“The demand hit $7.250 million in cash, covered by the bank at an exchange rate of 1,183 Iraqi dinar, and $184.005 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin.

None of the 14 banks that participated in today’s session offered to sell dollars. The Central Bank of Iraq runs a daily auction from Sunday to Thursday.(Source)Alaswat

Iraqi Central Bank called Iraqi banks to participate in a symposium organized by "Association of Private Banks" on the 15th. of this month, dealing with the foundations of setting interest rates on credits which are showing no signs of growth in banks.

Executive Director of the Association attributed demand atrophy in the market for bank credit to high cost. He said that the results of banks for past year and second quarter of this year, shows limitations of credit provided by banks, compared to deposits.

Board of Directors Chairman of Ashur International Bank, Wadee' Al Handhal, said that the proportion of credit to Gross domestic product ( GDP ) is very low, and below the level of ambition of the sector despite high number of working Iraqi and foreign banks as well as increase in the size of their capital and deposits. He hoped of increasing credit through several ways like: the abolition of the annual credit plan which used to be prepared by the "Central Bank" to banks, granting the boards of directors of banks the freedom to develop a credit plan commensurate with their financial position, the provision of large shared loans and establishment of a joint stock company to be in charge of ensuring bank loans.

The Associate Director-General of banking and credit department in "Central Bank" said that the credit reserve of banks was reflected on liquidity rates which stood at some 60 percent, and that is twice the rate required; this means that there are disabled financial resources which do not have opportunities for credit and safe investment. He added, "The total capital of 35 banks amounts to some 1.2 billion US dollars, but their contribution to granting credit does not exceed 22.5 percent because of their reservation in this area.

The Iraq Central Bank’s adviser, clarified that any deducted ratio from the foreign statutory reserve directly and considering it as governmental revenue to the budget, means borrowing from the bank’s assets and clear violation to its independence.

Dr. Mudhir Mohammad Saleh, told a news briefing that the Central Bank Law does not allow to lend the general budget, otherwise it will lead to miss opportunities of economic and social stability, which are the basis for the development and continuity, noting that conceiving the idea of direct disposal in the reserves, leads to governmental spending of fixed assets.

Salih stressed that the accumulation of these reserves was the result of exchange of a precedent barter with the country's resources of foreign currency earned in order to finance the budget and to cover local expenses. He stressed that this mechanism does not make the Central Bank as an agent of the Government or the official responsible for monetary management of the country's foreign cash inside and outside the country.

He said the difference in this issue shows that the rights are not equal to the value of assets and the differences between the two has been filled with internal governmental debt in the form of bonds, which is contrary to the content of article 26 of the Bank Act No. 56 of 2004. (Source) Central Bank Advisor

Dollar sales were slightly down in the Central Bank of Iraq (CBI) auction on Sunday, reaching $62.190 million compared to $68.078 million in the previous session.

“The demand was all in foreign transfers outside the country, covered by the bank at an exchange rate of 1,170 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the nine banks that participated in today’s session offered to sell dollars.

The Central Bank of Iraq runs a daily auction from Sunday to Thursday.(Source)AswatIraq

Dollar sales were raised on the Iraqi Central Bank's auction for the sale and purchase of foreign currency to the double and exceeded 173 million versus $ 83 million and 665 thousand dollars, at the previous session.

The bulletin, which is issued by the Iraq Central Bank noted to the total volume of demand for the dollar stood at 173 million and 460 thousand dollars at a stable exchange rate of 1170 iraqi dinars per dollar.

The bulletin said that this figure is up from the previous session, which recorded a total volume of demand for the dollar stood at 83 million and 665 thousand dollars at an exchange rate of 1170 iraqi dinars per dollar.

The Central Markets Company announced on its achievement of sales increase for the month of January by 152% compared to sales of the same month in 2008, according to a statement by the Ministry of Commerce.

