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Revaluation talk drives up UAE, Kuwait currencies
(Reuters)
20 February 2007
DUBAI — The currencies of Kuwait and the United Arab Emirates have firmed in recent days as investors bet the two countries will act independently of their Gulf peers to revalue their currencies at an April meeting.
Speculation about a currency revaluation has been growing since UAE central bank governor Sultan Nasser Al Suweidi said in January that Gulf Arab central bank governors could decide to keep or change currency pegs at the meeting in Riyadh.
The UAE dirham touched an 11-month high of 3.6700 per dollar late last week and was trading at around 3.6718 per dollar, above its official peg of 3.672, yesterday.
The Kuwaiti dinar touched a 10-week high late last week at 0.28860 per dollar, but eased to 0.28916, back around its peg at 0.28914 per dollar, yesterday.
"The dirham and the dinar have moved a lot for a pegged currency," said Rohit Kedia, manager for money markets at Emirates Bank in Dubai. "There are market rumours that U.S. hedge funds are betting on revaluations."
Gulf currencies climbed in January after Suweidi said Gulf oil exporters could agree to peg to another currency or a currency basket. Kuwait's central bank governor has been quoted as saying Kuwait may change the dinar's trading band against a weakening dollar to guard against the impact of rising costs. The comments seemed to highlight a divide as regional powerhouse Saudi Arabia, where inflation is not a major problem, said it had no plans to revalue or abandon its dollar peg. Kuwait allowed its dinar to appreciate one per cent against the dollar within its 3.5 per cent trading band last May. For the UAE, revaluation may make sense to combat inflation, which Standard Chartered Bank estimated at 13.8 per cent in 2006, the highest in the Gulf.
__________________
From Sunday afternoon to Monday afternoon we expect : close to 5 cm of snow and 10-15 mm of rain
You're pushin' the price in the wrong direction!
It's only down about 700% LOL
For sale: Iraqi currency
Consumers warned to beware of Internet offer
By Mc Nelly Torres
South Florida Sun-Sentinel
Posted February 24 2007
The company claims to be the largest distributor of Iraqi currency, offering what it claims are authentic dinars and a great investment for consumers looking to buy cheap currency on the Internet in the hopes of bringing riches overnight.
But the Better Business Bureau is warning consumers from South Florida to be careful before considering foreign currency investments and especially alleged deals for the Iraqi dinar.
United World Exchange, which has been selling Iraqi dinars through its Web site -- www.usdinar.com -- is telling consumers that buying the currency could be a great investment, if the value of Iraqi money were to increase.
But experts said investing in such currency is risky, especially if the war in Iraq continues, because the value of dinar currency could drop even further. Also, most dealers and U.S. banks won't buy dinars.
Al Polizzi, a spokesman with the Better Business Bureau in West Palm Beach, said consumer complaints surrounding Iraqi dinar investments have increased in recent months and have come from many military personnel and civilian contractors serving in Iraq, alleging the company failed to deliver the currency.
The bureau has received 77 complaints concerning United World Exchange from consumers in 33 states, including Florida, and eight countries including Singapore, Australia, Malaysia, Canada and Iraq.
United World Exchange could not be reached for comment. Upon calling the company's customer support assistance, a voice mail said usdinar.com is the largest distributor in the market and it guarantees authentic dinar currency.
"We offer fast service and a peace of mind," the voice mail said. "We have been selling dinars for three years. We've got thousands of satisfied clients."
As of Thursday, usdinar.com was selling 1,288 Iraqi dinars for a price of 77 cents and a million dinars for $776. The Web site, whose domain was created in May 2006, claims to be registered with the U.S. Treasury.
Consumers who have purchased dinars and have not received them are urged to report the issue to the Chicago Better Business Bureau either online at www.Chicago.bbb.org or by calling 312-832-0500.
Mc Nelly Torres can be reached at mntorres@sun-sentinel.com or 954-356-4208 or 561-243-6600, ext. 4208.
http://www.sun-sentinel.com/business/local/sfl-hlpbbb24feb24,0,5562675.story?coll=sfla-business-fron...
Well the Howling is getting louder. Gotta go!
KNOCK THREE TIMES"- TONY ORLANDO & DAWN
Olivia Newton-John,"Let me be there"
Solid Gold Physical Olivia Newton-John
Juice Newton - Queen Of The Heart
Dolly Parton - Jolene (1974)
Rodney Crowell - I Couldn´t Leave You If I Tried
Rodney Crowell - Lovin' All Night
I'm not going crazy.
