Dollar rises to 1280 .. And currency traders criticize the policy of the Central Bank

Dollar rises to 1280 .. And currency traders criticize the policy of the Central Bank

26-04-2013 | (Voice of Iraq)

Alsumaria News / Baghdad
The price of U.S. dollar in the domestic market rose sharply during the past few days, if the price of one dollar towards the 1280 Iraqi dinars, after it had been during the past month varies in the range of 1200.

Traders said foreign currency in Baghdad, in conversations with "Alsumaria News", the exchange rate of the U.S. dollar, has been a remarkable rise since the beginning of this month, but this increase reached its peak on Wednesday, after he scored the exchange rate of one U.S. dollar 1285 dinars.

Neighboring countries and internal reasons behind the rise of the dollar in the markets

At a time when the central bank seeks through an auction hosted by the currency for years, to maintain the exchange rate of the Iraqi dinar in the currency market, but the witness exchange rate fluctuation clear since late last year.

Economic expert Majid picture says in an interview for "Alsumaria News" that "the situation Regional in the region, particularly the situation surrounding the neighboring countries of Iraq, especially Iran and Syria, one of the main reasons behind the high price of the dollar in recent times in the Iraqi market," noting that "the central bank sales in cash increased in recent more than الحولات because of a cash deal these two countries in their trade due to the economic blockade imposed on them. "

He figurehead that "the Bank sold $ 100 million a day, it means he sold $ 500 million per week and therefore it is $ 26 billion go out of Iraq for the purposes of import," adding that "most of these amounts smuggled out of Iraq without the benefit of them."

And refers Suri said that "the difference in sells for the CBI to the dollar of 1189 dinars to the dollar and is present in the local market of 1280 dinars to the dollar encouraged speculators, traders and citizens to go to buy dollars from the central bank in order to take advantage of the price difference, which has increased the demand on internally dollar ", pointing out that" this increase can not be reduced without regulating trade import Amlebatt for Iraq. "

And sells the central bank in the currency auction its U.S. dollar per b 1179 dinars, private banks and supply companies, but he does not sell to the citizens directly, while selling private banks authorized to sell the currency, the dollar by 1189 dinars, the citizens directly.

Currency smuggling mafias

He says economic expert on behalf of Jamil Antoine "The demand for the dollar is greater than the supply located because there are mafias collect the dollar and تهربه out of Iraq under the pretext of import operations from outside Iraq," noting that "the amounts of money that comes out of Iraq are not commensurate with the quantities of goods entering him . "

He adds Antoine in an interview for "Alsumaria News" that "Iraq has five offices for money laundering, but that these offices are still below the level of detection for smuggling of foreign currency out of Iraq," stressing "the need to cooperate with all parties among themselves whether Central Bank or customs, border control, taxes and fight corruption and increase oversight and internal stakeholders. "

It seems that banking offices in Baghdad, far from knowing the reasons for this increase, but there is an agreement among themselves that there is a demand for the dollar than supply in the market.

He says the banking ax in Karrada Mohamed Ibrahim in an interview for "Alsumaria News" that "in spite of the Iraqi Central Bank to sell the dollar to citizens through private banks and government, but it is still demand for the dollar is greater than the supply," noting that "everything that buys of dollars a day from citizens and up to 50 thousand dollars finds it buys from the merchants, either through cash or in the form of remittances. "

Official: stop the bank from the sale dollar remittances confused market

The central bank says it seeks through an auction hosted by the currency for years, to maintain the exchange rate of the Iraqi dinar in the currency market, but the exchange rate is witnessing volatility clear since late last year

The Bank offers no explanations for this discrepancy between the price and the price of the domestic market, although it is responsible for monetary policy in the country. Including exchange rate policies and being daily sessions for the sale and purchase of foreign currencies, except for public holidays on which depends the Bank for these auctions.

Explains director of one government banks affiliated to the Ministry of Finance in Baghdad in an interview for "Alsumaria News" to "stop the Central Bank of Iraq, selling the dollar in the form of remittances for the purpose of organizing again during the last period disrupted the domestic market prompting traders to buy dollars from local markets, which led to high dollar exchange rate in these markets. "

Adds the official, who preferred not to be named, said "prices remained high even after the central bank re-sell foreign remittances", stressing that "what we are witnessing today of these high prices are speculative currency traders at a high level."

And committed the Central Bank of Iraq in February 2012 all Iraqi banks participating in the auction the bank to buy and sell foreign currency must disclose its customers as a condition of access to foreign currency, stressing that there is a right purchases and real but the names of an otherwise legal and banking rules.

And tried to "Alsumaria News" to get any permission from the officials at the central bank, explains the reasons for the high price of the dollar, but the press office of the Bank stipulated that receives a formal letter includes an explanation of the reasons for the request for a permit, and written questions for consideration, and perhaps answer. It is known that the exchange rates are changing rapidly, and require explanations keep up.

Dealers expected the local currency, the Iraqi dinar continues to decline against the dollar, in light of what they described as "incomprehensible policy of the Central Bank of Iraq."

The central bank authorized some private banks in Baghdad to sell dollar directly to citizens in order to meet the growing demand. And sells private banks, 5 thousand dollars per person carrying an Iraqi passport at a price not exceeding 1189 per dollar. But observers and currency traders say that this procedure did not contribute to the stability of exchange rates, after turning to the door to corruption, due to go most of the money intended for direct sale to specific customers.

[You must be registered and logged in to see this link.]