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Expected rise in the dollar's exchange rate against the devaluation of the dinar
6/3/2015
Experts in economic affairs said that Iraqi banks began to suffer a shortage of liquidity in foreign currency (dollar), while the expected rise in the dollar's exchange rate against the devaluation of the dinar as a result of stopping the auction currency, grumbling banking customers of non-receipt of money deposited by the dollar, stressing that handed over the money Dinars expose them to significant losses. The expert in economic affairs Ahmed Fahmy said the decision to stop the currency auction can be exploited in a positive way by the Central Bank and the Iraqi government, noting that the implementation of the resolution correctly is not easy, because we must limit the dollar and not to take it out of the market and thus strengthen the Iraqi dinar.
He Fahmi saying that the decision Central Bank can be applied correctly in case of spending pressure and reduce the affidavits and MIE Ki is not the dollar significantly.
He pointed out that the Central Bank has established appropriate plans for the success of the decision, but he also said that to stop the auction may be of great disadvantages, due to increased demand for the dollar , because the bank had pumped $ 50 million a day in the auction, which may make the dollar rises against the dinar, which leads to the Iraqi currency affected significantly. He Fahmi that the main objective of this step is to limit the hard currency by the central bank, especially after twice the price of the dinar during the past few days, and expected to decline the central bank for its decision in the case affected the Iraqi economy negatively due to stop the currency auction.
banker defect
In the same context, expert in economic affairs Maytham Laibi said that banks take such measures in emergency situations when facing a shortage of liquidity in foreign currencies, indicating that the Iraqi banks started having these problems because of the reduction of central bank sales of the dollar.
He also added that the lack of distribution of financial dollar amounts have negative effects customer and lead to an imbalance in the banking system, and weakens the confidence of individuals in the banking system and generates a panic, and lead to significant financial withdrawals, so the reserves become inadequate, especially since these banks operating funds of others does not have that money, which leads to market instability, In addition to a state of lack of confidence in the banks leading to a lack of deposit of the citizens of their money in the banks in the future.
He called Laibi banks dealing in foreign currency to reassure its customers, it can Tkst customer funds, and that money existed owed by banks and possible that the Ptksatha customers.
Market parallel
his part sees expert Ahmad Atwani that sudden decision carries a lot of risk on the Iraqi citizens and the economy in general, indicating that the central bank issued a decision under the pretext of limiting its on foreign exchange to finance foreign trade.
He Atwani saying that the decision was made to shift from exchange rate policy directed to free exchange rate policy, stressing that the new policy adopted by the Central does not fit in with the nature of the stage through which the Iraqi economy, because domestic demand for foreign currency (dollar growing) in the local market. He noted that the demand for the dollar will appear in the parallel market for foreign currency, so the increase in cases of speculation and lead to a large fluctuation in the value of the Iraqi dinar, and the transition from the state of stability in the local currency, and this volatility will impact on the low standard of living of individuals through higher commodity prices .
He expert said the decision to halt the currency market will create a huge gap between the prices of locally produced goods and imported goods prices, not the central bank succeeds in implementing its decision in a positive way, but if used a strict policy in the control of foreign exchange.
negative effects
, in turn, Mohammed al-Hassani said, one of the dealing with the North Bank that the bank refused to cash delivery in dollars for clients with the bank on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq, noting that the trader with the banks who deposited money in dollars would be a great loss teams currency when received his money in Iraqi dinars.
He also added that the ordinary citizen is the biggest affected by this process, calling on the central bank and those specialized to reverse the decision to cancel the auction currency because of its negative effects on the Iraqi market and citizens.
The Central Bank of Iraq to stop working ERA Bank and the adoption of the banking system as being responsible for foreign remittances.
The governor Central Bank of the relationship, in a press statement was finalized a new formula and leave the old ways, coupled with certain conditions can not remain governor at the central bank, which has the functions and tasks and activities of a large and important for the national economy, noting that it is not true that the central stays busy selling the currency and the like ATM daily.
