Economy — 18 June 2013
[You must be registered and logged in to see this image.]
Iran's largest hard currency smuggling ports of Iraq
Baghdad-observers to the Iraqi Central Bank policies to widespread corruption and lead day by day to the deepening crisis of low exchange rate of the Iraqi dinar and foreign currency smuggling abroad.At the door of the Rafidain State hundreds of citizens stands in a long line to buy the dollar after the Bank per allowed the Iraqis intended to travel by buying $ 5,000 price supported by the CBI and the value of 1,190 dinars to the dollar.
Meanwhile the Iraqi dinar record weeks ago marked decline in dollar value returned by economists and specialists in regard to the political and security factors and financial because of the resurgence of the dollar smuggling out of the country. and the Central Bank to sell every citizen intends travel $ 5000 price of 1,190 dinars for each dollar in exchange offices sell about 1,300 dinars.This has prompted currency brokers and money exchange firms to invest the opportunity to obtain hard currency.
"The game" is practiced by those in sending a group of citizens to the State banks to replace the currency in Exchange for giving them a Commission of $ 100 for each replacement.Site says "talk" that he had solicited the views of a number of citizens who come daily to the banks, many of them affirmed that "travel features that allow them to exchange with the price, to exchange offices provided by Bank staff to highlight to approve purchase of $ 5,000." and adds many of these mostly poor class, "the owners of the exchange offices give us dollar purchase amount to not have this amount and we returned them to the dollar compared to us $ 100 for that process."
Economist Majid mock the "deterioration of the dinar exchange rate against the dollar was due to many factors including political, security and financial management in the country."The site of "talk", "the Central Bank a few months ago was selling up to 150 million dollars per day, and soon the increased demand for dollars increased sale to 400 million dollars per day."Mock said that "the security situation is tense and complex political situation pushes many traders and capitalists to shift their money out of the country and switch their money from dinar to the dollar for fear of collapse of the dinar. He said that some non-Iraqi firms operating in the country decided to shutdown its staff and flown out of Iraq because of those situations.
An official says Turkish company specialized in the construction of houses in Baghdad that "the mother company in Turkey decided to withdraw all Turkish workers on the background of the crisis conditions in the capital and explosions"."Our work in the past two months has seen a recession because of the lack of construction projects by the Iraqis."The problem facing the Forex market in Iraq are not subject to certain controls, very simply anyone can in Baghdad and other Iraqi cities get the dollar through hundreds of unlicensed banking companies or through bstiat owners on pavements, and doesn't cost much. Kazem acknowledges Jassim, his small office in Mansour district in Baghdad, that his work is not subject to oversight by a Government or Central Bank.
He says that the "license by the Bank requires a lot of official approvals, subject to favoritism for this preferred to work without a license since 7 years.Cast members and financial committees in Parliament, part of the responsibility for the deterioration of the dinar exchange rate on the Central Bank for being the Executive in charge of financial policy in the country.These charges are the House about how the Central Bank management and procedures that do not rise to the level required by the national economy by some expression.
The Attorney said Jawad alshahili, a member of the integrity Commission in Parliament that "after replacing former Bank Governor known for his integrity and experience Sinan Al-Shabibi, the dinar exchange rate to decline against the dollar and became the worst of the past ... The new management of the Bank has been unable to control the smuggling of currency ". Alshahili adds that his Committee is following the policies of the Central Bank under the new Bank Governor Abdel Basset Turki, and initial reports suggest a decline in monetary policy, asserts that "there are corrupt officials in the Bank must be held accountable."Member of the Finance Committee in Parliament, Al-Tamimi, Magda predicted continued decline of the dinar against the dollar, and attributed this to the cooperation between the economic and financial institutions, and lack of control on imported ministries, such as health and trade.
With regard to the reported smuggling of huge amounts of dollars abroad confirmed that "dollar smuggling currently dealers for documents and forged papers, fake goods." Central Bank of Iraq tried months ago to put an end to the phenomenon of increasing demand for the dollar and had enacted new controls to stop the conversion of dollars out of the country when it demanded all banks and finance companies to provide official documents about dollar conversion transactions, close unlicensed banking shops.Summarizes the Economist as the most important reasons for the deterioration of Antoine dinar in three key factors are tense political situation and the return of violence and weakening of monetary and fiscal policies.
[You must be registered and logged in to see this link.]