Concerns the transfer of an auction sale of currency outside the central bank

30/04/2012 10:55

BAGHDAD – The e-righteousness – Muhannad David 

 Said banking expert Hossam Obaid Ali on   the government banks business is unable to perform the functions of selling foreign currency, being the process need to be accurate and thorough study of the nature of the currency and quantity in the market and can not be anyone to know, without the central bank, according to that can not be the central bank to leave the auction, but co- with state institutions and economic security through the arrest of illegal cases that lead to increased exchange rate of U.S. dollar against the Iraqi dinar. 

Ali added that the government banks are not eligible technology and need to be efficient and constrained in practice by the Ministry of Finance, which is covered by item VII imposed on Iraq since the nineties of the last century, which do not offer a true citizen but she manages the financial operations relating to the salaries of retirees and employees.

Financial expert, said Mohsin Ali: You may get confusing in the case of the monetary policy of the country, “warning of the possibility of their country’s economic problems in the event of a large delivery of the central bank auction on the sale of hard currency to one of the commercial banks   . 

He added that the work of government banks is limited to bid farewell and the exchange of instruments with other banks and is well suited for the task, because they need the expertise, making them easy prey for large companies, and possibly delusional and non-licensed for the purchase of currencies and therefore would increase the value of hard currency more in front of the dinar. 

For his part, Deputy Governor of the Bank of the appearance of Mohammed Saleh: It is time to exit an auction sale of central bank currency, and shall state that a commercial bank, it does not fall within the competence of the Central Bank. “

We became finance foreign trade and this is not one of our missions, “said Saleh, adding that the dollar out under various pretexts legal and illegal, including not serve the Iraqi economy. 

It is worth mentioning that the U.S. dollar has increased significantly and an unprecedented value in front of the Iraqi dinar, which was the exchange rate of one dollar (1300) Iraqi dinars, after it had been stable for a long time on the (1170) JD, is born out of fear of economic circles constantly increase its price and its direct impact on the economy Iraqi.