The statement said that the General Company for Central Markets in the Ministry of Commerce, "announced that the total sales in central markets of Baghdad and other governorates last January was more than one billion and twenty three million iraq dinars", which is an increase of 152% of the total sales for the central markets in the same month last year 2008, which amounted to 671.469.870 iraqi dinar. "

The statement quoted the general manager of the company Hadi Jado'u saying that the company has "announced in the new year on a number of bids for contracting under the mechanism of disposal marketing with public, private and mixed sectors as well as Arab and foreign companies for the purpose of providing materials and merchandise deals."

"It was announced of tenders for purchasing electrical materials from different specialized manufacturers that produce such materials and according to technical specifications, as well as the purchase of small size tires from original manufacturers ... in addition to the tender for providing batteries of 60, 90, 135, 150 A from original sources. "

The general manager of the central market clarified that "goods and materials from the different well known sources (arrived to Iraq), including (washing powder, cleaning materials and shampoos)."

He pointed out that the company's cars had completed, "492 shifts for transporting the ration card items, materials, goods to the central markets in an effort to transfer food supply from southern Iraqi ports to food stores across the country."

“The demand hit $45.465 million in cash, covered by the bank at an exchange rate of 1,176 Iraqi dinars, and $144.025 million in foreign transfers outside the country covered by the bank at an exchange rate of 1,173 Iraqi dinar per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 11 banks that participated in today’s session offered to sell dollars.

The Central Bank of Iraq runs a daily auction from Sunday to Thursday.(Source)Aswat Iraq

The dollar sales in Iraqi Central Bank's auction had risen after it reached the total price 162.920.000 dollars.

According to the daily bulletin of the bank announced on Monday that the sale price of remittances stood at (1173) iraqi dinar to the dollar, including the commission of the Central Bank (3) iraqi dinars per dollar and the selling price of cash (1176) iraqi dinar to the dollar, including the commission of the Central Bank amounted (6) iraq dinars per dollar and the amount of sold cash was (33,855,000) dollars, while the amount of remittances (129.065.000) dollars.

The bulletin pointed out that the basic price, which won the sale's auction 1170 iraqi dinar to the dollar, and the number of contributing banks in the auction were (14) banks.

The central bank is being paid a commission of (3) iraq dinars per dollar on the amounts.

The Iraqi Company for Dates will be back on the share-trading list of the Iraqi Stock Exchange (ISX) next month four years after it had been denied access to the national bourse for failing to provide its final financial statements, the company chairman said on Sunday.

“The company has finalized preparing its financial statements for the past four years. It offered the sheets of two years to the capital market agency while the 2007 and 2008 sheets were referred to the financial control office,” Mahmoud Alloush told Aswat al-Iraq.

The Iraqi dates processing and marketing company, an offshoot of the ISX industrial sector, was founded in 1989 with capital of 50 million Iraqi dinars, now up to more than 6 billion Iraqi dinar. (Source)Aswat Al Iraq

Iraqi stock exchange (ISX) index lost three points during sessions this week to reach 47.12 points, compared to 50.045 points last week. The ISX index has decreased by 6.5% in the three sessions this week to register 47.12 points.

Traded shares in this week exceeded 1.72 billion iraqi dinar at a total value of over 3.19 billion Iraqi dinars (nearly $ 2.7 million) through implementing 611 contracts.

The banking sector achieved the highest trading volume (90% of the total trading), while the hotel sector achieved 45%.

Trading for Non-Iraqi investors exceeded 457 million iraqi dinar (nearly $387.000), through implementing 51 contracts in banking, industrial, services and hotels sectors.

The volume of aggregate demand to buy the dollar had increased during the sessions of the Central Bank of Iraq this week, for up to 820 million and 906 thousand dollars against 645 million and 262 thousand dollars last week, a decline in the exchange rate at one point in the middle of the week.

And the total cash demand registered 208 million and 955 thousand dollars, while foreign remittances recorded a size of request amounted to 611 million and 951 thousand.

The demand rate has increased to its higher record, with 164 million and 181 thousand dollars, while the third-quarter of the current year had registered $ 150 million in each session.

