Chapter: Delay of Annual Budget
24-01-2014 Iraqi Dinar Expert TD Edward: It is said that Iraq is deliberately presenting its budget late, is it fact or a perception?
24-01-2014 Iraqi Dinar Expert IDD Colin: According to the rules and regulations, the chief minister has to present the annual budget by every 11th November of the year, but in the recent case the government of Iraq did not submit its budget by January 2014. I don’t think so that government deliberately not presenting its budget in the parliament because of its political issues. Moreover the deficit in the budget was another major cause for Iraq to delay budget.
24-01-2014 Dinar RV Expert DNR: Is that first time Iraq presented its budget late in the parliament or it also happened prior in Iraq?
24-01-2014 Tampa Dinar Expert: It is said that it is routine in Iraq that the government often present its budget late in the parliament for its personal gains. History shows that none of the Iraq budget is presented in the country in time and the government is also walking on the same path as the other did in Iraq regarding the timing of budget. They need to follow the rules for presentation of budget in Iraq.
24-01-2014 Iraqi Dinar Expert IDD Colin: Is that budget 2014 good news for Iraq people?
24-01-2014 Dinar RV Expert DNR: Iraq is presenting an annual budget of $150 billion dollars in Iraq parliament. This is one of the healthiest budgets of Iraq history as announced by the finance committee of Iraq earlier. Iraq budget 2014 has lots of for common Iraqi and it will be so much beneficial for economy of Iraq, a special offer provided by the government of Iraq is the five trillion dinars which will be divided among people as bonus profit from the oil industry.
24-01-2014 Iraqi Dinar Expert TD Edward: What is bad in Iraq budget 2014?
24-01-2014 Iraqi Dinar Expert IDD Colin: Experts are of the view that even though the government is going to present a healthier budget of the history in Iraq, but unemployment, crimes and living standard are the same in the country. According to report the unemployment rate in Iraq increased than previous two years. This is an alarming situation in Iraq and it has to make efforts to control the things and it also needs to provide employment opportunities for people.
24-01-2014 IDD Expert Terrence: What is the major reason for this unemployment in the country?
24-01-2014 Tampa Dinar Expert: Economists are of the view that Iraq could not pay proper attention to local industry. Iraq is depending on its oil and gas industry for producing employment opportunities in Iraq and just one industry cannot produce jobs for whole countrymen. Therefore dependence on oil and gas industry is the major reason for Iraq in employment issue. Iraq will have to empower the oil cottage industry for development and employment in Iraq.
24-01-2014 Dinar RV Expert DNR: What is the impact of delay of annual budget on the agricultural and industrial projects?
24-01-2014 IDD Expert Terrence: Many agricultural and industrial projects in Iraq are looking towards Iraq budget for lack of finance. The delay of the budget can destroy the developing cottage industry of Iraq, which is the major source for employment in Iraq after the oil industry. The agricultural industry is already facing crises in Iraq and most of agricultural products are being imported from nearby countries like Iran and some other Asian countries.
24-01-2014 IDD Expert Terrence: What about five year’s economic policies of Iraq, if cottage industry is in crisis as early?
24-01-2014 Iraqi Dinar Expert TD Edward: Iraq is making efforts to control the situation prevailing in the cottage industry of Iraq, but much more is needed to tackle the things. Development of cottage industry was second priority of Iraq, but management of Iraq could not pay proper heed to cottage industry as planned in Iraq economic policy. Iraq is facing an unbalanced economy due to unbalanced consideration which is so critical for Iraq. The government of Iraq is now claiming that cottage industry will be improved in next two years but see when it happens.
24-01-2014 Dinar RV Expert DNR: How can Iraq government claim about the development of cottage industry in next two years when capital from domestic industry is flying in the other countries of the world?
24-01-2014 Iraqi Dinar Expert IDD Colin: This is an alarming situation for Iraq that domestic capital is flying from a country so fast. The owners of small scale industry are frustrated with the attitude of the government. The small scale and cottage industry is under frustration by negligence of the federal and the provincial government of Iraq, even it was decided in five year economic plans that the cottage and small scale industry will be promoted in the next five years in Iraq but nothing happened at satisfactory level.
24-01-2014 Tampa Dinar Expert: In this environment, what should be the economic plan of Iraq in budget 2014?
