CBI eases restrictions on the sale of dollar

Officials said on Tuesday, the Central Bank of Iraq has eased restrictions on the sale of the dollar in a move likely to strengthen the Iraqi dinar.

CBI stressed in April, the rules that determine who can participate in the daily dollar auctions and quantity that can be purchased in an attempt to stabilize the dinar and prevent the diversion of U.S. currency illegally to neighboring countries lies under sanctions.

The Central Bank announced cancellation of this step on Tuesday, and said that he would Representatives banks weekly share of liquidity and allows it to determine the price at which it is installed in the past at 1189 dinars to the dollar.

Iraq is recovering from decades of war and sanctions and the economy is still largely centrally. Oil accounts for 95 percent of government revenues.

And easing restrictions also that the participants in the dollar auctions held by the central bank would no longer be subject to a maximum for the transfer of funds.

Mudar said Qassem, the deputy governor of the Iraqi Central Bank steps had been taken because the exchange rate of the dollar against the dinar is stable and that the application of anti-money laundering rules in a better way would prevent the sale of the dollar to countries under sanctions.

And Kassem told Reuters “we went through a difficult experience for a year but had been successful.”

The Iraqi dinar was strong downward pressure as traders buy some dollars to sell to Syria and Iran.

But measures aimed to prevent this trade pushed the value of the U.S. currency to rise in the Iraqi market hurt local businesses that depend on the dollar in imports.

Walid said Idi Director of Statistics and Research بالمركزي Iraqi ease restrictions “will strengthen the dinar and eliminates the difference between the official exchange rate and the price in the secondary market.”

In May allowed the bank to sell the dollar at a fixed rate through the two state-run banks helped to reduce the price of the dollar from 1280 dinars to 1210 dinars and reduce the gap between the official price and the market price.

The CBI holds auction day selling the dollar at 1166 dinars to the dollar while the dollar market in 1200 dinars on Tuesday.