Disorders of the Iraqi exchange market after the decline of the dinar
Jun 7, 2015
BAGHDAD - Ali Jawad- Alonadol-
Economists and Financial Iraqi officials that the decline in the Iraqi dinar exchange rate against foreign currencies recently, was a result of increased demand for the dollar, and led to fluctuations in market transactions, reflected directly on public life, said.
As a result, prices of imported goods rose (food, construction, and electrical) compared with the prices that prevailed two months ago, by up to 10%, while the central bank plans a new currency category of 50 thousand dinars ask, as one of containing the crisis procedures.
And the decline of the Iraqi dinar exchange rate against the dollar since the beginning of last month to record about 1230 dinars to the dollar, while the exchange rate was stable over the past years at 1223 dinars to the dollar.
Said Abdul-Razzaq al-Saadi, an economist and former head of the Securities Commission of Anatolia "The decline in the dinar exchange rate against the dollar and exchange rate instability cause volatility in commercial transactions, and to pay the high prices of goods in the domestic market."
"The lack of clarity in the Iraqi Central Bank's policy on exchange rate stability mechanisms adopted by the Bank led to fluctuations in the market," pointing out that "the central bank needs to inter procedures that explain monetary policy in the country."
For his part, the Iraqi Central Bank announced that "the main reasons that led to the decline in the dinar exchange rate against the dollar is escaped hard currency (foreign) out of the country, and breadth of speculative activity in the foreign exchange market (banking) offices."
Said Majid picture member of the governing body of the central bank in a statement of Anatolia, said that "there are a number of reasons, which leads to lower exchange rates and increased demand for hard currency, despite the increase in supply by the Central Bank of Iraq, including foreign travel requests, and capital flight ".
He continued that "it is very difficult to control the exchange rate by only central bank actions, should interfere with the rest of the government institutions concerned to limit capital flight operations."
As solutions and real-time decided the Central Bank of Iraq, according to my photos "B1193 dollar dinars per dollar in the sale of 18 banks, the banks granting three points per dollar, in order to stabilize the exchange rate."
The Finance Committee in the Iraqi Parliament held that "quantifying the amounts sold by the central bank a day led to a decline in the exchange rates," noting that during the next month, "a new currency may contribute to the decline in demand for the dollar will go."
Said Abdul Jabbar, a member of the Committee for the Creator Anatolia correspondent that "the Central Bank of Iraq was already sells a daily average of $ 400 million, it was sold amounts of dollar recently reduced to $ 75 million a day, and this has led to increased demand for the dollar."
He added that "the new paper currency which is scheduled to put on the market next month will have an important role in reducing the demand for the dollar, and the high price of the Iraqi dinar to average."
It is scheduled that the Central Bank of Iraq poses a new currency category of 50 thousand dinars, to be added to other paper categories, namely 25 thousand, 10 thousand, 5 thousand dinars, and thousand dinars and 250 dinars.
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