Commission study the fluctuation of the exchange rate of the Iraqi dinar
Skinner explains the reasons for the adoption of the recommendations of the Commission study the fluctuation of the exchange rate of the Iraqi dinar
Wednesday, October 17 1 / Okrudolf 2012 12:46
[Baghdad – where]
Explained government spokesman Ali al-Dabbagh reasons for adoption of the recommendations of the study the fluctuation of the exchange rate of the Iraqi dinar.
Dabbagh said in a statement received by the agency all of Iraq [where] a copy of it today, the cabinet decided at its forty-fifth regular session last Tuesday, October 16, 2012, approved the recommendations of the Commission study the fluctuation of the exchange rate of the Iraqi dinar. ”
He added that “the approval of the recommendations of the Commission study fluctuation Iraqi dinar exchange rate comes sake of the Iraqi government to deal with the repercussions of fluctuating exchange rate of the dinar and that came as a result of the absence of regulation import process and ill benefit from buying the currency and not tighten the Iraqi Central Bank to monitor the activity of auctions currency and sale dollar for the private sector and cash flows out of Iraq, as well as international sanctions imposed on Syria and Iran, and special procedures for central banks Province Syrian and Iranian, and that led to the devaluation of the local Ammelthma and dramatically. ”
Dabbagh said that “the economic affairs committee in the Council of Ministers asked on 12 September 2012 from the Council of Ministers Showing recommendations of the Commission study fluctuation Iraqi dinar exchange rate on the Council of Ministers for approval came these recommendations after a series of meetings of the Committee during which discuss the matter extensively with the subject already introduced at the fifteenth ordinary and held on 10 April 2012 and it issued directing the Cabinet formed a committee headed by Deputy Prime Minister for Economic Affairs and membership Deputy Prime Minister for Energy and Finance Ministers, oil and planning, trade and industry and minerals and the Secretary General of the Council of Ministers and the Governor of the Iraqi Central Bank and Chairman of the National Investment Advisor to the Prime Minister for Legal Affairs and Economic Advisor in the Office of the Prime Minister and Associate Secretary General of the Council of Ministers for Administrative and Financial Affairs and financial expert and economist and director general TBI This committee studying fluctuations Iraqi dinar exchange rate and the high prices of some food items and other goods with daily consumption. ”
And that “fluctuating exchange rate in the recent period has triggered controversy in political circles and economic what plays an important role in economic activities external and internal, whether commercial activities or investment where initiated CBI adoption Activity auction of foreign currency as a means of controlling the price exchange and routing destination sound monetary to adjust the levels of inflation, reaching sales of the bank in 2008 from foreign currency up to  billion dollars, which led to the low exchange rate of the Iraqi dinar against the U.S. dollar and the price auction  dinars compared at market  dinars and became rate in the exchange rate in 2009 up to  dinars compared at the market price prevailing  JD has risen exchange rate recently in the market between 1270-1290] dinars to the dollar and this exceeds the sale price of the dollar from the bank’s  dinars to the dollar, which led to directed a section of traders and remittance companies and banking to trading and speculative currency for difference  pips.
Ali al-Dabbagh that “the recommendations may include coordination, consultation and exchange of information between the Central Bank of Iraq and the Council of Ministers on fiscal and monetary policies in accordance with the Constitution with the Bank is examining methods currently in receipt of foreign currency to the domestic market and a greater role for banks and better organization of the process stages all attention mechanisms other possible to regulate the exchange rate so as to prevent the use of funds for purposes other than the declared and build a complete management and integrated office-money laundering and combating the financing of terrorism (the Money Laundering) and the emphasis on the bill its own with interest in the development unit of money laundering at the bank and take suggestions Bank into consideration on the formation of the anti-money laundering “.
Dabbagh said that “the recommendations may also included the formation of a committee to audit and review the sale of currency for the purpose of locating bugs if any and the strengths and weaknesses and how to take advantage of the amounts sold and fits in with the quantity of goods and services within and propose actions to reduce leakage rates for a purpose other than the above-mentioned and this committee will be headed by a representative of the Office of Financial Supervision and the membership of representatives of the ministries of interior, finance and trade, the CBI and the General Secretariat of the Council of Ministers and the formation of another committee shall exchange information on the movement of currency sold by the CBI and the database configuration for use in the control of the currency movement and this committee will be chaired by the representative Central Bank of Iraq and the membership of representatives of the ministries of interior, finance and trade, will the CBI to submit a quarterly report on its supervision on the banking companies authorized transfer outside with an emphasis on the oversight role of the BSA in check transactions sell the currency to customers and goods entering a result and as central bank will provide a study on the authorization of government and private banks validity of the opening credits for the purposes of trade import coverage of the private sector to the Economic Affairs Committee. ”
Al-Dabbagh that “the Iraqi Central Bank will report on the development banks to do its appropriate and consistent with the financial volume of the Iraqi economy with the necessity of regulating trade and followed up by the government agencies which will reflect the request of the foreign currency and the reference to the general situation, particularly political and economic, investment and stability, which Iraq makes the result center of attraction for foreign currency and thus improves the Iraqi dinar exchange rate in a sustainable manner and will be urged the Iraqi Central Bank to examine its law and constitutional according to the data, which came after the issuance of the law in force towards enhancing its potential and development work. ended