“Strong dinar dinar would collapse” .. misgivings and tranquility surrounded the status of national currency
“Strong dinar dinar would collapse” .. misgivings and tranquility surrounded the status of national currency
26/09/2015
Economists and politicians believe that the Iraqi currency prone to “collapse” and its value against the dollar always seesaw, Aazin reason to corruption and economic problems, while others say that these fears just speculation unrealistic, the fact that the dinar propped strong reserves deposited in the Central Bank, along with the largest reserves a world of oil in Iraq.
A barrage of factors Tekz Mahdhiron by the exposure of the dinar at risk, in the forefront of the rentier economy and the collapse of global oil prices, along with the war, “Daash” drain large sums of money, while on the other hand there are those who believe that the situation is not worrying.
Iraqi dinar fine
Says a member of the Parliamentary Finance Committee pros Ahamdon in an interview with Alsumaria News’s, he said that “Iraq’s oil reserves are large, and therefore provides a continuous returns, as well as the availability of hard currency reserves in the Central Bank”.
Ahamdon adds, that “the Iraqi dinar fine and remains strong despite the financial crisis plaguing Iraq,” noting that “talking about the collapse of the Iraqi dinar, is premature.”
For his part, ruled out of the Finance Committee member Hossam punitive, the collapse of the Iraqi dinar, where he says in an interview with Alsumaria’s News, “The dinar is still strong for hard foreign currency, a recuperative against the dollar,” asserting that “the central bank reserves of large hard currency and estimated 60 billion dollar along with gold bullion and crude oil. ”
Different opinion
Rapporteur of the Parliamentary Finance Committee Haji Ahmed Rashid, likely collapse of the Iraqi dinar exchange rate, attributing the cause to “the adoption of Iraq in the general budget on the export of crude oil, which fell worldwide prices significantly.”
And it refers to Rashid, that “the expectation of higher oil prices in the near future seem weak, especially that Iran intends to double the export of crude oil by the case of the lifting of sanctions, which means there is a large supply of crude oil.”
Setback the government has not benefited
As an expert on financial policy Hilal Tahan, he is in for an interview with Alsumaria News, that “the government did not take a lesson from the crises experienced by Iraq, particularly the crisis in 2008, as it was unable to diversify sources of income and has been dependent on oil only.”
Explains Miller, that “this setback the government has not benefited them and returned the economy again Rieia,” explaining that “the decline in the price of oil to $ 40 per barrel, lower foreign exchange cover in the Central Bank to $ 60 billion, down from $ 76 billion because of the withdrawal of 5 trillion dinars of bank reserves, are all factors that affect the state budget and the Iraqi dinar. ”
He adds Miller, “The unjustified spending and dependence on oil and failure to diversify sources of income and the war, are all factors that will lead to a decline in the price of the dinar against foreign currencies,” adding that “all the monetary policy of the Bank during the past ten years to keep the dinar will go unheeded.”
Bank policy in the wind
The former economist at the central bank on behalf of Abdul Hadi, says in an interview with Alsumaria’s News, “The dinar exchange rate will fluctuate in the coming period, because past experience in Iraq was subject to the exchange rate of the dinar dramatically future expectations and speculative market traders.”
Abdul Hadi adds, that “low income as a result of austerity measures reduced the demand for foreign currency, and thus will improve the situation of the Iraqi dinar, but on the other hand, there will not be able to sustain the stockpiling cash foreign currency, which negatively affects the Iraqi dinar.”
The newspaper «Bloomberg» British in its issue dated (August 25, 2015), that foreign currency reserves at the Central Bank of Iraq has dropped to $ 59 billion since the third of the month of July, noting that the Iraqi dinar and one of the most currency risk in the area the Middle East, due to lower foreign currency reserves in Iraq and the fall in oil prices may cause by making the fight against al-Daash more difficult.
Alsumaria News
iraaqi.com