24-01-2014 Iraqi Dinar Expert TD Edward: The priority of the government after the oil and gas industry, should be cottage and small scale industry. Unemployment is the major problem in Iraq and it can be tackled through development of small scale industry. Small scale industry is as important as oil and gas industry of Iraq for stability and economic development of the country. Agricultural sector should be after this and it is important for Iraq to gain self-sufficiency in agricultural products.
Chapter: Budget of Iraq
15-01-2014 Tampa Dinar Expert: What was the purpose of Noor Al Maliki and prime minister of Kurdistan?
15-01-2014 Iraqi Dinar Expert IDD Colin: Iraq needs to stabilize the political environment in the country for economic development. For this purpose, Baghdad and Kurdistan will have to settle the things with each other. Iraq is going to announce the budget 2014 after a few months and Noor Al Maliki tried to settle the outstanding issues with Kurdistan to make this budget as people friendly budget for Iraq.
15-01-2014 Iraqi Dinar Expert TD Edward: What are the main issues that are to be resolved between Baghdad and Kurdistan regional government?
15-01-2014 Dinar RV Expert DNR: There are many political issues between the Kurdistan regional government and Baghdad that needs clarification and needs to be resolved. The major issue is the formula for exporting oil in the international oil market. The Kurdistan is selling oil in the global market at a lower rate than that of Baghdad. Due to this reason Baghdad has challenged many contracts of Kurdistan in the court therefore both of the regions are looking to resolve the things to present a healthy budget for Iraq.
15-01-2014 IDD Expert Terrence: As far as my information is concerned, both of the regions are participating in the final budget of Iraq, so where are the differences?
15-01-2014 Iraqi Dinar Expert IDI Basil: It is true that both of the regions are presenting this budget after many years because during the reign of Saddam Hussein the income of the Kurdistan were not used for budget calculation. There is only one issue of oil and gas that need to resolve otherwise the other incomes like tourism and agricultural income are being considered for budget purpose.
15-01-2014 IDD Expert Terrence: It is said that Baghdad terminated the contract of oil that was signed with Kurdistan regarding export through Turkey?
15-01-2014 Dinar RV Expert DNR: No it is not true; Baghdad did not terminate the contract that was signed with the Kurdistan regional government. There is not any official statement on the part of Baghdad for termination of this contract. The contract is favorable for both of the regions. The contract is to export oil to the other countries of the world through Turkey ports. The contract is a better option for both of the regions to minimize differences in the oil trade formula.
15-01-2014 Iraqi Dinar Expert IDI Basil: What is the impact of decreased oil production on the annual budget of Iraq?
15-01-2014 IDD Expert Terrence: According to experts, the oil production of Iraq was effected by the end of this year. As Iraq is totally dependent on its oil industry it is so alarming that Iraq is facing reduction in the oil production which is the main source of revenue for the government. The government officials are of the view that decreases in oil and gas at the end of the year will not affect the annual budget as much as some people are talking about.
15-01-2014 Iraqi Dinar Expert IDD Colin: What was the main reason for the decrease of the oil production in this year as Iraq is doing its best to achieve oil targets?
15-01-2014 Tampa Dinar Expert: There is no doubt in it that Iraq is doing hard to achieve its oil targets but it is also facing reduction in the oil production. The reason behind this reduction is the leakage and the repair of oil fields especially in the northern areas of Iraq. This might affect the final budget of Iraq. Therefore it is said that Iraq asked for support from the World Bank to fill up the gap of deficiency in the annual budget of Iraq.
15-01-2014 Dinar RV Expert DNR: What is the deficiency figure in the annual budget of Iraq?
15-01-2014 IDD Expert Terrence: Deficiency figure in annual budget is not clear to anyone by the date because of different statements on the part of the government officials. At the beginning, the finance committee of Iraq announced that in the total budget of 173 trillion Iraqi dinars, the deficiency is 35 trillion Iraqi dinars. Later on the finance committee announced that the actual deficiency in the annual budget is 60 trillion Iraqi dinars and still it is confusing that whether it is 35 trillion or 60 trillion Iraqi dinars.
15-01-2014 IDD Expert Terrence: When Iraq did ask the World Bank to help him to fulfill the gap in the annual budget of Iraq and what was the response of the World Bank for this issue?