This week has witnessed a remarkable disparity in the sizes of requests to buy the dollar during the course of the auction, when the opening session on Sunday last week, registered the minimum requests during the one session worth 110 million and 625 thousand dollars, while on Monday's session, the demand reached to its peak of value at 233 million and 890 thousand dollars, Double the quantity.

The exchange rate for the current week dropped of one point between the opening session on Sunday which registered 1179 dinars to the one dollar, while in the closing session on Thursday registered 1178 dinars, also on Tuesday the exchange rate dropped as well, while the last week sessions did not witness any change.

This week sessions for auction did not register any bids to sell the dollar by the contributing banks in the auction. (Source) AlSaba

Executive Director of ISX said that the Board of Governors of the market had taken several resolutions during its third meeting in 2008, including contracting with companies to publish the trading data online, as well as giving contributing companies two months to submit their closing accounts.

Taha Ahmed Abdul Salam explained, "The Board approved the contract with the company (Al-Mubashir) for Investors Service, which will prepare and publish the trading data online to all sites and enable investors to receive services of the company concerning the trading data of the companies and their financial situations." He added, "The Council asked the company to send the agreement contract, which will be for three years, and assigned it to set up a web site to the Iraqi market with advanced specifications, just like the ones of the Arab financial markets. The Iraqi market will not bear any financial cost of providing technological services or the publishing of data."

He noted that "the project of the electronic trading is continual and the Council adopted several resolutions including organizing procedures for training the staff of the Securities and prepare the clearing bank to work with the market testing and the results of the meetings. There are also training courses for loading the trading data of companies and send the outputs to the contributing company whose staff will be trained to deal with these data; also, getting ready to regulate a final test of all intermediaries (a comprehensive trading session) to test the staff and intermediaries in order to grant them licenses for electronic work during the first half of June."

Abdul Salam said, "The Board of Governors of the Iraqi market decided, during its third meeting of 2008, to give the uncommitted contributing companies a period of two additional months to submit their final accounts starting from June 1 until July 31. After this date, the authority would impose a fine of one million iraq dinars for each month of delay and for two months as well." He continued, "The resolution states that in the absence of the company's commitment to provide its accounts, the trading of its shares on the market will be stopped with the imposition of a fine of five million dinars."

It is noteworthy that ISX, which was founded by Law (No. 74) in April of the year (2004) and began its operations in the first trading session in June of the same year, holds three weekly meetings on Sunday, Tuesday and Thursday , where the shares of 94 companies are traded.

Trade Ministry offered first batch of money that allocated for farmers as wheat and barley values in Baghdad and sevfen provinces that reaches to iraqi dinar 152 billion, the ministry spokesman said. The provinces' shares were; Najaf iraqi dinar 35 billion, Diwaneia and Kut iraqi dinar 25 billion for each, Hilla iraqi dinar 8 billion, Ramadi iraqi dinar 6 billion, Samawa and Imara iraqi dinar 2 billion for each and Baghdad/ Risafa iraqi dinar 8 billion, the spokesman said.

The Iraqi Stock Exchange (ISX) opened its session on Tuesday with a 2.5 million share contract by the Iraqi Islamic Bank at a value of 0.950 Iraqi dinars (1 U.S. dollar =1,220 Iraqi dinars) per share.

A foreign contract was concluded during the session. Al-Warkaa Investment Bank bought 1,000 shares from the United Company, a foreign investment corporation, at 1.350 Iraqi dinars per share.

On Sunday, the index increased by 0.235% compared to the previous session, closing at 34.100 points.

Traded shares in Sunday's session exceeded 658 million at a total value of over $903.703 million by implementing 247 contracts.

Non-Iraqi investors had participated with 58 million shares, totaling more than 120 million Iraqi dinar by implementing 12 contracts in the banking sector.

According to the daily analysis of the capital market, the banking sector's index, in which 13 companies traded, closed at 36.370 points, while the industrial index, in which five companies traded, ended at 11.120 points.

An ISX statement revealed that 26 companies were traded in Sunday's session out of 94 companies registered in Iraq's stock exchange, of which nine indexes went up, 12 dropped, and five maintained their previous price.

