Broke IronWorker

lot of news sites out there here is a real take on iraq and the bull you read and what really happens this guy is no bull all of his stuff is archived on site if you wantto know what really goes on in iraq take a look Emergency Session of Iraqi Parliament Indicates Size of Opposition to Maliki Yesterday’s attempted emergency session of the Iraqi parliament was an important expression of how recent weeks of protests in Iraq translate into parliamentary arithmetic. Numbers and rumours regarding the participation of various blocs have been flying around ever since the beginning of Sunday’s session. Regarding the parties that refrained from attending, the reports have been quite consistent: The State of Law bloc of Prime Minister Nuri al-Maliki along with Shiite Islamists allies Badr, Fadila and, somewhat more surprisingly perhaps since they are not in alliance for the local elections except in the north, the ISCI-Muwatin bloc of Ammar al-Hakim. Also the White bloc, a mostly Shiite breakaway faction from the secular-Sunni dominated Iraqiyya boycotted the session. That means there were MPs present from Iraqiyya (whose constituencies have played the dominant role in the recent protests), the Kurds, and the Sadrists. The theoretical parliamentary strength of those who boycotted is around 130, whereas the attendants, again in theory, should at least be able to muster 170 deputies, above the 163 mark that signifies the quorum level in the Iraqi parliament. Things got quite ironic during the course of Sunday as press reports made headlines to the effect that the quest to reach quorum was so intense (and the general attendance level of the Iraqiyya deputies so poor) that even Iraqiyya leader Ayyad Allawi came to parliament (he usually doesn’t, although it is of course his a duty as an MP to attend). In the end, it wasn’t enough. According to the official parliamentary report, 161 deputies attended, just 2 MPs short of quorum. This is higher than some of the unofficial figures that circulated earlier on Sunday but of course not enough to hold a valid parliamentary session. 060113c As the Iraqi political scene heats up, it is equally important to be aware of the parameters within which the Iraqi parliament can affect change. Two supreme court rulings have hamstrung the parliament in significant ways over the last few years. The first, from July 2010, considers the modalities of introducing a bill, in practice restricting the right of parliament to initiate legislation since every law needs to pass through the government before it can get voted on. The second, from May 2012, considers limitations on the right of parliament to question ministers. It should be added here that even the act of cancelling a bill in practice requires a “legislative project” that needs to pass two readings. This is relevant since there was some talk about projected attempts to strike down anti-terror legislation with which many of the Anbar protestors are unhappy. What this means in practice is that the most that can be expected by parliament in terms of radical anti-Maliki action in a hastily convened session like that of yesterday is passage of a bill that has already been through two readings, such as the vote on the supreme court bill, or perhaps the general amnesty law. Passage of such items in the absence of Maliki should not be excluded altogether despite yesterday’s failure. For example, on the amnesty law, Sadrists and Iraqiyya have seen eye to eye in the past. The successful vote for an electoral commission that was not to Maliki’s liking shows that there is no hard veto preventing the Shiite parties for going against Maliki as long as the subject matter is not the survival of the Shiite-led government as such. Maliki allies have rightly pointed out that the idea of a “consultative” session is an innovation. Constitutionally, what happened Sunday was nothing more than a tea party. But the session was very close to achieving quorum, and Maliki should not exclude the possibility that similar attempts to score political points will be launched prior to the 20 April local elections. With a coalition-strategy that looks more sectarian than in 2009, he is also less immune to this kind of parliamentary action than he was earlier. http://gulfanalysis.wordpress.com/ dont believe the hype!! ®¿® here is one more piece of the puzzle that i think gets over looked(who does call the shots ¿) http://www.hm-treasury.gov.uk/fin_sanctions_iraq.htm http://www.treasury.gov/Pages/Search.aspx?k=iraq&s=allsites are u saying im a clown lol really sorry just sharing facts

Amir asks govt to iron out pending issues with Iraq KUWAIT: HH the Amir Sheikh Sabah Al- Ahmad Al-Jaber Al-Sabah has directed the government to work towards resolving all pending issues with Iraq as the two countries move to improve bilateral relations, especially since Iraq is now governed by rulers elected by the people. The Deputy Prime Minister and Foreign Minister, Sheikh Sabah Al-Khalid Al- Sabah, revealed this during his meeting last Sunday with members of the parliament’s foreign affairs committee. According to sources familiar with the meeting, participants expressed concern about the public movements currently on in Iraq, which the executive and legislative authorities in Kuwait see as “a potential factor that could hurt the relationship between the two countries.” “The main concern pertains to the continuing sectarian instigation in Iraq which can leave serious impact on Iraq’s relations with its neighbors,” said the sources who spoke to Al-Qabas on the condition of anonymity. Kuwait and Iraq are expected to sign nine agreements during an official visit to Baghdad in the near future “including the treaty to drop charges pressed by the Kuwait Airways against its Iraqi counterpart,” said the sources, noting at the same time that Sheikh Sabah Al-Khalid told the foreign panel members that “Iraq has started maintenance operations for border demarcation.” The issue is considered one of the most critical ones still pending between the two countries. Meanwhile, the sources revealed that members of the foreign committee asserted the need for Kuwait to “make use of its good relations with Iraq and Iran to improve its regional position.” They felt that Kuwait, owing to its geopolitical situation, could emerge as “the main key for the relationship between the two countries and the Gulf states.” Regarding Iran, the sources revealed that minister Al-Sabah “expressed Kuwait’s concern” about the Bushehr Nuclear Reactor, especially given “confirmed information” indicating that the plant was shut down for the second time most recently due to an electric error. There are also growing concerns about Tehran’s ability to run the facility “as the contract signed with Russia has been extended for six months after it expired by the end of 2012.” “The Iranians struggled to handle the plant even with Russian help, which adds to the growing concern about how they are going to manage alone when the Russian teams leave for good,” the sources said. Moreover, they added that minister Al-Sabah spoke with the panel about “information about Iran’s plans to build 24 nuclear reactors along the Arabian Gulf coast,” something the minister said “doesn’t lead a positive impression on Kuwait.” Sheikh Sabah Al-Khalid also told the panel that Kuwait’s considered the visit of Iranian President Mahmoud Ahmadinejad to the three disputed islands with the United Arab Emirates, as a “violation of an agreement reached between Kuwait and Iran in order to reach a settlement through direct negotiations or the International Court of Justice.” Furthermore, the sources noted that the minister indicated that “Kuwait continues to carry out negotiations with Iran, Saudi Arabia and Iraq pertaining to the neritic zone” shared by the four countries. http://news.kuwaittimes.net/2013/01/01/amir-asks-govt-to-iron-out-pending-issues-with-iraq/ this is what we have all been waiting for Forget all the bull kuwait holds the keys http://news.kuwaittimes.net/2013/01/01/amir-asks-govt-to-iron-out-pending-issues-with-iraq/

