A source at the bank: No control over the flow of dollars abroad

A source at the bank: No control over the flow of dollars abroad

Posted, 02/15/2015 (20:30)

BAGHDAD / Amer Mohi

Demanded an official source at the Central Bank of Iraq, on Saturday, monitoring the movement of the dollar and put controls on foreign exchange companies and check receipts and money transfer. While an economist pointed out that determining the amount of dollar selling in the auction currency lowers the price of the dinar, the Iraqi government called for a work of non-interference of the Central Bank.

An official source at the Central Bank,
“long”, that “the most important causes of decline of the dinar is the use of the dollar import process, so the need for it is greater than the Iraqi dinar, therefore, the money supply of the dollar is strong,” stressing that “the Iraqis are forced to use the dollar transactions Foreign, a large demand for the dollar shall be measured in dinars. ”
The source, who declined to be named, said that “the Iraqi economy is not affected by a decline or rise in the dollar only, but there are other effects such as the security situation and financial and administrative corruption,” pointing out that “the high exchange rate dollar against the dinar, affect the processes of buying and selling and import. ”
He called the source to “put a fixed exchange abide by remittance companies price, in addition to the control of receipts under which the transfer of funds, as well as determine how the entry and exit of the dollar”, calling for “activating laws Product and protect the goods, because in the national product protection promotes the local economy, thus eliminating the need to import and have a few dollar exit, which leads to be less than the dollar’s exchange rate against the dinar. ”
He predicted “a strong dollar, because the budget law for 2015 select sale of the Central Bank $ 75 million per day, which led to weak demand for the dollar because the central bank was selling from 100-150 million dollars a day to meet the need of the market, but in light of determining the amount of dollar selling will increase demand and rising prices. ”
For his part, said an expert on economic affairs spokesman Anton, “long”, that “the rate of the dinar started to decline after the approval of the federal budget in 2015, after the government set the dollar amount of the sale of $ 75 million per day,” noting that “it is wrong to interfere with the process of the Iraqi government to determine the amount of the sale the dollar. ”
Anton predicted “continued decline in the value of the dinar because of the great demand for the dollar, and because determining the central bank selling $ 75 million only, so the dinar will fall,” calling on the government to “cancel its decision to select the sale of the dollar.”
He held Anton some traders responsible for the low dinar exchange rate, “because the dealers to sell additional quantities of dollar per day,” and urged the government to “follow the work of traders and control money laundering, which is in a significant way, in addition to the demand for the dollar control.”
He called the appearance of Mohammed Saleh Economic Adviser to the Prime Minister Haider al-Abadi (February 3, 2015), the Central Bank to clarify the reasons for the low value of the Iraqi dinar against the rise in the dollar price in the local market.
Saleh said on “the central bank need to clarify the reasons for the high dollar rate against the dinar, though slight, and shows what actions and policies taken to preserve the value of the dinar. ”
He pointed out that “a determining central bank sales of the dollar in its daily auction was due to financial hardship, home to Iraq and maintain the bank’s reserves of foreign currency which is linked revenues Iraq to fall and rise and be maintained by reducing its demand for the dollar and cover basic needs it. ”
And “we have in Iraq uncontrollable commercial and there are goods in the market is not worth the import where there are stocks of durable household as materials and cars suffice Iraq for several years, but the import is continuing and this exhausts the state budget.”
The prime minister for economic affairs, “adviser strength of the dinar Iraqi. It is covered in foreign currency, according to the monetary mass defined by more than one and half times but at the same time, we must achieve a balance in maintaining the amount of foreign currency exchange rates and the value of the Iraqi dinar, ”
and discussed the Cabinet in its meeting (February 3, 2015) The reasons for decline of the dinar against the dollar at the forefront of trading this week.
A source familiar with the Council of Ministers that “the central bank was wary of the consequences of entering the parliamentary finance committee in the dinar exchange rate under the pretext of controlling the exchange rate and quantity,” adding that “Parliament intervention in this matter is something fishy some thing, especially since Parliament tasks recede legislation, oversight and not draw a certain fiscal policy. ”
He added that “the Council of Ministers did not put in the agenda the subject of discussion of the causes of decline of the dinar, but the objection of the Central Bank on some materials and items of Federal Financial Budget Law for the year 2015 paid to think to discuss the subject at the meeting. ”

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