Been following this co for years. Nothing has ever come out of it.
What gives?
Where are they going to get the money?
How come they haven't landed a Gov't contract yet?
I don't believe in this Company anymore.
I wish you luck in it though.
If you would like to take over as moderator of this board, just say so and I'll ask Matt to give the board to you.
Rodney Crowell - Leavin' Louisiana In The Broad Daylight
Bonnie Tyler It's A Heartache
Bonnie Tyler - Total Eclipse of the heart live
Total Eclipse of the Heart
Nitty Gritty Dirt Band - Baby's Got A Hold On Me
Emmylou Harris - Two More Bottles of Wine
Steve Earle - guitar town
Steve Earle-Copperhead Road
Lorrie Morgan - Watch Me
Rosanne Cash - Runaway Train
Rosanne Cash - Seven Year Ache
Rosanne Cash - Tennessee Flat Top Box
Iraq to join WTO, says U.S. source
By Hadi al-Hadi
Baghdad, Feb 24, (VOI) – Iraq's government has fulfilled all requirements and procedures to apply for the membership of the World Trade Organization (WTO), a USAID official in Baghdad said on Saturday.
"The Iraqi government is now getting ready to have its first dialogue with WTO in April 2007 in Geneva, Switzerland," Greg Howell, Director of Private Sector Development at the U.S. Agency for International Development (USAID), said in a press conference.
Howell said "Iraq had applied in 2004 to obtain WTO membership. A task force was set up to study the application and coordinate with the Iraqi government over reforms in trade policies and requirements for accession."
"Iraq's WTO membership would guarantee Iraqi commodities and services undistinguished access to global markets and it would also give a strong sign to re-merge Iraq into the international community," the USAID official noted.
He said this membership would also bring Iraq more stable trade relations, enhanced income, stimulated economic growth, more jobs and less corruption
http://www.aswataliraq.info/modules.php?op=modload&name=News&file=article&sid=38050&...
Ya. And winter is not over.
Later.
Was snowin' a bit here in town this morn'
Lotsa snow in the mountians.
Mine were late too. Haven't looked either. Will run it through the machine tomorrow.
No one else bought tickets for yesterdays draw?
Iraqi forces capture terrorist cell leader - TV
MIL-IRAQ-TERRORISTS
Iraqi forces capture terrorist cell leader - TV
BAGHDAD, Feb 24 (KUNA) -- Iraqi forces captured a terrorist cell leader, responsible for killing civilians, Iraqi and coalition forces over the past months, an Iraqi TV station reported Saturday.
Al-Iraqiya semi-official station said Iraqi forces captured Abdullah Al-Katouni, a leader of a cell comprising 30 snipers who were hunting down civilians and Iraqi forces.
The terrorists were ambushed in their hideout in Mashahda town northern Baghdad, said the TV.
The terrorists are responsible for killing a large number of civilians, Iraqi and coalition forces, it added.
Brigadier Abdulkareem Khalaf, director of the Interior Ministry's national command center, said earlier today a key terrorist in so-called Al-Jaish Al-Islami (Islamic Army) organization was captured in northern Baghdad.
Iraqi rapid reaction forces, backed by American troops, raided a base used by Al-Jaish Al-Islami and killed scores of terrorists and captured their leader Saad Khalifa.(end) mhg.
bs
KUNA 242327 Feb 07NNNN
http://www.kuna.net.kw/home/story.aspx?Language=en&DSNO=955551
I'm not sure of the banking laws here, But I thjought that they were not allowed to speculate in currency trading.
As for the rest..
I have no opinion.
SULAIMANIYAH, Iraq: Kurdish authorities have agreed to back a draft law to manage and share Iraq's vast oil wealth, removing the last major obstacle to approving the measure and meeting a key U.S. benchmark in Iraq, a top Kurdish official said Saturday.
Massoud Barzani, president of the self-governing Kurdish administration in the north, made the announcement at a joint press conference with U.S. Ambassador Zalmay Khalilzad and President Jalal Talabani.
Barzani said he and Talabani had discussed the latest draft law by telephone with Prime Minister Nouri al-Maliki and "the results were good."
"We reached a final agreement," Barzani said. "We accept the draft."
