Iraq calls for a review of the dinar exchange rate
Friday, April 17 / April 2015 (01: 0)
The CBI has issued resolutions aimed at raising the value of the dinar against the dollar, which included doubling the share of banking from companies, and allow banks «rational» and «Iraq» and «Government Commerce» open windows to sell the dollar for banking companies and small importers, reflected on the commercial market, which saw a significant decrease in the dollar's exchange rate after rising from 1228 to 1334 dinars to the dollar.
The decisions of the «Central» repercussions deemed interested in it contributed to the improvement in the dinar exchange rate, especially in light of the increasing demand for the dollar to settle import goods from the requirements, arguing the stability of the market accompanied by a relative increase in the value of the dinar.
He suggested the former deputy governor «Central» Economic Adviser to the Prime Minister the appearance of Mohammed Saleh correct path and the value of the dinar new prices in line with the economic situation faced by the country, saying that the official price of the dinar against the dollar is unrealistic in the current circumstances.
He said in a statement to «life» that «the central reserves» covers currency in circulation increased by one and a half times and is built on the basis of the $ 103 price for a barrel of oil with a surplus in the balance of payments, but the situation has now changed after the decline in oil prices, causing a deficit in the current account the balance of payments. He stressed the need to «lift restrictions on the central determining amounts sell the currency within Article 50 of the federal budget for the 2015 law, because of this restriction, the risk to the stability of the Iraqi market, as the central pricing is not conducive to stability in the presence of the parallel market». Article 50 of the federal budget bill that «Central is committed to identifying sales of the dollar in daily auction ceiling does not exceed $ 75 million». Saleh pointed out that «there is no room to deal with the deficit in the current account of the balance of payments official Baltsairh followed the dinar, which leads to the depletion of foreign currency».
He quoted economist Maytham Laibi saying that reducing the number of outlets selling the currency policy did not achieve results because they limited the ability of the market to expand into selling the dollar across multiple ports. He explained that the inventory of outlets selling the currency led to a monopoly, which in turn led to price controls in a larger format, so it has been working on the expansion of the number of ports. He added that the decline in the dollar exchange rate will remain subject to the height or the dollar amounts that can «Central» available to the market, and this depends on oil prices.