Dinar fall against the dollar after the central bank’s actions and recommendations budget

Dinar fall against the dollar after the central bank’s actions and recommendations budget

03/02/2015 (00:01 pm)

BAGHDAD / long-Presse

Economic Commission attributed the Iraqi Council of Representatives, on Monday, rising dollar exchange rate of the dinar in the Iraqi market to the decisions taken by the Central Bank during the past few days to support the economic development that, while likely economist return of the dollar to normal rates through a simple period, attributing the reason for the rise to “rush” banking offices to buy the dollar, as well as reducing the quantities sold by the central bank as recommended by the general budget.

A member Najiba Najib Economic Committee in an interview with the “long-Presse,” The Central Bank has taken new measures that would provide cash to cover the shortfall in the budget in light of falling oil prices to below $ 50, “noting that in light of the lack of financial revenue was on the state to take a range of actions to provide the largest possible number of the currency bloc to consolidate to increase the size of the revenue. ”
Najib has ruled that “these measures are working to reduce the value of the Iraqi dinar or Cancel support him,” indicating that “the bank will maintain the exchange rate and the price of the dinar against the dollar will rise from what it is now.”
For his part, economist said spokesman Anton “The budget amounts identified by The Central Bank sold the currency to $ 75 million,” noting that there Thavta by banking offices to buy the dollar for fear of re-evaluation of the dollar and raise the price. ”
Anton and ruled that “the Iraqi Central Bank to take any decision or action to reduce the rise in the dollar’s exchange rate against the Iraqi dinar in the markets.”
He favored the economic expert “does not continue to rise in the dollar’s exchange rate against the Iraqi dinar according to the current price, but it declined gradually to return to its natural position after a few days,” asserting that “the central bank has large amounts of dollar selling is continuing and will not stop.”
Anton promised to “cut the central bank to sell the dollar is only natural, especially with reducing the amount of the general budget of $ 150 billion to $ 100 billion,” following up “can not pump the same amount of dollar with the budget cuts the fact that this will lead to a surplus smuggling of currency.” .
Paragraph 50 of the federal budget for 2015 Act provides that “the Central Bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed the 75 million dinars a day with exercise justice in the sales process, and calls for participating in the auction the bank providing the introduction of cargo documents and statements and tax savings Alkmarki settling accounts within 30 days from the date of purchase of the amount and otherwise apply to the bank penalties stipulated in the Central Bank Act or regulations issued it, and use other banking tools to maintain strength of the dinar against the dollar.
The Iraqi Central Bank announced yesterday the first Sunday, taking five resolutions for “support” the development of the Iraqi economy, and confirmed his agreement to cover bank accounts abroad to “US dollar” to cover imports, and while stressing the importance of “accelerating” legislation Deposit Insurance Act, praised the formation of Commission to reconsider the benefits of restructuring among its “approval of the Central Bank to cover the bank accounts abroad in US dollars to cover imports of customers and for other purposes without the need to pass a window sell the currency at the Central Bank of Iraq.”
The Iraqi Central Bank announced last week, to take the necessary measures to boost liquidity in the banking system, while decided to facilitate the procedures for the sale of foreign currency “to sustain the exchange rate,” the Central Bank of Iraq, had announced (18/01/2015), the financial reserve Iraq’s equivalent and a half times the weakness of the currency bloc, returned it from the “best rates” in the countries of the world, as he emphasized that Iraqi financial institutions are “unable” to the fiscal deficit coverage, stressed the need to re-examine the structure of the budget and spending and diversify sources of income and achieve investment more broadly to address the decline in oil prices.
The study estimated that the local government banks’ capital reached until October of 2012, the last end, a total of 754 billion dinars, compared with more than four billion dinars for private banks, and investment balances in banks operating in Iraq recorded up to 10/31/2012, a sum nearly six billion dinars (5.947), the share of government banks which amounted to 4.929 billion, compared to 1.018 billion for private banks.

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