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6/3/2015
Experts in economic affairs said that Iraqi banks began to suffer a shortage of liquidity in foreign currency (dollar), while the expected rise in the dollar's exchange rate against the devaluation of the dinar as a result of stopping the auction currency, grumbling banking customers of non-receipt of money deposited by the dollar, stressing that handed over the money Dinars expose them to significant losses. The expert in economic affairs Ahmed Fahmy said the decision to stop the currency auction can be exploited in a positive way by the Central Bank and the Iraqi government, noting that the implementation of the resolution correctly is not easy, because we must limit the dollar and not to take it out of the market and thus strengthen the Iraqi dinar.
He Fahmi saying that the decision Central Bank can be applied correctly in case of spending pressure and reduce the affidavits and MIE Ki is not the dollar significantly.
He pointed out that the Central Bank has established appropriate plans for the success of the decision, but he also said that to stop the auction may be of great disadvantages, due to increased demand for the dollar , because the bank had pumped $ 50 million a day in the auction, which may make the dollar rises against the dinar, which leads to the Iraqi currency affected significantly. He Fahmi that the main objective of this step is to limit the hard currency by the central bank, especially after twice the price of the dinar during the past few days, and expected to decline the central bank for its decision in the case affected the Iraqi economy negatively due to stop the currency auction.
banker defect
In the same context, expert in economic affairs Maytham Laibi said that banks take such measures in emergency situations when facing a shortage of liquidity in foreign currencies, indicating that the Iraqi banks started having these problems because of the reduction of central bank sales of the dollar.
He also added that the lack of distribution of financial dollar amounts have negative effects customer and lead to an imbalance in the banking system, and weakens the confidence of individuals in the banking system and generates a panic, and lead to significant financial withdrawals, so the reserves become inadequate, especially since these banks operating funds of others does not have that money, which leads to market instability, In addition to a state of lack of confidence in the banks leading to a lack of deposit of the citizens of their money in the banks in the future.
He called Laibi banks dealing in foreign currency to reassure its customers, it can Tkst customer funds, and that money existed owed by banks and possible that the Ptksatha customers.
Market parallel
his part sees expert Ahmad Atwani that sudden decision carries a lot of risk on the Iraqi citizens and the economy in general, indicating that the central bank issued a decision under the pretext of limiting its on foreign exchange to finance foreign trade.
He Atwani saying that the decision was made to shift from exchange rate policy directed to free exchange rate policy, stressing that the new policy adopted by the Central does not fit in with the nature of the stage through which the Iraqi economy, because domestic demand for foreign currency (dollar growing) in the local market. He noted that the demand for the dollar will appear in the parallel market for foreign currency, so the increase in cases of speculation and lead to a large fluctuation in the value of the Iraqi dinar, and the transition from the state of stability in the local currency, and this volatility will impact on the low standard of living of individuals through higher commodity prices .
He expert said the decision to halt the currency market will create a huge gap between the prices of locally produced goods and imported goods prices, not the central bank succeeds in implementing its decision in a positive way, but if used a strict policy in the control of foreign exchange.
negative effects
, in turn, Mohammed al-Hassani said, one of the dealing with the North Bank that the bank refused to cash delivery in dollars for clients with the bank on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq, noting that the trader with the banks who deposited money in dollars would be a great loss teams currency when received his money in Iraqi dinars.
He also added that the ordinary citizen is the biggest affected by this process, calling on the central bank and those specialized to reverse the decision to cancel the auction currency because of its negative effects on the Iraqi market and citizens.
The Central Bank of Iraq to stop working ERA Bank and the adoption of the banking system as being responsible for foreign remittances.
The governor Central Bank of the relationship, in a press statement was finalized a new formula and leave the old ways, coupled with certain conditions can not remain governor at the central bank, which has the functions and tasks and activities of a large and important for the national economy, noting that it is not true that the central stays busy selling the currency and the like ATM daily.
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