In numbers … the cumulative loss of the currency auction since 2004
In numbers … the cumulative loss of the currency auction since 2004
12/07/2020 11:42:46
{Baghdad: Al Furat News} The Future Iraq Foundation for Studies and Economic Consultations revealed the cumulative loss of the currency sale window in the Central Bank of Iraq during the past years.
The institution said in a statement, according to “an analysis of the Central Bank’s sales figures for dollars through the foreign currency sale window and the average market price that the amount of Iraq’s loss from the difference between the two prices amounted to more than 20.7 billion US dollars from 2004 to September 2020 depending on the amount of foreign currency from the bank.” The central bank and the rate of the private selling rate from the central bank and the domestic market rate. ”
He explained that “this value represents 3.57% of the total central bank sales, which amounted to more than $ 582 billion over the past years.”
The statement pointed out that “the highest percentage between the amount of loss as a result of the price difference and the value of the currency sold was in 2016, where the ratio was 8%, with a loss of 2.64 billion dollars out of the 33.5 billion dollars that were sold through the auction window.”
“As for the highest loss value, it was in 2013, when the loss amounted to about $ 3 billion out of the $ 53 billion that was sold through auction.”
He noted that “this loss came as a result of the existence of two prices, the first is the official selling price from the central bank and the other is the market exchange rate,” indicating that “whenever the exchange rates rise in the local market with the stability of the selling exchange rate from the central bank, the difference represents a loss to the central bank.” He won for exchange companies and banks dealing in speculation between the two rates. ”
The statement indicated that “this process of loss will continue as a result of the existence of two official prices and a local price or a speculative price, and that we must work either on floating the dollar or imposing on exchange companies, remittances and banks, unifying the selling price according to the numbers established by the Central Bank in order not to create this large fluctuation. “.
He pointed out that “the loss percentage has decreased during the past three years, as it reached 1.2% of the window’s total sales in 2019, but it has returned and increased during 2020 to more than 2.84%.”
Iraqi experts warn of “currency leakage” outside Iraq due to “corruption” in the currency auction in the country.
The public prosecutor had opened an investigation into the auction upon a request submitted by the Parliamentary Finance Committee to stop the waste and smuggling of hard currency abroad.
alforatnews.com
