Will experts succeed in maintaining Iraqi Dinar exchange rate?

Will experts succeed in maintaining Iraqi Dinar exchange rate?

16-05-2013 – 17:35

Iraqi dinar denominationsTens of citizens gather in front of private banks to buy US Dollars; however such gatherings always end in confrontations as police forces interfere to separate them. These daily accidents pushed bank owners and financial experts to hold a conference, in the hope of finding solution that ensure the preservation of the exchange rate of the Iraqi Dinar.

It doesn’t make any difference if it’s day or night, many people gather in front of private banks to buy US Dollars. Hand and knife fights usually take place as it ends up with security forces interfering.

Such incidents pushed the owners of many banks to organize a conference to find solutions and measure that would preserve the exchange price of the Iraqi Dinar and forbid any currency speculations; holding the central bank responsible for the low Dinar exchange prices for Dollars.

Financial experts who attended the conference accused aggregates affiliated with governmental personalities of standing behind the instability in Dinar exchange prices, warning against a financial crisis in case the market remains uncontrolled.

“Many important mafias affiliated with highly influential Iraqi personalities benefit from Dollar transactions”, said Financial expert Majed Al Suri.

“In case Dollar exchange prices for Dinar increase or remain as they are, they will greatly influence the market. Thus, it is mandatory that the Central Bank changes its policy”, commented Financial expert Hussein Alawi.

For private and governmental banks, US Dollar currency is bought in daily sessions organized by the Central Bank of Iraq, in the aim of financing private sector traders as well as tourists and students going abroad. However, this is far from what happens in reality; making such transactions a great infringement of the Central Bank’s directives.