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• Dollar accounts for 40 percent of trades in Iraq
Thursday, 29 Desimbr 2011
BAGHDAD - Naseer Goldfinch
Deputy Governor of Central Bank of Iraq the appearance of Mohammed Saleh in an interview to «life», said the persistence of dollarization of the Iraqi market and the duplication of transactions in different currencies, something negative needs to implement the program is able to restore confidence in dinars, adding that the dollar accounts for 40 percent of local trading.
He said: «the Iraqi market is not removed from the market Almdolrh, and this negative phenomenon means that there are flaws in the domestic economy and international relations, and thus lead to a deterioration of the currency market locally and abroad».
He pointed out that recent estimates reported that between 35 and 39 percent of transactions in foreign currencies are local markets, adding that large transactions such as buying houses, cars, gold held in dollars, dinars and small. He said: «the problem of dollarization due to a lack of confidence in Iraqi dinars, which became the currency very strong and is trading up in the markets of neighboring countries, and the reason for this is due to a malfunction in the structure of the Iraqi currency and the weakness of composition, and higher paper we have is from the category of 25 thousand dinars, equivalent to $ 20 and, therefore, cash payments large need for larger groups to facilitate the payment and pregnancy, especially since Iraq has so far preferred cash handling unlike the countries of the world that have crossed this stage and use payment mechanisms that are easy and simple, such as cards, instruments and devices of electronic payment and other ».
And the steps taken by the Central Bank to resolve the problem, Saleh said that «the most prominent treatment lies in the application of the deletion of zeros for the restructuring of the dinar and the equation of the dollarization phenomenon».
In regard to the deal in the Iranian and Kuwaiti dinar and the Saudi riyal, said: «It is within the scope of tourism transactions, due to the convergence of the border and the presence of tourists, these transactions take place as a sort of facilities».
The Iraqi academic as Antoine, the «natural in all countries of the world is that the transactions are in the national currency, this would be the best, and restricts the use of other currencies in foreign dealings, but the Iraqi citizens accustomed to dealing with the rest of currencies, and you see an observer of the movement of prices and it has become a phenomenon will continue as no longer structured dinar ».
And confirmed a member of the Economic Committee in the Iraqi parliament Bijari Nora, that «what we see is a reflection of lack of confidence in the dinar, which was more like the U.S. dollar in the sixties and seventies of the last century, but the wars and sanctions have made local currency only».
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Thursday, 29 Desimbr 2011
BAGHDAD - Naseer Goldfinch
Deputy Governor of Central Bank of Iraq the appearance of Mohammed Saleh in an interview to «life», said the persistence of dollarization of the Iraqi market and the duplication of transactions in different currencies, something negative needs to implement the program is able to restore confidence in dinars, adding that the dollar accounts for 40 percent of local trading.
He said: «the Iraqi market is not removed from the market Almdolrh, and this negative phenomenon means that there are flaws in the domestic economy and international relations, and thus lead to a deterioration of the currency market locally and abroad».
He pointed out that recent estimates reported that between 35 and 39 percent of transactions in foreign currencies are local markets, adding that large transactions such as buying houses, cars, gold held in dollars, dinars and small. He said: «the problem of dollarization due to a lack of confidence in Iraqi dinars, which became the currency very strong and is trading up in the markets of neighboring countries, and the reason for this is due to a malfunction in the structure of the Iraqi currency and the weakness of composition, and higher paper we have is from the category of 25 thousand dinars, equivalent to $ 20 and, therefore, cash payments large need for larger groups to facilitate the payment and pregnancy, especially since Iraq has so far preferred cash handling unlike the countries of the world that have crossed this stage and use payment mechanisms that are easy and simple, such as cards, instruments and devices of electronic payment and other ».
And the steps taken by the Central Bank to resolve the problem, Saleh said that «the most prominent treatment lies in the application of the deletion of zeros for the restructuring of the dinar and the equation of the dollarization phenomenon».
In regard to the deal in the Iranian and Kuwaiti dinar and the Saudi riyal, said: «It is within the scope of tourism transactions, due to the convergence of the border and the presence of tourists, these transactions take place as a sort of facilities».
The Iraqi academic as Antoine, the «natural in all countries of the world is that the transactions are in the national currency, this would be the best, and restricts the use of other currencies in foreign dealings, but the Iraqi citizens accustomed to dealing with the rest of currencies, and you see an observer of the movement of prices and it has become a phenomenon will continue as no longer structured dinar ».
And confirmed a member of the Economic Committee in the Iraqi parliament Bijari Nora, that «what we see is a reflection of lack of confidence in the dinar, which was more like the U.S. dollar in the sixties and seventies of the last century, but the wars and sanctions have made local currency only».
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