UN Security Council welcomes continued cooperation between Iraq and Kuwait [The Security Council. UN Photo/JC McIlwaine] The Security Council. UN Photo/JC McIlwaine 5 Print 1 December 2012 – The United Nations Security Council welcomes the continued cooperation of the Governments of Iraq and Kuwait, the 15-member said today in a press statement today. In addition, it welcomed “Iraq's continued commitment to full implementation of its outstanding obligations under the relevant Chapter VII Security Council resolutions, and called on both States to continue to act in a spirit that builds further confidence and cooperation, which should contribute to the strengthening of their good-neighbourly relations and enhancing regional stability.” Relations between the two countries were affected by Iraq's 1990 invasion of Kuwait. The following year, the Security Council established the UN Compensation Commission (UNCC), which settles the damage claims of those who suffered losses in the invasion. So far, the amount of compensation disbursed by the UNCC totals $37.7 billion for more than 1.5 million successful claims of individuals, corporations, Governments and international organizations. Successful claims are paid with funds drawn from the UN Compensation Fund, which is funded by a percentage of the proceeds generated by the export sales of Iraqi petroleum and petroleum products. In their press statement, the Council members also reaffirmed the importance of Iraq achieving international standing equal to that which it held prior to the adoption of resolutions pertaining specifically to it, beginning with resolution 661, adopted in 1990 and which dealt with international sanctions on Iraq under Chapter VII of the UN Charter, and taking into account Iraq's remaining obligations as identified in a report of Secretary-General Ban Ki-moon in relation to part of resolution 1859. Adopted in 2008, the Council's resolution 1859 dealt with the proceeds from sales of petroleum, petroleum products and natural gas into the Development Fund for Iraq, in addition to requesting that the Secretary-General, after consultations with Iraq, report on facts relevant to consideration by the Council of actions necessary for the Middle Eastern country to achieve an international standing equal to that it had enjoyed prior to the adoption of such resolutions. Chapter VII of the UN Charter allows the Council to use force in the face of a threat to peace or aggression, taking “such action by air, sea, or land forces as may be necessary to maintain or restore international peace and security,” including blockades and other operations by the forces of Member States. In the statement, the Council members further “welcomed the joint request of the Governments of Iraq and Kuwait, following the positive outcome of the second session of the Joint Iraq-Kuwait Ministerial Committee in April, for the United Nations to reactivate the Iraq-Kuwait Boundary Maintenance Project as recommended by the United Nations Iraq-Kuwait Boundary Demarcation Commission and welcomed by the Security Council in resolution 833.” “The members of the Security Council recognised Kuwait's cooperation to support the Iraq-Kuwait Boundary Maintenance Project and called on Iraq to complete the field maintenance work in a timely manner,” the statement added. Briefing the Council on Thursday, the Secretary-General's Special Representative and head of the UN Assistance Mission for Iraq (UNAMI), Martin Kobler, said that progress in relations between Iraq and Kuwait will “depend on the restoration of confidence between both sides” and encouraged further momentum from the two countries http://www.un.org/apps/news/story.asp?NewsID=43655&Cr=iraq&Cr1=#.UOTYBaygHQM bah bah bah but mir asks govt to iron out pending issues with Iraq KUWAIT: HH the Amir Sheikh Sabah Al- Ahmad Al-Jaber Al-Sabah has directed the government to work towards resolving all pending issues with Iraq as the two countries move to improve bilateral relations, especially since Iraq is now governed by rulers elected by the people. The Deputy Prime Minister and Foreign Minister, Sheikh Sabah Al-Khalid Al- Sabah, revealed this during his meeting last Sunday with members of the parliament’s foreign affairs committee. According to sources familiar with the meeting, participants expressed concern about the public movements currently on in Iraq, which the executive and legislative authorities in Kuwait see as “a potential factor that could hurt the relationship between the two countries.” “The main concern pertains to the continuing sectarian instigation in Iraq which can leave serious impact on Iraq’s relations with its neighbors,” said the sources who spoke to Al-Qabas on the condition of anonymity. Kuwait and Iraq are expected to sign nine agreements during an official visit to Baghdad in the near future “including the treaty to drop charges pressed by the Kuwait Airways against its Iraqi counterpart,” said the sources, noting at the same time that Sheikh Sabah Al-Khalid told the foreign panel members that “Iraq has started maintenance operations for border demarcation.” The issue is considered one of the most critical ones still pending between the two countries. Meanwhile, the sources revealed that members of the foreign committee asserted the need for Kuwait to “make use of its good relations with Iraq and Iran to improve its regional position.” They felt that Kuwait, owing to its geopolitical situation, could emerge as “the main key for the relationship between the two countries and the Gulf states.” Regarding Iran, the sources revealed that minister Al-Sabah “expressed Kuwait’s concern” about the Bushehr Nuclear Reactor, especially given “confirmed information” indicating that the plant was shut down for the second time most recently due to an electric error. There are also growing concerns about Tehran’s ability to run the facility “as the contract signed with Russia has been extended for six months after it expired by the end of 2012.” “The Iranians struggled to handle the plant even with Russian help, which adds to the growing concern about how they are going to manage alone when the Russian teams leave for good,” the sources said. Moreover, they added that minister Al-Sabah spoke with the panel about “information about Iran’s plans to build 24 nuclear reactors along the Arabian Gulf coast,” something the minister said “doesn’t lead a positive impression on Kuwait.” Sheikh Sabah Al-Khalid also told the panel that Kuwait’s considered the visit of Iranian President Mahmoud Ahmadinejad to the three disputed islands with the United Arab Emirates, as a “violation of an agreement reached between Kuwait and Iran in order to reach a settlement through direct negotiations or the International Court of Justice.” Furthermore, the sources noted that the minister indicated that “Kuwait continues to carry out negotiations with Iran, Saudi Arabia and Iraq pertaining to the neritic zone” shared by the four countries. http://news.kuwaittimes.net/2013/01/01/amir-asks-govt-to-iron-out-pending-issues-with-iraq/ this is the part we been hoping for hope they dont blow the country up first ®¿®

