Warned of the continued decline .. Congress: the low exchange rate of the dinar impact on the purcha

Warned of the continued decline .. Congress: the low exchange rate of the dinar impact on the purchasing power of citizens (20%)





19-05-2013 10:03 AM

Baghdad (news) / report / Hussein Faleh / .. Warned a number of MPs and specialists in the financial area of ​​the continuation of the low exchange rate of the Iraqi dinar against the U.S. dollar, because it will create economic and financial crises large in the country, in terms of high inflation and increased prices in the domestic market, in addition to its direct impact on the amount of cash reserves of hard currency .

They stressed their talk (of the Agency news): that the decline in the price of the dinar reduced the purchasing power of citizens (20%), giving a negative indicator for economic growth and development in the country.

And the Iraqi dinar is currently witnessing a deterioration in value against the U.S. dollar, which has raised concern among finance and economics in particular, where the dinar exchange rate is 1,300 per dollar after it was 1270 in early April.

Member of the Finance Committee MP / coalition in Iraq / Hassan Auzmn Bayati, carry Administration Central Bank current cause of low exchange rate of the Iraqi dinar against the U.S. dollar, warning of the continuing decline because it will lead to economic problems and financial assistance in the country, in terms of increasing poverty and high rates of inflation.

Al-Bayati said (of the Agency news): The decline of the dinar exchange rate impact on the purchasing power of the citizen and fell between (15% - 20%), because most of the goods in the market are imported and are imported in U.S. dollars.

He stressed: the need to take the necessary measures for the purpose of the dinar's return to its normal price and maintain its stability against hard currencies to avoid the country from a possible economic crises have occurred as a result.

As a member of the Finance Committee MP / National Alliance / Abdul Hussain al-Yasiri, ruled out the existence of the smuggling of hard currency, which would have led to the high exchange rate of the U.S. dollar, indicating that the government give a dollar to the Central Bank and the Bank gives the dinar to the Ministry of Finance for operational purposes in the country, but there are monopolistic operations conducted in the sale of hard currency.

Yasiri said (of the Agency news): The policy of the central bank include selling the dollar against the dinar in order to create a balance in the balance of supply and demand of foreign currency in the domestic market, but this did not happen, because of the 'fierce attack' by citizens and some financial firms to keep the dollar without find out the reasons.

He added: that the central bank demands to change its current monetary policy format makes the dollar up to those who deserve not to people They have no need for the dollar, stressing that the continued decline of the dinar exchange rate will lead to a major financial crisis in the country.

For his part, accused the MP / coalition of Kurdish blocs / Hamid Buffy, the federal government caused the instability of exchange rate of the Iraqi dinar against foreign currency because they are trying to control the work of the central bank, although he an independent institution are not subject directly to the executive, but linked to the House of Representatives, according to the Iraqi constitution.

Buffy said (of the Agency news): The government interference in the work of the central bank and which led to the resignation of the Governor of the Bank and his advisers and managers is a dangerous precedent that threatens the country's monetary policy, and this is what happened now consistently low exchange rate of the dinar.

He called Buffy the House of Representatives to intervene rapidly to prevent the executive branch control over the work of the central bank to keep the public money and financial stability in the country.

The witness doors of private banks in Baghdad, since the early hours of the morning every day, gatherings to crowds of people hoping to get an early opportunity to buy the dollar from those banks, to be then sell the dollar and get the profit margin of the price difference in the market, not abandoned scenes citizens those of and complexity of disputes due to overcrowding at that opportunity.

And witnessed the exchange rate of the Iraqi dinar against the U.S. dollar volatility is unprecedented since the beginning of the month of May and so far, prompting the Iraqi Central Bank to take action to reduce slumping, which has a direct impact on the Iraqi economy.

It is noteworthy that the Iraqi Central Bank held sessions a day for the sale and purchase of foreign currencies with the participation of Iraqi banks, excluding public holidays on which depends the World Bank for these auctions, the sales either in cash or in the form of money orders sold abroad for a commission certain. / End / 8. l. m /

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