“… There are discussions. The reserves cannot be touched except for foreign exchange stability.”

Other than that, no big news today on the Iraq Dinar Speculating front, at least – none that has been confirmed. As some of you know, Dinar Speculation (DS) has an inside source at the CBI with some interesting information. I would like to make a public apology for withholding the exact details, but we are only 90% confirmed at the moment. Stay tuned.

Related posts:

1. 70bn Iraqi Dinar stashed, reserves won’t be touched!
2. Economic forum in Iraq wraps up…
3. Some thoughts on the ISX…

U.S. slows cash flow into Iraq, Afghanistan
By Kris Osborn

The U.S. government is slowing the flow of dollars into Iraq and Afghanistan as part of a push to build up the local currencies, banking systems and economies.
In the effort by the State and Treasury departments and the Army, all U.S. payments to local vendors in Iraq and Afghanistan will be made by electronic transfer starting Oct. 1, said Brig. Gen. Phillip McGhee, director of resource management, Third Army.
In recent years, billions of U.S. dollars has flowed into the coun­tries.
“There was no banking struc­ture, there were no financial insti­tutions. They either didn’t exist to begin with or they col­lapsed after the start of Opera­tion Iraqi Free­dom,” McGhee said. “We went for years revert­ing back to what we know and can do very well, and that is put a lot of cash out there.” But that approach invited corruption and theft, tied up U.S. troops as security guards and gave insur­gents a key financial tool.
“Insurgents and al-Qaida prefer to use U.S. currency,” McGhee said. “They can use that anywhere in the world, so the sooner you get that out of there, they will have to find another currency.” But the primary reason for the switch, the general said, was to give Iraqis and Afghans more con­trol of their recovering economies. Using local currency boosts con­fidence in local governments, one analyst said.
“For the long term, this is good for the country to the extent that people see the Afghan and Iraqi governments as providing stable institutions. It does build some confidence,” said Keith Crane, who directs environment, energy and economic development pro­grams at Rand Corp., a California­ based think tank.
The flow of U.S. cash is already drying up. U.S. payments will move through a web-based Defense Department service called “Wide Area Work Flow.” That allows the government to “write contracts to the vendors in U.S. currency that are paid in local currency,” McGhee said. “If you are a contractor and your con­tract was written through [elec­tronic funds transfers] — you can see where your payment is in the system.” The funds will be sent to local banks that have been certified ready to handle e-transfers, where they will be available for the ven­dors to withdraw in local currency. Reducing cash payments saves the Army money. Each transac­tion costs about $32 a payment, according to an Army news release.

(Hat tip to one of the readers of DS, please claim your credit in the comments if you wish it.)

Regardless, it’s a good sign that they are moving forward!

Article below:

The Iraqi government has approve 5a8 d a draft Oil Law. The accord does represent a major rapprochement between Baghdad and the Kurdish Regional Government. However, the initial approval may be the easy part in the process. The draft is only an outline and pressure is building to negotiate details. With additional opposition to the move developing, the prospect of finalizing legislation remains in serious doubt, according to an analysis published by Caspian Investor. 

Caspian Investor is published by WorldTrade Executive, Inc. and provides unequaled news and analysis of energy sector developments impacting the countries of Central Asia and the Caspian Sea region. It includes extensive coverage of Iran and some details of Iraq as it impacts regional markets. 

That still may happen in practice 

The law was approved without any details. 

317 The Iraqi Cabinet approved a draft of the long-awaited Oil Law on February 27. The bill now moves to the parliament. Sources told Caspian Investor, however, that significant problems remain in securing passage. 

Kurdish Support Vital 

That the bill has made it this far is a result only of a last-minute decision by the Kurdistan Regional Government (KRG) to back it. “The support, however, is for a broad outline accord,” one source close to the negotiations told us on February 28. “The details of actually dividing oil proceeds will present a major future obstacle.” 

Majority Shiite factions are supporting the initiative, at least in its present general version, with the Sunnis expressing reserved support since they remain included in the partition of revenues from sales. There had been genuine concern among the Sunnis, now a minority of the population and controlling only areas of the country without significant hydrocarbon reserves, that the accord would leave them with no oil revenues. 