There was no comment on the announcement from Khalilzad or Talabani, and Barzani did not elaborate. It was unclear whether new concessions had to be made to win his approval.
Al-Maliki's government had promised to enact a new oil law by the end of 2006 but missed the deadline due to objections from the Kurds, who wanted a greater role in awarding contracts and administering the revenues.
The Cabinet discussed the draft Thursday but failed to reach an agreement. Once the Cabinet signs off, the measure goes to parliament for final approval once the legsilators return from a recess early next month.
President George W. Bush's administration, facing growing pressure to end the Iraq conflict, has been urging the Iraqis to finish the new oil law. Secretary of State Condoleezza Rice pressed for early enactment during her one-day visit to Iraq last week.
A new law is needed, most outside experts believe, to encourage international companies to pour billions into Iraq to repair pipelines, upgrade wells, develop new fields and begin to exploit the country's vast petroleum reserves, estimated at about 115 billion barrels.
According to Iraqis familiar with the deliberations, the draft law would offer international oil companies several methods to invest, including production-sharing agreements. Those would give U.S. and other international companies a substantial share of the oil revenues to recover their initial investments and then allow them big tax breaks.
That angers some Iraqis, who believe foreigners will get too much control of the nation's wealth.
But the biggest battle is over who gets the most say in awarding contracts and managing the revenues. The Kurds, who have run their own mini-state in the north since 1991, want regional administrations to have a bigger role.
Most of the country's proven oil reserves lie in the Kurdish north or the Shiite south, which also wants to establish a self-ruled region. That has led the Sunnis to demand more power for the central government, to assure them a share of the wealth.
To win Kurdish approval, the current draft gives a major role to the regional administrations in awarding contracts but allows a committee under the prime minister to review them.
To satisfy the Sunnis, oil revenues would be distributed to the 18 provinces based on their populations — not on whether they have oil. It's unclear whether Sunni Arabs would accept a population-based formula since they have consistently challenged figures showing them as a minority.
While the Kurds want more control of revenue generated from their fields, others think the new proposals give the regions too much control.
If implemented, "The balance of power in the management of Iraq's oil and gas resources would have shifted alarmingly from the center to the regions," former oil official Tariq Shafiq, who helped draft the first version, told an oil seminar in Amman, Jordan, this month.
http://www.iht.com/articles/ap/2007/02/24/africa/ME-GEN-Iraq-Oil-Law.php
http://news.uk.msn.com/Article.aspx?cp-documentid=3408709
I read on the US Gov. site where Bush said that Iraq is going to have a strong dinar.
I can't find the link to so I'm not going to post it. LOL
In my opinoin it means that the Banks of Iraq cand deal in the Dinar to anyone who wants to buy it from them or sell it to them, But the banks themselves cannot buy and hoard the Dinar nor can they sell it short.
Hope that helps.
Iraq
2007 Investment Climate Statement - Iraq
Iraq’s first post-conflict permanent government passed a new investment law in October 2006, opening up its economy to foreign investment. While Iraq is making great strides to develop a more investor-friendly business environment, much work remains. Inflation and stagnant economic growth will be challenges that Iraq will need to overcome in 2007, but the Government of Iraq (GOI) is in the process of making the necessary economic reforms to lead the country in a new direction. Pension reform and further reductions of the refined oil price subsidy are just a few of these economic policies. In addition to passing a new investment law, Iraq’s commitment to rejoin the international community can also be seen in its progress towards World Trade Organization (WTO) accession.
Openness To Foreign Investment
The Government of Iraq’s (GOI’s) Council of Representatives passed a new investment law in October, and the Presidency Council subsequently approved the law in November 2006. The law must next be published in the Official Gazette to take effect. (Note: This law revokes CPA Order 39 on foreign investment. End note). Implementing regulations will be the next step. In addition, the GOI will need to stand up a national Investment Commission and establish offices in each of the governorates, including the Kurdish region. A copy of this law can be obtained from the U.S. Department of Commerce Iraq Task Force website – www.export.gov/iraq/. The new law opens up Iraq’s economy to foreign investors.
Regulation of investment is not an exclusive federal power, so the Kurdish Regional Government (KRG) and the national government both have the right to regulate investment. The KRG passed a Kurdish investment law on July 3, 2006. The most significant difference between the KRG investment law and national law is that the regional law allows foreigners to own land. Under the Iraqi Constitution, when there is a contradiction between regional and national legislation, the regional law could become the only applicable law in the Kurdish region. How this rule of federalism will work in practice is still unknown.
