A sudden rise of the dollar exchange rate in Iraqi dinar because of Eid Holiday

The observers of the currency market confirmed that any occasion interposed by public holidays, specially those that continue for several days, is expected to raise the value of the American dollar against the Iraqi dinar but the difference is limited and does not exceed in the most serious cases 1500 dinars to the dollar, because such increases in the view of some speculators will be temporary, and they fear from the Iraqi Central Bank being a safety valve of the Iraqi dinar and market. If the Bank thought that the market rose, as the case happened a year and a half ago, it would suspend its vacation to begin offering large amounts of hard currency on the market directly and at prices lower than the circulation price; that is why most speculators are afraid to keep large quantities within their bags due to the risk of loss. But, dealing in the market is done on the basis of supply and demand; this means that small speculators, dealing directly with citizens, would achieve very high profits for this reason. And about their expectations of market prices, the observer demonstrated that the dollar exchange rate in the central auction, held in the Iraqi Central Bank, finally began to retreat before the Iraqi dinar, as the Bank started floating huge amounts of dollars because of the government's need for local cash, especially as the volume of government's consumption increased recently and this requires securing these expenses through the auction. The supply has increased lately from $ 35 million to $ 60 million per day.

Will Iraq private sector import cars and sell them by installments?

This falls in line with the changes that the Ministry desires through adopting the free market system in business dealings after it was gripping for all of import and export, with partial waiver, in recent years, for the merchants to import components of the ration card. öö öö Al-Mada tried through this poll to know the views of a number of economists and whom it concerns about the implications of these changes, especially with regard to trade in cars and their prices in the local market.

The start was with citizen, Mahmoud Jaafar, who said: vehicles are durable commodities just like many others, so the State has no right to deprive the private sector from engaging in this business, which is one of the important activities, and play the role of a trader; the State better carry out bigger and more important tasks. Adding that allowing the private sector to practice this trade, will be positively reflected on the sector and makes the sale of vehicles in installments possible without exhausting the citizens. He asserted that the dissolution of the General Company for Cars Trade would allow the private sector to import modern and sophisticated cars; the market may witness some slackness at the beginning but it would not last for long.

Dr. Saleem Almshahadani, a professor at the Administration and Economy college at Baghdad, says: The import of cars in the past was done according to certain specifications that suit the weather conditions of Iraq, the availability of expertise in the company and all were subjected to control; therefore, allowing the private sector companies to import variable and sophisticated cars may have a negative impact at the beginning. He pointed out that starting private companies for importing cars will lead to the import of fine quality cars and opens the way to competition among these companies to win customers and prove their success, which is a positive thing.. But importing too many cars will have a negative impact on providing spare parts, which will not last for long because traders and companies will provide those tools being a profitable business.

Mr. Ahmed Jasb, owner of an exhibit for buying and selling cars says: The dissolution of the General Company for Cars Trade will be of great benefit because the importer will not adhere to certain qualities and specific brands, like the company used to do, , which will diversify the types of cars. He pointed out that the private sector may sell cars to citizens by installments with certain guarantees to be presented by the buyer. Also, companies that provide after-sale services may appear, as well as companies that undertake importing spare parts and maintenance, as is the case in foreign companies. He explained that car companies and exhibits will be agencies of international companies and will sell cars at a low cost.

Mr. Tahseen Al-Dulaimi, a car exhibit owner, says: The dissolution of the Company would not affect the work of exhibits because traders will turn to them to display the cars they importÇ with the possibility of opening branches of companies, especially after an agreement is reached or the issuance of instructions to organize the work with each of the customs and traffic. The new procedures to be followed by the ministry would be in the interest of exhibits owners because it would encourage and activate the sale and purchase processes. He, also, warned of importing fine cars by the private sector because this will affect the Iraqi street which can not accommodate more than the current number and will suffer from jams if public demand for importation of luxurious cars increases. In stead, he suggested the replacement of old vehicles with more recent ones.

