Experts and international banker: the central action on the stability of the currency does not work

Experts and international banker: the central action on the stability of the currency does not work





2013/04/26 (23: 01 pm)

Baghdad/Bayou Eggplant and agencies
Experts specialize in financial affairs and currency traders that the stability of the exchange rate of the dollar to dinar was due to the lack of professional management of the Central Bank, citing the need to review the mechanism that deals with the market to correct failures in exchange rate fluctuation, the dollar in the domestic market has risen sharply over the past few days, if the price of the dollar more than 1280 DT was last month at around 1,200.
The Central Bank is responsibleAnd economic information centre Director Mohammed dargham "should be replaced Management of the Central Bank of Iraq fully to current we can preserve the Iraqi dinar exchange rate mechanism that we use at the present time do not work. Speaking of shows, the "old Central Bank was able to reduce the high rates of inflation and this thing failed to some great powers." Indicates that the Central Bank is currently moving towards transparency only this alone is invalid, so the balance between maintaining exchange rate levels by creating new mechanisms contribute to the flow of dollars into the market, according to the local market while maintaining a high level of transparency.And there is serious attention by making the controller is what leads to the discovery of irregularities, the Governor of the Central Bank and the President of the Office of financial supervision is one person. For his part, economist with the name Abdul Hadi said the Central Bank in an enviable position, it is not known if trends move foreign currency out of the country, non-controlled ports and trade relations are unclear sometimes. "Abdul Hadi says the term "Central Bank is responsible for managing the exchange rate file and review the mechanisms that it handles money market", indicating that the Central currently suffers from a lack of foreign currency has raised flow leads to a rising dollar and do not respond to all requests for some not to import foreign coverage so there may be some kind of smuggling foreign currency."The Central Bank review tools foreign currency put in the Iraqi market to achieve flow with cruise control the movement of foreign currency abroad.The fear of rising prices It calls on the finance and investment bank Adviser NAFI Elias Abou, the Central Bank increased the pump foreign currency from the dollar to control massive height index threatening the collapse of the Iraqi currency.According to Abbou's (IBA) that "the dramatic rise in the exchange rate of the US dollar against the Iraqi dinar is considered an indicator of risk to increase the prices of imported goods and commodities and the rising domestic market, pointing out that" all goods and goods imported by foreign currency dollar and any deterioration in the dinar would lead to an increase in commodity prices, which shaved considerable damage to the limited income people. ""The output of high dollar exchange rate will create inflationary episodes or differences in exchange rates is an indication of a particular deterioration would lead to deterioration of the exchange rate of the Iraqi dinar. Economist says Majid Al-sumaria news "image" that "regional situations in the region, particularly the situation surrounding Iraq's neighbors, especially Iran and Syria, one of the main reasons behind the dollar recently in the Iraqi market", noting that "sales of Central Bank cash have risen recently over remittances due to the dealings the two cash in trade because of the economic embargo imposed on them." Shadow adds that "the Bank's sale of $ 100 million a day it would mean the sale of $ 500 million a week and thus there is a $ 26 billion goes to outside Iraq for import", noting that "most of these sums are smuggled out of Iraq without benefit."Mock notes that "the difference in the Iraqi Central Bank to sell dollars and 1189 dinars to the dollar, and what is in the domestic market of more than 1,280 dinars per dollar encouraged speculators, traders and citizens to go to buy dollars from the Central Bank for the purpose of taking advantage of the price difference, which has increased the demand for dollars", pointing out that "this rise cannot be reduced without the regulation of trade and imports for Iraq."Central Bank sells at auction its currency US dollar per JD, 1179 by private banks and supply companies, but does not sell directly to citizens, while selling private banks authorized to sell the currency, dollar, by citizens, 1,189.Mafias to smuggle currencyEconomist alecs Antoine "demand for the dollar than before because the mafias are collecting dollars and smuggled out of Iraq on the pretext of import operations from outside Iraq", stating that "the quantities coming out of Iraq are not commensurate with the amount of goods entering."Antoine says that "Iraq has five offices for laundering these offices, however, are still below the level in the detection of smuggling hard currency outside Iraq, stressing" all parties must cooperate among themselves whether the Central Bank or border control and customs taxes and fight corruption and increase oversight and internal stakeholders. "It seems that the banking offices in Baghdad away from the cause of this rise, but there is agreement that there is a demand for dollars exceeds supply in the market.The Bank says the axe in Karrada Mohamed Ibrahim that "Although the Central Bank sold the dollar to citizens by Government and private banks, but demand for dollars is greater than before", stating that "every dollar buys daily from citizens and limits of $ 50,000 find buy traders either through cash or in the form of remittances.The Bank stopped selling dollars remittances market befuddledThe Central Bank says he seeks through the currency auction for years, to keep the exchange rate of the Iraqi dinar in the currency market, but the exchange rate is volatile clear since late last year, the Bank does not offer any explanations for the discrepancy between the price and the market price, although it is responsible for monetary policy in the country. Including exchange rate policies and the daily meetings of the buying and selling of foreign currency except official holidays the Bank depends on these auctions.The Director shows a Bank of Government of the Ministry of finance in Baghdad "Iraq's Central Bank stopped selling dollars in the form of transfers for the purpose of organizing anew the befuddled local market prompted traders to buy the dollar in the domestic market resulting in a higher dollar price in this market."The official added "prices remained high even after the Central Bank selling by foreign remittances," he said, adding that "what we are witnessing today is rise in these prices is speculation of currency traders at a high level."And the Central Bank of Iraq in February 2012 all banks participating in an auction to buy and sell foreign currency must disclose its customers as a condition of access to foreign currency.Local currency traders expected the Iraqi dinar rate continues to decline against the dollar, in what they described as "incomprehensible policy of the Central Bank of Iraq".The Central Bank was given some private banks in Baghdad by selling dollars directly to citizens in order to meet the growing demand. Private bank sells $ 5,000 for every person holding an Iraqi passport at a price not to exceed the 1,189 per dollar. But observers and currency traders say that this procedure did not contribute to the stability of exchange rates, having turned to the door to corruption, because most of the funds going for direct sale to customers.





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