Gold the best guarantee for the stability of exchange rates

Two: Gold the best guarantee for the stability of exchange rates

3/26/2014 0:00

Iraqi DinarBaghdad – Mostafa Hashemi
confirmed two economists that the application of monetary policy tools of the central bank in an active manner that would enhance the value of the currency and maintain the stability of exchange rates against foreign currencies, considering a central strengthening reserves monetary gold that is in line with the current stage to strengthen Iraq’s economy. was the central bank may He announced that the amount of gold purchased during the month of March, about 36 tons of high purity is very applicable to international standards adopted, comes as part of the strategy pursued by the Bank in the management of reserves of foreign to achieve racial safety and safety through the use of monetary policy tools to stabilize the exchange rate of the dinar against foreign currencies . was central had decided earlier in the SEC assortment of pure gold bullion weights ranging between (5 g and 1 kg). He announced, at the time, the direct actions contracted to import them and then sell them through the banking system, as this procedure represents a monetary policy tools. Economist said the appearance of Dr. Mohammed Saleh, said that the citizen trusts absolutely transactions of government means that he trusts the precious metal which items imported Central as guaranteed and standard specifications in addition to it’s international origins is what makes gold imported from the Central is much better than that items imported gold traders. pointed out that the measure would double the opportunities to increase credit (loans granted by banks to citizens) the adoption of gold coins as collateral good loan repayment terms will reflect so positively to improve their reality of living and the national economy in general.
Meanwhile adviser said the Iraqi Institute for Economic Reform, Dr. Ahmed al-Husseini that the application of monetary policy tools to effectively reduce the dollarization of the economy. pointing out that there is another instrument of monetary policy pursued by the central bank is setting up a basket of foreign currencies and reduce dependence on the dollar because the country is suffering from the dollarization of the economy. added Husseini told (the morning): the basket as possible to contain the currency more stable than the dollar Kganah sterling or the euro or the Japanese yen and the Swiss franc and other currencies of the world economies to promote a strong cash reserve currencies along with a variety of gold and the dollar. explained that the adoption of a basket of currencies prevent Iraq from fluctuations in world oil prices and work to prevent Kmusdh financial impact of these fluctuations on cash reserve generated from oil sales.