Summer session of the dollar in the Iraqi market
Hard currency in the sense dollar term trading day in political and parliamentary circles all economic and even a word fired on the dollar during the Second World War and then to Iraq’s presence in the sterling bloc, making access to the dollar coupled with specialization those of the dollar bloc of Iraq.
Now, after the opening of the global currency markets and the free flow of different currencies is no longer for this meaning of Title, Fbalamkan convert sterling to dollars in any amount, as well as the case with the euro and other currencies within minutes.
These three currencies represent major currencies in the world for trading in addition to the Japanese yen and Chinese yuan, and these currencies can all get any of them in the world market and in any quantity, and this shows that the description of the dollar in foreign currency either indicates a lack of science developed global markets of the currency became the exchange of soft normal daily operations, and either that indicates the purpose of the same view is trying to achieve due to confer this status on the dollar and called hard currency.
As for Iraq, in particular the process is simpler than that, as the oil sales account for the bulk very entered Iraq, a whole dollar.
The allowance oil sales filed at the expense of the Iraqi government the (DFI) In return, as much as received by the Iraqi Central Bank that provides what you need and the Ministry of Finance of the Iraqi dinar from that account to pay the salaries of employees and retirees and the payment of benefits local contractors and all expenses other government that deserves the government dinar, and the Central Bank either printed Iraqi dinars per dollar, or sell the dollar in the local market to get the Iraqi dinar, this process is essential to the economic cycle, since the resort to the first solution only a printed Iraqi dinars new against the dollar, will get inflation, which operates the central bank to reduce it or reducing it, particularly to sell dollars in the market absorbs excess cash available when the dinar, which leads to lower inflation and thereby the economic cycle for the dollar.
For sure and control the entry of goods imported to Iraq for amounts sold by the Central Bank of the dollar to finance import it does not fall within the jurisdiction of the Central Bank and not from his duties, he is also not for the banks, which mediates to buy dollars from the central bank to calculate its clients but it is the prerogative of the circuit customs, which oversees the clearance of goods imported via the Iraqi border and ensure compliance with import lists and quality, as well as the jurisdiction of the tax departments. As I mentioned in my previous article published in the Journal term on 20/05/2012 can control this subject by restricting imports or directing mostly through open letters of credit bank account processors outside of Iraq, and this leads to the receipt of the bank which has opened dependence Iraqi Allmistord the shipping documents which indicate that the goods will reach Iraq on the ship Fulani or by road by the carrier Fulani and the importer reimbursement dependence owed it to the bank to meet the delivery of shipping documents for output of goods from points customs border like Basra if the shipment has been by sea and border points wild with neighboring countries if the shipment has been road or air, and here comes the role of customs in the audit and the health of matching import shipment of the original lists.
The bank opens a documentary credit buys foreign currency corresponding to the value of the imported goods in U.S. dollars from the central bank and converts it to ááãÑÇÓáå abroad to cover the value of such goods and the importer to pay the equivalent of that amount in Iraqi dinars by price determined by the Central Bank of the dollar, and this process simple can control over the economic cycle for the dollar and other foreign currencies, as well as to avoid misuse who may have been the owner of the process in the past.
And I’ve walked the CBI in the right direction when acting governor announced that the import will be through open letters of credit bank in the future, as stated in the directives during a meeting monitors compliance in banks on 05/11/2012.
What we hope is that reconciles the central bank and succeed in its stated plan to rationalize import operations and provide the value of those operations fundamentalism of foreign exchange needed, and to other government agencies related duties and functions according to the laws in force. Chairman Mansour Bank for Investment.