The central bank defended the currency auction: a way to stabilize the dinar exchange rate

The central bank defended the currency auction: a way to stabilize the dinar exchange rate

Monday 29-08-2016 | 12:37:07

The central bank defended the currency auction - a way to stabilize the dinar exchange rateTwilight News CBI / defended on Monday the auction of the currency in the face of criticism and is described as a door for corruption and theft of state funds, stressing that the auction means to stabilize the dinar exchange rate.

The bank said in a statement responded to the Twilight News, “The sale of the currency window is the way to ensure the stability of the dinar exchange rate over the meeting of the Iraqi economy requirements by providing foreign currency to cover imports of the private sector goods and services, in addition to the needs of citizens for the purposes of travel, medical treatment, study outside Iraq, despite the absence of any allocations in the budget since 2003 and so far for this purpose. ”

He added that “However, this bank has worked to develop its procedures in this regard by encouraging banks to adopt the mechanism of opening letters of credit for the purposes of import instead of remittances style,” noting that “the proportion of sales in a manner credits amounted to more than 70% of foreign currency sales “.

He pointed out that “the central bank put a fundamental criterion for the implementation of dollar selling operations to banks include the extent of its commitment to the rules of the fight against money laundering and terrorist financing, as well as the preparation and application of standards for the electronic system for window sale and purchase of foreign currency (remittance).”

He also pointed to “a greater role for government banks to buy and sell the dollar and the development and verification sources of funds used for the purchase of the dollar from the sale of foreign currency window.”

The national coalition led by former Prime Minister Iyad Allawi has criticized the auction to sell the currency, and said that “the dollar in the domestic market prices are muggers Management window and the corrupt who make their living on the difference between the official exchange rate with the parallel markets.”

The coalition said in a statement issued a week ago that “the so-called (currency auction) is the practice does not exist in the countries that adopt a market economy, and proved experimentally they lead to waste of money without supervision.”

He called the coalition that “affects the reform passed by the House of Representatives of the Central Bank and an end to partisan administration acting in accordance with the quota system, which came personalities incompetent and unprofessional.”