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The two neighboring countries have begun withdrawing the dollar from the local market .. Experts rule out floating the dinar because of the economic shocks in Syria and Iran
30/1/2012 0:00
The future of Iraq / Sudan minimum
When exposed state to economic sanctions directly, and cut their dealings with the world market, be in front of a real crisis is in the vibration rate of local currency against world currencies as dollar, which means that the hard currency, which covers the stability of the exchange rate rises the price to a large extent because of the difficulty secured under the (blockade ) means that the local currency eventually collapses due to the loss of value and their purchasing power. To prevent, as a stage revival to gain time only, and only resort to float the currency.
and floating or what is known as flotation is to let the currency exchange rate is free, ie, the equivalence with other currencies, determined according to the forces of supply and demand in the money market, and different government policies towards the floating of their currencies depending on the level of free national economy, and the adequacy of his performance, and flexibility of its production apparatus. flotation beginning of the collapse , according to centers of economic studies, the most prominent of the disadvantages of floating is that it be the result of uncertainty and uncertainty in the country's trade, which creates a state of instability, Changes in the value of the currency of the day to another within the instability or uncertainty in trade, and this will affect the rate of change of prices, sales, in a similar way does not know how much will cost to import a certain quantity of foreign goods, and can reduce these uncertainties by hedging foreign currency risk in the market, and the lack of investment and uncertainty can lead to lack of investment at home, as well as abroad, as the flows resulting from speculation may differ significantly from the main pattern of trade flows. Syria today, in the process of floating the currency, after the imposition of harsh penalties, weighed rapidly on the decline in exchange its national currency (the lira) After that they ranged from an average exchange rate of 4,700 pounds for $ 100, during the past week, the exchange rate rose to 8 thousand pounds, so he Central Bank of Syria to float the currency. It was the same thing resorted to Iraq after the imposition of economic sanctions against it, and two of Iran. and that observed during the past two weeks, that Syria and Iran, urged merchants and citizens to buy the U.S. dollar from Iraq, causing a crisis in the market led to the high exchange rate against the dollar, so that Central Bank declined to pump new money to be maintaining the fixed exchange rate. Observers member of the Finance Committee representative, Abdul-Hussein al-Yasiri, between for (the future of Iraq) that "float the currency it will be free in the process of buying and selling with no government intervention to support the currency, but in cases so necessary, "stressed Yasiri to" a request is unusual in the recent currency into the country from neighboring countries, and reached this request to lead the emergence of two markets, the first (market central bank) auction currency, and the second (local market) and the amounts of a few. " He to "the absence of controls for the Iraqi currency only controls the central bank and is not directly have the right to anyone who wanted to travel outside the country to take with him 10 000 dollars without reference to the Central Bank of this freedom was the result of fear the Central Bank of the occurrence of cases of money laundering within the country." He continued that "the economic policy with respect to currency and pricing is a central policy may not be for anyone to deal with," noting that "the state in the nineties has sold the currency in the auction, and after the change the country became the Iraqi economy (free economy)." and Yasiri that "the bank Central in 2003, wanted to control the exchange rate of the Iraqi dinar by (Market Bid or so-called market for buying and selling currency) and this market is the sale and provide for members of all requests for foreign currency from the conversion, which is through the banks. " He says Yasiri that "the Iraqi currency was subject to State control by the central bank with the Directorate General of the bank called the Directorate (Union of foreign exchange) were not allowed any citizen out of one dollar, but with the consent of the State." does not float in Iraq among the chief of the economic reform contrary goldsmith that he "can not be a process of floating the currency in Iraq as a result of currency stability that seen with surrounding features of the economic process in the country." On the issue of exchange rate currency, jeweler said "could the central bank to control money supply in the country, through the presence of cash reserves high exceeded 60 billion dollars, in addition to the strength of the economy and procedures on various sectors including the oil sector, all of which gave strength and durability to meet any challenge on regional and international level. " The jeweler said "the issue of floating the currency in Iraq is out and a far cry from the economic situation of the country, contrary to what some people imagine." He noted that "the central bank was able to re-structure of all banks and work will start to organize Iraqi banks according to the requirements and the requirements of the current and subsequent going through the country, especially after the departure of U.S. troops as well as political and security stability will be seen in the Iraqi arena in future periods. " The Central Bank of Iraq announced that he was continuing his policy to cover the market needs of the dollar through the daily currency auction despite growing domestic demand by pressure purchase direct from Syria and Iran, which suffer sanctions are the Iraqi market, the main source of hard currency through trade with them.
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