Economist: Increasing cash sales of foreign currency is a wrong move

by **Rocky** Thu 10 Jun 2021, 2:53 pm

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Economist: Increasing cash sales of foreign currency is a wrong move

by Rocky Thu 10 Jun 2021, 2:53 pm

Economist: Increasing cash sales of foreign currency is a wrong move

10/6/2021 17:25:00

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Economist: Increasing cash sales of foreign currency is a wrong move

An economic expert confirmed, today, Thursday, that the decision of the Central Bank of Iraq to increase the amount of cash sales from foreign currency, is an incorrect step, describing the licensed banks as an excess and corrupt episode.

And the Central Bank announced earlier today, during a statement obtained by PUKmedia , that for the purposes of meeting requests for foreign currency and for the purpose of achieving monetary policy goals and ensuring the stability of the exchange rate, the Central Bank of Iraq decided to increase the amount of cash sales of foreign currency to all authorized banks and exchange companies. All mediation companies sell and buy all foreign currency and meet it in full, as shown below:

The bank's share is $300,000 per week

A Class A exchange company’s share of $2,200,000 per week

The share of a Class B exchange company is $750,000 per week

Class C exchange company share $70,000 per week

In this regard, the economic expert Dargham Muhammad Ali suggested, during a special statement to PUKmedia , that the exchange rates of the dollar against the Iraqi dinar did not improve, indicating that this process was to increase the profits of these banks and not to reduce the exchange rate.

Ali described this step as incorrect, stressing the need to increase sales outlets and find direct outlets for citizens and ways to sell dollars to citizens without going through the cycle of corrupt licensed banks and banking companies owned by well-known personalities, as he described it.

Ali pointed out, that the increase in the quantities of cash sales will not contribute to reducing the exchange rates of the dollar against the Iraqi dinar, but rather will increase the profits of these companies, indicating that even if they decrease, they will not decrease in a reasonable manner and that the impact of the decline will not last more than two days and soon prices will return to rise .

The exchange rate of the dollar against the Iraqi dinar reached 100 dollars in the markets of the Kurdistan region today, compared to 150 thousand and 750 dinars, while the exchange rate of the dollar in Baghdad was 150 thousand and 250 dinars.

For its part, the Parliamentary Committee on Economy and Investment held the government responsible for the rise in the prices of goods and materials.

Dr. Nada Shaker, a member of the Economy and Investment Committee in the House of Representatives, said in a previous statement to PUKmedia : The rise in dollar prices in the Iraqi markets broke the back of the citizen, stressing that the government has to control the markets and prevent the rise in commodity prices.

She added: The government and the political blocs that approved raising the price of the dollar at the end of last year bear the responsibility of stabilizing the markets, noting that the exacerbation of prices creates many problems for citizens.

And she confirmed that the House of Representatives had previously requested to host the Central Bank Governorate against the background of raising the price of selling the dollar to banks to 1460 dinars, but some blocs did not support the move, pointing out that the efforts to interrogate the Minister of Finance in the House of Representatives during the previous period did not succeed for the same reason.

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