26 November 2012 PRESS RELEASE OPENING OF THE SEVENTY-FOURTH SESSION OF THE UNCC GOVERNING COUNCIL The Governing Council of the United Nations Compensation Commission will hold its seventy-fourth session from 27 to 29 November 2012 under the Presidency of Ambassador Hanns Heinrich Schumacher (Permanent Representative of Germany). Delegations from Iraq, Jordan, Kuwait and Saudi Arabia will address the Council at its opening plenary session. During the session, the Governing Council will consider reports relating to the work of the Compensation Commission since the last session in May 2012, and will also discuss issues related to the Follow-up Programme for Environmental Awards established by the Council to monitor the technical and financial implementation of $4.3 billion awarded for environmental remediation and restoration projects; the arrangements for ensuring continued payments and current levels of income to the Compensation Fund; and other payment related activities. General background information on the work of the Compensation Commission is provided below. A press release with information on the results of the seventy-fourth session will be issued on 29 November 2012. ____________________________________________________________ Background The United Nations Compensation Commission (UNCC) is a subsidiary organ of the United Nations Security Council. It was established in accordance with Security Council resolutions 687 (1991) and 692 (1991) to process claims and pay compensation for direct losses and damage suffered by individuals, corporations, Governments and international organizations as a direct result of Iraq’s unlawful invasion and occupation of Kuwait (2 August 1990 to 2 March 1991). The Compensation Commission received approximately 2.7 million claims. The total asserted value of these claims (i.e., the amount sought by the claimants) amounts to approximately $352.5 billion. Ninety-seven Governments filed claims on behalf of their nationals, corporations and themselves, as well as thirteen offices of three international organizations, which filed claims on behalf of individuals not in a position to submit their claims through a Government. They consisted of the claims of individuals for departure from Kuwait or Iraq (category A claims), the claims of individuals for serious personal injury or death (category B claims), the claims of individuals for losses up to $100,000 (category C claims), the claims of individuals for losses over $100,000 (category D claims), the claims of corporations, other private legal entities and public sector enterprises (category E claims), and the claims of Governments and international organizations -2- (category F claims). In June 2005, the Commission completed its processing of all submitted claims. The total compensation awarded amounts to approximately $52.4 billion. To date, the Compensation Commission has made available to Governments and international organizations approximately $38.8 billion for distribution to successful claimants in all categories. Funds to pay compensation are drawn from the United Nations Compensation Fund, which currently receives five per cent of the proceeds generated by the export sales of Iraqi petroleum and petroleum products http://www.uncc.ch/pressrel/74%20open.pdf 29 November 2012 PRESS RELEASE GOVERNING COUNCIL OF UNITED NATIONS COMPENSATION COMMISSION CONCLUDES ITS SEVENTY-FOURTH SESSION The Governing Council of the United Nations Compensation Commission, under the Presidency of Germany, has today concluded its seventy-fourth session. Delegations from Iraq, Jordan, Kuwait and Saudi Arabia addressed the fifteen-member Governing Council at its opening plenary meeting. The Governing Council considered progress under decision 269 (S/AC.26/Dec.269 (2011)) and identified issues for each of the participating Governments to address with a view to fulfilling the mandate of the Follow-up Programme for Environmental Awards in the course of 2013. The Council also considered progress under decision 258 (S/AC.26/Dec.258 (2005)) with respect to the environmental remediation and restoration projects under the Programme. The Council also considered reports on the activities of the Commission since the last session with respect to the current levels of income to the Compensation Fund, arrangements for ensuring continued payments, and other payment related activities. At present, $13.6 billion remains owing to Kuwait for distribution to two successful claimants. Claims are paid with funds drawn from the United Nations Compensation Fund, which currently receives 5 per cent of the proceeds generated by the export sales of Iraqi petroleum and petroleum products in accordance with Security Council resolution 1483 (2003) and affirmed in subsequent resolutions, most recently in Security Council resolution 1956 (2010). The session just concluded was the last session for the delegations of Columbia, Germany (President), India, Portugal, and South Africa (Vice-President), whose terms of office end on 31 December 2012. The Council decided to hold its next regular session from 30 April to 2 May 2013. http://www.uncc.ch/pressrel/74%20close.pdf