While Mr. Aos, an exhibit owner, expected: a state of confusion will happen in the process of buying and selling after the new procedures which the Ministry intends to do, especially after allowing the private sector to import modern cars of high prices that the Iraqi citizen can not afford. He, also, explained: The majority of citizens prefer the old cars being affordable and car owners will face difficulties in this aspect. (Source)Al-Mada Newspaper

Iraq department of Labor collects more than four million iraqi dinar rent for their projects

The inspection committees in the Department of Labor and Social Security in charge of monitoring the implementation of the retirement and social security law for workers visited 22 projects, insured and uninsured.

An official source said that the inspection committees in charge of the application of the law regulating industrial services had visited 3 search centers for industrial projects and made sure of practicing the profession.(Source) Al-Mada Newspaper

Iraq department of Labor collects more than four million iraqi dinar rent for their projects

The inspection committees in the Department of Labor and Social Security in charge of monitoring the implementation of the retirement and social security law for workers visited 22 projects, insured and uninsured.

An official source said that the inspection committees in charge of the application of the law regulating industrial services had visited 3 search centers for industrial projects and made sure of practicing the profession.(Source) Al-Mada Newspaper

Tax exemptions for investment projects in Iraq

The amended draft of the investment law, which was approved at, included 36 articles. They provided the formation of a body called "National Board for Investment" which has a moral character represented by its chairman or whoever he entitles. The Board will be responsible for forming the national policy for investment, designing plans and regulations as well as monitoring their application in the field of investment.

The Board will be specialized in investment projects that have a federal nature, administered by a board of directors composed of nine members, who are university professors, and the Cabinet will nominate its chairman and gives him the rank of minister and deputy chairman with the rank of Under-Secretary for five years, ratified by the Parliament. The Prime Minister will also appoint four general directors from among the nine members. The Law grants Parliament the right to discharge the chairman of the Board or his deputy at the request of the Prime Minister. The Center of the Board will be in Baghdad and appoint representatives in other regions and governorates.

The Law also grants the regions and provinces, joined in federation or not, the right to compose investment bodies within their territories that have the right to grant investment licenses, encourage investment and open branches in areas under their control" within the regulations of this law", in consultation with the National Board for Investment to ensure that all requirements are legal. The regional and provincial bodies will be made up of seven members, including the chairman and his deputy. Regional and provincial bodies will coordinate work with the National Board for Investment in consultation with local governments, regarding investment plans and facilities.

The Law states: "The Board will accept requests for clearance of investment projects whose capitals are not less than the minimum limit established by the Cabinet or the regional council of ministers; how ever, in case the value of the project exceeds 150 million dollars, the approval of the Cabinet is required". The Board will look into applications of projects licenses within a period of not more than 45 days from the date of submitting the application. The Board will have its own independent annual budget allocated to it from the State budget.

The law defined the Board's objectives by: "encouraging investment through the strengthening of confidence in the investment environment, defining investment opportunities, motivating investment, simplifying the procedures of registration and acquiring investment licenses as well as watching for existing projects and give them priority to be completed, in coordination with official bodies".

Other functions of the Board are "completing the procedures of answering requests for investors and obtain the necessary approvals for the investor and the project, establishing a single window at the National Board for Investment and other regions and provinces comprising delegates accredited by the ministries and members nominated by provincial and district councils according to the conditions and relevant authorities. Also, granting licenses and obtain approvals from other parties in accordance with the law, in addition to providing advice to investors and develop programs to promote investment in the different regions of Iraq to attract investors" , as well as facilitate the allocation of land and rent it for setting up projects in return for a sum determined by the Board in accordance with the relevant authorities, in addition to working on the establishment of safe and free investment areas with the consent of the Cabinet".

The Law further provides that the Board "facilities and grants loans to Iraqi investors on condition they operate manpower commensurate with the size of the loan value". "The investor enjoys all benefits and guarantees and submits to obligations contained in this Law regardless of his nationality. Iraqi and foreign investor has the right to possess land for the purposes of housing projects without speculating it, according to rules set by the Board and with the consent of the Cabinet. The ownership of the housing units may be given to Iraqis after the completion of the project. According to this law, the investor will enjoy the privileges of taking out the capital that he brought into Iraq along with its profits, according to the instructions of the Central Bank after paying all of his obligations".

