Iraqi dinar reeling before the oil strikes
Iraqi dinar reeling before the oil strikes
09-02-2016 03:45 PM
Are free –
Observers and economic experts in Iraq, warned of the danger of setting the dinar and its value due to the current financial crisis, which hit the country as a result of the decline in global oil prices, which directly influenced the decline in Iraq’s revenues of hard currency by as much as 70% higher than the past six years.
Accompanied by security challenges and fears of a collapse of the situation in the capital Baghdad and the expansion of crime and gang robbery and armed robbery, as well as the proliferation of professional networks to juggle some categories of the Iraqi currency. And push it all to start reeling the Iraqi dinar and the decline of its value against the dollar, which portends a difficult year for Iraqis.
According to the deputy in the Iraqi parliament and a member of the Finance Committee Mohammad dry, the ‘value of the Iraqi dinar likely to fall more this year and so that he could hit record lows against the dollar ‘. Dry and adds that ‘the reason for this decline in Iraq’s imports of dollars as a result of lower oil prices, at a time when the Treasury Iraq intervention month, for example, $ 5 billion, and currently do not fall only billion and a quarter, as well as citizens’ fears of a collapse of the situation and the prospect of leaving the country; so keen to convert their money into hard currencies such as the dollar and the Jordanian dinar and the pound sterling and the euro, and this made the demand to buy the dollar more than ever after he was confined to traders and owners of private banks only, noting that the parliament through the Finance Committee met more than once with the Central Bank for the situation, we have received a reassuring them messages that the situation is currently controlled by pumping large amounts of dollars into the market at a fixed price amounted to 1182 Iraqi dinars to one dollar; a new rates approved after the devaluation of the dinar of 1200 dinars per dollar and the one two months ago almost. ”
Central Bank of Iraq and issued daily statements clarifying the amount of the total amount from the sale of the dollar in the Iraqi market, ranging from 130 to 150 million dollars a day are purchased by banks, private banks and exchange offices, dealers and import companies who have pre-authorization cards provided to them by management mid-year, the bank in 2015 and by 125,000 dollars for each buyer, but those amounts, according to observers is sufficient to adjust the dinar exchange rate.
He says adviser at Iraq Stock Exchange, Mohsen al-Ahmar said the bank’s management has recently resorted to printing more of the Iraqi currency and issue new coins of the class 50 thousand and is preparing to issue a class of 100 thousand without having to learn it will lead to inflation and thus the collapse of the currency, noting that Iraq’s procurement of arms and ammunition sap earnings Iraq of hard currency.
According to the Iraqi market, the dinar exchange black market price of 1220 dinars per dollar and the rise in some often for up to 1225 in the areas outside Baghdad, such as Kurdistan and the failure of Iraq to prosecute black market dealers who leaked them hard currency after hours of sale at the Central Bank.
He warned a member of the investment committee of parliamentary Iraqi, Abdul Salam al-Maliki, in a press statement, the central bank from continuing drag balances of cash reserves to cover the demand for the dollar in the auction, which caused lower these balances of $ 68 billion last year to 59 billion this year. ‘
ahraraliraq.com
