.

Last year, the allotted budget for the country was $82.6 billion which was based on the 2.2 million barrels of oil exports per day with oil price of $76.5 per barrel. In other words, this year brings an increase of about $17.9 billion to the annual budget.

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Written by DrDinar: 2012 Iraq Budget
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