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Font Size:03/20/2013 (00:01 pm) - The number of readings: 40 - Issue (2754)
Misuse of monetary policy behind the low exchange rate of the dinar against the dollar
BAGHDAD / Mustafa worship
Refer Financial experts and owners banking offices Dollar rises to misuse of monetary policy by the authorities concerned, and local markets are volatile since the period in the exchange rate of the Iraqi dinar against the dollar.
He attributed the economic expert contrary goldsmith high exchange rate of the dollar misusing monetary policy instruments relating to the stability of currency exchange rate, and which ones "treasury transfers and money supply, as these two factors are the main reason for the instability of the currency at home, and therefore manipulated lead to higher or reduce the level of the exchange rate for the local currency. "
The jeweler to the "auction sale currency was where he was from 250 - $ 500 million, which provides financial liquidity of the dollar against the dinar, and withdraw amounts of local currency," explaining that "when dealing subject remittances and these are counted eating dollar, meaning there will be a commodity for these conversions, this will lead to reduced rates of exchange of the dollar in liquid market and determine the amount of remittances to be dealt with, it's a matter of supply and demand in the market; greater supply less price, and the less supply increased price. "
He added that "the auction when it is open, speaking financial liquidity and thus will not be affected the market," noting that "the taking amounts liquid market and transferred through remittances to being used for the purposes of import and export trade and economic activity, as well as the removal of remittances, which are hovering around suspicions of corruption, all This leads to reduce the proportion of foreign exchange in the market, thus increasing the demand for it goes up the price. "
And if there are other factors affecting the exchange rate between the jeweler that "external factors relating to neighboring countries, including the internal situation in Syria, and the economic blockade imposed on Iran, The parties dispute here need cash to conduct its business, and that Iraq is located between these two countries, it will be there is the effect of monetary policy to the Central Bank of Iraq. "
He revealed an economist for the presence of another factor may emerge impacts clearly in such a circumstances, a shop banking, where we find there are some weak souls who exploit these conditions to lift the dollar exchange rate by certain, "noting that" the subject of balance in prices lead to stability or reduce the value of the dollar against the dinar. "
In response to a question on actions that can be taken from the central bank, said the goldsmith that "actions taken by the Bank, are regulatory measures, the central bank is a bank banks, and therefore watching bank policies and government and private banks, and the export instructions, van exited the banks in their policies for instructions, this is a violation of the instructions, he tries such instructions to maintain the interests of customers and the community. "
The researcher attributed the economic sphere high exchange rate to several factors, including "the adoption of the budget for the current year," he said, adding that the approval leads to increased demand for the dollar and thus the high exchange rate.
He Mahmoud Shaker said in an interview to the extent that the second factor is that "some state institutions declare مناقصاتها to be payment in dollars and this also increases the demand for the dollar," stressing that "the single biggest factor in the rise in the exchange rate is leaks currency abroad, but was through remittances banking or what the Iraqi trader, as imported wares in foreign currency and then sold the Iraqi dinar, and then converts it to hard currency (dollar), and this leads to increased demand for the dollar and depreciation of real currency for local currency. "
The Director of the Office of Banking and sale of foreign currency in the River Street Haider Karim has made it clear in his speech to the extent of: "The Department of Banking and credit of the central bank after allowing for owners of private offices to sell hard currency, open companies registered with a private b (banking) that sell and buy dollars according to new regulations, different from the previous which was taken by the central bank, called for increased capital of the company to (500) million Iraqi dinars, which is a large sum and it is difficult for many citizens supplied, as had been scheduled to begin these companies work in early February, but that the new mechanism issued by the Central Bank hindered the process of granting licenses to companies. "
For his part, the carrying member of the Finance Committee National Alliance MP Amin Hadi Abbas, the responsibility of the Central Bank to cut the exchange rate of the dinar against the dollar because of restrictive procedures in granting leave operations to mediate companies (banking), to make the process confined to certain companies without the other. Abbas said in an earlier statement: "There are companies still in control of the process of buying hard currency from the central bank because of the restrictions placed by the bank's management to companies broker to increase its capital," and urged "the central bank to ease procedures for the sale of hard currency for companies to broker a cease-monopoly of some companies the procurement process. "
He called on Abbas to "indivisible capital process for companies to mediate so that there are no practical monopoly by some companies and banks as it was in the previous management of the Central Bank."
He explained that "these companies when controls over the procurement process in the bank will auction fake receipts to grab the largest amount of foreign exchange." The Bank noted that "the process of implementing a number of decisions taken by the Board of Directors, which aims to achieve this stability," adding that his asylum to these decisions comes "in order not exposed stakeholders real and legitimate business investors to damage can inflict their economic activity due to the expected change what is prevalent prices in the past few days. "
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