The Iraqi government is taking action to reduce the collapse of the dinar against the dollar
Sun Jun 21 2015 13:29 | (Voice of Iraq) - Baghdad: Hamza Mustafa stressed Governor of the Central Bank of Iraq on the Keywords government to take a series of measures aimed at reducing the significant rise in the dollar exchange rate against the dinar during the last period.
While Keywords noted the existence of goals other undisclosed behind the speculation that worried the Iraqi street, amid conflicting reports on the state treasury's ability to continue to staff and pensions amounting to billions of dollars a month exchange in light of the instability of oil prices, has revealed the launch of local bonds worth $ 5 billion to provide liquidity of the state.
Keywords At a press conference held in Baghdad yesterday on the cell the governmental crisis, headed by Prime Minister Haider al-Abadi to face the repercussions of the decline of the dinar exchange rate meeting, stressed that «the central bank has foreign currency is weak local currency in the market, and what happened in the past few days indicates the that these attempts involve a kind of speculation and profit-taking, and may also involve other goals I do not want to enter into the details ».
He added Keywords: «We can respond to the request of the dollar, no matter how its size, and there are fears for the impact of exchange rate» pointing out that «the financial reserves of the Central Bank of variable number, and the day of up to $ 68 billion, the size of the money supply of the dinar 40 trillion dinars». And on the controversy surrounding the independence of the Central Bank of Iraq, Keywords that «this is very important, he said in maintaining the political bank and its decisions to draw, and we can not say that there is a direct pressure, is still the independence of the Bank for most actors respectable, but some pressures and statements that affect the work occur Bank, including the House of Representatives, which does not take the correct way, which creates an atmosphere of fear in the banking sector, which is very sensitive in his dealings ».
He justified Keywords increase demand for the dollar «because of the size of large imports, and the migration of capital, and even the private sector has become invests in other countries. » Keywords and pointed out that «the dollar exchange rate today (yesterday) is 1250 dinars to the dollar (125 thousand dinars for one hundred dollars), and I expect that the new processes to sell the currency without 8 per cent taxes and fees, will lead to the decline, and are sure that».
He denied the bankruptcy of the Iraqi state hypothesis, saying that «Iraq oil country currently exports more than 3 million barrels, and have a cash reserve of foreign currency in the bank $ 68 billion», adding that «Iraq is not bankrupt the state, but there is a problem in the provision of liquidity, but it does not reach the point of threatening the employees' salaries insurance, and we still did not exhaust all sources and resources that cover the deficit, and we are working very closely to fill any problem in this area », ruling out« the possibility of payment of staff salaries in dollars », and stressed that the central bank will not accept the internationalization of the Iraqi economy , stressing that «the Iraqi dinar remains strong».
He revealed Keywords for «approval crisis cell on the proposal in a cell crisis the central bank served by the is that the Ministry of Finance will issue forward $ 5 billion raised for the public dollar bonds and the dollar at the official rate minus a certain percentage bought by the public and pay him in dollars after a year at the official dollar less than a certain percentage approaching interest rate », saying:« I have been approved for this proposal, and instructed the Central Bank of as a financial adviser to the government manages this version, we will start immediately by asking these bonds to the public they will our source financially well ».
For his part, Economic Adviser to the Prime Minister and the former deputy governor of the Central Bank, the appearance of Mohammed Saleh in an interview with «Middle East» confirmed, that «the central bank has already still have a strong reserve of foreign and local currency, and able to maintain the stability of the market through the imposition of sound monetary policy. »
He explained that «foreign currency cover twice issued currency, as the central bank receives daily foreign currency from oil sales, and this in itself is a source of comfort». Saleh pointed out that «the central bank financing of the financial budget for the current 2015 six trillion Iraqi dinars will reflect positively on the state out of the financial hardship experienced by the country».
In the same context, he stressed the economic expert on behalf of Jamil Peter, in an interview for «Middle East» «what is going through the Iraqi economy now of tremors is that a higher dollar and the decline of the dinar, and apart from the special treatment procedures, for he is representing the situation experienced by the rentier states when rising imports did not create a variety of other sources, agricultural, industrial or other, by not thinking about the next days », adding that« this is due to random administration of the Iraqi economy; where the majority of economic files run by politicians who are not specialists in the economy ». Add Comment
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