Can not say for sure that the central bank has succeeded in reducing the value of the dollar

The multiplicity of outlets selling the dollar to achieve economic gains for the country

19/06/2012 0:00

After that contributed to lower prices and declining rates of inflation
Baghdad – Haider Filaih spring
can not say for sure that the central bank has succeeded in reducing the value of the dollar, which reached record levels in recent months, but he (Central) end and to a large degree of persistence of high dollar against the Iraqi dinar, and succeeded to impose a monetary policy aimed at reducing the high rate of inflation, which could be receiving due to increased prices of materials, goods and services that sometimes occur due to witnessing the dollar from mutations price is working to block commercial traffic.
In the opinion of specialists need to work the Iraqi Central intensively to create balance price fixed of the Iraqi dinar with the dollar, and this, according to specialists guarantees the elimination of mutations taking place in material prices in local markets.
and the center of what to expect, Vice Governor of the Central Bank of ¬†Iraq appearance of Dr. Mohammed Saleh, the possibility of falling prices, the dollar in the coming days, remained assigned to the material in the domestic market without a little movement, Although the vast majority of the materials available in local markets are imported and their prices depend mainly on price of the dollar in Iraq, but they have not experienced any significant reduction despite a drop in the dollar’s value is clearly to $ 123 000 dinars per $ 100.
attribute the observers reasons for this to increase the size of demand for goods and products in local markets, and this creates a kind of imbalance between supply and demand, standing, demand remains limited supply on what it is and thus higher prices or in rare cases settle at a certain price, and this stability is what is happening now in the domestic market, despite a drop in value of the dollar in Iraq, which is the base currency to finance most of the trades and imports entering the country.
and pays tribute to the economist Ali Hilfi including the oldest was central when allowed to sell the dollar at low prices to citizens in government and private banks, likely to work that it reduces the value of foreign currency is clearly through the next few days, especially as the central verge of increasing the number of participants in the Mzhadath daily to sell the dollar, according to what was said Hilfi which indicated that monetary policy is moving rapidly towards the correction of many of the economic tracks that has plagued Iraq in the forefront of raising the value of the dinar against other foreign currencies, particularly the the dollar. Despite what he saw Hilfi of positives in the process of selling the dollar in government and private banks, the economic researcher raised Hassan stresses the importance of that is set to the sale of those, and that is limited to cases identified by the Central only, and so they can be overcome some of the obstacles faced by wishing to obtain on the dollar of government banks or private.
said Hassan said that selling the dollar in the ports other banking is the central bank sponsor to cut prices dramatically, however, Hassan expressed his fear that the instincts of sales to include speculators and therefore, the possibility of economic gain will disappear in front of that step.
urged well the need for the expansion of government banks and the same for her work in selling the dollar, calling on them to search for people who want to replace the local currency to the dollar, especially the sick and people who divert money simple to the outside in order to study or for other purposes does not exceed that be commercial.
The central bank announced directly Rafidain and Rasheed to sell the dollar for the citizens at 1189 dinars, as well as give him authority to sell the dollar for four private banks at a price set by the central, saying that the move aims to benefit citizens directly from the exchange away from the monopoly exercised by the other.
Deputy Governor of Central Bank the appearance of Mohammed Saleh said that the Rafidain and Rasheed Beshra to sell the U.S. dollar cash for citizens at the price determined by the bank, up to 1189 dinars to the dollar.
Saleh added that the sale will be in the FAQ and purposes under way in the use of foreign currency which is travel, treatment, Deputations and Hajj and Umrah, noting that the amount needed by the citizen for tourism is about ten thousand dollars.
Saleh said that the aim of this step is to benefit the Iraqi people directly from the exchange away from the monopoly exercised by the other, pointing out that what we are witnessing today from fluctuations in currency exchange is just a bubble quickly fade.
saw inflation rates are the other noticeable decline in the past month compared to same month last year, inflation has dropped by 2 percent in the month of May last the same month in the past year and by 1.3 compared to the month of April.
and connects a number of specialists in economic affairs retreat rates of inflation that down the value of the dollar, arguing that the dollar is the monetary value of total imports general in Iraq, which led to a decline in the pool of imported materials after the decline in exchange rates of the dollar. A statement by the Ministry of Planning said that the Central Agency of Statistics of the Ministry completed the report of the annual inflation for the period between May 2011 and May 2012, on the basis of field data collection for prices of goods and services comprising the consumer basket through a selected sample of outlets in all governorates of Iraq, noting that these rates are calculated from the goods and services including food, rent, transportation, communications, health, education, other than he is keeping the consumer.
The report that the indicators of annual inflation for this period decreased by 2 percent saluting the inflation came from the year before 7 percent after inflation was recorded 9 percent, indicating that the decline in annual inflation due to falling food prices, especially vegetables, and this demonstrates that the Iraqi market are closely linked prices, the dollar and informing him of the exchange rates, which makes it imperative for the central, according to an economist Mehdi al-Ani, urgently seek a behind the factors that it deems effective in reducing the price of the dollar, suggesting an increase in the Auction currency carried out by, and make way for the application of that idea in a number of Iraqi provinces, especially commercial, and expected that to happen it kind of balance between the price of the dollar and the demand for them.
Source: alsabaah