Currency Conversion And Transfer Policies
The currency of Iraq is the Dinar (IQD - sometimes referred to as the New Iraqi Dinar). The Iraqi currency is fully convertible and can be exchanged freely with any other currency. The new investment law allows investors to bank and transfer capital inside or outside of Iraq, which provides considerable flexibility for foreign investors.
The Government of Iraq’s monetary policy since 2003 has focused on maintaining price stability and a stable exchange rate. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes. The Central Bank of Iraq (CBI) can intervene, when necessary, in order to maintain stability in the foreign exchange market. There are no taxes or subsidies on purchases or sales of foreign exchange.
Expropriation And Compensation
Iraqi law affords some protection to foreign investors from expropriation. Article 23 (Second) of the new Constitution prohibits expropriation in Iraq, unless it is "for the purpose of public benefit in return for just compensation." The constitutional provision further stipulates that this standard shall be regulated by law. Although this standard may offer some protection to foreign investments, the provision is skeletal, and a law has yet to be considered. As a result, whether foreign investors will enjoy protection from expropriation that meets international standards will likely depend on domestic implementing legislation and/or future bilateral treaty obligations with the investor states in this area. (Note: The United States does not have a Bilateral Investment Treaty (BIT) with the GOI at present. End Note). Article 12 (Third) of the new Iraqi investment law also guarantees, “non-seizure or nationalization of the investment project covered by the provisions of this law in whole or in part, except for a project on which a final judicial judgment was issued.”
Dispute Settlement
While the law of domestic arbitration is fairly well developed in Iraq, international arbitration is not sufficiently supported by Iraqi law. Iraq is a signatory to the Arab League Convention on Commercial Arbitration (1987) and the Riyadh Convention on Judicial Cooperation (1983), but it has not signed or adopted the two most important legal instruments for international commercial arbitration: The United Nations New York Convention on Recognition and Enforcement of Foreign Arbitral Awards (1958) (commonly called the New York Convention) and the attendant rules and procedures established by the UN Commission on International Trade Law (UNCITRAL).
Although dispute resolution is laid out in Article 27 of the new investment law, which details the rights of Iraqis and foreigners with respect to Iraqi law. Domestic arbitration is also provided for in Articles 251-276 of the Iraqi Civil Procedure Code. Arbitration agreements must be in writing. Panels of arbitrators are available through the Iraqi Union of Engineers, the Iraqi Federation of Industries, and private arbitrators.
Performance Requirements And Incentives
The new GOI investment law allows both domestic and foreign investors to qualify for incentives equally. It also allows for investors to take out capital brought into Iraq and its proceeds in accordance with the law. Foreign investors are able to exchange shares and bonds listed on the Iraqi Stock Exchange. The new law also allows investors who have obtained an investment license to enjoy exemptions from taxes and fees for a period of ten years. Hotels, tourist institutions, hospitals, health institutions, rehabilitation centers and scientific organizations also are granted additional exemptions from duties and taxes on their imports of furniture and other furnishings. The exemption increases to fifteen years if the Iraqi investor share is more than fifty percent of the project.
Right To Private Ownership And Establishment
The new GOI investment law does not allow foreigners to own land. Foreign investors are permitted to rent or lease land for up to fifty years (renewable). Foreign investors are also able to form investment portfolios in shares and bonds.
Protection Of Property Rights
The GOI is in the process of developing a new intellectual property rights (IPR) law in line with the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), but the exact structure of this and related legislation is still being determined. IPR functions are currently spread across several ministries. The patent registry and industrial design registry remain a part of the Central Organization on Standards and Quality Control (COSQC), an agency of the Ministry of Planning and Development Cooperation. Copyrights are under the Ministry of Culture, and trademarks under the Ministry of Industry and Minerals. The GOI’s ability to enforce intellectual property rights laws, however, is weak because of the current security environment.
Iraq is also a member of several international intellectual property conventions, and of regional or bilateral arrangements which include:
-- Paris Convention for the Protection of Industrial Property (1967 Act) ratified by Law No. 212 of 1975.
-- World Intellectual Property Organizations (WIPO) Convention; ratified by Law No. 212 of 1975. Iraq became a member of the WIPO in January 1976.