15-01-2014 Tampa Dinar Expert: It was reported that two weeks ago the government of Iraq asked the World Bank to grant a loan for them to fulfill the deficiency in the annual budget of Iraq. The deficiency was reported about 60 trillion Iraqi dinars in the budget. The World Bank passed $355 million dollars after this request from the Iraqi government but Iraq surprisingly withdraws its request after a few days and refused to take a loan passed by the World Bank.
15-01-2014 Iraqi Dinar Expert TD Edward: What will be the impact of gold prices on the annual budget of Iraq?
15-01-2014 Iraqi Dinar Expert IDD Colin: Like many other countries of the world, Iraq is also trading internationally with the gold instead of dollars or any other currency. The prices of gold decreased in the international market for a couple of months. Due to this fact the inflation rate of Iraq is increasing with every passing day and will hopefully impact the budget of Iraq and also the economy. Experts says that this impact will be temporary and Iraqi economy will be fine after a few months.
Chapter: Iraq budget 2014
13-01-2014 Iraqi Dinar DG Guru: Why Iraq budget 2014 is being considered as a complicated one for its stakeholders?
13-01-2014 Tampa Dinar Expert: Experts consider the budget 2014 as a complicated budget for stakeholder of the country. The major stakeholder of the country is the Kurdistan regional government. There are so many complicated conditions and clauses in the budget 2014 which Kurdistan considers against their region interest. The Kurdistan regional government is unhappy with the recent budget of Iraq.
13-01-2014 Iraqi Dinar DG Guru: What are the complicated terms and conditions which Kurdistan considers against its interest in the annual budget 2014?
13-01-2014 Dinar RV Expert DNR: Iraq has imposed a new condition for Kurdistan in the budget to export 250,000 barrels per day through Iraq pipelines and in the case of failure; Kurdistan will have to pay 17% of its income which can be billions of dollars. Kurdistan is unhappy with the decision that Iraq is going to take for Kurdistan in the oil and gas contracts.
13-01-2014 Iraqi Dinar Expert IDD Colin: Is not Baghdad trying to pressurize Kurdistan by this kind of terms?
13-01-2014 Tampa Dinar Expert: The Kurdistan is of the view that Iraq is trying to pressurize Kurdistan by taking this kind of decisions. According to Kurdistan this may affect the economy of Iraq badly and to the political relationship between Iraq and Kurdistan regional government. Baghdad cannot make progress without economic development of Kurdistan, according to experts. Contrary to this, Baghdad is not ready to accept this fact that Iraq is pressurizing the Kurdistan for the sack of its benefits.
13-01-2014 IDD Expert Terrence: I think these terms are sure way to control Kurdistan oil prices that it is offering other countries of the world. What you say?
13-01-2014 Iraqi Dinar Expert IDI Basil: There is no doubt in this argument that Iraq is worried about the oil export policy of Kurdistan because Kurdistan is exporting oil in the global market at a lower price than that of Iraq and other countries of the world. According to this reason the oil policy in Iraq is also being affected and other countries like UK, United States of America and many others are not happy with this policy of the Kurdistan. It may possibly that Iraq is trying to control Kurdistan by imposing this kind of conditions on Kurdistan.
13-01-2014 IDD Expert Terrence: Is not so that this proposed budget of Iraq has opened many arguments?
13-01-2014 Iraqi Dinar DG Guru: Yes, you can say that this proposed budget has given a rise many arguments that needs clarifications and it created misconceptions between the political system between Iraq and Kurdistan. The top level political leadership trying its best to monitor and control the things between both of the regions but unexpected budget draft has made the things again more difficult between both of the regions.
17-12-2013 IDD Expert Terrence: Did the finance committee submit this draft in the parliament for final discussion or not?
13-01-2014 Dinar RV Expert DNR: Still the draft is under discussion in the finance committee of Iraq and is not submitted to the parliament for final discussion. Hopefully it will be submitted to the parliament within next few days and final discussion will start on this draft. All the news about the draft is media reports and the government or any other responsible source has not talked about this draft yet.
13-01-2014 Iraqi Dinar Expert TD Edward: At one end Baghdad is trying to create better relationships and on the other hand this kind of draft for budget, is out of my mind, what is your opinion about this draft?
13-01-2014 Iraqi Dinar Expert IDD Colin: The finance committee of Iraq will not present the draft in the parliament as it will create misconceptions between both of the regions. Iraq cannot afford to take these conflicts so long as it wants to go ahead with the economic development of the country. Iraq has realized the importance of peace and don’t want to settle the things with any kind of pressure. The budget will be finalized with the mutual consultancy of all the major stakeholders of the region, if Iraq wants to continue its development in the global market.
