Iraqi Dinar Chat, Information, News, Facts, Guru Forums, RV and Revaluation info

Follow us! Follow us!

xchangeofamerica.com

+ Reply to Thread
Results 1 to 5 of 5

Thread: Central bank to hold the dinar steady at around IQD1,170/US$ over the next five year

  1. #1
    Member
    Join Date
    Feb 2010
    Posts
    41
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Central bank to hold the dinar steady at around IQD1,170/US$ over the next five year

    What does anyone think about this statement? Some are showing this as proof the Dinar will not RV/RI

    http://www.companiesandmarkets.com/S...010-195614.asp

    Iraq’s economic progress depends, above all, on raising oil production levels over the coming years. As such, the recent deals that the government has struck with a number of international oil companies for the development of some of Iraq’s largest oil fields are therefore highly significant. The deals also bode well for Iraq’s second oil licensing round in December 2009, where the government plans to auction off 10 oilfields. We see real GDP growth averaging 5.6% over the five-year forecast period out to 2014. On the political front, January 2010’s parliamentary elections are another milestone for post-Saddam Iraq. We see the splits that have emerged in the main Sunni and Shi’a political groupings, and the fact that political parties are increasingly prepared to make alliances across sectarian divides, as positive indicators for future stability.

    The devastating bombings that hit Baghdad in October could hurt Prime Minister Nouri al-Maliki’s support ahead of January’s polls. This could open the door for the main rival to Maliki’s State of Law coalition, the predominately Shi’a National Iraqi Alliance, to achieve electoral success. However, no one coalition is likely to wield overarching power after the elections. This, in conjunction with greater Sunni voter participation, could enhance political stability as lawmakers are forced to compromise to achieve results. An unfortunate by-product is that the legislative process is likely to remain sluggish, and the prospects for the quick passage of the long-delayed hydrocarbon law are dim. The recent oil deals and our expectations for more to follow over the coming quarters support our relatively positive growth outlook over the next five years. So too has our improved outlook for the price of oil. Having revised our oil price forecasts upwards, we now see the government’s fiscal position as far more sustainable. We do still forecast fiscal shortfalls out to 2014, but they should be manageable. Supported by healthy current account surpluses, we expect the central bank to hold the dinar steady at around IQD1,170/US$ over the next five years.

    The improvements in the security situation mean that Iraq is now an increasingly viable investment destination, and Baghdad is keen to welcome in foreign businesses. However, investors must be prepared for a myriad of challenges, including endemic corruption, poor infrastructure, an unsophisticated financial services sector and Iraq’s cumbersome bureaucracy. Nonetheless, Iraq is luring greater numbers of foreign companies, and not just into the oil sector. For example, parliament recently approved an amendment to the country’s investment law, allowing foreigners to own land for the purposes of housing projects. This change in legislation will improve the attractiveness of the Iraqi market for overseas property developers.

  2. #2
    Junior Member
    Join Date
    Mar 2010
    Location
    Pierson Florida
    Posts
    25
    Thanks
    0
    Thanked 0 Times in 0 Posts
    This is an old article. I'm not sure that it applies considering the comments in Dec and Jan by CBI and Maliki.

  3. #3
    Junior Member
    Join Date
    Mar 2010
    Posts
    16
    Thanks
    0
    Thanked 0 Times in 0 Posts
    this article is totally out of line with reality and time frame

  4. #4
    Junior Member
    Join Date
    Feb 2010
    Posts
    14
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rehash of dated material..IMO

  5. #5
    SENIOR EXCUTIVE MEMBER
    Join Date
    Feb 2010
    Location
    South Carolina
    Posts
    741
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Thanks for the post.

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts