“… 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…

BAGHDAD / Aswat al-Iraq: Negotiations will be carried out next week in Amman – Jordan between the Central Bank of Iraq (CBI) and the International Monetary Fund (IMF), an advisor from the IMF said Monday.

The two sides will meet as part of the preparations to sign an agreement that grants Iraq a loan of around 1% interest.
“The negotiations will start on Monday Sept. 29, 2009,” Modhihir Mohammed Salih told Aswat al-Iraq news agency.
He said that the low-interest loan aims at activating the Iraqi economy.
“The loan has a condition that the Iraqi economy should be reformed,” Salih said.

I love Iraqi economy reform! Post comments if you have them, thanks for your contributions.

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.)

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!

Foreign Minister of Turkey, Ahmet Davutoğlu, read a statement reaffirming it’s commitment to Iraq and also reaffirmed its full support for the United Nations Assistance Mission for Iraq (UNAMI).

Departing UNAMI leader Staffan de Mistura says the last two years have been highly successful in changing the way Iraq is viewed and credits it to hard work on everyone’s part.

We have together helped to turn the page on how the Iraqis view us, the Organization, the international community and their leaders. And we have contributed to Iraq assuming a new standing among the world community as an increasingly stable and sovereign nation.

Iraq’s representative (HAMID AL-BAYATI) noted a marked decline in violence compared to last year (down 76%!), impressive turnouts for voting, and a major influx of people returning to Iraq. He outlined the upcoming elections in July 2009 and January of 2010… to which Turkey’s Foreign Affairs Minister, Mr. Davutoğlu said Iraq had

…a bright future that was now within reach. And, given what had been achieved in the past six years, there was reason for optimism.

US representative Susan Rice stated that Us will withdraw it’s combat troops from Iraqi cities, towns, and villages no later than the end of the month (June 2009), paving the way for ALL US troops to be out by 2011. The US will continue to build a strategic alliance with Iraq.

The UK, represented by Philip Parham, strongly supports UNAMI and plans to be out of Iraq by the end of July, but will continue to provide assistance where needed.

Iraqi Rep HAMID AL-BAYATI notes that much debt has been repaid: Specifically, he pointed out that Iraq had recognized Kuwait and its borders in accordance with relevant Council resolutions, and both countries had continued to cooperate towards the maintenance of border pillars. Among other measures, he also said that, through April, Iraq had paid some $27 billion in total compensation. However, there was still some $25 billion due that was a heavy burden on Iraq, which needed those monies for services, reconstruction and development.

JEAN-MAURICE RIPERT ( France) added support for UNAMI and stressed importance on borders (Kuwait and Kurdistan).

Jorge Urbina for Costa Rica urged Iraq to continue progress on the political front. However, Costa Rica does not approve of the death penalty use and wants more human rights movement to take place.

RUSSIA – Vitaly Churkin is concerned about security and doesn’t feel UNAMI is doing enough.

China (La Yifan) believes Iraq is still facing challenges, but supports and is confident in future success.

MICHEL KAFANDO ( Burkina Faso) stressed the importance of holding the course for various reasons. “No effort, therefore, should be spared to restore security quickly and definitively to Iraq.”

THOMAS MAYR-HARTING ( Austria) echoed Costa Ricas sentiments regarding the death penalty, but called for renewed efforts to combat attacks against civilians.

Mexico representative Claude Heller also opposed the death penalty, but supports the progress in Iraq and encouraged further success via UNAMI.

Croatia rep Ranko Vilovic addressed corruption and supported UNAMI. He also made a comment encouraging Iraq to move forward with the HCL (hydro carbon law).

Libya speaker Ibrahim Dabbashi supported UNAMI progress and called for a removal of all foreign military troops, stating that only harm is being done by the presence of foreign military.

Le Luong Minh commends the UNAMI on their progress, but noted that challenges remained tough due to economic situations. “Against that background, it (is) crucial for the Government and people of Iraq to strengthen the progress made so far and to move ahead with national reconciliation, reconstruction and reintegration.”

Ruhakana Rugunda of Uganda commends UNAMI efforts and applauds Iraqs progress.

Yukio Takasu of Japan sees many challenges ahead, but believes UNAMI will play a major role in overcoming obstacles. For its part, Japan had provided $1.7 billion in grant aid and an Exchange of Notes for a Japanese official development assistance (ODA) loan of up to $2.43 billion had just been signed for 12 projects in such fields as transportation, energy, industrial plants and irrigation.