Central Bank Confirms Its Quest to Stabilizing the Exchange Rate to 1189 Dinars to the Dollar
|May 27, 2012||Filled under Featured Article|
The deputy governor of the Bank according to the appearance of Mohammed, that the Central Bank proved the dinar exchange rate against the dollar to 1189 dinars to the dollar after the addition of 13 dinars, the bank commission and profit banking companies ten dinars to the dollar.
He added that the Central Bank sells U.S. dollar to 1166 dinars, and expected to resolve the phenomenon of the depreciation of the dinar against the dollar in the coming period. “
He said the bank currently sells $ 200 million per day, which covers a large amount of market needs and the bank began to expand to include outlets selling banks Rafidain and Rasheed. “
And picked up local media reports about the widening phenomenon of smuggling hard currency from Iraq to Syria and Iran on the border crossings which has not been confirmed by the CBI.
And subject its nuclear program by Iran and Syria as a result of popular protests to UN sanctions are harsh and markets both countries to an economic collapse because of poor cash flow of hard currency.
The main task of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign currency reserves and the organization of the banking sector.
He acknowledged the central bank this month, the existence of an imbalance in the Iraqi dinar exchange rate and confirmed his quest to unify the exchange rate between him and the local markets while at the same time denied any deterioration of the value of Iraqi dinar.
The central bank last week accused the four countries to “conspiracy” to hit the financial economy of Iraq to empty its market of its financial strength, indicating that the free trade corridors in Iraq is becoming the means adopted to hit the economy.
And saw the price of the dollar compared to a rise in local currency during the past few days, which officials attributed to a local banking companies, the central bank to take additional action in the auction sale of hard currency.
To the said economic expert on behalf of Jamil said the central bank is not able to find effective solutions to the phenomenon of depletion of foreign currencies and difficult of the country alone, despite being the monetary authority only in Iraq, which requires a radical solutions, whether treatments economic or security, intelligence or make critical decisions of the executive bodies to stop this drain on hard currency.
Jameel said in an interview (range) that this would provide a conducive atmosphere for recovery of economic life in Iraq again, and creating some sort of balance between the increasing growth of trading in U.S. dollars and other foreign currencies, and the amount of reserves that must be met enough of those currencies in the country, and not impact the national economy in general, and to prevent the increase in the pumping of Iraqi crude oil to world oil markets, which is also a means of mitigating the consequences of this phenomenon, which we referred.
He added that these phenomena come from a number of reasons is a result of increased demand on the U.S. dollar by about an unprecedented, and signs of increased demand in much the offer on according to studies of the reality of the Iraqi economy prepared by specialists in this subject, which is caused by several factors, including negative impacts on the the Iraqi economy from economic sanctions imposed by the international community to the neighboring countries of Iraq and the challenge Syria and Iran, which resulted in some of the groups of smuggling foreign currency out of Iraq to those countries in an attempt to revive their economies, the U.S. dollar to buy the largest possible amount.
He noted that the necessity come here to find treatments true for this imbalance by performing procedures legal, security and technical re-balance in the circulation in the currency and the return of the real balance in the Iraqi economy, which is not able to bear the economic sanctions imposed on other countries, as it is in spite of the economic relations between Iraq and those countries in an integrated manner, but not in its interest to afford the mistakes of others and pay (bills) account for others to suffering a major economic crisis caused a significant shortfall in the reserves of the Central Bank of Iraq’s hard currency, specifically the U.S. dollar, and the negative effects as well as on the financial position of Iraq in general, which makes it vulnerable to economic and financial.
He pointed to the importance of preventing the continued flow of hard currency to neighboring countries such as, in spite of assurances to the Central Bank of the abundance in reserves of foreign currency in to it, and the announcement of the government for most of the time for taking action on that, which calls for concerted efforts by all agencies in joint efforts to prevent the continued flow of currency and smuggled abroad.
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