An economist reveals the mechanism of the “currency auction” and the reasons for the rise in the dollar
An economist reveals the mechanism of the “currency auction” and the reasons for the rise in the dollar
Posted, 11/29/2020 21:52:40
{Baghdad: Al Furat News} Economic expert Majid Al-Suri revealed, on Saturday, the mechanism adopted by the Central Bank to sell currency by auction, explaining the main reason behind the high exchange rates of the dollar in the country.
“The reasons for the rise in the value of the dollar are the insistence of the Ministry of Finance, the white paper’s insistence on changing the currency’s rate, speculators took advantage of the matter, and exchanges outside the powers of the central bank and the authoritarian institutions are responsible for the market,” he said.
And that “the banks for which the currency is sold is only a mediator between the central bank and merchants, and that what is related to the amount of remittances is not the responsibility and jurisdiction of the bank,” indicating that “government banks use their own money, not the central bank’s money.”
He pointed out that “corruption is in the source of money, and that the central bank and banks deal in documents, and there is no judicial authority, and the validity of the issuances is verified,” stressing that “the main problem is in the sources of money, tax and customs, and these numbers are in contradiction to those issued by the central bank.”
He pointed out that “corruption is in the region’s outlets. The numbers are not recorded, but the quantities and numbers that it records do not match the bill, and even with regard to border outlets, and the tax does not practice its work properly.” And taxes, and there is an incident that one of the correspondent banks found a difference in the price of the goods and refused to deal, and there is an international and Iraqi control on the issue of remittances.
He continued, “The Central Bank’s instructions, the pressure of international organizations, the fight against smuggling and money laundering, he issued instructions for the necessity of applying the money laundering law, and it is possible that one of those dealing with banks buys sums but distributes them to the merchants and thus the merchant is the beneficiary.”
He pointed out that “the main purpose of hiding the names of the banks for reasons not knowing the quantity of the sale, and the names are not a secret, but to move away from the disputes that occur between the banks, and that the issue is according to the points that the bank gets from the evaluation and classification process carried out by the Central Bank.”
And that “the process of selling the currency is mobile, and that the total sold amounted to 33 billion dollars for the last nine months, and this is less than what happened in previous years and does not depend on monetary policy and the central bank, but rather a financial and economic policy.”
He stressed, “The central bank should not be held responsible for the Ministry of Finance’s failures with regard to taxes and border crossings, and each ministry and the Ministry of Commerce must do its work.”
alforatnews.com
