Iraq Central Bank to sell Dollars facing Iraqi Dinar depreciation

25-05-2012 – 05:47
In a series of measures to face Iraqi dinar depreciation facing the Dollar, Iraqi Central Bank authorized Al Rafidain and Al Rashid governmental banks to sell the Hard Currency in direct auctions in order to provide larger quantities of Dollar and fulfill increasing demand thereof. Our new measures helped increasing Iraqi dinar exchange rate which is expected to become stable in the few coming days, Deputy Governor of Iraqi Central Bank revealed.

“To enhance competitiveness and diversity, governmental banks were provided with cash in Dollars to be sold to citizens in the auction,” Deputy Governor of Iraqi Central Bank Mazhar Mohamed Saleh said noting that 10 Iraqi dinars are added to the original price as bank commission. “This measure intended to diversify competition and stop monopolization which positively influenced dinar exchange value decrease,” he advanced. “Central Bank of Iraq approved measures to control Dollar leakage outside the country through registering buyers and indicating 10 thousand Dollars as the maximum amount to buy for each individual per day,” Saleh uttered.

“We refer to banks, tax departments and Trade Registry to discover everything about our clients and allow each individual to carry 10 thousand Dollars in international airports,” Saleh announced explaining that instructions stipulate that individuals are not allowed to carry more than 10 thousand Dollars in cash.

It is necessary to undertake tighter security measures to prevent Hard Currency transfer outside the country, economic experts pointed out.

“When there is a gap, demand increases unexpectedly,” economic expert Jamil Antoine stated noting that increasing the offer of Dollar could solve the issue only if security and observation measures to stop Dollar leakage are increased.

Central Bank of Iraq increased Dollar offer intending to increase Dinar exchange rate as well as fix the latest increasing inflation, and stop monopolization of money transfer and exchange companies that are benefiting from difference in exchange rates.