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Central Bank confirms its quest to stabilizing the exchange rate to 1189 dinars to the dollar
On: Sun 27/05/2012 7:14
Baghdad / Ali Author (Reuters) -
The central bank said that the goal of monetary policy is to maintain and keep the exchange rate of the dinar against the dollar by 1189, indicating the stability of the exchange rate in local markets after the expansion of outlets selling the dollar, while the student experts for an end to the phenomenon of depletion of foreign currency and not to the bank Central responsibility for that.
The deputy governor of Bank of the appearance of Mohammed, according to (Rn) that the Central Bank proved the exchange rate of the dinar against the dollar to 1189 dinars to the dollar after adding a commission bank 13 dinars, and profit banking companies ten dinars to the dollar.
He added that the Central Bank sells U.S. dollar to 1166 dinars, and expected to resolve the phenomenon of low value of the dinar against the dollar in the coming period. "
He said the bank is selling now $ 200 million a day, a large amount covers the needs of the market and the Bank began to expand outlets to sell it to include banks, Rafidain and Rasheed. "
and picked up local media reports about the widening phenomenon of smuggling hard currency from Iraq to Syria and Iran on the border crossings which has not been confirmed by the CBI. The subject of Iran because of its nuclear program and Syria as a result of public protest to international sanctions harsh and exposed markets of both countries to collapse economically because of poor cash flow of hard currency.
The main task of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies and management of reserves of currency foreign and regulate the banking sector.
acknowledged the central bank this month, the existence of an imbalance in the Iraqi dinar exchange rate and confirmed his quest to unify the exchange rate between him and the local markets and denied at the same time any deterioration of the value of Iraqi dinar.
The central bank was accused last week of four states to "conspiracy" on the hit the financial economy of Iraq to empty its market of its financial strength, indicating that the corridors of free trade in Iraq is becoming the means adopted to hit the economy.
saw the price of the dollar relative to local currency increased during the last few days which is attributed by officials of companies banking local to the central bank from making further action in the Auction currency difficult.
to that confirmed the economic expert on behalf of Jamil said the central bank is not able to find effective solutions to the phenomenon of depletion of foreign currencies and difficult of the country alone, despite being the monetary authority only in Iraq, which requires a radical solutions, whether treatments economic or security, intelligence or make critical decisions of executive bodies to stop this drain on hard currency.
Jameel said in an interview (range) that this would provide a conducive atmosphere for recovery of economic life in Iraq again, and creating some sort of balance between the increasing growth of trading in U.S. dollars and other foreign currencies, and the amount of reserves to be provided enough of those currencies in the country, and not to impact the national economy in general, and to prevent the increase in the pumping of Iraqi crude oil to world oil markets, which is also a means of mitigating the consequences of this phenomenon, which we referred.
He said that phenomena come from a number of reasons is a result of increased demand on the U.S. dollar by about an unprecedented, and signs of increased demand in much the offer on according to studies of the reality of the Iraqi economy prepared by specialists in this subject, and caused by several factors, including negative effects on the Iraqi economy economic sanctions imposed by the international community to the neighboring countries of Iraq and the challenge to Syria and Iran, which resulted in the establishment of some groups of smuggling foreign currency out of Iraq to those countries in an attempt to revive their economies to buy the U.S. dollar the largest possible amount.
He noted that the necessity come here to find treatments true for this imbalance by performing procedures legal, security and technical re-balance in the circulation in the currency and the return of the real balance in the Iraqi economy, which is not able to bear the economic sanctions imposed on other countries, as it is in spite of the economic relations between Iraq and those countries in an integrated but not interest bearing mistakes of others and pay (bills) account for others to suffering a major economic crisis caused a significant shortfall in the reserves of the Central Bank of Iraq's hard currency, specifically the U.S. dollar, and the negative effects as well as on the financial position of Iraq in general, making it vulnerable to economic and financial.
He to the importance of preventing the continuation of the flow of these foreign currency to neighboring countries such as, in spite of assurances to the Central Bank of the abundance in reserves of foreign currency in to it, and the announcement of the government for most of the time for taking action on that, which calls for concerted efforts by all parties in joint efforts to prevent the continued flow of currency and smuggled abroad.
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