A slight rise in the price of the dinar .. and experts assert

A slight rise in the price of the dinar .. and experts assert: Survey outlets sell the currency led to the monopoly of the dollar

04/12/2015 (00:01 pm)

Iraqi DinarBAGHDAD / Ghazanfar Laibi

At the time confirmed a number of owners of banking offices, on Saturday, there was a slight rise in the value of the Iraqi dinar against the dollar, economists attributed the rise of the dinar to a decision made by the CBI to double the share of banking companies of the dollar and to allow banks to open windows to sell the dollar, stressing that inventory Outlets currency led to a monopoly, causing a rise of the dollar over the past days.
Decided the Central Bank of Iraq, Thursday, doubling the share of banking companies of the dollar, while allowing banks Rafidain and Rasheed and Trade open windows to sell the dollar for banking companies and small importers to reduce the high rate of exchange in front of the Iraqi dinar.
, said Abdullah al-Hamdani, a shop owner Exchange in Sadoun area central Baghdad, said that “the dollar started to decline since Friday evening, because of the news received about the government’s decision to sell large amounts of dollars to banks,” noting that “the question of the rise and fall in the dollar exchange rate is due to supply and demand.”
He added Hamdani saying that ” dollar exchange rate reached (Saturday) to 1229 dinars after the price was last week’s 1333 dinars, “pointing out that” the banking companies and dealers dollar afraid of price volatility as a result of concerns about exposure to financial losses due to the instability of the dollar prices. ”
For his part, he said, expert in economic affairs Maytham Laibi in an interview for the “long”, that “reducing the number of selling the currency outlets policy as a kind of control procedures tight, did not achieve the results, because they have limited the ability of the market to expand into selling the dollar across multiple outlets,” noting that “inventory sell the currency outlets led to the monopoly, which leads to control prices, larger, so was thinking of expanding the number of ports. ”
The expert added by saying that the “Declaration of the Central Bank of its intention to pump additional amounts of the dollar, would contribute to the improvement of the Iraqi dinar exchange rate against the dollar, because of its effect on the supply and demand balance, especially because of the increasing demand for it to settle the import of various commodities requirements, “pointing out that” the outlook optimistic factor is one of the general factors to allay fears of reduced supply quantities. ”
He explained Laibi that ” Central Bank pledged to cover the daily requests would reduce the speculative factor which is one of the key factors in the separation of the market dinar exchange rate (parallel) for its official rate “, adding that” the step taken by the CBI, which is true, especially that we have seen significant and rapid declines in dinar exchange rate over the past few weeks. ”
However, an expert saying that “low or high dollar exchange rate will remain dependent on the dollar amounts that the central bank and the government can be made ​​available to the public which is dependent mainly to oil prices and rising.”
The Executive Director of the Association of Iraqi banks Ali Tariq, called last Thursday, to “return the exchange rate to normal by injecting amounts of dollar private market, although the Iraqi market needs more than $ 75 million.”
The central bank said in a statement on Thursday, received the “long” version of it, he “decided doubling the share of banking companies of the dollar. ”
He said the central bank, that “allowed the banks Rafidain and Rasheed and Trade open windows to sell the dollar for banking companies and small importers.”
The past days, a significant rise in the US dollar against the Iraqi dinar for up to 1,340.
It is noteworthy that the IMF International Sign in (21 March 2015), the high proportion of the deficit in the budget for Iraq in 2015 to more than 12 percent announced by the government, due to lower oil prices, and the weakness of the possibility of Iraq’s commitment to export 3.3 million barrels per day, and assume the budget, and the proposed implementation of the reform measures strict include austere in investment projects, and a commitment to reducing expenses, and reconsider the limits of the sales of the Central Bank of currency, referring to the overall growth contraction, and the prospect of rising inflation slightly the end of this year.
The current year’s budget law, committed the CBI, in its paragraph 50 , identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed 75 million, with the exercise of justice in the sale, and claim the participant in the auction the bank providing the introduction of cargo documents and statements of tax settling accounts and savings Alkmarki within 30 days from the date of purchase of the amount, and otherwise apply the penalties prescribed in the Central Bank Act or the regulations issued by, and the use of other banking tools to maintain the strength of the dinar against the dollar.