The law also gives foreign investors the right to" trade in the markets of securities, stocks and bonds, in addition to the composition of investment portfolios in stocks and bonds, as well as leases land for projects as long as the investment project exists but for not more than 50 years, renewable according to the approval of the Board". Foreign investors will also be given the right to insure their projects in insurance companies, and open accounts in Iraqi or foreign currency in different branches of banks in or outside Iraq.

The law ensures that the priority of recruitment and use of employees is for Iraqis, in addition to granting foreign investors and employees, in investment projects, the right of abode in Iraq and facilitate their entry and exit to and from Iraq. Also, ensuring that the project will not be confiscated or nationalized except what comes in a judicial sentence. According to the law "The investor will have commitments; for he will have to notify in writing the board of the region or province immediately after the completion of the installation of the project and the date of starting the commercial work, in addition to briefing the Board with documents, records and a feasibility study if requested".

"The project licensed by the Board will get exemption from taxes and duties for 10 years from the date of operating it according to the developed areas identified by the Cabinet. The years of exemption will increase up to 15 years if an Iraqi investor contributes in the project by 50%".

"The imported materials for the licensed investment projects will be exempted from customs duties for 3 years from the date of granting the investment license. Also, exempt materials imported for the purpose of expanding projects of fees on condition of entering the country within a period of less than three years from the date of notifying the Board of the expansion of the project, and exempt spare parts imported for the project from charges on condition that their value does not exceed 20% of the value of the existing materials on condition that the investor will not use them for purposes other than that for which they were imported".

The law gave" projects of hotels, tourism establishments, hospitals and health institutions, rehabilitation centers and educational institutions the right to import furniture, furnishings and supplies for renewal once every four years to be used in the project. If it is proved that any of these imported materials, which are exempt from customs, were illegally sold, the investor will have to pay fees and taxes, consequently". The Law includes rules to settle the disputes on projects and their financing methods and Iraqi laws will be applied to them, in addition to explaining the legal procedures for the granting licenses to a project. (Source)AlBayan

Maliki: Armed forces formed randomly in Iraq

Today newspaper that doesn't happen before end of this year.On the other hand Maliki declared orming ministerial committee to make substantial reforms at Ministries of Defense and Interior because the Prime Minister sees the way of which ministries formed as the most important problem faces him as he plans to solve the issue of militias and build Iraqi security forces.(Source)AlSabah

Iraq Prime Minister Adviser refutes Qaeda claims

He showed that current Government represents people and there are democratic tools fixed the Government's form and strategy, he added that those calls don't have any fact and don't relate to Islam. (AlSabah)

Electric Ministry in Iraq, Calls Russian Companies Restart Working

On the other hand, the ministry attended to providing full security for the experts and technical staff.Electric minister Dr. Kareem Waheed discussed yesterday with the Russian ambassador in Baghdad Vladimir Jamoon, the stopped private projects carried out by the Russian companies and possibility of activating it as rehabilitation of Haritha station and Yousifiya station besides rehabilitation two stations in Baghdad.(Source)AlSabah

Hidden terror in Iraq

Some people say that growing number of killing was linked to gangs working within ministries of defense and interior, a matte that pushed prime minister to form a committee to clean the said ministries from he the said gangs. This procedure would give its results and effective consequences along with coming days.(Source)AlSabah

Rehabilitation Iraq Oil Pipeline via Syria

A source at oil ministry said that, the ministry approached the Syrian side granting of protecting the pipeline from the terror attacks which try to destroy the Iraqi economic, pointing that settling of producing oil from the northern fields which reached now up to 580 thousand barrels daily would participate in settling the production, since the terror attacks caused negative results in producing Iraqi pure oil.(Source)AlSabah