Low exchange rate of the dinar against the dollar .. The market is witnessing a surge in turnout
Deputy: five conditions capable of reviving the economy most notably a correct vision
of Baghdad – Haider Filaih spring
saw the dollar on Saturday, an unexpected drop was accompanied by clear decline in the prices of materials and goods in local markets, and attributed the specialists in the economic reasons for the drop to a kind of balance in supply and demand between the dollar and the Iraqi dinar as the two goods can be purchased and traded with them, but economists said the rising rates of dollar sales in the auction currency held by the central bank was behind the low exchange rate of foreign currency (dollar) against the Iraqi dinar, where the dollar fell to $ 123 thousand dinars for every 100 dollars, after rising in recent weeks to reach about 130 thousand Iraqi dinars….
The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars and is expected, analysts and financial experts that the see the dollar fall further in the coming days to coincide with the increase in sale auctions currency from the dollar and the decline in demand to buy it in local markets.
In the opinion of a member of the Finance Committee in the House of Representatives Abdul-Hussein al-Yasiri importance to maintain the central bank to what he regarded as a gain economically can come back to the country many benefits, pointing out that any goods including the U.S. dollar can control the exchange rate by increasing the display in the market, government, but the Yasiri warned of further alienate reserves, Iraq, the federal dollar, saying that the central now depends largely on the increase in selling prices to meet demand growing from the private sector at the expense of compromising Bahtiattiyath federal, expected during the coming period to witness the dollar stable market price significantly after the policy in mitigating the rise of the dollar by the dominant central.
praised Yasiri Speaking (morning) on the role and capacity auction the central bank to reduce the continued rise of the dollar, stressing that such auctions has clearly meet all the needs of the local market and thus reduce the value of the dollar against the dinar.
said Yasiri that among the main reasons for the high dollar in recent times are some of the actions by the dominant central task in the development of the bank restrictions on participate in the auction, which led to increased demand clearly on Chierfat private and outlets selling the dollar the other, which led eventually to increase the rate of exchange, indicating that these measures is inconsistent with the market policy pursued by Iraq, as passed by the new constitution of the country, noting that the increase in sale dollar at auctions currency at the expense of maintaining the value of the dinar is damaged much of the Iraqi economy as a result of negligence on the amounts by reserves of Iraq from the hard currency, but the Yasiri pointed to the need that so they can be to create a balance between supply and demand of the dollar.
criticized Yasiri stop most productive economic activities other non-oil, pointing out that the absence who are agricultural and industrial is hurt a lot to the economy and led to the keep to rely almost entirely on oil revenues, saying that this dependence on the economy, rent-seeking factor shares down many of the economic activities in the country and led to be the only outlet for the dollar is sell oil only and the absence of the rest of the work which could be helpful in supporting the revenue of the country such as agriculture and industry.
called Yasiri to the importance of that so they can be private-sector support as detailed important joints of the national economy and has the capabilities allow it to increase the revenues of the country of the dollar and raise exports and reduce the size of the revenue, which is now costing Iraq a lot of money, stressing the need to improve all infrastructure related to the rise of the private sector and to use all possibilities to ensure Banashh enact laws and legislation would enable it to compete with the imported product and pay for the issue of the economic process, as passed by the new Iraqi constitution.
Yasiri said that the Iraqi economy in way to recovery during future periods, and that the dollar will stabilize or fall in front of the value of Iraqi dinar, but the Yasiri stressed the need to provide a five conditions for the achievement of many of the economic gains of the country, said in the forefront of the importance of having an economic vision real reality of development in Iraq, as well as the presence of thoughtful planning in order to achieve this vision, as it allows to achieve the highest success rates, it can be achieved according to Yasiri in the event of a decision of a uniform can be reflected positively on the economic reality of Iraq, a third condition mentioned by the Member of Parliament to promote economically in Iraq, adding to the these conditions the need for regulations and laws to help move the economy, as well as provide a cadre believes in the importance of transition in Iraq to the level of advanced economies.
The central bank predicted in his speech for the (morning) the stability of exchange rates through a package of measures said that the process taken to reduce works that are harmful to the Iraqi economy in general, pointing out that the increase in exchange rates of the dollar against Iraqi dinar return to a number of precautionary measures he has taken to reduce the smuggling of the dollar. and Deputy Governor of the Bank Mazhar Mohammad Saleh said the Iraqi dinar is the currency is very strong , which is covered by 120 percent of its value at current exchange rates, as well as that all the mass domestic monetary covered, so the central bank is working to control the cases of high exchange rate or increasing the rates of inflation through intervention in pumping large quantities of foreign currency through Mzhadath, especially and that the dollar is the main currency to cover the cost of many foreign goods and services that are imported, but the central and according to the benefit of monitoring the presence of changing the size of the request, of the market was only the volume of sales simple everyday to the market demand began to double from the past many times and abnormally, and this is what necessitated the Bank to impose additional constraints to participate in the Mzhadath daily. confirms economists need to seek the central bank to maintain the stability of the exchange rate of dollar winner is now against the dinar, stressing that that province on the exchange rate enough to reduce the prices of many materials and goods in local markets and thus lower rates of inflation, which rose a few days ago due to higher cost materials that are imported to the dollar.
and also points to that, an economist at the World Bank Acanutormagd the picture, which suggested that the pressures facing the dollar is still going on, despite the depreciation of the exchange rate, calling for further measures precautions to maintain the current rate of exchange to which the same dollar in the local markets, and this comes through the combination of all the efforts to revive the economy, especially auctions currency and the activation of productive activity and monitor the direction the dollar to prevent smuggling, according to Suri, who pointed out that the volatility made in the value of the dollar the past few days as a result for central bank policy relating to supply and demand.