-- Arab Agreement for the Protection of Copyrights; ratified by Law No. 41 of 1985.
-- Arab Intellectual Property Rights Treaty(Law No. 41 of 1985).
Transparency Of The Regulatory System
The new national investment law establishes a legal framework for investment. Potential investors, however, still face significant hurdles in understanding the basic steps for starting and operating a business in Iraq given the complexity of Iraq's existing laws, regulations, and administrative procedures. The Iraqi government is still in the process of establishing its national and regional commissions. In addition, implementing regulations are still needed for the investment law.
The absence of laws in areas of interest to foreign investors also creates ambiguity. This absence includes competition and consumer protection laws that are critical for leveling the business playing field in the market. A competition law could help cut down on unfair business practices such as price-fixing by competitors, bid rigging, and abuse of dominant position in the market. A consumer protection law would establish the ground rules for firms concerning what actions could be considered unfair business practices directed against consumers. While the Iraqis do not currently have a building code, the GOI is currently evaluating this area.
Efficient Capital Markets And Portfolio Investment
The Central Bank of Iraq (CBI) is responsible for conducting monetary policy in Iraq. The CBI was re-organized by CPA Order No. 56 as a legal public entity that has financial and administrative independence. The Iraqi banking system includes seven state-owned banks, the two largest being Rafidain and Rasheed, which account for about 96 percent of banking sector assets. The vast majority of banking transactions, however, are confined to basic consumer transactions rather than business loans. There are also 20 private banks (see CBI’s website – www.cbiraq.org). Three foreign banks have also been licensed in Iraq.
The Trade Bank of Iraq (TBI) was established as an independent government entity under CPA Order No. 20 in 2003. TBI's main purpose is to provide financial and related services to facilitate the importation. The payments system began limited operation in August 2006, with five banks participating. It is anticipated that by year-end another six to eight banks will begin to participate as well.
The new GOI investment law allows for foreign investors to exchange shares and bonds listed in the Iraqi Stock Exchange (ISX). It also allows foreign investors to form investment portfolios. Trading transactions and buy and sell orders are presently written by hand on grease boards in trading sessions. This system does not always allow for full transparency in terms of timing of market participants or knowledge of who has placed the bid. The coming automation of the ISX will provide much greater transparency as well as pave the way for foreign investment on the exchange. In addition, a new permanent securities law is being drafted as well as rules and regulations for the Iraq Securities Commission (ISC). The status of the ISC is, however, in flux until a new law is enacted.
Political Violence
Security continues to be the number one concern of the Iraqi Government and interested businesses. The security situation in Iraq remains serious. Theft and violent crime persist in Iraq. The threat of attacks against U.S. citizens and facilities remains high. In addition, roads and other public areas can be dangerous for Iraqi or foreign travelers. Law enforcement is limited, although new Iraqi police units continue to be trained and deployed. Attacks against military and civilian targets throughout Iraq continue, including in the International (or "Green") Zone.
Targets include convoys en-route to venues, hotels, restaurants, police stations, checkpoints, foreign diplomatic missions, international organizations and other locations with expatriate personnel. In addition, there have been planned and random killings, as well as extortions and kidnappings. U.S. citizens have been kidnapped, and several were subsequently murdered by terrorists in Iraq. U.S. citizens and other foreigners continue to be targeted by insurgent groups and opportunistic criminals for kidnapping and murder. The U.S. Department of State issues up-to-date travel warnings for countries throughout the world, and U.S. companies and visitors are advised to carefully assess the situation in Iraq.
State Department's Iraq Travel Warning (http://travel.state.gov/travel/iraq_warning.html) and Consular Information Sheet (http://travel.state.gov/travel/iraq.html) contain the essential security and safety information on travel to Iraq.
Corruption
Corruption in all areas remains a significant problem. Under Saddam's regime, corruption was a fact of life for every Iraqi and touched upon every economic transaction. The former regime's control of the economy left a legacy of heavy state procurement and subsidies distorting market prices.
The CPI is an independent, autonomous Iraqi governmental agency, established by CPA Order No. 55, responsible for anti-corruption, law enforcement and crime prevention, as well as public education on these topics. CPI investigates nationwide allegations of corruption within the government and refers cases to the Iraqi judiciary. It acts as an enforcement arm of Iraq's anti-corruption laws, and performs its duties in conjunction with the Board of Supreme Audit (BSA) and the Inspector General (IG) from each ministry. There is a need to impose and enforce credible penalties for government corruption, specifically adherence to laws related to government contracts, procurement and allegations of bribery. The number of corruption cases brought to a successful conclusion remains quite small, and the statutory and regulatory provisions intended to control corruption will require substantial revision to be effective.
