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Central: Iraqi dinar hard currency
9/2/2015 0:00
Despite the slight rise in the dollar exchange rate
BAGHDAD Mustafa al-Hashemi
Article 50 of the Budget Act of 2015 created confusion evident in the dollar's exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution.
According to the Central Bank Acting Governor Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process.
He said in a statement the "morning" that there are efforts to create monetary stability that will bring returns to investment and increased purchasing power, stressing the central actions of the Iraqi currency will keep hard currency in every sense.
He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds and the dollar for a definite period, as it will contribute to stability.
Keywords and pointed to the Central to take new measures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability.
For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars.
According to Article 50 of the Budget Law for 2015, "the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process."
He Taan told the "morning" that this article necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the bank's 56 Law of 2004, where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the policy tools cash.
He said that after the budget included materials; fifty-law forcing the central bank to sell $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price.
On the possibility of appeal in this article Taan he said after it became effective the law has no right except for the presidency challenged Almaldh 50 of the budget bill because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing dollar exchange rate, describing it as a procedure is incorrect.
He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the domestic market, leading to exchange rate fluctuations.
He explained that the sale is not the problem of foreign remittances, but at home, where the local currency bloc too big of 35 trillion dinars in circulation chasing a $ 75 million, and for us to imagine the rise in the dollar's exchange rate.
Taan and saw that the only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior.
The central bank's shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after it was dollar offset about 4000 dinars before 2003.
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9/2/2015 0:00
Despite the slight rise in the dollar exchange rate
BAGHDAD Mustafa al-Hashemi
Article 50 of the Budget Act of 2015 created confusion evident in the dollar's exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution.
According to the Central Bank Acting Governor Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process.
He said in a statement the "morning" that there are efforts to create monetary stability that will bring returns to investment and increased purchasing power, stressing the central actions of the Iraqi currency will keep hard currency in every sense.
He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds and the dollar for a definite period, as it will contribute to stability.
Keywords and pointed to the Central to take new measures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability.
For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars.
According to Article 50 of the Budget Law for 2015, "the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process."
He Taan told the "morning" that this article necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the bank's 56 Law of 2004, where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the policy tools cash.
He said that after the budget included materials; fifty-law forcing the central bank to sell $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price.
On the possibility of appeal in this article Taan he said after it became effective the law has no right except for the presidency challenged Almaldh 50 of the budget bill because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing dollar exchange rate, describing it as a procedure is incorrect.
He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the domestic market, leading to exchange rate fluctuations.
He explained that the sale is not the problem of foreign remittances, but at home, where the local currency bloc too big of 35 trillion dinars in circulation chasing a $ 75 million, and for us to imagine the rise in the dollar's exchange rate.
Taan and saw that the only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior.
The central bank's shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after it was dollar offset about 4000 dinars before 2003.
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