Finance Committee: Government action to support the dinar exchange rate does not represent the polic

by Hkp1 Wed 17 Jul 2013, 12:51 am

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Finance Committee: Government action to support the dinar exchange rate does not represent the polic

by Hkp1 Wed 17 Jul 2013, 12:51 am

Finance Committee: Government action to support the dinar exchange rate does not represent the policy of the Central Bank intervention

Posted by: citizen newspaper

Baghdad-the citizen

Finance Committee member Rep. najeeba Najib» to take urgent action to strengthen the Government of the Iraqi dinar is not an interference with the work of the Central Bank, underlining that the current laws are not commensurate with the policy of free market economy.

Najib said that strengthening the Iraqi dinar is not the responsibility of the Central Bank, but the responsibility lies with all institutions involved in the Iraqi State, indicating that Iraq needs a strong economy and strong currency.

She added: there must be urgent action and strategic plans by the Government to strengthen the economy, without a strong economy and the production of local and State cannot strengthen the Iraqi dinar.

Referring to the legislation in force does not match the free-market economy and not with the Government about plans to strengthen the economy, indicating that don't apply in the dinar strengthened briefly but need a set of actions and a package of laws to get the desired results.

The Iraqi Central Bank is responsible for monetary policy and the trend of integration of work between the Central Bank and the pile to increase the purchasing power of the Iraqi dinar.

On the other hand Chairman of the economic information center said Dergham Mohammed to become the Iraqi dinar currency desirable handle internationally after the departure from Iraq of the provisions of Chapter VII of the UN.

Mohamed Ali said that Iraq's exit from Chapter VII would make the Iraqi currency internationally accepted and more broadly than it is currently, where previously accepted regionally and in States that have tourists.

He continued: but the range will expand to increase transactions and increasing international openness as long as there is a blanket guarantee in foreign currency for domestic currency.

He added: there is no direct link between the departure of Iraq from Chapter VII and the dinar exchange rate

exchange rate linked to the domestic factors, linked to the management of monetary policy in the country through the auction and supply and demand and the effectiveness of speculators influence, in addition to the impact of lower inflationary shocks.

The UN Security Council voted to exit Iraq from Chapter VII after Iraq meets its obligations to pay debts for some States.

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