CBI reveals new procedures for the central bank currency rates on the rise

CBI reveals new procedures for the central bank currency rates on the rise

Posted: April 17, 2012

Deputy Governor of the Central Bank of the speculators in the currency market and put the bank in front of critical options to address the recent rise in the Iraqi dinar exchange rate against the dollar, and revealed new measures to reduce the phenomenon of bleeding of the currency.

The appearance of Dr. Mohamed Saleh, told the correspondent of the agency (JD): The treatment for the problem of high exchange rate requires taking one of two options either to cover the demand to provide a large reserve of currency or to let the consumer faces the consequences of fluctuating exchange rates.

He said the first choice threatens the currency reserves significantly, which is likely second choice as a temporary solution pending the implementation of new measures, which said it will eliminate the phenomenon once and for new measures Saleh revealed a new system to reduce withdrawals currency leads to higher exchange rates of the dollar against Iraqi dinar .

He explained that the Bank is introducing a new system to eliminate what he called ghost traders who deal with the bank, include a demand for maternity leave new import from the Ministry of Commerce.

He pointed out that the new system and will eliminate once and for all the operations of the currency was withdrawn through the detection of suspicious points to spend that amount and thus deal on the basis of disclosure of financial, tax, noting that currency speculators as long evaded tax accounting, and thus will be unable to issue import licenses.

He will have a dealer after the application of the new system highlight the import license as a condition for entering the auction indicating that the new measure will ensure good faith statement dealers in the market for hard currency.

The Deputy Governor of Reserve Bank to be able to meet the Iraqi demand of hard currency, while the new measure taken to protect Iraq’s reserves of interventions malicious tamper-economic security of Iraq.

He explained that the Iraqi currency is strong because it is covered extensively, despite a single dollar of the Iraqi economy and that the bank can absorb any momentum on the application within moments and in the presence of a large strategic stocks of hard currency, but he is trying to impose adequate protection of the national economy.

It is noteworthy that the Iraqi Central Bank, announced the rise of foreign currency reserves to $ 60 billion for the first time in the history of Iraq, having marked the beginning of September of the year 2011, up precautions amounted to $ 58 billion and 50 billion was the end of the year 2010.

The central bank held the Iraqi daily sessions for buying and selling foreign currencies with Iraqi banks, except for public holidays on which depends the World Bank for these auctions, and the sales either in cash or in the form of money orders sold out for a commission of certain.