Summer session for the dollar in Iraqi market
currency, meaning the dollar term trading today in political and
parliamentary circles and even economic, a Word to the dollar during the
second world war and thereafter to an Iraq in Sterling, making the
dollar coupled with the block allocation of dollars to Iraq.
after the opening of the global currency markets and the free
circulation of various currencies no longer for this named meaning, you
can convert the sterling to dollars any amount was, as with the euro and
other currencies, so within minutes.
These three currencies are
the world's major currencies trading coupled with the Japanese yen and
Chinese Yuan, and these all currencies you can get any of them on the
world market in any quantity, and from this it is clear that the
description of the dollar currency either shows lack of knowledge with a
global currency markets where Exchange of regular daily operations
facilitator, and either indicates the purpose of the same that is trying
to achieve by bringing such to the dollar as currency.
Iraq, in particular, the process is much simpler, since oil sales
represent the bulk of Iraq's income is entirely in dollars.
oil sales deposited in Iraqi Government account (DFI) in contrast to the
extent that received Central Bank provides everything you need the
Ministry of Finance of the Iraqi dinar from that account to pay the
salaries of staff members and retirees and pay benefits to local
contractors and all other government charges that the Government
deserves the dinar, and the Central Bank either by printing Iraqi dinars
to the dollar, selling dollars in the domestic market for Iraqi dinar,
this process is essential to the economic cycle, as the use of only the
first solution A new printing of dinars to the dollar, will lead to
inflation, which the Central Bank to reduce it or reduce it,
particularly that selling dollars in the market absorbs excess cash
available dinar which thereby reduce inflation thus economic cycle to
As to ensure and control the entry of imported goods
to Iraq for amounts sold by the Central Bank of the dollar to finance
import it is outside the competence of the Central Bank and not from his
duties, he is also not for the banks that mediate to buy dollars from
the Central Bank for its customers and is under the jurisdiction of the
customs services, which oversees the clearance of goods imported through
the border and ensure conformity with the import lists and its quality,
as well as the jurisdiction of tax departments.
As I mentioned
in my previous article, published in the journal of range on 20/5/2012
can control it by limiting import or direction mostly through open
documentary credits banking account processors located outside Iraq, and
this leads to receiving bank who opened the count allmstord of shipping
documents showing that the goods will arrive in Iraq on this ship or by
land by this carrier and importer outstanding payments to the Bank for
delivery of shipping documents for output Goods from customs border
points as Basra if the shipment is by sea and land border points with
neighboring countries if the shipment has been on the road or air, and
here comes the role of customs in checking and matching imported
consignment of health original menus.
The Bank opens a letter of
credit buys foreign currency corresponding to the value of the goods
imported in US dollars from the Central Bank and converts it to send
abroad to cover the value of the goods, the importer shall pay the
equivalent amount in Iraqi dinars as the price determined by the Central
Bank for the dollar, and this simple process can control the economic
cycle for the dollar and other foreign currencies as well as avoid
misuse that may have been the process.
And the CBI has walked in
the right direction when conservative Minister of that import will be by
opening documentary credits banking in the future as stated in its
directives while meeting compliance monitors in banks of 5/11/2012.
hope is to help the Central Bank succeeds in his plan to rationalize
imports and the value of those fundamentalist foreign currency
operations, and other government agencies related to their duties and
powers according to laws in force.
Chairman of the Board of Directors of Al-Mansur Investment Bank