Warnings of an imminent collapse of the Iraqi dinar
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Economists warned of the imminent collapse of the Iraqi dinar, amid the chaos security and economic tidal plaguing the country, and the state's inability to pay employees and pensioners and accessories ongoing war with the organization of the Islamic state "Daash"; prompting thousands of young Iraqis to migrate to Europe, while struggling Millions of Iraqis in Anbar and Mosul and Salahuddin hardship, after cutting their salaries to the state.
The economist said, Mazen al-Obeidi, said that "eight years years of rule by Prime Minister former Nuri al-Maliki, has seen historically in vain for the money and the budget of the entire Iraq fake projects and ministries have been developed for their quotas between the parties, and not for their country's needs."
(Here is a reference to the encumbered DFI Funds)
He added: "The government wasted more than 800 trillion Iraqi dinars, except for the hidden amounts of billions of dollars, no one yet knows where I went, and thus emptied treasury of Iraq."
And between al-Obeidi's "new Arab" that "the likelihood of an imminent collapse of the Iraqi dinar against the dollar has become a big, the state was forced to borrow from private banks to cover expenses, and the central bank announced its intention on the sale of gold bullion for citizens to support the financial liquidity, while the Iraqi parliament approved the budget in 2015 on the price of $ 56 per barrel, while oil is witnessing volatility and a clear decline, over the territorial changes and the war on "Daash", which fell to $ 45 a barrel in front of the extraction cost him up to $ 6; and this means a deficit of $ 17 per barrel. "
Come together political and economic corruption and the theft of tens of billions of public money to raise the deficit in the Iraqi Budget
Observers attributed the cause of the collapse of the dinar is likely to mismanagement of successive governments, and load the state budget huge amounts of money, and pay for tens of thousands of jobs and titles ins salaries in the various organs of state security, military and service.
The banker said Salem Al Ameri "There are several factors that will lead to the collapse of the Iraqi dinar, most notably the lack of oil imports to bridge the budget deficit, in light of the ongoing war in half the size of the country with the organization" Daash ", the continuous decline of oil prices globally which means a large deficit in the budget of the country." .
He said that "the security deterioration in the country increased demand to buy the dollar much of the market; which means an increase in demand over supply, and thus gradually raise the price of the dollar against the Iraqi dinar."
And was severe criticism from parliamentarians of the Central Bank of Iraq last June, as the dollar rose against the Iraqi dinar arrived to 1360 dinars to the dollar.
Also in AF: CBI rush to save the dinar
He accused the Congress in previous central bank statements flop in its policies, the Commission said the parliamentary economy, a member of the press earlier statement that "the central bank adds 8 per cent of requests from companies and traders to buy dollars, and requires them to sell dollars directly tax are met, of 5% Customs and $ 3 per cent; in the end, raising the price of the dollar against the Iraqi dinar. "
The Iraqi Council of Representatives approved the 2015 balancing based on the price per barrel of oil by $ 56 per barrel, and the rate of export 3 million barrels per day.
For his part, said financial expert, Jabbar al-Fadhli for "new Arab" The government is embarrassed and do not want to declare their inability to disburse expenses, ranging from employees and pensions, which halted three months ago in the hot provinces, and the end of the expenditures required for the military operations going on; and that stops mostly to weakness funding ".
He said Fadhli "There is a huge waste in the currency are hard for purchases and expenses of armament, and directly sell the dollar for companies and traders in front of the lack of oil imports and lower the price of oil globally; and this raises the value of the budget deficit, and here state began borrowing from private banks; they need to borrow from the World Bank to fill the budget deficit, and the payment of employees' salaries during the few coming months. "
The reason for the collapse of the dinar is likely due to the mismanagement of successive governments, download huge amounts of money the state budget
Prime Minister World Bank Salah al-Din Iraqi Council of Representatives Nuri al-Maliki, Iraqi dinars, the Iraqi Central Bank Iraqi dinar State Islamic Iraqi parliament
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