Central: Iraqi dinar hard currency
Central: Iraqi dinar hard currency
Despite the slight rise in the dollar exchange rate
BAGHDAD Mostafa Hashemi
caused Article 50 of the Budget Law for 2015, confusion evident in the dollar’s exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution.
He said the central bank governor Acting Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process.
He said in a statement the “morning” that there are efforts to create monetary stability would return check for investment and increased purchasing power, stressing the central measures will keep the Iraqi currency is difficult in every sense currency.
He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds in dollars and for a definite period, as it will contribute to the achievement of stability.
He pointed relationship to the Central take new procedures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability.
For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars.
The in Article 50 of the Budget Law for 2015, “the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process.”
He added, Taan told the “morning” that this material can be necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the Bank 56 Act of 2004, where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the instruments of monetary policy.
He said that after that ensures the budget law materials; fifty-bind the central bank sold $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price.
On the possibility of appeal in this article explained Taan it after it became effective the law has no right except for the presidency challenged Almaldh 50 of the Budget Law because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing the dollar exchange rate, describing it as a procedure is not true.
He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the the domestic market, leading to exchange rate fluctuations.
He explained that the sales problem is not foreign remittances, but at home, where the local currency bloc too big of 35 trillion dinars in circulation, a haunt of $ 75 million, and for us to imagine the rise in the dollar’s exchange rate.
saw Taan that The only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior.
The central bank’s shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after the dollar corresponds to about 4000 dinars before 2003.