13-01-2014 Iraqi Dinar Expert IDI Basil: How oil export formula can be settle in the Iraq between Baghdad and Kurdistan?
13-01-2014 Tampa Dinar Expert: In the absence of oil export formula, the trade of Iraq is being affected in the global market, according to experts. There are many types of contracts between Kurdistan and other countries of the world which are pending due to legal stay from Iraq. These contracts are the need of hours and should be settled down as soon as possible because Iraq cannot bear the loss of these pending contracts.
13-01-2014 Iraqi Dinar Expert TD Edward: Did any third party not play any kind of role in resolving these issues between Baghdad and Kurdistan regional government?
13-01-2014 Dinar RV Expert DNR: Numbers of countries of the world asked for arbitration between Baghdad and Kurdistan regional government, but Iraq was not ready to accept any foreign involvement in its internal issues. Turkey is the country whom both of the regions accepted as to settle the things between both of the regions and it is making its efforts to resolve these issues. Both Kurdistan and Baghdad agree to export oil through Turkey markets to the other countries of the world and it is very good development regarding this issue.
Chapter: Revaluation in 2014
07-01-2014 Iraqi Dinar DG Guru: Do you expect revaluation in 2014?
07-01-2014 Dinar RV Expert DNR: Revaluation of Iraq dinar is in process and will be completed by 2014 as announced by the central bank of Iraq and the parliamentary finance committee of Iraq. The discussion on the revaluation has been completed and final meeting with US delegation about the exchange rate of Iraqi Dinar has also been completed and now it is time to take action. So the revaluation is not too far and will be completed in 2014.
07-01-2014 Iraqi Dinar DG Guru: Why government is looking to delay the process of revaluation?
07-01-2014 Dinar RV Expert DNR: It is st planning and the final decision has not been made by the government of Iraq whether to delay or not the process of revaluation of the Iraqi dinar. It may possible that due to preparation of the general elections, the government wants to delay the process of the revaluation as it is case sensitive and case affect the whole economy of the country. The final date will be announced very soon because the finance committee of Iraq is handling this issue with the devotion.
07-01-2014 Tampa Dinar Expert: Why dinar is being traded like hot cakes in these days?
07-01-2014 Dinar RV Expert DNR: Even some people are talking about the delay of revaluation process even then the Iraqi dinar is being traded like hot cakes in the global market because its revaluation is confirmed now and people don’t want to lose this golden opportunity of investment. Most of the dinar buyers are Europeans and ex-military officials from the United States of America. Speculators are buying Iraqi dinars more and more to secure maximum profit from the revaluation.
07-01-2014 Iraqi Dinar Expert IDI Basil: How commercial banks are supporting central bank of Iraq in stabilizing the currency?
07-01-2014 Iraqi Dinar DG Guru: The central bank of Iraq is introducing new laws for auction and to buy foreign currency for daily transaction needs of the companies. Commercial banks of Iraq also supported the central bank of Iraq to control the demand and supply of foreign currency in the country. It is necessary to control the demand and supply of the foreign currency to stabilize the local currency in the market.
07-01-2014 Iraqi Dinar DG Guru: Why City Bank of United States is buying Iraqi dinar from its customers?
07-01-2014 Dinar RV Expert DNR: Iraqi dinar hopefully is the most profitable investment in the present business environment and the commercial banks of the world understands the future the revaluation of the Iraqi dinar. The city bank of the United States of America realizes this fact and knows the future and expected value of the Iraq dinar. The revaluation of the Iraqi dinar is under process and will be completed soon and banks will convert their dinar with the central bank of Iraq with almost 800% return on profit.
Chapter: Agricultural Sector in Iraq
02-01-2014 Iraqi Dinar DG Guru: What are the recent business opportunities available for the United States of America in the agriculture sector of Iraq?
02-01-2014 Tampa Dinar Expert: The United States of America is already working in the region in the different fields of agriculture. Most of American companies with the cooperation of Israel business community are investing in the agricultural sector of Iraq. Most of their targeting area is Kurdistan where they find many business opportunities in the agricultural sector. Recently Americans are looking business opportunities in the fishing industry of Iraq.
