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Iraq is increasing sales of the dollar to stop the decline of the local currency
Recession in the markets and the high exchange rate and delayed payment of salaries
APRIL 9, 2015
BAGHDAD agencies: the Iraqi Central Bank yesterday said he had decided to take action to stop the decline of the local currency (the dinar) against the dollar in the local foreign exchange market, by doubling the share exchange companies in auctions selling foreign exchange.And open ports to sell the dollar in a number of government banks.
The decline of the Iraqi dinar exchange rate against the US dollar in the local foreign exchange market to reach its lowest level in almost two years. The dollar stood before yesterday dinars in 1350, compared to 1280 dinars in the past week, up 5.5 percent. The bank said it decided to allow banks, Rafidain and Rasheed, and the Iraqi Trade (government) to open outlets to sell the dollar companies and small importers.
In a report issued in March 19 / March last, International Monetary Fund cut its forecast for the growth of the Iraqi economy to 1% during the current year, the outlook earlier last January, a growth of 2.5%, to conform to the current forecast with recent government estimates of the Central Bank of Iraq.
Fund report estimated the achievement of the Iraqi economy, a contraction of 2% in 2014, which was the first contraction of the economy since the US invasion of Iraq in 2003.
said Economists and traders Iraqi Iraqi markets are experiencing a recession clearly affected by the financial crisis plaguing the country. Reflected this notoriously on commercial traffic - especially with the rise in the dollar exchange rate - and also the government's delay in paying salaries to employees.
The case of the recession to pay merchants to sell their goods on credit (and subsequent payment). As seen some goods increase in prices compared to the end of last year amid rising dollar exchange rate against the Iraqi dinar to the highest level in almost two years.
In Shorja market, the largest commercial markets in the capital, Baghdad, preoccupied Saad Falah arranged rows of his shop, which sells food after it was found same spend hours without customers which was not familiar with before. Falah said in his speech that his store sales fell by 25 percent, at least at the moment compared to the same period last year.
He added: »economic crisis in Iraq has significantly influenced us as Iraqis and private traders. Many retailers are now cutting back the size of their purchases because they are affected by the very crisis plaguing the country ».
Iraq is facing an economic crisis that forced him to reduce the size of the financial budget as a result of lower oil prices by more than 50 percent since the middle of last year and begin a policy of austerity. And announced that the Iraqi Ministry of Finance earlier it would increase taxes on some of the services provided.
Falah said that a lot of customers are starting to reduce private purchases of luxury goods. Understanding confined to buy basic and important commodities because some of them are suffering from delayed delivery of salary and others worried about buying more because of the circumstances that prevailed in the country.
Majid said Kettani, who owns a shop selling food in the fourth police market southwest of the capital Baghdad, said that the market is suffering from the results of crisis experienced by Iraq. He added: «Proof of this is that some of the top traders have begun to send their delegates to promote their goods and give incentives to retailers such as selling on credit or afford transport fares in order to stimulate sales Movement».
Kinani said that the crisis experienced by Iraq «affected all segments of society. Many citizens do not have enough money to buy all their needs and some of them buy on credit, pending receipt of his salary. » He said that some of the goods increased private basic ones prices due to several factors including the rise of the dollar in the foreign exchange market ».
, said an economic expert and a professor in the Department of Economics, University of Baghdad peace Sumaisem The government delayed the payment of government salaries and behind the economic recession started dogging commercial markets. She added that there are some government agencies delayed payment of salaries for a month or two because of the economic crisis plaguing the country because of low oil prices.
It is noteworthy that Iraq Iatmdaly oil imports to finance 95 percent of the budget, and produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels per day. Sumaisem said: «Of course the movement of trade in the markets affected by it because the owners of the largest purchasing power in the market are the owners of middle-income, mostly from staff».
The economic expert to the continuation of the crisis depends on the government's policies to address this and address it. The government called for the middle-income in real wages and the imposition of taxes on people with high incomes ».
The governor of the Central Bank of Iraq, the relationship, the high price of the dollar «is still within acceptable limits». He attributed that to the new system, which followed the central bank to sell the currency in order to reduce money laundering.
and follow the Central Bank of a new policy to sell the dollar for importers and that by requiring traders to submit documents proving the volume and value of imported materials with taxes and customs duties in advance deduction. He also played down the sales of the dollar to banks and exchange offices to quarter.
Central Bank of Iraq and held six auctions a week from Saturday to Thursday for the sale of foreign currencies, so as to provide dollar liquidity to the local market. The official price for the sale of Bank of dollars to domestic banks and exchange offices in 1166 dinars.
The central bank cut its sales from the dollar to $ 75 million a day after it was 250 million. This move came at the request of the Iraqi Council of Representatives, which obliged the central bank not to sell more than 75 million dollars and place it within the budget approved in February of this year terms.
The aim of the bank behind the organization of currency auctions to stabilize the price of the local currency against foreign currencies . He is careful to put the dollar at prices below the real exchange him in the local market price.
