Abadi adviser calls for a realistic exchange rate for the dinar
Abadi adviser calls for a realistic exchange rate for the dinar
06/27/2015 19:01
Monetary policy is working for the stability of the national currency and to address fluctuations, that the problem of Iraq today is the low price of a barrel of oil, which depends upon the country in obtaining hard currency, where we have lost more than 50% of the value of exports and foreign currency With the decline in the value of exports remained highly prized imports, Consequently, there is a deficit on current account.
BAGHDAD / Obelisk: stressed economic adviser to Prime Minister appearance of Mohammed Saleh, said Saturday the need to unify the exchange rate between the central bank and the price that deals with people in the market, and make it pricier one actually commensurate with the oil and economic conditions austerity sale and the defense of this price volatility price.
Saleh said in a statement published by local media, followed up “obelisk”, that “the Iraqi dinar exchange rate is the same as the external value of the national currency, the value of money and this value is important to relate to the external sector, because most goods and products are imported and we got to the point Import services also including medical and legal and advisory as well as the importation of goods, explaining that “the volatility of the exchange rate in favor of the dollar and foreign currency taken from the rights of citizens and affect the income and wealth and hits the standard of living.”
He added that “monetary policy is working for the stability of the national currency and to address the volatility,” stressing that “the problem of Iraq today is the low price of a barrel of oil, which depends upon the country in obtaining hard currency, which lost more than 50% of the value of exports and foreign currency,” noting It “with a lower value of exports remained high value imports, and thus there current account deficit.”
He noted that “administrative and financial processes in general affected the exchange rate and the decreased value of the dinar against the dollar”, calling for “non-interference to the work of the Central Bank”, noting that “the central bank must find a realistic price for the exchange rate Intasp with the economic situation and the defending state this price, and the market and the central bank at a price of one, and that the price difference does not exceed 2%, explaining that “if the desire of the state to improve the value of the Iraqi dinar, it is with the economy improves conditions in the country.”
“The big difference at the exchange rate of the Iraqi dinar against the dollar between the central bank and the market is leading to a loss for the country and the Central Bank”, stressing that the monetary policy should put the price of one, and that the proportion of this price with the price of a barrel of oil, which is sold at about $ 60, not $ 110 and commensurate with the balance of payments deficit and not its austerity budget surplus and with the conditions, and this is decided by the central bank to move away from conflicts. ”
The exchange rate of the Iraqi dinar exposure to speculation during the last period and a large rise in record time, prompting cell crisis to agree to the proposal of the Central Bank to cancel 8% of customs and excise tax imposed on the purchase of the dollar.
The Governor of the Central Bank of Iraq and the Agency on the Keywords confirmed the absence of fear of the rise in the dollar’s exchange rate against the Iraqi dinar, revealing the “Ask a local bonds worth $ 5 billion; to provide liquidity to the state.”
almasalah.com
