Abandon the sale of currencies .. Central bank’s move in response to the surprise of his critics

On: Sun 29/04/2012 12:09

Baghdad (news) / report / Faleh Hussein / .. After a scathing criticism of the Central Bank against the backdrop of high exchange rate of U.S. dollar against the dinar, began the central thinking to withdraw his hand from the sale of hard currency in the auction for the benefit of a government banks. 
plans to the Central Bank of the transfer of an auction sale of hard currency to the commercial bank government, the fact that the auction does not fall within the competence, which raised the ire of a number of parliamentarians and financial experts, because the government banks are not eligible technology and can not maintain the exchange rate of the dinar against the dollar.  
In this regard, said a member of the Finance Committee MP / National Alliance / Abdul-Hussein al-Yasiri: The delivery of the auction to a government bank would lead to increase the value of the U.S. dollar against the dinar level can not be controlled, would hurt citizens by increasing prices in the domestic market. 
The Yasiri (of the Agency news): The Central Bank is in crisis due to increased demand for the dollar, making him take the complex procedures forced the speculators to buy it from banking offices in the black market. 
A fear of depletion of foreign exchange as a result directed the Central Bank to sell it, especially since it comes from oil, the only source of income of the state, but must invest those funds in other projects are a lot of money to the people. 
“The decision to abandon the bank Central to a commercial bank may be the result of his inability to save the value of the dinar against the hard currencies again, “said Yasiri. 
and see the U.S. dollar has increased significantly and an unprecedented value in front of the Iraqi dinar, with an exchange rate of one dollar (1300) Iraqi dinars, after it had been stable for a period of long (1170) JD, is born out of fear of economic circles constantly increase its price and its direct impact on the Iraqi economy. 
accordingly can not be the central bank to leave the auction, but shared with the state institutions, economic and security through the arrest of cases of illegal that leads to increased exchange rate the U.S. dollar against the Iraqi dinar. 
Thus commented a member of the Economic Commission MP / National Alliance / Abdul-Hussein Abtan, saying that the central bank faced “an attack fierce” hard currency as a result of disorders suffered by Iraq’s neighbors like Syria and Iran, where the depletion of foreign exchange from before these countries due to poor control over border crossings. 
that government banks business is able to perform tasks sale of hard currency, being the process need to be accurate and thorough study of the nature of the currency and quantity in the market and can not be anyone to know, without the central bank, said 
banking expert Hossam Obaid Ali. 
Ali said (of the Agency news): The government banks are not eligible technology and need to be efficient and constrained in practice by the Ministry of Finance, which is covered by item VII imposed on Iraq since the nineties of the last century, which do not offer a true citizen, but she manages the financial operations relating to the salaries of retirees and staff. 
“You may get the case of confusion in the monetary policy of the country,” said financial expert Mohsen Ali (of the Agency news) warned of the possibility of their country’s economic problems large in case of delivery of the central bank auction on the sale of hard currency to one of the commercial banks 
and added that the work of government banks limited to the farewell and the exchange of instruments with other banks and non-suited for the task, because they need the expertise, making them easy prey for large companies, and possibly delusional and non-licensed for the purchase of currencies and therefore would increase the value of hard currency more in front of the dinar. 
For his part, Deputy Governor of the Bank of appearance Mohammed Saleh (of the Agency news): Time to exit auction sale of the currency from the central bank, and take it a commercial bank government, it does not fall within the competence of the Central Bank. 
“We were finance foreign trade and this is not one of our missions,” said Saleh, adding that the Dollar out under various pretexts legal and illegal, including not serve the Iraqi economy. / Finished / 8. d. Q /

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