Dollar exchange rates will return to normal
of Baghdad – Haider Filaih spring – Hussein Tgb Tamimi
at a time when the dollar rises a large, reinforced the central bank procedures, which he said can help control its exchange rate and restore the dollar to its natural state, comes this action after a wave heights reached during which the dollar price exchange of more than 1320, a figure said by many experts as a danger and could affect the dozens of economic achievements made during the periods of years, mainly with low inflation, which threatens to… rise in the exchange rate upwards significantly during the next few days if it does not address the topic as soon as possible . and the procedures to see a number of economists futile and useless to reduce exchange rate represented in the daily auctions of the Central Bank, and the notable gains of the dollar led to a clear increase of the prices that are expected with higher headline inflation in the coming period, remained the case as it is, and prices remain different materials and goods see gains can be frightening in light of the adoption of almost entirely on imports, according to economic expert, Abdul Hussein Al-Anbuge, who stated (morning) that measures the central bank, despite its success at certain times, but it contributed to strengthening the state of the economy rent-seeking by adopting policies that are not clear led later to the hypnosis economy as a whole and worked on the expulsion of local products from the market after converting the country’s economy to yield, saying that procedures for the bank to prevent exchange rate appreciation came late, and is now solution options or treatment a few due to the high dollar exchange rate is clear.
Although opinions who spoke about the positives of auctions currency in determining the exchange rate of the dollar against the dinar and the possibility of such auctions in the control of inflation, the Anbuge see otherwise when he said the central-Ghali a lot in raising the price of the dinar against the dollar at a time when there were the dinar real value reflect the events local economic.
With criticized Anbuge Bank policies in procedures to reduce the high dollar, the economists who preferred anonymity said he regretted that some authorities put the perceptions are inaccurate for the government’s attempts to act the cash reserve, saying he was from 2003 to now does not have a central bank lend the government any amount, diminishing the claims of some that the government is trying to acquire the reserve, pointing out that they (the government) has all the oil revenues.
The news talked about the feet of the government to control the central bank reserves, and the indicated points during the interviews to the efforts poured in this direction , which thing saying that many economists who have made it clear that monetary policy the Bank has worked for years to reduce inflation and exchange rate stability.
Deputy Governor of the Central Bank of the appearance of Mohammed Saleh during his speech for the (morning), confirmed that the bank is still going to hold Mzhadath daily aimed at creating equilibrium price between the dollar and the dinar, but the benefit confirmed that the central touch recently mismatch between the needs of the market from the dollar and what is being purchased in daily auctions of the coin, which invited him to look carefully about the reasons for this popularity is not reasonable to buy the dollar at a time does not need the size of the exchanges to only a quarter of what is pumped from the dollar. Comes a modern favor after news talked about the determination of the bank to stop auctions currency, something which was denied by the deputy governor of the bank, explaining that the action taken is seeking to identify those who can participate in these auctions, which can be used as the amounts sold the dollar in transactions daily business of the private sector effectively. storm will end soon and sees a number of economists that speculative currency are behind the rise in the dollar exchange rate, confirming that the central has all possibilities to keep the policy in this direction, something that the whole by a number of experienced and view, emphasizing gravity of the Iraqi economy as much as it came to an abundance of foreign currency They pointed out that all market participants have complete confidence in monetary policy in the country. expert said veteran in monetary policy (morning) who preferred anonymity: that this storm raised about the outlook is justified will end soon because this pattern expectations is not true and the owners of the business and money to be optimistic because the Iraqi dinar is fully covered in foreign currency is from this aspect of scientific hard currency with all of this sense of the word. He added: unfortunately contributed to some of the media in the formation of these expectations irrationality while the media in the world avoid interference in people’s perceptions about the market as such who practice it, the promise of the latter, unfortunately does not distinguish between market exchange and political news Almchaksat. He called on the media that concludes her country and the interests of people and to examine the information and investigated by other sources and addressed systematically before they are placed at the disposal of the recipient. and on the question about the government’s attempts to dispose of the cash reserve expert said that the government did not act in reserve at all It is unfortunate to talk in some quarters about things but did not get just perceptions .. He pointed out that the central bank did not lend to the government since 2003 and so far, but talk of the latter on the assumptions and expectations.and