Report How much is the Iraqi dinar? Sk come on the remainder of the local currency?
Observers: [You must be registered and logged in to see this link.] second largest country in the production of oil by about 4.5 million barrels per day and the poorest country in the organization
at the height of the political crisis in which [You must be registered and logged in to see this link.] entered and lasted for months. [You must be registered and logged in to see this link.] was and remains the No. 2 source in OPEC with daily production of 4.5 million barrels of oil, which is An awful number, and yet Iraq remains a poor country and its citizens still live in poverty ?!
The only reason is that the will of corruption within the Iraqi state is greater than the will to change, reform and progress, and after the winds of Corona blew, the Iraqi dinar was in the face of the storm and amid expectations of a severe collapse in its value against the dollar. The question is renewed about the price that the Iraqi citizen must pay in order to live a free and generous freedom in His homeland ..
According to several reports, the turmoil in [url=https://www.thebaghdadpost.com/ar/Story/t/8872/%D8%A7%D9%84%D8%AF%D9%8A%D9%86%D8%A7%D8%B1 %D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A]the Iraqi dinar[/url] exchange rate has [url=https://www.thebaghdadpost.com/ar/Story/t/8872/%D8%A7%D9%84%D8%AF%D9%8A%D9%86%D8%A7%D8%B1 %D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A]led[/url]Against the dollar in recent times to negative effects, which directly affected the business sector and commodities in the markets, which led to the loss of confidence of dealers and investors in the monetary authority. The dinar collapsed after the central bank stopped its activities related to pumping liquidity in foreign exchange to meet the needs of banks and their customers, as it was pumping an average of $ 140 million or more per day to maintain the value of the currency and support its stability, and stopping the pumping of liquidity led to a jump in the exchange rate of one dollar from 1200 To 1,280 Iraqi dinars, amid warnings of the continuation of this rise due to the curfew imposed by the authorities as part of measures to confront the outbreak of the Corona epidemic.
In the midst of the financial crisis experienced by the world in general and Iraq in particular in light of the collapse of oil prices and the large deficit in the budget for 2020, the government faces great economic challenges, most notably the difficulty that the central bank can maintain the value of the dinar against the dollar because of the corrupt control of the auction of selling currency, according to What officials and economists see.
An official in the caretaker government stressed that the central bank cannot maintain the value of [url=https://www.thebaghdadpost.com/ar/Story/t/8872/%D8%A7%D9%84%D8%AF%D9%8A%D9%86%D8%A7%D8%B1 %D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A]the Iraqi dinar[/url] against the dollar by continuing to pump the hard currency to the market, due to the lack of public revenues due to weak demand for oil with a decline in its price, noting that "the central bank will have to legalize Selling the currency for a certain period until oil prices rise again. And Iraq, the second largest producer of crude oil in the Organization of Petroleum Exporting Countries (OPEC), with an average daily production of 4.5 million barrels per day.
He added that continuing to hold auctions to sell currency and pumping tens of millions of dollars per day to maintain the value of the dinar leads to great risks for the country's economy, and it is better for the central bank to cancel the currency auction and install its local currency, since most of the beneficiaries of these auctions are not businessmen and traders, but rather Banks, banks and private sector companies dominating the market, a large part of which was diverted from outside Iraq. He pointed out that the central bank has succeeded in recent years in achieving the stability of the dinar exchange rate and improving it in relation to the dollar and other currencies by stabilizing the price of the local currency and defending it, but the current collapse in oil prices, and consequently, the country's financial returns are completely different from the crises of past years.
The central bank sells between 140 and 160 million dollars to public and private companies and banks, as part of a plan adopted since 2004 to control the exchange rate of the dinar and prevent its collapse in the market. The central bank only allows companies and limited banks to enter the auction and buy dollars, amounting to less than 50 banks and financial companies that are licensed by the central bank, all of which are private or private.
The professor of international economic relations at the Iraqi University, Abdul Rahman Al-Mashhadani, said that canceling the currency auction is very difficult, since the goal of the currency window is to finance imports in the private sector. According to Al-Mashhadani, 90% of the country's consumer needs are secured by import by the private sector, which means that canceling the currency auction will lead to a major disruption in the prices of imported goods. Al-Mashhadani stressed that the currency auction is a drain on foreign exchange due to its association with prominent political figures, pointing out that 15% of Central Bank sales through the auction go as money laundering in various ways and methods and are transferred outside of Iraq.
He pointed out that the best way for the central bank to follow is to legalize the sale of hard currency as much as possible to maintain the value of the dinar and foreign exchange reserves.
And at the end of March 2020, the rapporteur of the Parliamentary Finance Committee, Ahmed Al-Saffar, said that the central bank reserves amounted to 87 billion dollars, and not only includes cash and foreign currency but also gold bars.
Observers point out that unless serious economic policies are taken and income sources are diversified and oil is not relied only, the dinar will pay a heavy price, and the Iraqi citizen will pay the most invoice of his nutritional and medical needs.
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