Central restores local market activity with the support of the dinar on the cash reserve account

Central restores local market activity with the support of the dinar on the cash reserve account

Monday 3 - April 2017

Baghdad waves Ahmed

with the continuing rise in the demand for the dollar in the local markets, foreign currency rates began two weeks ago to decline gradually, reaching its exchange rate in trading yesterday to 1224 Iraqi dinars to the dollar, after rising over the past months to 1440 dinars.

Many factors contributed to the decline in the dollar against the dinar; the most important of a slight rise in world oil prices accompanied by an increase in exports, compared to last year, with the measures taken by the Central Bank, represented reducing the tax imposed on the purchase of the dollar, compared to display large amounts of the dollar in the currency auction ; as sales rose during the past months of this year to more than three billion compared to last year.

Therein lies the danger; Increasing sales represent a threat to the balance of currency in the central bank, especially that sales are still high compared to what enters hard currency through the export of oil, making the decline witnessed by the dollar in the local markets and temporally.

It fell bank reserves of hard currency this year to 49 billion dollars after it was in 2013 (80) billion.

According to banking markets in Baghdad, the dollar exchange rate against the Iraqi dinar, is witnessing a continuous decline to reach the dollar yesterday 1224 dinars per dollar, adding that " the owners of banking companies and banks that sell the dollar expect further decline."

This decline was born and contraction in the domestic market, even though the goods and commodities prices have not experienced any decline, most shops have not been until now a new summer goods, because most traders are waiting for further decline in the dollar exchange rate.

He says the financial and banking expert, Hilal Taan, in connection with the "world", on Sunday, that " the decline in dollar prices came after the recent measures taken by the Central Bank, in the forefront of increasing the foreign currency put in the auction as well as currency selling for travelers, it became available in local markets , "finds that" the movement of trade at the present time has recorded times compared to the same period last year, as well as the domestic market trading indicators and retention of citizens in foreign currency owned, led him to reduce the demand for the dollar , "noting that" the low price exchange contributes to the reduction of prices of imported materials and give Power of the Iraqi dinar also leads to the restoration of the local market activity. "

In the meantime, the concerned sees economic affairs, on behalf of Jamil Anton said in an interview with " the world", said yesterday that " the continued decline in the dollar exchange rate against the Iraqi dinar, due to several reasons , most importantly, the continuation of the central bank introduced amounts of the dollar on the one hand, and for the type of of the economic recession in the country; where trade operations infected with inaction and paralysis that reduced the demand for the dollar and led to the decline.

He adds, that the weak demand for goods and fear citizen of shopping in large quantities, constitute the other factors that led to a decline in dollar prices.

but Anton, warned of the policy of "flooding the market with hard currency", in anticipation of the continuing decline Hard currency.

The Central Bank of the province on the Keywords said earlier that "the Ministry of Finance sells 80% of the dollar revenues to the central bank and then the latter to sell the hard currency market to get the Iraqi dinar."

Keywords and said, "There is a hard currency exit to the outside because of the security and economic conditions experienced by the country , "noting that" the Central Bank gives freedom to the individual to dispose of his assets , whether the currency abroad transfer for reasons of travel or investment outside of Iraq. "

He noted that" the occurrence of financial crimes and robberies , some banks pay the central bank to intensify measures to protect banks Rao Q funds. "


[You must be registered and logged in to see this link.]
Â