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Saleh explains the reason for the rise in foreign dollar transfers and its impact on the national economy
Time: 08/21/2024 10:34:00 Read: 2,964 times
{Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained the reason for the increase in foreign remittance sales of foreign exchange {dollar}. Saleh told {Al-Furat News} agency,
“The phenomenon of high sales of foreign exchange remittances is due to the results of the important change that occurred in the policy of the Central Bank of Iraq in dealing with external transfer and interfering in the money market through the shift in the mechanisms of financing foreign trade for the private sector from
The platform for compliance with new mechanisms is represented by strengthening the accounts of correspondents of Iraqi banks abroad in foreign exchange and at studied and sufficient levels commensurate with the requirements of financing foreign trade for the private sector in foreign exchange. He added,
"After the compliance platform continued to reject in the past months approximately 85% of external transfer requests, the policy of strengthening the accounts of Iraqi banks with their correspondents from reputable international banks has become an alternative policy, one of convenience, ease and flexibility, which has made the implementation of daily external transfer requests available."
It is achieved directly through external correspondent banks without going through the platform, and at a high rate, touching 85% of the total demand for these daily external transfers.” Saleh stated,
“This high change in the flexibility of transfers has had a positive impact on the national economy,
especially in the stability of the aggregate supply and demand functions within the national economy in two directions.
The first is {the supply side} and is represented by the availability of a wide supply of goods and services in the local market through flexible imports financed at a price.” The official fixed exchange rate is 1,320 dinars per dollar. He explained,
"The other direction is the {demand side}, which refers to the process of exchanging the Iraqi dinar for the dollar for the purposes of financing foreign trade through the aforementioned transfers,
which means that meeting the demand for the dollar represents a direct response to the demand for (foreign goods, services, and benefits). For the benefit of the local market. He pointed out,
“Meeting the demand for foreign currency represents an important pillar of the monetary policy of the Central Bank of Iraq, and
achieving its operational objectives in confronting and controlling surplus local liquidity levels from the dinar, which constitute what is called {surplus demand}.
This control over local liquidity also represents an intervention.” Positive for the central bank’s monetary policy in the money market and controlling the levels of that liquidity.” Saleh continued,
“This control has a positive effect in achieving a balance between the real current in the macroeconomy of goods, services, and benefits and the monetary current within the economy itself,” noting that
“such a balance between supply and demand achieves stability in the general level of prices and maintains levels of growth in inflation rates.”
This reflects positively on the stability of the dinar’s purchasing power and general monetary income.”
https://alforatnews.iq/news/صالح-يوضح-سبب-ارتفاع-حوالات-الدولار-الخارجية-وانعكاسها-على-الاقتصاد-الوطني
Time: 08/21/2024 10:34:00 Read: 2,964 times
{Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained the reason for the increase in foreign remittance sales of foreign exchange {dollar}. Saleh told {Al-Furat News} agency,
“The phenomenon of high sales of foreign exchange remittances is due to the results of the important change that occurred in the policy of the Central Bank of Iraq in dealing with external transfer and interfering in the money market through the shift in the mechanisms of financing foreign trade for the private sector from
The platform for compliance with new mechanisms is represented by strengthening the accounts of correspondents of Iraqi banks abroad in foreign exchange and at studied and sufficient levels commensurate with the requirements of financing foreign trade for the private sector in foreign exchange. He added,
"After the compliance platform continued to reject in the past months approximately 85% of external transfer requests, the policy of strengthening the accounts of Iraqi banks with their correspondents from reputable international banks has become an alternative policy, one of convenience, ease and flexibility, which has made the implementation of daily external transfer requests available."
It is achieved directly through external correspondent banks without going through the platform, and at a high rate, touching 85% of the total demand for these daily external transfers.” Saleh stated,
“This high change in the flexibility of transfers has had a positive impact on the national economy,
especially in the stability of the aggregate supply and demand functions within the national economy in two directions.
The first is {the supply side} and is represented by the availability of a wide supply of goods and services in the local market through flexible imports financed at a price.” The official fixed exchange rate is 1,320 dinars per dollar. He explained,
"The other direction is the {demand side}, which refers to the process of exchanging the Iraqi dinar for the dollar for the purposes of financing foreign trade through the aforementioned transfers,
which means that meeting the demand for the dollar represents a direct response to the demand for (foreign goods, services, and benefits). For the benefit of the local market. He pointed out,
“Meeting the demand for foreign currency represents an important pillar of the monetary policy of the Central Bank of Iraq, and
achieving its operational objectives in confronting and controlling surplus local liquidity levels from the dinar, which constitute what is called {surplus demand}.
This control over local liquidity also represents an intervention.” Positive for the central bank’s monetary policy in the money market and controlling the levels of that liquidity.” Saleh continued,
“This control has a positive effect in achieving a balance between the real current in the macroeconomy of goods, services, and benefits and the monetary current within the economy itself,” noting that
“such a balance between supply and demand achieves stability in the general level of prices and maintains levels of growth in inflation rates.”
This reflects positively on the stability of the dinar’s purchasing power and general monetary income.”
https://alforatnews.iq/news/صالح-يوضح-سبب-ارتفاع-حوالات-الدولار-الخارجية-وانعكاسها-على-الاقتصاد-الوطني