Securities Body revealed that the banking sector came on top in non-Iraqis' transactions during the Market's dealings in the last quarter of the current year.

A statement by the Securities Body said, "circulating non-Iraqis' securities in Iraq Market for Securities began during the last three months; the trading volume reached approximately (2378) million dinars, or the rate of ( 0.9%) of the total trading volume, while the number of shares traded were about (1183) million shares and the number of contracts executed with this interim were (151) contracts."

It added, "The number of companies which their shares have been traded by non-Iraqis, during the last quarter, was (33) companies divided on sectors as follows: the banks (14), investment (2), services (1), industry (12), hotel and tourism (3), agriculture (1)."

The statement said that the banking sector occupied the first place in terms of circulation volume by non-Iraqis by (2234) million iraqi dinar, which make (94%) of the total circulation of non-Iraqis and ranked first in terms of the number of shares traded by (1081) million shares, and also in terms of the number of contracts executed by (76) contracts. It also said that the Bank of Kurdistan ranked first in terms of the circulation of non-Iraqi trading by (2034) million dinars, making (86%) of the total circulation of non-Iraqis and the number of shares amounted to ( 965.1) million shares, which is equivalent to (82%) of the total number of shares in circulation to non-Iraqis during the last quarter of the current year.

Iraq Stock Exchange hold Second session for this month , the numbers of Traded Companies were (26)and still (23)companies are off Trading Floor because of their General Assembly meeting which they decided to Increase their Capital. The numbers of Traded Shares were (12.380) b/ shares and Trading volume(48.617) b / ID, the price Index was about 36.000 point .Bank sector Index was(36.530),Investment sector Index was(109.180),Services Sector Index was(77.200), Industrial Sector Index was(11.400), Hotels sector Index (14.810).

from the Bulletin we can see the Trading for (13) banks, (1) Investment,(3) Services Company,(7) Industrial companies, (2) Hotels companies. Generally the shares prices were Increased in (2) Companies,Decrease in about (14) &stables in (10).

Demand for the dollar was higher in the Iraqi Central Bank’s auction on Monday, reaching $101.040 million compared to $37.615 million on Sunday.

In its daily statement, the bank said it had covered all bids, including $7.500 million in cash and $93.540 in foreign transfers, at an exchange rate of 1,231 iraqi dinars per dollar, a tick lower than yesterday.

None of the 15 banks that participated in Monday's session offered to sell dollar.

In statements, Ali al-Yasseri, a trader, said that the one-tick drop in the exchange rate encouraged traders to make more bids in today's session.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

The Iraqi Stock Exchange outperformed the top seven Arab exchanges yesterday supported by an increase in trading volumes, rising 3.83%, followed by the Egyptian market at 0.96% to over 8200 points, and then the Doha market which rose 0.31% to pass 7600 points.

Saudi market also rose by 0.18% and the Kuwaiti by 0.18%, where UAE dealings hit 3.08 million dinars; Muscat market rose by 0.04% and the Bahraini by 0.03%. However, the Beirut market declined 0.43% and the Moroccan 0.29%. Meanwhile, the Jordanian market was closed yesterday for municipal elections; in sum, most Arab shareholders experienced a rise in July, despite expectations of analysts.

In the Saudi market, the index recorded a slight rise of 0.18% just before the closure to reach the level of 7520.06 points. Volume by 3:15 p.m. (Emirates time) was 88.9 million shares worth 4.3 billion Saudi riyals, across 123,400 transactions involving 98 companies' stocks.

The share price of 30 companies rose, led by Al-Walaa Insurance at 7.79% to 62.25 riyals, while prices of 47 companies fell, notably Eastern Agricultural by 6.38% to 88 riyals. The Kingdom had the lion's share of transactions by a margin of 5.1 million shares at 11.75 riyals.

In Kuwait yesterday, the index rose 0.18% to 2550 points, with 311.3 million shares traded worth 142.4 million Kuwaiti dinars, in 9,500 deals. Jizan company topped the risers at 9.25% to 295 fils, while Nabisco led Kuwaiti decliners at 5.19% to 365 fils; International traders made most transactions, an estimated 34.02 million shares averaging 300 fils.