this shows how they are very very aware of what is going on with the dinar E.O. 12958: DECL: 12/13/2017 TAGS: SUBJECT: DASH FOR DINARS AS DOLLAR DEMAND DROPS Classified By: Economic Section Deputy James Freund, reasons 1.4 b,d 1. © SUMMARY: Demand for the dinar has risen this past week in response to the holiday period, a reported drop in imported good prices in Baghdad due to an appreciating dinar against the dollar and improved security, and speculation among money traders of a sudden appreciation of the dinar that occurred around this time last year. How the Central Bank of Iraq (CBI) handles growing demand for the dinar will be critical, especially in terms of expectations management and injecting dinar liquidity into the market This is an encouraging development for Iraq and reflects a vote of confidence by Iraqis in their domestic economy and the government's monetary policies. END SUMMARY. --------------------- Surge in Dinar Demand --------------------- 2. © Growing demand for dinars began showing up in the CBI's foreign currency auctions on December 9, when the CBI-listed market rate was 1,208 dinar per dollar versus the auction price of 1,216 dinar per dollar. On December 10 the CBI-listed market rate appreciated to 1,194 dinar per dollar and then on December 11 the CBI-listed market rate strengthened further to 1,175 dinar per dollar. We do not have anymore CBI-listed market rates, but a senior USAID consultant to the CBI told us on December 13 the rate among Baghdad money traders was hovering around 1,108 dinar per dollar. A senior Task Force for Business and Stabilization Operations (TF-BSO) consultant to the CBI confirmed with her contacts there that the CBI bought 45 million dollars and sold only 8.6 million dollars at the official auction price of 1,126 dinar per dollar. Another USAID consultant to Iraq's Central Office for Statistics and Information Technology (COSIT) said employees there believe the market rate could reach 1,000 dinar per dollar because today it is between 1,100-1,105 dinar per dollar. Finally, our local staff who are paid in dollars are complaining today of difficulty in finding money traders willing to take their dollars for dinars. 3. (SBU) In terms of background, the CBI maintained an official exchange rate from 2004-2006 of approximately 1,477 dinar per dollar. The CBI moved to appreciate the dinar through its foreign currency auction process in response to high summer 2006 inflation rates reaching 76.6 percent for August year-on-year (y-o-y). This auction process is managed and is also referred to as a "crawling peg" exchange rate. During the auction, the CBI invites banks to buy or sell dollars at rates based on a combination of its monetary policy and the effect of current market trends. The CBI has worked closely with the International Monetary Fund in designing and implementing monetary policy. 4. (SBU) Since September 2006, the dinar has appreciated approximately 17 percent against the dollar, while the dollar has declined by 12.6 percent and 6.9 percent against the euro and Pound Sterling respectively. At the beginning of 2007, the exchange rate was 1,304 dinar per dollar. During December 12 trading, the CBI sell rate of 1,216 dinar per dollar reflected an appreciation of only 6 percent against the dollar for the major part of 2007. The slowing of appreciation likely reflects the impact of significantly reduced inflation for 2007, down to 15.5 percent y-o-y in November. ----------------------------------------- Confluence of Events Driving Dinar Demand ----------------------------------------- 5. (SBU) Observations over the last three years have shown that prior to holiday periods, demand has been strong for dollars rather than dinars. Here we see a change in the trend, an increase in demand for dinars prior to the Eid holiday and the beginning of the Hajj. Eid al-Adha is a two day religious celebration starting on Wednesday, December 19. Iraqis will have four days off with the weekend and due to improved security levels, a greater number of Iraqis are participating in the Hajj. The strong demand for dinars represents a vote of confidence by Iraqis in their domestic economy and the government's monetary policies. 6. (SBU) The dinar appreciation combined with better security conditions also likely are increasing dinar demand because dinar prices for goods appear to be beginning to drop in Baghdad. This is especially true for imported goods, which Iraqis are eager to buy. In a meeting today with staffers for the Council of Representatives Committees on Finance and Economic Affairs, they confirmed to econoffs that dinar prices for vehicles are declining. One staffer said two pickup trucks recently purchased for the Economic Committee were bought for a lower dinar price than when the purchase BAGHDAD 00004058 002 OF 002 was previously considered. 7. (SBU) Another factor is that last year there was a substantial appreciation of the dinar against the dollar between November and the end of December, and money traders could be expecting this to happen again. A December 10 CBI press release announcing the withdrawal of the three lowest dinar denominated coins (dinar 25, 50, and 100) also could have further spurred speculation. Iraqi markets are not efficient or well integrated and prices are not well arbitraged--this means rumors can have big effects temporarily. ----------------------------- CBI Action Will Play Key Role ----------------------------- 8. © COMMENT: How the CBI handles growing demand for the dinar will be critical, in particular on expectations management and injecting dinar liquidity into the market. The TF-BSO consultant notes the CBI is taking this situation very seriously, and when she was at the CBI this morning all the key managers were going to a meeting on the issue. She also said she had never seen such a long line of armored trucks snaking around the block waiting to get dinars in her entire three years consulting with the CBI. The CBI also issued an immediate press release today to dispel the rumors of sudden appreciation to 1,000 dinar per dollar or lobbing off any zeros to the exchange rate. The CBI's foreign currency auction's daily volume has fluctuated, but not substantially diminished. 9. © This is a good news story for Iraq, and the CBI is showing increased institutional capacity to respond to monetary issues. A stronger dinar is helping to curb inflation and imported goods are becoming cheaper for the average Iraqi as long as security continues to improve. Moreover, this gives the CBI a chance to continue to de-dollarize the economy; something that often is difficult to do in oil-rich countries. END COMMENT. BUTENIS Classification CONFIDENTIAL Released Aug 30, 2011 01:44 Created Sep 5, 2008 10:42 Share VZCZCXRO6121 RR RUEHBC RUEHDE RUEHIHL RUEHKUK DE RUEHGB #2854/01 2491042 ZNY CCCCC ZZH R 051042Z SEP 08 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC 9234 INFO RUCNRAQ/IRAQ COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002854 SIPDIS E.O. 12958: DECL: 09/01/2018 TAGS: SUBJECT: IRAQI DINAR CASH CRUNCH: TIGHT BUT MANAGEABLE REF: A. BAGHDAD O/I 8/11/2008 B. BAGHDAD 2431 Classified By: Economic Counselor Michael Dodman for reasons 1.4( and (d) 1. © Summary: Iraq's vastly increased public spending combined with bureaucratic delays in the purchase of new cash supplies by the Central Bank of Iraq, an antiquated and not-yet interconnected banking sector, and continued reliance on cash payments for government salaries has caused a cash crunch in Iraq. Based on current rates of disbursement, we believe that the banks have a sufficient supply of vault cash Iraqi Dinars to meet government payrolls and other demands for the next two weeks. The Central Bank is expecting a new cash shipment to arrive in September, but some provincial bank branches are reporting that their dinar supply is dangerously low. Intervention by the Embassy's Public Finance Management Action Group helped to avert a crisis with the Ministry of Defense, ensuring that sufficient funds were available to meet payroll needs for the security services going into the month of Ramadan. End Summary. ---------------------------------------- Enough Cash -- But Not Where it's Needed ---------------------------------------- 2. (SBU) Based on information from the Central Bank of Iraq (CBI), we believe that based on current expenditure levels, banks have a sufficient supply of Iraqi Dinars (IQD) to meet government payrolls until at least mid-September. Banks in Iraq currently hold approximately IQD 1.7 trillion (USD 1.4 billion) in vault cash. This far exceeds the IQD 400 billion needed to meet the banks vault cash reserve requirements. Despite the banking system overall having sufficient dinar notes, certain bank branches have indicated that their cash-on-hand is not enough to meet their customer demands. This is a particular problem for Iraq since GOI payrolls, for the most part, are paid in cash, and it comes at a time when many Iraqis increase their spending in celebration of the beginning of Ramadan. The situation is tight, but manageable. 