Bankers: beware of infinite distribution of foreign currency in banks

Bankers: beware of infinite distribution of foreign currency in banks



March 9, 2014

Economist asserts that the actions of the Central Bank of temporary
Bankers: beware of infinite distribution of foreign currency in banks
BAGHDAD - Shaima Adel - Hassan Shammari
Description economic expert Majid picture central bank's measures to limit the private distribution outlets of foreign currency in banks Palmagueth referring to some change in the coming days, which could see a reduction at the exchange rate of the dinar against the dollar in Chirvien Association warned of the downside risks to the resolution.
And said the picture of (time) yesterday that he (since the beginning of 2003, and so far sales of the dollar is through the banks and the central bank does not have to deal with Chirvien or remittance companies). He added that the (new instruction set additions price Central dollars cash, which was previously limited to 13 points, but now rose to 24 points and give a margin of ten points to banks and Chirvien and remittance companies, but he identified the bulk of the proceeds from the sale of hard currency to the Central Bank).
He explained that the picture (these actions have effects on the prices of the dinar and therefore will reduce the rate of the dinar against the dollar, which began to increase its value and that the main problem lies in that the impact of the dinar is exposed to the pressures of many may be internal or external, political, and security in addition to the pressures of economic, social and administrative).
He pointed out that (these measures will lead to a reduction in the price of the dinar and raise the price of the dollar and thus would make the transactions in the shade and not through official channels as a result of high demand for the dollar). Expecting that the (central bank retreat for some instructions because he will notice the impact of these measures on the market).
The owners explained that Chierfat central bank's decision has not been implemented so far and we are still continuing our work). Pointing out that (dealing with private banks and not the government banks).
They said (time) yesterday that he (if it applied the decision will hurt the economy in general because it will raise the price of the dollar as well as he determines the distribution outlets of foreign currency in banks and the government only recently prepared a few).
They said it (will get great momentum to those banks, which works to raise the price of the currency and reduces the circulation and thus lead to damage to the Iraqi economy in general and the civil Chierfat in particular). For its part, warned Iraqis Chirvien Association of downside risks to the bank's decision to limit the distribution outlets in foreign currency in banks and the exclusion of banking companies. And crossed in a statement received (time) yesterday (for understanding goodwill for decision-makers and objectives, but pointed to a number of negatives that would have them to limit the distribution outlets of foreign currency dollar banks own and exclude direct sales of banking companies national operating inside Iraq lies in the opportunity for a few Only owners of private banks to monopolize the direct purchase of currency and price controls in the circulation).
He added that (contrary to the rules of the free market that the country seeks to consolidate as a basis to build the economy of a free and sophisticated unable to overcome the red tape and regulations strict that limit the movement of circulation of money and the direct impact on the economy of the market due to the late arrival of the currency to its users and the consequent effects on high Alasarefdila for delay Movement of goods traded within and outside Iraq). The statement (as it deprives hundreds of companies operating in the banking sector to take advantage of direct sales and reducing its activity and profits which companies contribute to the budget of the exchange rate and the speed of currency trading and to meet the needs of large segments of the national economy).
He said (of the leading disadvantages of these measures is the duration of the deposit amount to the banks for the purpose of converting it where it is freezing the amounts handed over to the banks for a week at least in order to be converted into foreign currency and represent the working capital to the banking companies making them at a standstill pending the completion of proceedings conversion while the deposit amount does not take more than two days), noting that (the features of this delay began to appear to rise in price and trading idle reflected negatively on the national economy).
The statement appealed (the central bank to reconsider the action in question and at least alert the banks to make the average duration of the deposit of the amounts delivered to them to buy the currency of not more than two days).

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