Iraq: rising commodity prices and volatility in the foreign exchange market

by Zuzu Mon Aug 12, 2013 3:42 pm

Zuzu: Cain't Let Go Investor; Posts : 264
Join date : 2012-12-20

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Iraq: rising commodity prices and volatility in the foreign exchange market

by Zuzu Mon Aug 12, 2013 3:42 pm

Iraq: rising commodity prices and volatility in the foreign exchange market

BAGHDAD - Naseer Goldfinch
Monday, August 12, 2013

Caused by the security measures taken by the government after the recent events, and the receipt of intelligence information about plans to carry out attacks, the renewed instability if the Iraqi economy and the volatility of currency exchange rates and higher prices for goods and services in the form of significantly. It ruled these measures the closure of ports Baghdad almost entirely in the form of, and emphasizes an unprecedented inspection procedures on vehicles and persons, as well as close in anticipation border ports of the terrorist attacks on urban centers, and even the heavily fortified Green Zone. These actions led to Supply the supply of goods, especially food.

Galt «life» in a number of key markets, which are the backbone of domestic and foreign trade of the cities of Iraq, and met traders which, he stressed Hussein Kndh Maliki, a supplier of fruits and vegetables for the «life», that the prices of fruits and vegetables and even food President «rose in the form of significantly during the three weeks the past, what has led to a severe case of grumbling among consumers Iraq ». He attributed the reason «importantly to paralysis in the transport sector between the provinces and Baghdad, because the majority of importers either Turkey or Iran or Syria, and the Gulf, transporting goods and even fruits and vegetables to Baghdad, and distributed them to the provinces.So «traders began to fear the import of not being able to move to Baghdad. He warned of «the consequences of the continued closure of the border and prevent imports from certain countries.

And linking economic expert Emad Al Aboud in a statement to «life», «fluctuations in the currency market paralysis of the foreign trade sector, which has exhausted 60 percent of the volume of spending in the public and private sectors. He added that the volatility of the exchange rate of the dinar base depends mainly political and security it once did. It also bears the Iraqi Central Bank and the Ministry of Finance is part of the responsibility, because they are responsible for monetary and fiscal policy.

And saw a member of the Economic Commission parliamentary Nora Salem Mohammed, that «there is no fiscal policy or cash, as most countries in the world to deal sensitively with big these two policies, and draws its development plans short, medium and long term, as she marched in Iraq by the government, and track decisions Personal according to the official mentality. It also changed plans and decisions with any substitution officials, and keep track of new procedures that are not based on scientific grounds.

The Nora pointed out «the absence of laws or even instructions governing the trade sector in Iraq. It considered that «the merchants run freely and import process what they want, and they choose the source, nor can anyone prevent the entry of goods corrupt or invalid due to the dominance of these sources of decision». She pointed to the «case of corruption in Iraq, pointing out that« Transparency International report the situation in Iraq within the first three countries on the list of most corrupt countries.

And confirmed a member of the Finance Committee for «Liberal bloc» Magda al-Tamimi, the «Law of the Central Bank of Iraq is clear and explicit separation of monetary policy from the central government, but the latter have followed different paths recently issued an arrest warrant in the conservative right to control this important sector. It said that the central bank «only by the official Iraqi parliament being the regulatory body.

The trade balance rose amid Iraqi statements by Turkish officials an intention to raise the volume of trade from $ 14 billion to $ 25 billion over the next three years. As announced Tehran would also raise the volume of trade with Baghdad to more than $ 22 billion during the current year, after the impact of trade between Iraq and Syria by events taking place in the latter.

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