As for the performance of UAE stocks in Kuwait, Gulf Cement shares have fallen 5 to 480 fils and Al-Fujairah 5 to 330 fils, while Umm al-Quwain fell 2 fils to 182 and Al-Sharjah 5 fils to 375. White Cement shares settled at the price of 164 fils, and Al-Shuaa had no activity, leaving total dealings at 3.08 million dinars.

In Muscat, the Omani market index rose yesterday by 0.04% to close at 6426.66 points with a volume of 8.7 million worth 4.2 million Omani Riyals over 1670 deals distributed among 44 companies.

In Bahrain, the index rose slightly yesterday by 0.03% to close at 2570.07; volume was 4.2 million worth 1.8 million Bahraini dinars. Market valuation rose to 9.2 billion dinars, with United Gulf Bank making the lion's share of transactions, an estimated at 2.04 million shares averaging 0.56 dinars.

In Doha, the market index rose yesterday by 0.31% to close at 7618.08 on a volume of 5.4 million worth 174.5 million riyals on 4,100 deals; prices of 22 companies rose, Technical Inspection on top, up 6.07% to 39.70 riyals.

The prices of 5 companies declined; leading was Al-Salam with 0.66% to 15 riyals, while Al-Riyan had the largest total transactions, an estimated 1.6 million shares at 17.30 riyals. As mentioned, Jordan's Amman Stock Exchange closed yesterday in accordance with article 23 for negotiable securities, to accommodate municipal elections.

In Egypt, the main Egyptian market index as well as Cairo and Alexandria stock exchanges rose yesterday by 0.96% by close at UAE 3:30 local to 8239.97 points. In Beirut, the Plume index declined by 0.43% or 5.1 to 1171.23.

In Khartoum, 4659 banking sector shares worth 8550 Sudanese guineas traded in five deals. Emirates Bank closed at 2.22 guineas. In Iraq, the price index closed at 40.948 points, a rise of 3.38%. In Morocco, the market index dropped by 0.29% to 11430.63.

Traders in the Iraqi financial market expected that the coming stage, before allowing non-Iraqis to trade in the exchange starting on the second of next August, may witness activity moving prices to ambitious levels, paving the way for wide participation by non-Iraqis; this started to show in this week's sessions characterized by unexpectedly high index levels. The banking sector, which has suffered price retreats during the last months, is leading the recovery, an indicator of stable and gradually rising values; the share price of "Bank North", which increased its capital last month from 25 to iraqi dinar 100 bn, jumped from one iraqi dinar to iraqi dinar 4.750 dinars in a week; shareholders disagree about the reason for this.

Exchange dealers expected this trend to continue in the market next month, especially given the expected increase in the number of weekly trading sessions, starting this week, followed by an increase in the number of executed contracts and thus an upturn in transaction volumes and share liquidity.

Sources close to the Iraq Stock Exchange spoke of the Board of Governors' success last year obtaining grant of over seven million dollars to automate trading, and pointed out that a Swedish company is carrying out the automation project which is expected to be completed before the end of the current year.

It should be noted that the market value of shares traded in 2006 fell from $2.136 bn in 2005 to $1.5 bn.

Some private banks issued data on their financial positions and results of their work in the first quarter of 2007, beginning a positive new tradition for Iraqi banks, meeting their obligations from the Board of Securities to report their financial positions to shareholders; this includes showing profit before taxes, reserves, allocations, and other deductions. The data revealed that the Iraqi Investment Bank had profits of 3.196 billion Iraqi dinar, the Gulf Commercial Bank earned 1.270 billion iraqi dinars, profits of Dar Al-Salam Bank were 978 million iraqi dinar, and the Bank of North 2.481 billion iraqi dinar, all reflected in changes in capitalization of the four banks. The capital of the Iraqi Investment Bank is now 29.750 billion iraqi dinar, the Gulf Commercial Bank is 22.344 billion iraqi dinars, while the capital of Dar Al-Salam Bank rose to 50 billion iraqi dinar, and the Bank of North to 100 billion iraqi dinar.