“That still may happen in practice,” notes a Sunni member of the Oil Ministry. “The law was approved without any details.” According to the draft, oil sales will comprise a single fund controlled by the central government and redistributed throughout the country based on population. The regions will have authority to negotiate and sign contracts within the contract guidelines set out in the law. Unfortunately, the government has yet to propose any of these contract specifics. 

Other recent articles in Caspian Investor are: 

How Serious is the Iranian Push for a Natural Gas Cartel? 

Kazakhstan Enters the Russian M&A Market 

An Interview with Vagit Alekperov: The president of Russian crude leader LUKOIL. 

For more information on Caspian Investor or its related publication, Russian Petrolem Investor, contact Jay Stanley, +1 978 287-0301. or go to http://www.wtexecutive.com and review the energy section.

… Baghdad Motor Cars Servicing is issuing 200% paid up shares at the value IQD (1) per share for those shares owned prior to holding their general assembly meeting. You are kindly requested to submit your signed buy requests to purchase the paid up shares…

You know what that is, right? Free shares. Free shares = free money! More:

… Ready Made Clothes has announced that it will be issuing 41.718% paid up shares at the price of IQD (1) per share for those shares owned prior to holding its general assembly meeting. Investors are kindly requested to …

Yep, more free money! More:

Dear Warka Investors,

Please note that Palestine Hotel has announced that it will be issuing 47% free shares to its fine shareholders.

Getting the picture yet? Well, here’s one more:

… Mamoura Real Estate has announced that it will be issuing 15% free capital shares…

Pretty amazing, huh? All of those announcements were made within the last three weeks. I was personally the recipient of 2 of them, and I am in the process of buying into a few more stocks.

This is, of course, my personal opinion and I am not a financial advisor.

I’m just a wealthy guy who knows the value of free money. Best regards to you and yours.

Now for the poll question – are you invested in the ISX?

Someone please tell me how the article was translated by google to include a famous Disney character, though! Article:

Sign adviser CBI Mzarmohamd for Iraq to become of the oil-producing countries developed during the next two years if entering Iraq through the gate of the oil investment.

وأكد صالح أن الاستثمار سينعكس على تطور الواقع الاقتصادي في البلاد نتيجة تنوع موارده، وهو ما سيؤدي إلى ارتفاع قيمة الدينار العراقي: The benefit of that investment will be reflected on the evolution of the economic reality in the country by the diversity of its resources, which would lead to a rise in the value of the Iraqi Dinar:

وأشار صالح في حديث لـ”راديو سوا” إلى أن العراق يحتفظ بمعدلات عالية من العملة الأجنبية تغطي السيولة المحلية ما يدفع إلى استقرار الدينار العراقي في تداولات سوق العملات وبالتالي يحفظ الاستقرار الاقتصادي: Salih noted in an interview with “Radio Sawa” that Iraq retains high rates of foreign currency cover domestic liquidity is paid to the stability of the Iraqi dinar in trading the currency market and thus preserve economic stability:

فيما أوضح الخبير الاقتصادي أسعد العاقولي أن سعي عدد من الدول الأوربية للاستثمار في العراق سيرفع من موارد البلاد وسيدعم قيمة الدينار في المستقبل، ما يؤهل العراق للدخول في الاستثمارات الخاصة في مجال الغاز: The economic expert explained that the happiest bugsbunny attempt by a number of European countries to invest in Iraq will raise the country’s resources and will support the value of the dinar in the future, as Iraq prepares to enter into private investments in gas:

وكان صندوق النقد الدولي قرر منح العراق 1.8 مليار دولار لدعم السيولة النقدية واحتياطيات البنك المركزي العراقي، فضلا عن إنعاش المشاريع التنموية. The International Monetary Fund decided to give Iraq $ 1.8 billion to boost liquidity and cash reserves of the Central Bank of Iraq, as well as for the recovery of development projects.

It sure would be handy to know how to read arabic… If someone could comment on this article with firsthand knowledge of the translation, it would be appreciated!

Test pumping is set to begin soon in the Nassiriya field, part of the al-Geteaa area that is about 380 km south of Baghdad. Expected output is 15,000 bpd – they will only be utilizing 3 of 5 wells in the field.

State run South Oil company director Dhiaa Jaafar states that production will begin in a few days.