Economist: Dollar weakness of the central liquidity and will reach 1500 dinars
Economist: Dollar weakness of the central liquidity and will reach 1500 dinars
2016/1/13 10:48
[Baghdad – where]
attributed the economic expert Ahmed Kanani, rise in the dollar’s exchange rate against the Iraqi dinar, to non-possession of the Iraqi Central Bank sufficient liquidity to cover the local market need it [the dollar].
Said Kanani, told all of Iraq [where], “The country suffers from a shortage of funds, so the high price of the dollar is very natural, because when there are strong liquidity in the country will stabilize the dollar and the exchange rate, but if there is a shortage of funds and lack of selling the dollar by the Central Bank to suit the market, which currently sells half the value that fit the need of almost size of the market certainly will increase the exchange rate.
“He added,” In general, the market needs a day to $ 300 million, while the central bank now sells between 150 or 120 million, and this also has an effect. ” , pointing out that “the central bank when it does not sell the required dollar amount, it is because he does not own the adequacy of cash flow to cover the dollar.”
He ruled out Kanani the existence of “speculation by banking companies and sell the currency,” explaining that “when you view a lot of the dollar in the market It will decrease the exchange rate, while the rise when displaying little of it “, reiterating that the high dollar” just the rise and descent of the price as a result of supply and demand for the dollar is a very natural question. ”
He predicted that testifies dollar exchange rate “rise in the coming days, especially in the next couple of months, and perhaps more than in 1400 and up to 1500 dinars to the dollar, which is the currency exchange rate of $ 100 bills in exchange for 150 thousand Iraqi dinars.
“and saw the local markets yesterday, a remarkable increase in the dollar exchange rate against the dinar as the dollar stood at 1225 dinars [125 000 dinars per hundred dollars after that ranged in the last few days between 122 and 123 000 dinars for one hundred dollars.
The total quantity sold to banks at the central bank auction of the third date of the month of January this into Tuesday’s more than one billion and 124 million dollars.
For their part, attributed the traders in the foreign currency market rise in the dollar’s exchange rate against the Iraqi dinar to a lack of supply of the dollar in the local markets, as Benoit’s [where], “This rise is due to the lack of the Iraqi Central Bank sales in its daily auction of the dollar compared to the weeks or the past months, the reason for a decline in the dollar amounts circulating in the markets “, explaining,” The political and security situation taking place in the country to create turmoil in buying and selling operations.
“The government is planning, according to a memorandum of the International Monetary Fund, to finance the deficit in the balance of payments of withdrawal from Iraq’s reserves of foreign held by the central bank, including make it go down to $ 43 billion in 2016 from 59 billion at the end of October Almadi.anthy
alliraqnews.com