3. (SBU) Highlighting this problem was a September 1 report from PRT Diyala that there had been no cash shipment from Baghdad to Diyala since August 6. As a result, the five central Diyala Rafidain bank branches have been forced to postpone almost all cash disbursements, including the large numbers of end-of-month government employee and teacher salaries as well as payments to pensioners. Diyala Supervisor-General for Banks Salih Rasheed told the PRT that the Rafidain headquarters in Baghdad claimed that it also had no reserves, but expected replenishment from the CBI by next week. ------------------------------------ Payroll System Compounds the Problem ------------------------------------ 4. (SBU) The Government of Iraq's payment system continues to be cash-based. Government payroll rosters are compiled at the local accounting offices of each ministry and then passed on to a main accounting office such as the Governorate Treasury or an Accounting Department of a ministry branch. At this level the rosters are aggregated and sent to the headquarters of the Ministry of Finance (MoF). The MoF then orders a cash transfer, which is done with physical cash by vehicle, to the branch of either the Rafidain Bank or Rasheed Bank nearest to the local accounting office of the ministry. In the case of the Ministry of Defense, cash transfers are made to the Rafidain Bank branch at the Ministry of Defense in Baghdad and collected there monthly by regional military paymasters who then transport the cash back to their units. 5. (SBU) A more efficient system of transferring funds among banks has not yet been adopted by most state-owned banks though some private banks are now transferring funds electronically and using ad hoc interbank borrowing facilities. To overcome the current payroll crunch, state-owned banks are just beginning to transfer cash between their own branches in order to meet needs in various geographic areas. This effort is piece-meal, however and not always sufficient to meet needs. ------------------------------------ Budget Expenditures Also Play a Role ------------------------------------ 6. (SBU) Data from the Ministry of Finance indicate that the GOI spent over (IQD) 4 trillion (USD 3.7 billion) domestically in both May and June, and over IQD 3 trillion (2.5 billion) in July. Yet current account balances at the CBI remain high as it continues to remove IQD from the BAGHDAD 00002854 002 OF 002 economy by appreciating the dinar against the dollar through its foreign exchange (FX) auctions. To keep inflation in check, the CBI has soaked up IQD 17.9 trillion (USD 15.1 billion) through FX auctions so far in 2008; over the same period, the GOI has transferred IQD 17.9 trillion for domestic expenditures. ------------------------------------------ New Money is Coming -- But Not Fast Enough ------------------------------------------ 7. © As reported Ref A, delays in the CBI's printing of new banknotes and a failure to calculate the increased demand for cash caused by recent civil service pay increases and more aggressive GOI domestic spending have exacerbated this cash crunch. Lacking dinar cash, Iraqi banks have increased their disbursement of the USD notes that they also maintain as vault cash. CBI data also show a significant spike in USD sales in July and August, somewhat undercutting its previous efforts in "de-dollarizing" the Iraqi economy. 8. © The CBI, which had injected IQD 8 trillion (USD 6.7 million) worth of new dinar notes earlier in 2008, informed us that it expects a cash shipment of IQD 800 billion (USD 670 million) to arrive shortly. This shipment will consist of 32 million IQD 25,000 (USD 21) denomination notes and be sufficient to meet roughly one week of cash demand. The CBI has ordered a total of approximately IQD 3 trillion (USD 2.5 billion). (Note: TREASATT advocacy and efforts with the CBI led to the GOI being willing to accept currency printed at DeLaRue's Nairobi, Kenya facility, which has spare line capacity. This should allow regular cash shipments to begin. End note.) 9. © The CBI reported on September 4, that it has been able to meet cash demands on a daily basis -- roughly IQD 20-30 million -- because private banks are continuing to deposit cash in the CBI's vaults. Private banks offer a higher average rate of interest on retail deposits than the state-owned banks. -------------------------------------- Close Call at the Ministry of Defense; PFMAG to the Rescue -------------------------------------- 10. © The cash crunch, when combined with bureaucratic squabbles between the MoF and the Ministry of Defense (MoD) over the MoF's desire for the MoD to close out its FY 2006 and 2007 books created conditions where there was real doubt whether there would be sufficient cash available at the MoD's Rafidain Bank branch for August wage payments. The Embassy's Public Finance Management Action Group (PFMAG), through intervention with the MoF, MoD, CBI and the Rafidain Bank, secured an agreement from the CBI to supply IQD 25 billion (USD 21 million) in cash shipments for security ministries payments. This averted what would have been a real crisis as military paymasters were unwilling to return back to their units without cash for salaries during the lead-up to Ramadan. ------- Comment ------- 11. © Iraq's antiquated and inefficient reliance on cash for all nearly transactions, and especially cash for payrolls, pensions, and many other types of government spending, when combined with state-owned banks whose branches are not inter-connected makes the flow of new bank notes from the Central Bank's vaults a fiscal jugular vein. Political dangers exist when banks used for public salaries and disbursements run low on cash. Yet there are some steps that Iraqis could take fairly easily. For example, individual Iraqi bank branches could meet their own cash needs by issuing short-term certificates of deposit or other incentives to encourage the depositing of some of the approximately IQD 20 trillion (USD 17 billion) cash estimated to be in circulation. The good news is