on the rumors issued by some of the government is trying to acquire cash reserve expert said this probably untrue government hands all oil imports, which is responsible for them, what need for the acquisition of the reserve, and said that this variety of fiction. What about this upheaval in the exchange rates of the dollar against the dinar, which referred to the coverage of three markets, non-local: expert said that other countries do not get foreign currency from Iraq except in cases of import of those countries or that the Iraqis want to invest there, and that the arrival of foreign currency from Iraq to this country or that does not rely on those countries and even those of us who depend on us, we import and invest .. In contrast, a national currency, what’s wrong.So where lies the problem and the reason for the rise? in this regard that the reason for this rise is the lack of sales of the currency and it is less than demand and the solution lies in increasing sales and the central pumping foreign currency equal to the demand to balance the market and prices . sales by import and noted the central bank earlier that the dollar is covering the trade markets of three countries other than Iraq, and this is called economic expert, Dr. Abdul Hussein Al-Anbuge claim to provide a database and a clear and precise indication where the size of the actual import of the country and the overall needs of the dollar by the private sector in a move he said was aimed to determine the quantities sold of the dollar in daily auctions and thus determine that is surrounded by the smuggling of currency or used illegally to finance trading of Foreign Affairs, saying that the central make way for more freedom in the processes of entry and exit of the coin, one of the most prominent standards market economy, pointing out that to make way for both to meet the conditions to participate in the auction currency is can contribute to the reduction of the heights the dollar, especially since the opportunity for the largest possible number of participants in the daily auctions factor contributing to the non-monopoly markets, the currency and thus control the price of exchange. He Anbuge that the central bank mistakenly believed that the strength of the economy and its strength is the dependent variable of the level of the exchange rate of the dinar, shall be increased dinar Bekaz and it takes the price of a placebo is real unlike the forces of supply and demand and cause the result in the promotion of the phenomenon of economic rent-seeking because it makes imported goods cheaper and as if exercised in support the product of foreign at the expense of the local and the continued expulsion of Iraqi products from the market and convert it to (the economy is sleeping), while the exchange rate is the dependent variable for the strength of the economy as if the economy finds itself in the mirror, it is not reasonable that the economy is ugly and distorted, while his image is beautiful and bright and strong. high rate of corporate earnings reports suggest that a number of companies contributing to the auction currency began to exceed the amount specified in profits, which work to raise the exchange rate, and this is confirmed also a member of the Economic Committee in the House of Representatives Qusay Juma, where attributed the reasons for the increased exchange rate the U.S. dollar against the Iraqi dinar to bypass corporate rates set out for them to buy foreign currency from the central bank, calling for monitoring the work of specialized companies to sell hard currency to maintain the value of the dinar. said Friday in a press statement: There are companies licensed by the Central Bank of specialized buying the U.S. dollar from the auction of the central and you are selling in local markets, and each company percentage profitability of certain of the benefits when you buy currency by the Central Bank, adding that companies are starting to exceed the percentage allocated to them based on the volume of demand in the domestic market of the U.S. dollar, which led to increases the value of the dollar against the dinar. He added, must monitor these companies to maintain the exchange rate of the Iraqi dinar against foreign currency, indicating that the central bank follows a monetary policy a success by selling currencies and buying in the auction, and can not be called into question the work of the Central Bank. in turn, said a member of the Finance Committee MP Abdul Hussein al-Yasiri in an earlier statement: The currency is a commodity and the applicable law “dynamic supply and demand,” any more the demand for the purchase will increase its price and vice versa as well. He added that the increased exchange rate of U.S. dollar against Iraqi dinar due to increased demand on the dollar, is born a kind of fear in the Central Bank to increase the withdrawal of the dollar and drained from the local markets, and this is what prompted him to reduce the sales of the dollar in the market for auction. This has increased the exchange rate of U.S. dollar against the Iraqi dinar, reaching its price (1320) dinars to the dollar. and demanded Parliamentary Committee of the Central quickly intervene to keep the Iraqi dinar exchange rate against foreign currencies, and said the Commission’s decision Mahma Khalil said he had contact with the Central Bank Governor Sinan Shabibi and asked him to take urgent action in order to keep the exchange rate of the Iraqi dinar against foreign currency. He added: »that the emergence of differences and the political pressure after a negative in the economic situation in the country, which led to an imbalance in financial transactions in addition to taking advantage of the existence of this flaw «.