Legitimate questions about Central Bank sales of the dollar

Legitimate questions about Central Bank sales of the dollar

Basil Abbas khudair

Sunday, May 11, 2014

Statistics, showed that the Iraqi Central Bank auctions sales of $ 15 billion and has reached 280 million and 493 million dollars during the first quarter of this year, which for months (January, February, March, April) in 2014 with an estimated increase of about $ 1 billion in sales in the last third of the year 2013, amounting to 14 billion dollars and 328 million and 983 million dollars, the statistics indicate that sales during the month of March has reached 4 billion and 607 million and $ 335,000 The highest sales since September 2013, according to the daily data of the Central Bank sales was stable exchange rate totaled 1,166 dinars per dollar.

The Iraqi Central Bank held six meetings for the week of the sale and purchase of foreign currencies from Saturday to Thursday and most are selling the dollar and not to buy it, and as teachers died, the highest nominated figures for sales were achieved during the last six months took place on 21 April last year, amounting to 280 million and $ 229,000, and is one of the 8 days during the year in which sales exceeded $ 200 million a day , Under certain data collected from local markets, the exchange rate of the dollar against the Iraqi dinar during the month of April rose to 1,250 dinars, at best, prices reached 1,220 dinar for sale and JD 1230.

It seems that the Iraqi Central Bank sales of the dollar was not affected at all by the ratification of the federal budget, they are increasing month after month even though the local market stagnating in commodity trading, particularly durable goods, household, real estate, except for food, which has led to a relative decrease in price for the absence of demand from the market, as the investment budget nearly off and operating budget is up 1/12 of the actual expenditures for the year 2013 , And some have been linked to the relationship between the increase in sales to higher spending on election advertising and higher demand for travel outside Iraq and Kurdistan which led to the vote of voters by 62%?[You must be registered and logged in to see this image.].

And legitimate questions about the dollar sales from the CBI that exceeded $ 200 million on some days, with regard to its relationship to development and investment in the country, the relationship can be inferred simply by beat on the consumption pattern of investment in the Iraqi economy, to the point that some studies have indicated that the oil sale revenues are 70% of GDP, this means that other sectors either governmental or non-governmental, to record only 30% of contribution to GDP , It indicates that economic productivity and economic efficiency of the dollar or dinar is very low when compared to other developed countries and underdeveloped.

And mathematically, the profits generated by sales of Central Bank dollar give encouraging figures on access to the profession or trade (Forex trading), buying dollars from the auction is the price 1166 and JD is sold for the market price of BD at least 1220, the profit achieved 54 dinars for each dollar of profit ratio sales per dollar is 4,6% per day, and six days of sales at auctions Central rises to 27, 8% , Assuming that the month consists of four weeks, the proportion of the profit from the sale of the dollar would be 111%, which means that every dollar has the potential to (bleached) or (failed) power once per month, and you can count the amount of that victim him the dollar sales of Central Bank profits per year, the risk-free and no effort and does not require a huge investment to all except buy sold as the dollar enjoyed higher demand in the market.

It's strange really, the dollar exchange rate stable in a volatile and Central Bank auctions in local markets, to the degree that inspects the prices to buy and sell the dollar on a daily basis when it is fixed in most countries, including Lebanon, for example, wherever you go, where the price of 150,000 pounds for $ 100 each, and the public was waiting for concrete change in Central Bank sales that are many questions and exclamation marks by changing the previous administration of Governor sanan shabib disappeared outside Iraq, his Deputy Wendy Saleh, who is out on bail from charges, as well as many managers and employees who have undergone scrutiny and investigation, but sales remained the same and perhaps increased even though the market has seen substantial changes or partial.

In the midst of this increase in sales raised questions did not turn into accusations by stakeholders, related to money laundering and smuggling out of Iraq and the formal presence of most private banks because they enriched at the expense of such sales, and the orbiter for the proceeds of the sale of oil monthly or yearly comparison for Iraq that enter the central sales and sales of the dollar, and a simple account does not need to more legitimate questions , You will discover that most of what goes to Iraq from outside the body transfers or smuggling, the rest enter the reserves Fund and thus turns the oil into a means of barter and not to increase wealth.

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