The General Assembly of the Iraqi Bank, Al-Warkaa for Investment and Finance, approved a recommendation to move 20 billion Iraqi dinars from the accumulated surplus and development reserves into bank capital, raising it from 31 billion to 51 billion Iraqi dinar ($40.5 million), an increase of over 64% in its current capital, through a proportional dividend of new shares to existing shareholders.

According to one of the bank's investors, Hamza Hellbon, this increase is significant considering the overall situation in the Iraqi banking sector and current security difficulties. He said this capital increase can "restore investors' confidence that the sector can overcome difficult circumstances if several conditions are met, notably security, stability and activation of the banking sector development resolutions."

Hellbon added, "Al-Warkaa Bank" is one of the banks that have proved their ability to overcome obstacles to growth, through addressing its financial position seriously and developing a good reputation. As a result, someone who invested at the 1999 founding of the bank has seen his shares appreciate by a factor of 100 [Ed. -an average annual compound growth rate of almost 78%].

The general budget of the bank rose from 437.39 billion iraqi dinars in 2005 to 532.82 billion iraqi dinar at the end of last year, as the amounts deposited in the bank (current accounts and deposits) are now 204 billion iraqi dinar. The bank currently has 55 branches in Iraq, including 19 in Baghdad and 36 others.(Source)Brian Hall

Director-General of “Rafidein Bank”, Abdul Hussein Al-Yasiri, said that implementing the restructuring of the banking sector will begin soon, by the adoption of a comprehensive electronic system and mechanisms to keep pace with new developments.

He pointed out to the establishment of special training centers of the sector, in addition to external courses and preparation of studies to evaluate the annual performance, using research centers and specialists.

He stressed that human resource development is a human long-term investment, leading to upgrade the performance of the banking sector, in addition to the importance of opening branches and offices to provide better banking services for the citizen, in all available areas, pointing out that “Rafidain” (founded in 1941) in about to implement a comprehensive process of development, includes linking all its branches with new techniques that enhance its competitiveness with foreign banks which are expected to open branches in Iraq.

He explained that the role of the banking sector in economic development lies in its ability to mobilize savings and invest them in economic sectors, expanding monetary credit and long-term finance to projects serving the overall development; he added that the investment in this area is the most important factor in the development of the stock market.

He pointed to the success of the Central Bank in raising the price of the iraqi dinar against the dollar, pointing out that the prices of goods and services remains high, which are reflected negatively on the cost of production.

He explained that the process of controlling interest rates have become vested to the banks since 2004, after being confined to the “Central”, and raising interest rates would cut down the lending rates.

Observers speculated that the invigoration of the stock market in the Iraqi Stock Exchange during the recent circulation sessions, particularly after the announcement of adopting guarantee mechanisms for the circulation of non-Iraqi investors in the market, may be the beginning of good reception for future transactions compensating the massive losses incurred by stockholders last year, and which resulted from the implications of the security situation, absence of the mechanisms that enhance investment activity and respond to the requirements of the economy market.

Executive Director of the Iraqi Investment Bank, Hamza Hilboon, said that circulation indicators will reach high levels with the start of operating the electronic transaction, early next September, expecting a qualitative development in the circulation, with the entry of non-Iraqi investors.

He pointed out that the recent sessions of the Stock Exchange recorded an encouraging start to various sectors, especially the banks’ shares which maintained the top circulation by very high percentage for a long period.

Executive Director of Ashour International Bank, Zuhair Al-Hafiz, expected that the anticipated positive shifts in the Iraqi Stock Exchange will possess an important part of the Arab and international bourses observations, in light of the desire of Arab and foreign investors to circulate in the Iraqi market of securities, reflecting the increased interest in this promising field.(Source)AlSabah

An official at the Iraqi Central Bank expected a deficit in the next-year budget due to pumping dollars into the local market, to preserve the stability of the iraqi dinar exchange rate.