Bilateral Investment Agreements And Regional Cooperation
Iraq is a signatory to thirty-two bilateral, and nine multilateral agreements within the Arab League arrangements on Investments Promotion and Protection (IPPA). Some of the bilateral agreements with other countries include Afghanistan, Bangladesh, India, Iran, Japan, Jordan, Kuwait, Mauritania, Republic of Korea, Sri Lanka, Syria, Tunisia, Turkey, the United Kingdom, Vietnam and Yemen. These agreements include general provisions on promoting and protecting investments, including clauses on profit repatriation, access to arbitration and dispute settlements, fair expropriation rules and compensation for losses.
In addition, Iraq has bilateral free trade area (FTA) agreements with the following eleven countries: Algeria, Egypt, Jordan, Lebanon, Oman, Qatar, Sudan, Syria, Tunisia, Yemen, and the United Arab Emirates. Iraq is also a signatory to several multilateral agreements, including the "Taysir" agreement with Arab countries dated February 27, 1982, and ratified in January 11, 1982.
On July 11, 2005, Iraq and the U.S. signed a Trade and Investment Framework Agreement (TIFA) as a first step toward creating liberalized trade and increasing investment flows between the U.S. and Iraq. The Iraqi Parliament has yet to ratify this agreement.
Opic And Other Investment Insurance Programs
The Overseas Private Investment Corporation (OPIC) finances a variety of investment projects with substantial U.S. participation in Iraq. Some of OPIC's basic programs include structured finance projects, political risk insurance, investment funds and financing for small and medium-sized enterprises. In addition, OPIC and the Government of Iraq have executed an Investment Incentive Agreement (IIA). The Iraqi Parliament has yet to ratify this agreement.
Labor
The GOI has drafted a new labor law, which is under review by the Prime Minister’s cabinet. Iraqi labor law remains weak in promoting a flexible, business-friendly employment environment. The existing Saddam-era law includes regulations that require revisions, including: benefit clauses, working conditions for foreign expatriate workers, and rules governing working hours.
Iraq is a party to both International Labor Organization (ILO) Conventions related to youth employment, including child labor abuse. The Ministry of Labor and Social Affairs (MOLSA) also sets a minimum monthly wage for unskilled workers. In addition, according to Iraqi law, all employers must provide some level of transport, accommodation, and food allowances for each employee. The law does not fix allowance amounts.
The new investment law states that priority in employment and recruitment shall be given to Iraqis, but does not establish any quotas. In addition, foreign investors are expected to help train Iraqi employees as well as to raise their efficiency, skill, and capabilities. Separate from the new law, there are existing labor-related requirements for foreign companies employing Iraqi or foreign workers.
Foreign Trade Zones And Ports
The Free Zone Authority Law No. 3/1998 (FZL) permitted investment in Free Zones (FZ) through industrial, commercial, and service projects. This law operates under the Instructions for Free Zone Management and the Regulation of Investors' Business No. 4/1999. Capital, profits, and investment income from projects in the FZ are exempt from all taxes and fees throughout the life of the project, including in the foundation and construction phases.
Activities permitted in Free Zones include: (a) industrial activities (both production and consumer), assembly, installation, sorting and refilling processes; (b) storage, re-export and trading operations; (c) service and storage projects and transport of all kinds; (d) banking, insurance and reinsurance activities; and (e) supplementary and auxiliary professional and service activities. Prohibited activities include actions disallowed by other laws in force, such as weapons manufacture, environmentally-polluting industries and those banned because of place of origin.
There are currently four Free Zones. The Basrah/Khor al-Zubair Free Zone is one million square mile and is located 40 miles southwest of Basrah on the Arab Gulf at the Khor al-Zubair seaport. This area has been operational since June 2004. The Ninewa/Falafel Free Zone is 400,000 square miles and is located in the north, near roads and railways that reach Turkey, Syria, Jordan and the Basrah ports. The Sulaymaniyah Free Zone is located in northern Iraq in the Kurdish area. The al-Qayam Free Zone has two sections located near the Iraqi–Syrian border. It is close to roads and railways that reach Turkey, Basrah, and Jordan.