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Recession in the markets and the high exchange rate and delayed payment of salaries
APRIL 9, 2015
BAGHDAD agencies: the Iraqi Central Bank yesterday said he had decided to take action to stop the decline of the local currency (the dinar) against the dollar in the local foreign exchange market, by doubling the share exchange companies in auctions selling foreign exchange.And open ports to sell the dollar in a number of government banks.
The decline of the Iraqi dinar exchange rate against the US dollar in the local foreign exchange market to reach its lowest level in almost two years. The dollar stood before yesterday dinars in 1350, compared to 1280 dinars in the past week, up 5.5 percent. The bank said it decided to allow banks, Rafidain and Rasheed, and the Iraqi Trade (government) to open outlets to sell the dollar companies and small importers.
In a report issued in March 19 / March last, International Monetary Fund cut its forecast for the growth of the Iraqi economy to 1% during the current year, the outlook earlier last January, a growth of 2.5%, to conform to the current forecast with recent government estimates of the Central Bank of Iraq.
Fund report estimated the achievement of the Iraqi economy, a contraction of 2% in 2014, which was the first contraction of the economy since the US invasion of Iraq in 2003.
said Economists and traders Iraqi Iraqi markets are experiencing a recession clearly affected by the financial crisis plaguing the country. Reflected this notoriously on commercial traffic - especially with the rise in the dollar exchange rate - and also the government's delay in paying salaries to employees.
The case of the recession to pay merchants to sell their goods on credit (and subsequent payment). As seen some goods increase in prices compared to the end of last year amid rising dollar exchange rate against the Iraqi dinar to the highest level in almost two years.
In Shorja market, the largest commercial markets in the capital, Baghdad, preoccupied Saad Falah arranged rows of his shop, which sells food after it was found same spend hours without customers which was not familiar with before. Falah said in his speech that his store sales fell by 25 percent, at least at the moment compared to the same period last year.
He added: »economic crisis in Iraq has significantly influenced us as Iraqis and private traders. Many retailers are now cutting back the size of their purchases because they are affected by the very crisis plaguing the country ».
Iraq is facing an economic crisis that forced him to reduce the size of the financial budget as a result of lower oil prices by more than 50 percent since the middle of last year and begin a policy of austerity. And announced that the Iraqi Ministry of Finance earlier it would increase taxes on some of the services provided.
Falah said that a lot of customers are starting to reduce private purchases of luxury goods. Understanding confined to buy basic and important commodities because some of them are suffering from delayed delivery of salary and others worried about buying more because of the circumstances that prevailed in the country.
Majid said Kettani, who owns a shop selling food in the fourth police market southwest of the capital Baghdad, said that the market is suffering from the results of crisis experienced by Iraq. He added: «Proof of this is that some of the top traders have begun to send their delegates to promote their goods and give incentives to retailers such as selling on credit or afford transport fares in order to stimulate sales Movement».
Kinani said that the crisis experienced by Iraq «affected all segments of society. Many citizens do not have enough money to buy all their needs and some of them buy on credit, pending receipt of his salary. » He said that some of the goods increased private basic ones prices due to several factors including the rise of the dollar in the foreign exchange market ».
, said an economic expert and a professor in the Department of Economics, University of Baghdad peace Sumaisem The government delayed the payment of government salaries and behind the economic recession started dogging commercial markets. She added that there are some government agencies delayed payment of salaries for a month or two because of the economic crisis plaguing the country because of low oil prices.
It is noteworthy that Iraq Iatmdaly oil imports to finance 95 percent of the budget, and produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels per day. Sumaisem said: «Of course the movement of trade in the markets affected by it because the owners of the largest purchasing power in the market are the owners of middle-income, mostly from staff».
The economic expert to the continuation of the crisis depends on the government's policies to address this and address it. The government called for the middle-income in real wages and the imposition of taxes on people with high incomes ».
The governor of the Central Bank of Iraq, the relationship, the high price of the dollar «is still within acceptable limits». He attributed that to the new system, which followed the central bank to sell the currency in order to reduce money laundering.
and follow the Central Bank of a new policy to sell the dollar for importers and that by requiring traders to submit documents proving the volume and value of imported materials with taxes and customs duties in advance deduction. He also played down the sales of the dollar to banks and exchange offices to quarter.
Central Bank of Iraq and held six auctions a week from Saturday to Thursday for the sale of foreign currencies, so as to provide dollar liquidity to the local market. The official price for the sale of Bank of dollars to domestic banks and exchange offices in 1166 dinars.
The central bank cut its sales from the dollar to $ 75 million a day after it was 250 million. This move came at the request of the Iraqi Council of Representatives, which obliged the central bank not to sell more than 75 million dollars and place it within the budget approved in February of this year terms.
The aim of the bank behind the organization of currency auctions to stabilize the price of the local currency against foreign currencies . He is careful to put the dollar at prices below the real exchange him in the local market price.
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