Specialists: political differences behind the low rate of the Iraqi dinar

Specialists: political differences behind the low rate of the Iraqi dinar

The time on Friday, 15 March / March 2013 11:30

BAGHDAD / Nasir Ali

Reflected the deterioration of the security and political situation in Iraq, and the late adoption of the federal budget, negatively on the economy and monetary stability are facing a rapid decline in Iraqi dinar value.

The Iraqi Central Bank announced after the last session of the auction sale of currencies, a sharp increase in the demand for dollar whose value exceeded 1227 dinars after it had been less than a month ago at 1219 dinars.

And increased central bank sales of dollar to 131.2 million from 125.8 million recorded in the previous session. And distributes aggregate demand for the dollar by $ 24.6 million in cash and $ 106.5 million in the form of remittances external covered by the central bank at the exchange rate was 1179 dinars to the dollar. And regulates the CBI five weekly auctions to sell and buy foreign currencies.

Market traders complained “Shorja”, the largest capital markets, the impact of decline in the value of the dinar to the commercial sector where it is feared Importers and wholesalers dealing in the current situation pending the stability of the exchange rate. Said trader cute Mayahi: “Most citizens began storing large amounts of food for fear of worsening economic conditions,” adding that what you offer banking offices of the dollar is much less than the size of the request.

Expert predicted and the Iraqi Ministry of Finance, Arslan Salim Abbasi, the continuation of the event did not rule out volatility largest decline of the value of the dinar. He said: “delay the adoption of the budget causes the accumulation of applications on the dollar, both for the benefit of the public or private sector, what would cause a large crack in the value of the dinar when the government intends to buy what you need from currencies to finance their projects.” He called on the Central Bank to follow a deliberate plan to regain control of the currency market, and stay away from previous plans which proved to be a failure.

And invite some experts and lawmakers to followers how to open doors for banks to establish auctions along with the central bank, said Abbasi that “this will be more like an official invitation to the Mafia International laundering money in Iraq, will also be a golden opportunity for Iran to get what you need from the dollar.” He added: “Central Bank reserves exceeded $ 67 billion, a huge funds to enable them to take measures to control the exchange rates in local markets.”

And already showed Prime Iraqi National Congress, Ahmed Chalabi, for fear of paying Iraqi banks very large amounts of local currency sources to buy those quantities of dollar from the central bank. He explained in a statement that “the payment of Iraqi banks very large sums of money to buy the dollar raises fears of sources of local currency that was provided for the purchase of such quantities of the dollar from the central bank.” He added: “BSA and the Central Bank of Iraq are urged to check the accounts of customers who had bought large amounts of hard currency.