Financial exploitation warn of cash reserves for development projects

Date: Thursday, 04.12.2012 9:07

 Baghdad / Ahmed Abed Rabbo 
warned a number of financial experts of the consequences of the exploitation of reserves in the Central Bank, which is estimated at 60 billion dollars by the government to economic development projects, pointing out that it is a cover of the local currency.

And saw the local market rose slightly in the exchange rate of the dollar against the dinar, called economic expert Bassem Jamil Anton to keep these balances at the central bank as a cover for… the local currency, attributing the rise in the dollar exchange rate to the confidence of Iraqis in local currency due to the presence of those who seek to exploit these assets for the development processes According to statements by some officials.

said Anton’s (long): The recession that hit the Iraqi market for securities prompted some speculators in which dollarization is creating increased demand for hard currency as well as recent events in Syria and Iran, noting that Iraq is affected markets of around it in addition to applying customs tariff will increase the demand for the dollar. 
For his part, said financial expert Crescent miller (range): The Central sales were accounted for $ 150 million, but what happened from the smuggling of currency called the bank to reduce the width of the dollar offset by an increase in demand due to the political situation of non-independent in the region because the escape of the dollar means the absence of the balance of the local currency. 
said the miller: it calls for the exploitation of central bank money does not understand the economy is something she is the cover of the coin he says, pointing out that the period from 1990 to 2003, called the period of the coup monetary terms were printed coins without the balance of what led to inflation, monetary collapsed because of the exchange rate of the dinar. 
to the Deputy Governor of the Central Bank of the appearance of Mohammed Saleh rise in the dollar exchange rate within the limits controlled by the bank, pointing out that the balance covers more of the value of the dinar before in the market. 
said Saleh’s (long): The worrying phenomenon began in the month of December where Azad demand for the dollar abnormally Ignoring $ 450 million because there are some traders who import goods and have no account, as well as attached to the local markets markets surrounding prompting the bank to reduce the amounts raised from the dollar. 
the view among a representative that the high dollar exchange rate on the dinar caused by the central bank from making procedures and new regulations for the circulation of foreign currency, and this effect in a few pumped and that the bank did not work that controls the former, which impact on the price of labor, stating These measures followed by the central bank came at the wrong time and was supposed to inform the Economic Committee in the House the details of the procedures for discussion and knowledge of their impact on the economic situation in the country. 
and the central bank began the application of new procedures regarding sales of the dollar, which led to a significant reduction in rates of sales at the weekly auction which is evaluated by the bank. 
It is noteworthy that there are traders are now buying the dollar from the central bank for smuggling to Syria and Iran, which are subject to ban international economic order. 
attribute some of the high price of the dollar against the dinar to external stimuli and internal of which is linked to international sanctions, which are exposed Iran, Syria and other back to the U.S. withdrawal from Iraq. 
calling for the need to take the Central Bank of certain actions that would limit the rise, such as pumping larger quantities of the dollar. 
In the meantime, the Council of Ministers set up a committee to study the fluctuation of the exchange rate of Iraqi dinar, as he emphasized that the Committee will provide the appropriate solutions to prevent harm to the national economy. 
The director of the Media Unit of the Secretariat of the Council of Minister Abdel Talaqani in an interview for “Alsumaria News”, “Council of Ministers face to form a committee to study the fluctuation of the exchange rate of Iraqi dinar,” asserting that “the Commission will provide appropriate solutions to prevent harm to the national economy. ” 
The head of the House of Representatives Osama Najafi said, (April 10, 2012), that the Council will host a Bank Governor Sinan Shabibi at a hearing to show the issue of the exchange rate of the dollar against the Iraqi dinar, as attributed Shabibi the causes of rising to twice the domestic production and the weakness of the government’s actions.