A government comment about the continued rise in the price of the dollar despite the decisions and procedures
A government comment about the continued rise in the price of the dollar despite the decisions and procedures
2023-03-04 02:07
Shafaq News/ Mazhar Muhammad Salih, the financial and economic advisor to the Iraqi Prime Minister, commented today, Saturday, on the continuing rise in the exchange rate of the dollar in the local market, despite all decisions and measures by the government and the central bank.
Saleh told Shafaq News agency, “Transfers in foreign currency related to financing the current account of the balance of payments, and I mean (trade in goods and services specifically), are still not sufficiently adapted, either by some banks or by their importing customers, to the controls of the compliance platform and the new mechanisms for external transfer, with the same effect.” High governance and fast enough, especially after the dealers got used to the external transfer (banks and individuals) and for nearly twenty years of liberal use in the external transfer by merging the current account transactions with the capital account of the Iraqi balance of payments, while the compliance platform that oversees the regulation of external transfer transactions has I revealed such an implication in the request for an external transfer.
And he indicated that “the method of financing border trade in cash dollars, to which large patterns of small cross-border trades are accustomed, has also been subject to the same restriction through the compliance platform related to cash dollar sales, which fed border trade exchanges, which the trade pattern used to finance in cash as a primitive but accelerated method in Securing financing for fast-moving consumer goods such as vegetables, fruits and other processed commodities from neighboring countries and through border trade.
He added, “While the available financing controls, many of them cannot be covered by transfers through the mechanisms of the compliance platform for reasons related to the economic boycott or regional tensions and many factors for some of the major neighboring countries exporting and supplying Iraq with these goods, which creates pressure on the parallel exchange market.”
And the financial and economic advisor to the Prime Minister continued, “Despite the foregoing, the procedures related to the flow of capital outside the country have not yet become clear, and its transactions are still rejected (usually) despite the legal availability provided by Article 28 of the Central Bank of Iraq Law No. 56 of 2004, which allows for unconditional soft transfer of external transfer.
Saleh revealed that “the (customary) rejection over the past twenty years has encouraged the phenomenon of capital flight through violations that were committed through import transactions of goods and services, which were represented in two forms of violations, the first: exaggerating the prices of imported materials and the second, by imposing requests Capital transactions that are not permitted by custom or even legally with current account transactions (and I mean import transactions of goods and services), that is, without knowing the final beneficiary of the external transfer due to the lack of detection of that merger, which caused problems with global compliance circles in inquiring about the fate of the transferred foreign currency and the beneficiaries thereof. actually”.
The financial and economic advisor to the Prime Minister concluded by saying, “Changing the habits and patterns of importing fast-consumable commodities within compliance controls in our country that imports small and large via border trade requires some time to organize and adapt according to the international compliance system, and that the central bank’s packages that are launched in order to facilitate external transfer.” It works to stabilize the exchange market, some of which touch the transfers of the financial or capital account from the external transfer within the legal and accepted limits.
shafaq.com
