Loss billion dollars a month in light of the retreat of the Iraqi dinar against the dollar due to speculation

Loss billion dollars a month in light of the retreat of the Iraqi dinar against the dollar due to speculation

Thursday June 18, 2015 – 11:37

Loss billion dollars a month in light of the retreat of the Iraqi dinar against the dollar due to speculationProfessor of economics at the University of Basra, Dr. Nabil Jaafar explained that the rise in the dollar against the Iraqi dinar is one of the wars faced by the Iraqi economy Valmdharbh suffered by the Iraqi dinar will later collapse against the US dollar through depletion of the great reserves of the Central Bank of Iraq being a weapon last used in defense of the Iraqi currency exchange rate and expressed fears of speculation by Iraqi funds to pay the depletion or foreign financing to buy the US dollar from local markets and smuggled abroad and this is very dangerous, he said.

He said Jaafar during an interview with Radio tow in career morning program that it means that the US dollar is not up to Iraqi traders who sell the central bank and this is what he described as paradoxical meaning that the trader buys the dollar from the local market at the exchange rate parallel to the free market and this leads to higher overall level prices and thus harm the lives of citizens of this side, on the other hand it means that the US dollar smuggling out a speculative process have economic repercussions already applied foreign funds and caused economic crises, the countries of the Asian growth in 1997, the makers of political and economic decision.

He added that the Central Bank of Iraq today is trying to increase the money supply of the US dollar, where sales were yesterday the first $ 235 million, a large sum goes to a few banks or offices or companies money transfer in the process of speculation perhaps behind a stand of some Iraqi politicians to sabotage the economy Iraq is a very serious issue for not concerned only harming the Iraqi economy, but the Iraqi national security.

And between Jaafar that this time is the first in which Iraqi dinar breaks down this way, and this is what he described as serial scary decline in the price of the dinar exchange where approximately twenty percent lost from the price in the free market and install the exchange rate takes place within only the Central Bank and have no effects on the parallel market, a paradox strange compared to other countries that prove its national currency exchange rate against foreign currencies which put banks, offices and companies electronic score boards to determine the selling price and the purchase but Iraq is losing approximately one billion dollars a month at the price difference between the official exchange rate of the Central Bank rate and what is the free market and this significant economic damage and this Maakhcy if it continues without taking effective measures.

I suggest Jaafar solutions of them to conduct banking in Iraq offices selling directly and increase their share and forcing it in accordance with the law to put electronic score boards to determine exchange rates also sells the central bank or the State to distribute part of the staff to the dollar salaries in order to increase display and reduced its price or the state resort to improve the exchange rate US dollar to take advantage of the difference between the official price and the price in the parallel market.

He pointed Jaafar in his speech that the Central Bank of Iraq has an independent policy has nothing to do government also is traded, there is no central bank in the world, but is part of the economic policy of the governments, but in Iraq In Iraq, trying to make the central bank works in an isolated island, as he .

He added that Iraq today is draining more than $ 30 billion a year in order to stabilize the exchange rate and without stabilizing the exchange rate is not the levels of inflation control and therefore this means that the monetary policy failed in Iraq.

The dollar may have seen over the past months an increasing rise, reaching $ 100 exchange rate against the Iraqi dinar two days before to 143 thousand Iraqi dinars, while the former was modified over the past few years, ranging from 118 thousand to 120 thousand dinars per $ 100.