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Iraqi Dinar Gains vs. Dollar, Falls Back to Opening

January 27, 2012 at 11:55 by Vladimir Vyun

The Iraqi dinar gained against the dollar today, but fell back to the opening level later as tensions between Sunni, Shi’ite and Kurdish political groups intensify, adding to the political turmoil and preventing an introduction of the much needed oil law.

The oil law should resolve the disagreement between the central government in Baghdad and semi-autonomous Iraqi Kurdistan in the north over Iraq’s crude oil stockpiles. Country’s political blocks agreed on the law back in 2007, but its approval was postponed because of political infightings. Some ministers stay away from the cabinet, preventing a conclusive decision. Adel Barwari, adviser to Prime Minister Nouri al-Malik, said:

With these chronic political differences I can’t see any possibility of having an oil law this year. If the (differences) were, say for example, 2 or 3 percent, I would say yes we could have a law, but the percentage is much higher.

USD/IDQ fell to 1,163.00 intraday, but rebounded to its opening rate of 1,165.00 today as of 11:54 GMT.

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