Head of the Department of Statistics and Research at the "Central", Madhar Mohamed Salih, declared that the new budget will exchange allocations by the dollar, pointing out that the rise in the value of the iraqi dinar had a positive impact through limiting expenditures, to reduce inflationary pressures in the Iraqi economy and reduce costs on prices.

He pointed out that 95% of the budget incomes depends on oil revenues, as a basic resource for the country, pointing out that the coming conditions will be encouraging for lifting the value of the iraq dinar against the dollar, but could not determine the rate of exchange only after starting the work by the general budget.

The iraqi dinar continued to rise against the dollar during the auction of the "Central", at a sale price of 1352 iraq dinar last Sunday, compared to 1360 iraqi dinar last Thursday. The expert at the "Central", Majid Assuri, expected a remarkable improvement in the rate of the iraqi dinar, due to the low dollar exchange rate, over the next couple of months. The last rise in the rate of the Iraqi dinar against the dollar exchange rate was in 1995, but then the exchange rate stabilized between 1400 and 1700 iraqi dinar to the dollar.

The "Central" attributed the high rate of the iraqi dinar against the dollar, to the stability in the sale of the dollar below its real exchange rate. Assuri explained that the inflation suffered by the economy now is a price inflation, and not a monetary inflation, pointing out that the aim of the "Central" is to limit the effects of the monetary inflation. As for the price inflation, it is due to the lower commodity presentations, and to the greedy who exploit the circumstances through which Iraq is going. He expected a significant improvement in the rate of the iraqi dinar, and the drop in prices according to this improvement.

The Iraqi Central Bank said in a statement that the main sale price today landed with 1430 iraqi dinar and the purchase price was 1428 iraqi dinar to the dollar.

The Iraqi Central Bank sold today, the amount of six million and 500 thousand dollars and bought one million and 930 thousand dollars.

The statement declared that the sold amount as remittances to abroad was six million and 500 thousand dollars, which reveals the reluctance of local market for the purchase of the dollar and the sufficiency of banks to buy it for the purpose of transfer, explaining that the cash sale price today is 1441 iraqi dinars per dollar.

The Bank has adopted a new monetary policy in an attempt to improve the rate of the dinar against the dollar, according to a program prepared by the Ministry of Planning, in conjunction with the Iraqi Central Bank for the purpose of eliminating inflation rates in the local market.

For the first in the Central Bank Auction, last Wednesday, offers to sell the dollar exceeded the purchase orders significantly. A statement by the Bank said that the purchase orders by the four banks participating in the auction stood at 330 thousand dollars in cash for 20 million and 850 thousand dollars in cash yesterday.

Ali Al-Yasiri, a dealer with the Iraq Central Bank, attributed the significant drop in demand for the dollar to the decline of trading in the Iraqi market, because of the depressed commercial market due to the deteriorating security situation and the danger of dealing with large amounts of funds.

The statement pointed out that the Iraq Central Bank had covered all procurement requests at 1435 iraqi dinars to the dollar, 2 iraqi dinar lower than the price of yesterday. The dollar, today, dropped 2 iraqi dinar, for the fifth day consecutively, against the iraqi dinar (ID). The participating banks in the auction, today, presented offeres to sell the dollar reaching $ 2 million, bought by the bank in full at the exchange rate 1433 iraqi dinar to the dollar.

The rate of iraqi dinar continued rising against the dollar in the Iraq Central Bank auction last Wednesday; the price was 1444 iraqi dinars to the dollar after being 1446 iraqi dinars to the dollar on Tuesday. The Central Bank of Iraq sales, last Wednesday, slumped to reach 11 million and 435 thousand dollars after being 50 million and 115 thousand dollars the day before. The number of banks participating in the auction last Wednesday was 11 banks from 15 the day before.

The Iraqi investment law approved by the Iraqi parliament in its session on 10 October 2006 will come into effect after its approval by the president and its publication in the Iraqi Official Gazette. It will regulate the national and foreign investment process in Iraq.

Judge Dr. Wa'il Abd Al-Latif, legal expert, MP and deputy head of the Legal Committee, outlines for Niqash the most important points in the law.