that Iraqis are not strangers to this type of problem and have developed coping mechanisms such as running up tabs at local shops. The Embassy's Public Finance Management Action Group (PFMAG) will continue to closely monitor this problem and seek to both address the underlying causes and symptoms of this problem Some want to think it all a secret and just wanted to share some of the real facts http://dazzlepod.com/cable/08BAGHDAD2854/?q=iraq%20new%20dinar http://dazzlepod.com/cable/07BAGHDAD4058/?q=iraq%20%20dinar FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC PRIORITY 9447 INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY C O N F I D E N T I A L SECTION 01 OF 03 BAGHDAD 002990 SIPDIS E.O. 12958: DECL: 09/15/2018 TAGS: SUBJECT: IRAQ CBI GOVERNOR ON POST-SBA RELATIONS, CASH CRUNCH, AND HIS PROPERTY WOES REF: A. BAGHDAD 2431 B. BAGHDAD CLASSIFIED OI SEPTEMBER 15 C. BAGHDAD 2854 Classified By: EMIN - Marc Wall, Reasons e.o. 12958 1.5 (B,D) 1. © SUMMARY: In a meeting with EMIN and Treasury Attache September 14, Central Bank Governor Sinan Shabibi offered a tour d'horizon of issues concerning the CBI. Shabibi looked forward to the final tranche of Paris Club debt write off. He was open to a follow on "precautionary" Standby Agreement with the IMF in order to continue IMF technical advice after the March 2009 termination of the current SBA. Shabibi said the CBI remains committed to fighting inflation despite the lack of understanding in the GOI of the of CBI's role. He hopes to see inflation in the range of nine to ten percent, at which time he anticipates adjusting the tools he uses. He did not believe that the CBI policy rate was the most effective such tool in an economy where credit is so limited. 2. SUMMARY CONTINUED: Saying "I will not be flexible on this," Shabibi underscored his insistence that the GOI provide the CBI with an appropriate parcel of land on which to construct a CBI complex. He was confident that the next delivery of Iraqi dinar will arrive September 15, with regular deliveries to follow. He noted that the cash shortage arose primarily because of the GOI decision suddenly to increase GOI employees' salaries, which overwhelmed the contingency cash reserve that CBI had planned at the beginning of the year. END SUMMARY. 3. © In an introductory meeting with EMIN on September 13, Central Bank of Iraq Governor Sinan Shabibi, accompanied by his Deputy Ahmad Al-Jaboory, told EMIN and Treasury Attache that he looked forward to the final tranche of Paris Club debt relief at the and of the current Standby Arrangement (SBA) and said he "looks forward to continuing our relationship with the IMF." He noted that the Iraq-IMF relationship will change and should focus more on technical assistance in areas like reserves management. He indicated that he had had good meetings with the Financial Services Volunteer Corps (FSVC), and looked forward to working with them. At the same time, he was looking at training and strategic advice from the IMF, and would want to ensure that the two programs are not duplicative. --------------------------------------------- --- Central Banking Largely Misunderstood by the GOI --------------------------------------------- --- 4. © Asked whether he was experiencing political pressure on IMF SBA conditions such as inflation control and its attendant high CBI policy rate, Shabibi admitted that the GOI needed to coordinate better internally on its approach to inflation fighting. Al-Jaboory noted that the IMF focus is on economic stability which is something that is far less visible to the average Iraqi than the salary increases and capital projects the rest of the GOI is focusing on. Shabibi, elaborating on this theme, said that the relatively high policy rate of 16 percent must be put into context. He noted that money is flooding into the Iraqi economy, primarily from the oil windfalls but also from international donors and investors. As for those who complain that the high policy rate is choking off credit, Shabibi said Iraqis -- both in government and in the private sector -- don't understand the true cost of money after so many years of GOI-subsidized lending. Eventually, he said, Iraq will be in a situation where market rates will prevail, but it will take time. (Note: See REF A for more on political pressures against the CBI. End note.) 5. © Noting the success the CBI had had in curbing inflation since the inflation spike in 2006, Shabibi said that sometimes GOI ministers seem to want to take credit for this themselves. He said most of his colleagues, while they are good people, really don't understand, much less appreciate, the role of an independent central bank in a modern economy. One example from current circumstances is the GOI focus on spending its oil windfalls. Ministers, he said, focus only on how much money they spend without differentiating between operating and capital expenditures, and they don't understand that the former is inflationary while the latter can be neutral. He is encouraging the GOI to analyze how it is spending its windfall and not just focus on how much it is spending. He wants the GOI to engage in a dialogue on the equilibrium between these two effects. This sort of thing, he said, is a new experience in Iraq for the central bank, which historically has simply executed the policies of the government. 6. © Asked how concerned the CBI is at inflationary pressures, Shabibi replied that he is trying to bring core BAGHDAD 00002990 002 OF 003 inflation down from the current fourteen percent to something on the order of nine or ten percent. He anticipated that his inflation fighting tools will change, with less of an emphasis on the policy rate, which he wasn't sure had such an important effect on inflation in Iraq, since borrowing was so limited. He plans to develop a "policy package." Currency appreciation would continue. --------------------------------------------- ----- CBI: Still Hasn't Found the Home it is Looking For --------------------------------------------- ----- 7. © As to other concerns, Shabibi vigorously argued that the single most important issue to him was the lack of progress in securing a facility to build a new CBI complex. Starting with an observation of how nice the Fed facility was that he had just visited in Jackson Hole, Wyoming, Shabibi said the Iraq CBI needs something comparable. He complained that he wasn't getting any support from working levels in GOI. Despite the good promises of his "friends" PM Maliki and Finance Minister Jabr, building after building had been offered and then withdrawn. Shabibi said he was frustrated that eight months after the fire that destroyed the old CBI headquarters there has been "no progress" in developing a new one. This was especially frustrating since the CBI bought nearly 80 acres for a new facility in 2004, but the transfer has been in limbo due to the Iraqi intelligence service's refusal to relinquish the property. Shabibi went over the long story of the different properties that had been offered, culminating in the latest offer from Finance Minister Jabr of 20 donum (note: about 50 