Foreign Direct Investment Statistics
Total foreign direct investment flows into Iraq were $300 million in 2004. U.S. investment in Iraq was $142 million in 2005. Foreign investment into the U.S. from Iraq during this same year was zero.
http://www.state.gov/e/eeb/ifd/2007/80708.htm
Remarks to U.S. Mission Personnel in Iraq
Secretary Condoleezza Rice
Baghdad, Iraq
February 17, 2007
AMBASSADOR KHALILZAD: Good afternoon. Thank you all for coming. It's my honor to welcome the Secretary of State, Dr. Condoleezza Rice, my boss. The people here, Madame Secretary, are from all over the world and they're here to work together to help Iraq succeed because, as you know and as the President stated it so clearly at so many times, Iraq's success is important not only for the Iraqis and not only for the region but for the future of the world. And I would like to thank them, Madame Secretary, for their service here.
The Secretary is visiting at a time of transition. We've had review, a review of our strategy, and have adjusted it appropriately. We've got a new team coming in place to lead the effort. But the commitment to the mission, the mission being success in Iraq, helping Iraqis succeed, helping them make the decisions that they need to make for their country to become a successful nation -- this ancient land but a new nation -- is important, remains important, remains vital. And the Secretary is obviously one of the leading architects of our efforts to help Iraqis succeed, so it's my honor and my privilege once again to welcome Dr. Rice to Baghdad.
Madame Secretary. (Applause.)
SECRETARY RICE: Thank you. Thank you very much. Thank you so much. Well, first, I'd like to thank Zal and his team for the outstanding job that he is doing here. I have an opportunity to see Zal two or three times a week across a little screen on a CIVITS that we do, and I don't know any ambassador, any envoy in the world, who is working harder and more diligently to try and bring peace and security not just to Iraq but peace and security to the Middle East and peace and security to the world. And so, Zal, thank you very much for your commitment. (Applause.)
I also want to thank our military leadership: General Casey, who has just come back to the States and will become Army Chief of Staff; and we're all excited by General Dave Patraeus' arrival here. I don't think there is a story any better than the way that our men and women in uniform and our diplomats and our civilians are working together to bring peace and stability. It's really, usually people think of war and peace. Well, of course, we know that in between there's a lot, and there's a lot of work to do. And that's why it's so important that we're one team. It's why it's so important that we recognize each other's sacrifices, that we support each other fully. And I think here in Baghdad we have forged an extraordinary civil-military team and civil-military cooperation. And that's thanks, of course, to our leadership, but it's also thanks to each one each one of you, because on any given day I know you're working like partners. And I just want you to know that that's recognized at home, it's appreciated at home, and we want it to continue. So thanks very much for working together as such a terrific team. Whether you're in uniform or not, thanks for working together as such a terrific team.
Now, I want to say a couple things about this mission. First of all, this is an essential mission for the security and well-being of the United States of America. I know we talk a great deal about helping the Iraqi people to find their way out of violence, out of tyranny, to democracy and to living together in peace and prosperity. And that's a noble cause, and America has always been at its best when it uses its power for noble causes. But this mission, bringing a stable and secure Iraq, is also essential for the security of the United States of America. Because on September 11th when those 19 men drove our own airplanes into the Pentagon and into the World Trade Center and would have driven it into the Capitol in Washington, we realized that we were no longer isolated from danger and terror, that the great oceans that had protected us for almost 200 years were no barrier to fear and destruction on our own territory, and we recognized at that point that we were going to have to come to the source of the problem, that we were going to have to go on the offense, that no matter how well we tried to defend America with port security and airport security, we couldn't play defense because the terrorists only have to be right once and we have to be right 100 percent of the time.
And that's an unfair fight, and therefore we decided we had to go on the offense. And that meant coming to the source of the problem here in the Middle East and trying nothing more grand than trying to actually bring about a different kind of Middle East. And a different kind of Iraq, an Iraq freed of Saddam Hussein, an Iraq freed of the tyranny that was a part of this land for so long, that's the different kind of Iraq that can be a pillar of that different kind of Middle East.
And so when you get up and go to work every day in what I know are extremely difficult circumstances, when you get up and go to work every day far from family and far from friends, when you get up and go to work every day and perhaps have to mourn the loss of a fallen comrade, I just want you to know that the work that you're doing is noble, but the work that you're doing is also necessary. It's necessary for generations of Americans to be able to live in peace and in security.