Privileges and Guarantees Offered to Investors: (to continue reading please follow the link. Iraq Investment Law

The New Iraqi Dinar 25,000 Dinar Note security features are;

Metallic Ink on Iraqi Dinar Note

Security Strip on side of Iraqi Dinar Note

UV Denomination Idenfication in the middle of Dinar Note

Raised Lettering on new Iraqi Dinar Note

In-threaded Watermark on Iraqi Dinar Note

Iraqi dinar is designed and Printed by the De La Rue Company of the United Kingdom.

The price of the Iraq Dinar was 33 cents a piece before the war and $3.35 before sanctions were imposed on Iraq. It is now legal to own New Iraqi Dinar at this 30-year low price of new iraqi dinar.

Iraq’s position as the second largest oil reserve holder in the world, with 95 percent of Iraq’s revenue coming from exported oil. Iraqi investors have announced the establishment of two new private banks, which are: Al Mansur Investment Bank, with a capital 55 billion iraqi dinars (about 38 million dollars), and Tigris and Euphrates Bank for Development and Investment, with a capital of 25 billion iraqi dinars (about 17 million dollars).

On October 15, 2003, the new Iraqi Dinar Banknotes were launched by the Central Bank of Iraq in cooperation with the Coalition Provisional Authority in the denominations of 50 Iraqi Dinar, 250 Iraqi Dinar, 500 Iraq Dinars,1000 Iraq Dinar, 5000 iraqi dinars, 10000 Iraqi Dinar & 25000 Iraqi Dinar Bill. The new Iraq banknotes, printed by De La Rue, boast of the most up-to-date anti-counterfeit features, including watermarks, a security thread, raised letters, an optical variable ink and other variations to thwart counterfeiters. The new Iraq currency will supercede all previous 'Saddam' Dinar, and as of January 15th, 'Saddam' Dinar is considered a collectors item.

Starting October 15th 2003 a new Iraqi Currency known as the ‘new Iraqi dinar’ began to replace the ‘old Iraqui dinar’, and the currency used in the North of Iraq, the ‘swiss Iraqui dinar’. The new Iraqi dinar created a single unified currency that is used throughout all of Iraq. Since the production of the new Iraq dinar, the international demand for the new Iraqi dinar has continued to rise and as well the value of iraqi dinar.

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The 788 daily iraqi currency auction was held in the Central Bank of Iraq day Thursday 10-12-2006 so the results were as follows :

Number of banks 14 -----

Auction price sell iraqi dinar exchange rate / US $ 1470 -----

Auction price buy new iraqi dinar exchange rate/ US $ ----- -----

Amount sold at auction price (US $) 58.810.000 -----

Amount purchased at Auction price (US $) -----

Total offers for buying (US $) 58.810.000 -----

Total offers for selling (US $) ----- -----

Cash amounts sold to the bank and its customers were USD(24.750.000) at a rate of(1470+1+10=1481) new Iraqi dinar / US Dollar.

The amount sold to make transfers abroad was US Dollar (34.060.000) at a rate of (1470-2)+ one new iraq dinar as a bank fee and exempt the transferred amount from conversion fee.

Daily price Bulletin buying and selling Thursday 10-12-2006

Currency Code

Selling Price of new Iraqi dinar

Buying Price of Iraqi dinar

EUR

1845.664 iraqi dinar selling price

1844.741 iraqi dinar buying price

GBP

2731.353 selling iraqi dinar price

2729.987 buying iraqi dinar price

CAD

1295.236 new iraq dinar selling price

1294.589 iraqi dinars buying price

CHF

1158.085 iraqi dinar selling price

1157.506 new iraqi dinars buying price

SEK

199.458 dinar selling price

199.358 dinars buying price

NOK

218.788 iraqi currency dinar selling price

218.679 iraqi dinar buying price

DKK

247.576 dinar selling price

247.453 iraqi dinar buying price

JPY

12.311 new iraq dinar selling price

12.304 dinar buying price

The above iraqi dinar price represent reference exchange rate and does not from any commitment on the Bank Central Iraq.