02-01-2014 Iraqi Dinar Expert IDI Basil: What about the recent meeting between Iraq officials and American business delegation in Baghdad?
02-01-2014 Dinar RV Expert DNR: Headed by the director of US Iraq Business Initiative business delegation met with the minister of foreign relation department of Iraq. The meeting was in the pleasant mood and both of the countries discussed about mutual interests. The business delegation of USA was interested in the agriculture of Iraq and Iraqi foreign minister discussed the available business opportunities in the agricultural sector of Iraq.
02-01-2014 Iraqi Dinar Expert IDD Colin: Is it a source of diversifying the economy of Iraq or just development of agricultural sector?
02-01-2014 IDD Expert Terrence: The foreign minister of Iraq told it an important step towards the development of diversify economy of Iraq. Iraq is looking to minimize the dependence of oil for its economy and taking essential steps to promote agricultural sector of Iraq. It will enhance the investment in the country and will create more jobs in the country that is a must need for Iraq.
02-01-2014 Dinar RV Expert DNR: Is that diverse economy favorable for economy of Iraq?
02-01-2014 Iraqi Dinar DG Guru: The dependency of Iraq in the export of crude oil is not favorable for a sustainable future of the country. It will have to look forward to make progress. The energy sector alone cannot produce the jobs for whole country therefore the diverse economy is essential for the progress of the country. Unemployment is the major cause in the terrorism in the country.
02-01-2014 Iraqi Dinar Expert IDI Basil: Why Kurdistan is more suitable region for the investment in agricultural sector of the country?
02-01-2014 Tampa Dinar Expert: Kurdistan regional government is one of the fastest growing economies of the world. The law and order situation in the region is so good and the investors feel comfortable and secure in the region. Moreover the land in the Kurdistan is so fertile and there are ample opportunities available in the region to invest in the agricultural sector. Kurdistan is also considered as one of the gateways for country to connect with the other countries of the world.
02-01-2014 Iraqi Dinar Expert TD Edward: What are the major concerns of Iraq in this investment plan in Kurdistan region?
02-01-2014 Dinar RV Expert DNR: The purpose of Iraq to enhance the investment in the agricultural sector is to gain self-sufficiency in the agricultural goods. Iraq has to import millions of tons of wheat, rice and many other eatables, to fulfill the needs of the country. Therefore Iraq is looking to enhance the investment in the agricultural sector. Now Iraq is importing wheat from different countries of the world including Iran.
02-01-2014 IDD Expert Terrence: What is the future plan of Iraq for agricultural products if it does not gain self-sufficiency in the agriculture by near future?
02-01-2014 Iraqi Dinar Expert IDD Colin: The first priority of Iraqi government is to gain self-sufficiency in the agriculture and if it feels difficulties the African countries will be the best option for government of Iraq. At the recent meeting of Arab Africa business delegations, the African countries showed great interest to export agricultural products to the Arab countries including Iraq. Israel is investing a huge amount in the agricultural sector in Africa in these days.
02-01-2014 IDD Expert Terrence: What is the role of USAID in the development of agricultural sector in Iraq?
02-01-2014 Tampa Dinar Expert: USAID program is operating so efficiently in the Iraq and supporting small and large projects related to agriculture. USAID is working on the quality of grains that are being used to grow crops in the country and the pesticides and fertilizers. It is also providing loans on short and long term basis to the common farmers with the cooperation of the local banks to improve the land for growing fields.
02-01-2014 Iraqi Dinar Expert IDD Colin: What is the role USAID in the development of fishing industry of Iraq?
02-01-2014 Iraqi Dinar Expert TD Edward: Fishing industry of Iraq was neglected by the government for the numbers of years. The fishing industry was about to vanish in the country when USAID decided to support it. USAID managed proper feed for the fish and managed clean water and fulfill the shortage of water. USAID is also one of the biggest buyers of Iraq fish in the world.
02-01-2014 Iraqi Dinar DG Guru: What are the major problems for agricultural industry of Iraq?
02-01-2014 Dinar RV Expert DNR: There are a number of problems that Iraqi industry is facing in the region. One of the biggest issues for agriculture sector of Iraq is the shortage of water. There are some regions where water is not available even for drinking. History shows that Iraq was one of the biggest exporters of wheat in the world and now it is one of the biggest importers of the wheat of the world.