And I know sometimes that it must seem extremely difficult and maybe at times you must think is it even possible. But when you think that, I'd like you to think back to all the other things in history that people thought impossible at the time that just a little while later seemed inevitable.
I spent some time a couple of summers ago reading the biographies of the Founding Fathers. And I'm going to tell you something. By all rights, the United States of America should never have come into being. If you looked at fighting the greatest military power of the time, Great Britain; if you looked at trying to conquer this new land; if you looked at the squabbling between the Founding Fathers, they were wonderful, but boy, did they fight. And if you looked at the way that our country, even conceived as a perfect union was so imperfect at its start, because at its start, of course, Mr. Jefferson's constitution counted my ancestors as three-fifths of a man. And now here I stand some years later, a descendant of those people who were counted as three-fifths of a man, and I'm the Secretary of State. (Applause.) And I'm not even the first black Secretary of State. (Applause.)
So when you watch the Iraqis toiling and struggling and squabbling to try to find a way to live together in democracy rather than in tyranny, remember it's not easy. And we as Americans should recognize more than any people that it's not easy.
I know, too, that you work side by side with some very brave Iraqis. Whether you work side by side with them in the field as military officers, as police, or whether you work with Foreign Service Nationals here, these are the people who are showing the way to their own countrymen, showing the way that there's nothing wrong with Iraqis. Iraqis want the same things that men and women all across the world want, what the President has called the "non-negotiable demands of human dignity." They just want a chance to have a say in who's going to lead them. They just want to have a chance to raise their boys and girls in peace. They just want to be free from the knock of the secret police at night. They just want to have the same liberty and freedoms that we have been so fortunate to enjoy. And so when you work with them, I hope you also reach out a hand and realize what they're going through.
And the final thing I want to say is I know that a lot's going on in Washington and that you're hearing it. A lot's going on because we are a great democracy. And people have their views and they're going to express them. And some do not think that this was the right war to fight, and others think that we in the Administration haven't fought this war quite right. By the way, all of them know that the sacrifice and the labor of our men and women here has been honorable. And so when you hear the criticism of the war or the criticism of the President or of me or of anybody else, I do want you to know that to a person at home, your honor and your sacrifice and your labor is appreciated. People know what you're doing and it's appreciated across the board. I don't care what people think of the policies; it's appreciated across the board.
And I'll tell you something else about the American people. I keep hearing and reading the American people don't want to fight this war anymore. I don't think that's right. The American people want to know that we can succeed. Because they, too, want to succeed. And so we will have our discussions and our debates at home, but Americans want to win this war. They want to leave an Iraq that is better than the one they found. They want to leave an Iraq that is going to be a pillar of a stable Middle East. The President has put forward a new plan to help us do that. I'm energized, I'm ready to go, and I know that each and every one of you is ready to go, too.
So thank you for what you do every day. I cannot thank you more on behalf of our nation all who are working here -- coalition, Iraqis and Americans -- you're in a noble cause and we're going to succeed. Thank you. (Applause.)
2007/T3-1
Released on February 17, 2007
http://www.state.gov/secretary/rm/2007/feb/80645.htm
CURRENCY CONVERSION AND TRANSFER POLICIES
The currency of Iraq is the Dinar (ID - sometimes referred to as the New Iraqi Dinar). Iraq's current exchange system is characterized as a free foreign exchange system, with no restrictions on purchases or sales of foreign currencies. The Iraqi currency is fully convertible and can be exchanged freely with any other currency. In addition, there is free movement of capital without restrictions on capital inflows and outflows. Iraq's foreign exchange regime is also a multi-currency system in which foreign currencies circulate in the market and are accessible to everyone.
The exchange rate is generally determined on the basis of supply and demand conditions in the foreign exchange market. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes. The Central Bank of Iraq (CBI) also can intervene, when necessary, in order to maintain stability in the foreign exchange market. In addition, there are no taxes or subsidies on purchases or sales of foreign exchange.
The Government of Iraq's monetary policy since 2003 has focused on maintaining price stability and a stable exchange rate. In addition, the Central Bank of Iraq conducts daily foreign exchange auctions to limit the impact on base money growth of the sale of the government's oil export earnings.
http://www.state.gov/e/eb/ifd/2006/67643.htm