acres), which had subsequently been whittled down to six donum as ministry officials found other uses for parts of the property. Complaining that four donum had been taken for a hotel, Shabibi said -- "(MinFin) think a hotel is more important than a central bank?!?" 8. © Shabibi said he "will not be flexible on this." Al-Jaboory reinforced Shabibi's personal frustrations at how CBI was being mistreated by the GOI, and said the CBI was prepared to go so far as to sue the Finance ministry for not returning its funds from the 2004 purchase and would complain about lack of support from the GOI at the Bank/Fund meetings in October. (Note: see ref B for more on Al-Jaboory's views. End Note.) Shabibi complained bitterly that Finance Ministry officials have not made good on Minister Jabr's promise, and that they simply do not understand the role and importance of a central bank, thinking it is "just another bank." His bottom line: CBI needs 10 donum of land, and soon, since the facilities they need to build will include separate structures for cash handling, IT, training, executive and meeting suites and storage vaults, which will take at least three or four years to complete. ----------------------- More Cash is on the Way ----------------------- 9. © Referring to the cash crunch the GOI has experienced since late summer (REF C), Shabibi assured us that with a delivery of 500 billion dinar on September 15, the payrolls for August and September will be met. Moreover, Shabibi said he is planning more or less "continuous" deliveries over the course of the five year contract. He explained that one reason there had been the August crunch was the Finance Ministry's decision to use some of the oil windfall to nearly double civil servants' pay in one payment. This was a sudden decision, he said, which exhausted the contingency reserve that CBI had planned at the beginning of the year. Treasury Attache warned Shabibi to expect another spike in salary payments in January 2009, when the GOI, after urging from the IMF to delay its supplemental salary payments to avoid an inflationary spike, will pay a second installment. Shabibi interjected that one more reason for a full CBI complex as that at some point in the future Iraq should be printing its own banknotes. 10. © COMMENT: By insisting on his 10 donum bottom line for the CBI complex, Shabibi clearly is drawing a line in the sand. He believes that the GOI's mistreatment of the CBI on the property is a cipher for a broader range of misunderstanding within the GOI on the proper role of a central bank in a modern economy. Moreover, it was clear that at one level he feels personally disrespected: he visibly stiffened when Treasury officer related a Finance Ministry DG's comment that CBI "...won't get the 10 donum it is asking for. If they insist on that we'll give it to someone else." Shabibi responded "then let them give it to someone else!" He is looking for more support from the USG in this quest; wrapping up the conversation he said the building issue is "really paramount," and dropped a broad hint that "everyone says the CBI is doing a great job..." implying that if we support his policy work we should also BAGHDAD 00002990 003 OF 003 support his efforts to ensure the CBI can function efficiently and independently in a proper facility. Embassy will seek additional avenues to support Shabibi's efforts to acquire a proper site for a new CBI complex. http://dazzlepod.com/cable/08BAGHDAD2990/?q=Shabibi

i wont start on Mr. b but to say deleting zeros is a made up thing hum Latest amendment 31 August 2012 ISO 4217 AMENDMENT NUMBER 154 1) Effective from 1 January 2013, the following change will be made to “Table A.1 – Currency and funds code list” for ZAMBIA: Entity Currency Alphabetic code Numeric code Minor unit ZAMBIA Zambian Kwacha ZMW 967 2 The change is due to the deletion of three zeros. The conversion rate is 1000 (old) Zambian Kwacha to 1 (new) Zambian Kwacha (1000:1). 2) Effective from 1 January 2013, the following change will be made to “Table A.3 – Codes for historic denominations of currencies & funds” for ZAMBIA: Entity Currency Alphabetic code Numeric code Minor unit ZAMBIA Zambian Kwacha ZMK 894 2 http://www.currency-iso.org/iso_amendments_latest.htm he so special ®¿®

Ok here are some things i know are facts http://www.uncc.ch/status.htm iraq owes KUWAIT 13,636,716,789 Here is the link to every thing they have ever done and The Council decided to hold its next regular session from 27 – 29 November 2012 http://www.uncc.ch/start.htm they have this and they have the imf to answer to lets not forget the world bank http://siteresources.worldbank.org/IRFFI/Resources/BankingAugust2011.pdf and last but mot lest http://georgewbush-whitehouse.archives.gov/news/releases/2003/05/print/20030522-15.html Factsheet Where the IMF Gets its Money August 24, 2012 Most resources for IMF loans are provided by member countries, primarily through their payment of quotas. Multilateral and bilateral borrowing arrangements provide a further backstop to IMF resources. In March 2011, the expanded and more flexible New Arrangements to Borrow (NAB) came into effect and was activated shortly thereafter. In addition, the Fund has signed a number of bilateral loan and note purchase agreements, which can be used to finance IMF-supported programs approved prior to the NAB activation. In the context of continued global financial instability, the Fund and creditor members are currently negotiating a 2012 round of bilateral loan and note purchase agreements to backstop quota and expanded NAB resources. Concessional lending and debt relief for low-income countries are financed through separate contribution-based trust funds. The quota system Each member of the IMF is assigned a quota, based broadly on its relative size in the world economy, which determines its maximum contribution to the IMF’s financial resources. Upon joining the IMF, a country normally pays up to one-quarter of its quota in the form of widely accepted foreign currencies (such as the U.S. dollar, euro, yen, or pound sterling) or Special Drawing Rights (SDRs). The remaining three-quarters are paid in the country’s own currency. http://www.imf.org/external/np/exr/facts/finfac.htm here is the best link i can share Currency Code Service (ISO 4217 Maintenance Agency) SIX Interbank Clearing Ltd acts as the ISO 4217 Maintenance Agency on behalf of the International Organization for Standardization (ISO) and its Swiss member SNV (Swiss Association for Standardization). ISO's currency codes were last published in 2008. Between published editions, the currency codes are maintained by SIX Interbank Clearing in accordance with procedures established by the standard. In addition to processing applications for codes, the maintenance agency maintains updated lists and makes them available online. Intended for use in any application of trade, commerce and banking, as well as in the public sector, the ISO 4217 publication is designed to be equally suitable for manual use or in information technology applications. As the only recognised, authoritative source on currency code designations, SIX Interbank Clearing supplies interested parties with the most up-to-date currency codes. Service The update service is free of charge. An e-mail notification is sent to subscribers of the amendment newsletter as soon as currency code changes occur. http://www.currency-iso.org/ i also think we will see this again http://www.psywar.org/product_2003IFIZG8528G.php http://www.psywarrior.com/OpnIraqiFreedomcont3.html

