Demonstrations of money changers calling for the stability of the dollar price

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[size=52]Demonstrations of money changers calling for the stability of the dollar price[/size]

[size=45]Dozens of owners of banking companies demonstrated in Baghdad, yesterday, Monday, in protest against the Central Bank of Iraq's policy of selling dollars in the daily auction.[/size]
[size=45]Al-Mada correspondent stated that the owners of exchange companies gathered in front of the Central Bank building in the center of the capital, Baghdad, demanding the stability of the exchange rate of the dollar, and not limiting its sale to travelers, as this contributes to the smuggling of hard currency outside Iraq.[/size]
[size=45]The demonstrators also called for the implementation of Law No. 56 of 2004, which gives the Central Bank exclusive power to supervise and inspect its financial institutions.[/size]
[size=45]And the sales of the Central Bank of Iraq from foreign remittances in the auction on Monday amounted to more than 200 million dollars.[/size]
[size=45]And the auction statistics stated, “The Central Bank sold yesterday, during its auction for buying and selling US dollars, 226 million, 912 thousand, and 662 dollars, which the bank covered at a basic exchange rate of 1305 dinars, per dollar for documentary credits and international settlements of electronic cards, and at a price of 1310 dinars per dollar for foreign transfers, and at a price of 1310 dinars per dollar.” dollars in cash.[/size]
[size=45]She added that most of the dollar sales went to boost balances abroad in the form of (remittances, credits) at a rate of 205 million, 672 thousand and 662 dollars, while the rest of 21 million and 240 thousand dollars went in the form of cash sales.[/size]
[size=45]She pointed out that the banks that bought cash dollars amounted to 9 banks, while the number of banks that met requests to strengthen balances abroad reached 17 banks, while the total number of exchange and mediation companies participating in the auction was 36 companies.[/size]
[size=45]And economist Nabil Al-Marsoumi asserts that the only solution to reduce the gap between the official dollar price and the parallel price in the market is international understandings about paying countries’ dues for imports of goods and merchandise in dollars and the large withdrawal on it in the currency auction, indicating that this rise came to settle the amounts of trade and import from neighboring countries.[/size]
[size=45]Al-Marsoumi said, "The sales of the Central Bank of Iraq increased, especially during the past months of April and May, and restored their previous levels before launching the electronic platform."[/size]
[size=45]And he reported, "The increase in sales confirms the Iraqi banks' compliance with the rules for working with the electronic platform established by the US Federal Bank, and therefore a large number of bank transfers have been successfully implemented."[/size]
[size=45]He pointed out, "The large gap between the official selling price of the dollar and the parallel market, despite the Central Bank's measures, is caused by the use of cash dollars to settle trade with neighboring countries, especially Iran, as it is subject to US sanctions that prevent it from obtaining dollars directly."[/size]
[size=45]Al-Marsoumi added, "Iraq imports goods and products from Iran amounting to $10 billion annually, and this prompts the need to find certain mechanisms to finance trade with Iran."[/size]
[size=45]He called, "to find understandings between the Central Bank and the US Treasury to implement a mechanism that would enable Iraq to pay the Iranian side's dues for goods, such as choosing an alternative currency for the dollar."[/size]
[size=45]Al-Marsoumi concluded, “The failure to find a settlement for this matter keeps the dollar prices fluctuating, no matter how much the Iraqi Central Bank sells dollars.”[/size]
[size=45]"The bank's daily sales, especially foreign remittances, to feed Iraq's imports," says economist Mohammed al-Hassani.[/size]
[size=45]And Al-Hassani added, "These transfers need to be checked by financial institutions that Iraq has contracted with to prevent smuggling and money laundering, and therefore they need a long time until they are completed, which pushes the merchant to the parallel market to obtain dollars as quickly as possible."[/size]
[size=45]He pointed out that "most of the small traders resort to the parallel market to obtain dollars to finance their simple trade instead of obtaining it from the Central Bank, because they do not have their own companies, which increases the demand for dollars more than the supply."[/size]
[size=45]The exchange rates of the dollar in the parallel market rose to approaching 150,000 dinars against 100 dollars, despite the central bank’s attempts to reduce the gap between the parallel market and the official rate that is fixed in the budget at 130,000 dinars versus 100 dollars.[/size]
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