Experts warn of the repercussions of opening multiple ports to sell the dollar

Experts warn of the repercussions of opening multiple ports to sell the dollar

Date: Monday 07/02/2012 1:19

 Baghdad / range
warned a number of experts and specialists from the recent actions of the Central Bank of Iraq on the opening of multiple ports to sell the dollar, at the time described the central bank to pursue this procedure to create a balance between supply and demand of foreign currency in the market.

The central bank said that it gives each bank a week million and (250) thousand dollars at (1179) and sold to citizens at (1189) that the ratio of profit for banks (10) Iraqi dinars. Growing them to maintain the value of the Iraqi dinar against the dollar, while still the exchange rate ranges between (1240 – 1250) dinars per dollar.
A member of the Committee of Economy and Investment Amer winner that private banks can not manipulate the exchange rate of the dollar against the dinar because it is linked to the Central Bank and bound his own terms, but there are companies that have the authorization of the Central for the purchase of foreign currency did not comply with the price to be no clear mechanism for follow-up work of these companies in the market.
The winner, according to the Agency (news): The bank sells dollars to companies at the official rate, but that the companies sell in the market (ie in the banking offices) at the price you want, The monopoly of the dollar caused the accession confusion in the sales process and the fluctuation of the exchange rate of the dollar against the dinar.
He added the central bank monitor the work of companies buying and selling currency approved because it is the main reason for the instability of the national currency, calling the legislation a special law to punish companies and banks in violation of regulations specific to preserve the the exchange rate of the dollar against the dinar.
and Recent months have seen a marked decline in the Iraqi dinar exchange rate against the dollar, from (1200) to (1280) dinars per dollar, to the (1320) dinars in some cases.
attribute some experts reasons Tzbb dinar exchange rate to the penalties International imposed on Syria and Iran which led to the smuggling of large to the dollar in recent months, taking advantage of freedom of foreign exchange, despite a series of measures the central bank to control the conversion, making the citizens do not trust the national currency, because the dinar suffered a shock is unprecedented, the first of its kind since 2003, with the ratio back down to (9%), the highest rate of exchange four years ago.
For his part, a specialist in economic affairs Dargham Muhammad Ali that the reasons for the stability of the dinar exchange rate against the dollar despite open multiple windows for the sale of hard currency, due to the imposition of restrictions on the sale of the dollar which is not an open process as envisioned by some as compelled banks to sell currency exclusively for passengers of $ (10) thousand dollars or traders in amounts specified after checking the motives of buying the currency.
He said that some private banks probably do not adhere to regulations specified by the Bank Central, this need to tighten them.
He added that a Central Bank of the recent sale of hard currency through the banks merely reduce the ring and brokers selling the currency and this does not add anything to the local currency, but is a process similar to the carried out by the Central Bank auction.
and between the central bank has a policy successful monetary and knows how to face the crisis and no fear of the Iraqi dinar under the presence of the Central Bank of the present.
For his part, said the deputy governor of the Central Bank of the appearance of Mohammed Saleh: When you increase the demand on the dollar during the past several months thought the central open multiple ports is the auction to pump large quantities of the dollar by equivalent to the volume of demand, in the beginning was the sale by banks of government (Rafidain and Rasheed) and pump them a day (6-7) millions of dollars, except that all the private banks endowed and made requests for the supply of dollars to sell for its commitment to abide by regulations specific to them.
Saleh pointed out that the number of licensed banks to sell foreign currency amounted to (25) banks, and through control of its work it was observed that the proportion (88%) of private banks is committed to the procedures established to sell hard currency, but the proportion (12%) of which is not committed.
He explained: that the reason for not achieving the desired goal of sell currencies of several windows back to the government and central bank fear put hard currency outside the scope of the national economy as they come from a supplier mono which is oil, pointing to the existence of barriers imposed by the state that does not give hard currency only to those who use the legal form and the correct despite the freedom of Use .
and warned the deputy governor of the Central Bank of banks in the absence of commitment controls planned to resort to the force of law to maintain the value of the dinar against the dollar.
Source: almadapaper