Iraq—Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding Baghdad, September 24, 2004 The following item is a Letter of Intent of the government of Iraq, which describes the policies that Iraq intends to implement in the context of its request for financial support from the IMF. The document, which is the property of Iraq, is being made available on the IMF website by agreement with the member as a service to users of the IMF http://www.imf.org/External/NP/LOI/2004/irq/01/ IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq Press Release No. 12/286 August 3, 2012 The Executive Board of the International Monetary Fund (IMF) approved on July 20, 2012—on a lapse-of-time basis1—a seven-month extension of Iraq’s Stand-By Arrangement (SBA), to February 23, 2013. The SBA had been scheduled to expire on July 23, 2012. The extension, which had been requested by the Iraqi authorities, will provide them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime. The two-year Stand-By Arrangement (SBA) in the amount of SDR 2.38 billion (about US$3.58 billion), was approved by the IMF's Executive Board on February 24, 2010 (see press release 10/60). The IMF's Executive Board completed the first program review on October 1, 2010 (see press release 10/373), and the second review on March 18, 2011 (see press release 11/90). At the time of the second review, the program duration was extended by five months to July 2012, along with a rephasing of program disbursements based on a shift in financing needs. Total resources currently available to Iraq under the arrangement amount to the equivalent of SDR 1307.24 million (about $1.96 billion). 1 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.http://www.imf.org/external/np/sec/pr/2012/pr12286.htm im pretty sure nothing goes down with out the go from the IMF http://www.imf.org/external/np/sec/pr/2012/pr12286.htm

i just taught it was kool did nto mean to start a thing

I LOST COUNT AT 100 CARS AND BIKES http://translate.googleusercontent.com/translate_c?depth=1&ei=8dCaTtjOKejw0gHwg72FCg&hl=en&prev=/search%3Fq%3Dnahrain.com%26hl%3Den%26client%3Dfirefox-a%26hs%3DGN6%26rls%3Dorg.mozilla:en-US:official%26prmd%3Dimvns&rurl=translate.google.com&sl=ar&u=http://www.shatnews.com/index.php%3Fshow%3Dnews%26action%3Darticle%26id%3D2278&usg=ALkJrhhn6or4bkPfMCKVRDEKqkqIatwyvg

http://www.trade.gov/iraq/build/groups/public/@tg_iqtf/documents/webcontent/tg_iqtf_003872.pdf Foreign-Exchange Controls Return to top The Iraqi Dinar (ID) is Iraq’s official currency. The CBI has allowed Iraq’s exchange rate to gradually appreciate along a pre-determined path vis-avis the dollar. Within these set limits, the value of the dinar is determined by foreign exchange markets. In 2011, the CBI continued its policy of maintaining a stable exchange rate. Exchange controls imposed before March 1, 2004 were canceled as of September 3, 2007. The CBI regularly holds uniform price auctions for dinars for eligible bidders. The CBI deals only with commercial banks. Banks are able to buy foreign currency for their clients but they must submit a list of transactions for which they are trying to buy foreign exchange. According to the IMF, “restrictions on capital transactions are not enforced; however, documentation and reporting requirements apply.” Additionally, “all obligations and debts to the government must be settled before the transfer of proceeds from investments.” Residents and nonresidents are allowed to open foreign currency accounts at commercial banks and to use the balances in these accounts for domestic and international payments, in accordance with banking procedures, provided the accounts were documented as being credited with foreign currency. When converting ID to a foreign currency, transfers abroad in excess of 15 million ID require a tax clearance certificate. In addition, legal obligations of nonresidents with respect to official entities must be settled before any transfer is allowable. Travelers may only take up to $10,000 in banknotes out of Iraq. U.S. Banks and Local Correspondent Banks Return to top There are no American financial institutions operating independently in Iraq. Iraq’s state owned and private sector banks are in the process of developing international banking and correspondent relationships necessary for modern banking transactions. However, many Iraqi banks do not have these international correspondent capabilities. Some Iraqi banks do have international correspondent relationships. Trade Bank of Iraq’s correspondent relationships include: J.P. Morgan and Citibank among others. Bank of Baghdad reports having correspondent relationships with Citibank New York, JP Morgan Chase, and Standard Chartered Bank. Dar Es Salaam Investment Bank is partially owned, and has correspondent relationship, with HSBC. International banks with branches open in Iraq include Bahrain based Arab Bank Corp, and Turkish based T.C. Ziraat Bank, Is Bank, and Vakif Bank. International banks with branches in Iraq and the U.S. include: Arab Bank Corp, T.C. Ziraat Bank, and Vakif Bank. Is Bank, has a branch office in the United Kingdom. These branches may be able to help U.S. firms facilitate transactions with Iraq. Private sector Iraqi banks that have partial foreign ownership are more likely to offer international electronic payment options and have international correspondent relationships. Iraq’s National Investment Commission provides a list of Iraqi banks with foreign ownership, electronic payment capabilities, and Visa and MasterCard services.

hum

here is the cbi report for 2011 and what were dealing with paper wise http://www.cbi.iq/documents/Annual_2011f.pdf 32,157,444 trillion page 17 one last link when they change their currency they will have to issue a new currency code sign up it free email to u http://www.currency-iso.org/ just got one telling me 31 August 2012 ISO 4217 AMENDMENT NUMBER 154 1) Effective from 1 January 2013, the following change will be made to “Table A.1 – Currency and funds code list” for ZAMBIA: Entity Currency Alphabetic code Numeric code Minor unit ZAMBIA Zambian Kwacha ZMW 967 2 The change is due to the deletion of three zeros. The conversion rate is 1000 (old) Zambian Kwacha to 1 (new) Zambian Kwacha (1000:1). 2) Effective from 1 January 2013, the following change will be made to “Table A.3 – Codes for historic denominations of currencies & funds” for ZAMBIA: Entity Currency Alphabetic code Numeric code Minor unit ZAMBIA Zambian Kwacha ZM so this does prove they do drop the zeros heheheh just saying be informed

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heres the break down of the payouts and whats left http://www.uncc.ch/status.htm