Iraqi dinar regain some stability

Iraqi dinar regain some stability

18/6/2014


Baghdad. World

Approaching the exchange rates of the Iraqi dinar against the dollar prices to normal, after witnessing a remarkable rise end of the past week, with financial expert confirms that the central bank's reserves are sufficient to address the crisis and maintain the exchange rate.

A financial expert and former deputy governor of the central bank, the appearance of Mohammed Saleh in an interview for "Wi-News" that "any political position or security turbulent cast Bdilalh on the Iraqi market through high exchange rates", noting that "the absence of political stability and security factor influential on people's financial decisions, and people hedge their investments with respect to the financial. "

Salih noted that "the case of hedge people have lead to to head to buy any store fixed and stable value of the material, which is usually the dollar because of its measures of global stability is Born extra demand for the dollar," noting that "the current situation is stable will inevitably lead to a wave of demand great on the dollar. "

He said, "There is great potential to meet this growing demand for the dollar, Iraq's exports of petroleum products as well as continuing to central bank reserves to cope with such a big Thus conditions," pointing out that "so far no danger to the stability of the currency."

Saleh explained that "the primary function of the central bank is to maintain the stability of the external value of the Iraqi dinar, represented by exchange rates," explaining that "a central bank such Thus conditions is to intervene to address the demand for the dollar by pumping dollars to banks to keep the exchange rates," noting that "part of civil rights is to preserve the value of the currency, and function of monetary policy is to maintain the purchasing power of the currency and restore confidence in it."

He went on, "The central bank reserves from the dollar covering about 1.3 of the Iraqi dinar, and there is the possibility of high coverage of more than 100% for the dollar against the dinar," noting that "the existing foreign currency enough cash allocated to the main circulation."

He added that "monetary policy measures of short-term in nature, and intervene when crises occur to absorb the shock and the face of the crisis."

The gold is also witnessing a remarkable upward in prices after it was in the case of stability for the past four months, where I jumped to the highest level to reach nearly U.S. $ 1283 per ounce, an increase of up to 3.5%. Observers point out that the security tensions are reflected Kerr on gold prices since the beginning of this month.

Ahmed al-Agha, one dealing with the Iraqi market for securities that "exchange rates to climb in the end of last week was due to increased demand for the dollar because of recent security incidents."

He said in an interview for "Wi-News" that "what was present from the dollar in the Iraqi market did not cover the huge demand for the dollar, but the central bank has to make up for the problem earlier this week by pumping dollars to banks to keep the exchange rates," noting that "exchange rates began to settle the beginning of this week. "

The exchange rates of the dollar has seen ups and clear last weekend as a result of increased demand for the dollar because of the recent security crisis, as the price of the dollar to about 1228 dinars to the dollar, but started to retreat earlier this week to return to the approach of stability.

 

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