The dollar continues to put pressure on the dinar .. and currency traders are critical of the central bank policy

The dollar continues to put pressure on the dinar .. and currency traders are critical of the central bank policy

January 17, 2016

The dollar continues to put pressure on the dinar and currency traders are critical of the central bank policyRecord US dollar exchange rate in the domestic market rose sharply during the past few days, as the dollar price was about 1280 Iraqi dinars, after it was during the last month varies within the limits of 1200.

He said foreign currency traders in Baghdad, in the interviews: The US dollar exchange rate, is witnessing a remarkable increase since the beginning of this month, but this increase reached its peak last Wednesday, after scoring the dollar exchange rate per 1285 dinars.

Neighboring countries and internal reasons behind the rise in the dollar in the markets at a time when the central bank, is seeking through the currency, which is evaluated auction years ago to preserve the Iraqi dinar exchange rate in the currency market, the exchange rate fluctuation is witnessing clear since late last year.

Economic expert Majid picture says: Alakulaimh situation in the region, especially the surrounding neighboring countries of Iraq, especially Iran and Syria, the situation one of the main reasons behind the rise in price of the dollar in recent times in the Iraqi market, noting: that the central bank sales in cash have risen recently over transfers due these two countries handle cash in their trade due to the economic blockade imposed on them.

He said the picture: that the Bank sold $ 100 million a day, it means he sold $ 500 million per week and therefore there $ 26 billion go out of Iraq for the purposes of import, noting that most of these amounts smuggled out of Iraq without the benefit of them.

And indicates the picture that the difference in sells the Iraqi Central Bank to the dollar and of 1189 dinars to the dollar and what is present in the local market and of 1280 dinars to the dollar encouraged speculators, traders and citizens to go to buy dollars from the central bank in order to take advantage of the price difference, which increased the demand for process Dollar internally, pointing out that this increase can not reduce it without the organization of trade and import operations for Iraq.

And it sells the central bank at an auction its per US dollar currency for 1179 dinars, private banks and the companies, but it does not sell to the citizens directly, while private banks authorized to sell to sell the currency, the dollar B1189 dinars, for citizens directly.

Mafias to smuggle currency

He says economic expert on behalf of Jamil Antoine: The demand for the dollar is greater than the supply located because there are mafias collect the dollar and evading out of Iraq under the pretext of imports from outside Iraq, stating: “The amount of funds coming out of Iraq are not commensurate with the quantities of goods that enter him .

He adds Antoine: that Iraq has five offices for money laundering, but the office is still below the level in the detection of smuggling hard currency operations outside Iraq operations, stressing the need to cooperate with all parties among themselves whether the central bank or the customs, border control, taxes and the fight against corruption and increased control and internal stakeholders.

It seems that banking offices in Baghdad is far from know the reasons for this increase, but there is an agreement among themselves that there is a demand for the dollar than supply in the market.

He says his banking ax in the Karrada Mohamed Ibrahim: Although the Iraqi Central Bank to sell the dollar to citizens through the civil and government banks, but the demand is greater than supply dollar continues, noting: that all purchased from the dollar a day from citizens and up to 50 000 dollars It finds it purchased from traders either through cash or in the form of remittances.

Official: stop the bank from the sale of dollar remittances confounded market

The central bank says it is seeking through the currency, which is evaluated years ago Auction, to preserve the Iraqi dinar exchange in the currency market price, but the exchange rate is witnessing volatility clear since late last year, and the bank offers no explanations for the discrepancy between its price and the price of the domestic market, the Although it is the body responsible for monetary policy in the country. Including exchange rate policies and being daily for the sale and purchase of foreign currencies sessions except public holidays which stops by the Bank for these auctions.

He explains director of one of the Ministry of Finance’s State-owned banks in Baghdad: to stop the Iraqi Central Bank to sell dollars in the form of remittances for the purpose of organizing again during the last period befuddled the local market, prompting traders to buy dollars from the domestic market, which led to the high price of the dollar in these markets.

He adds the official, who preferred anonymity: that prices remained high even after the central bank selling foreign remittances, stressing: that what we are witnessing today the rise of these prices are speculative currency traders at a high level.

And committed the Iraqi Central Bank in February 2012 all Iraqi banks participating in the bank for the sale and purchase of foreign currency auction should be disclosed as a condition for its customers access to foreign currency, stressing that there Purchases true, but the names are not true and is otherwise legal and banking rules.

We tried to get any permission from the officials at the central bank, explains the reasons for the high dollar exchange rate, but the Information Office of the Bank stipulated that receives a formal letter includes an explanation of the reasons for the request for a permit, and questions in writing for consideration, and perhaps answer them. It is known that currency exchange rates are changing rapidly, and require explanations keep up.

It is expected local currency traders, that the price of the Iraqi dinar continues to fall against the dollar, in light of what they described as “incomprehensible policy of the Central Bank of Iraq.”

The central bank has authorized some private banks in Baghdad to sell dollar directly to the citizens in order to meet the growing demand. And sells private banks five thousand dollars for each person who holds an Iraqi passport at a price not to exceed the 1189 per dollar. But observers and currency traders say that this procedure did not contribute to the stability of exchange rates, after turning to the door to corruption, because most go for direct sale of funds to specific customers.