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Parliament to summon finance minister as dinar loses more value against dollar
By Dalya Ahmad
Azzaman, May 16, 2013
The parliament has decided to call in the Finance Minister and heads of Iraqi banks following the latest slump in the value of the Iraqi dinar vis-à-vis the dollar.
The move comes as the dinar dropped to more than 1300 to the dollar at a time the Central Bank has reported a substantial rise in the country’s hard cash reserves.
“The dollar was worth 1160 dinars in 2006 when our hard cash reserves were only $10 billion. Today we have $74 billion in reserves and the government exchange price is 1250 dinars for the dollar,” said Ameen Hadi, a member of the influential Financial Commission at the Iraqi parliament.
The drop in the currency value has puzzled analysts since the Central Bank’s coffers currently brim with hard cash.
Previously, the bank’s daily auctions of selling more than $150 million to other banks and the public used to be a stabilizing factor.
But the analysts say demand for the greenback in Iraq has skyrocketed following the rebellion in Syria and the tightening of U.S. and E.U. sanctions on Iran.
Hadi said the parliament wanted to hear from the Finance Ministry and bank executives on the reasons for the currency’s instability.
Iraqi Finance Minister Rafi Al Essawi resigned early this year in support of Sunni protestors in the Province of Anbar.
But Essawi was facing government allegations of fraud and corruption as well as involvement in ‘terrorist’ attacks.
The ministry is currently administered by the Minister of Planning Ali Al-Shakarji, who acts as Acting Finance Minister.
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By Dalya Ahmad
Azzaman, May 16, 2013
The parliament has decided to call in the Finance Minister and heads of Iraqi banks following the latest slump in the value of the Iraqi dinar vis-à-vis the dollar.
The move comes as the dinar dropped to more than 1300 to the dollar at a time the Central Bank has reported a substantial rise in the country’s hard cash reserves.
“The dollar was worth 1160 dinars in 2006 when our hard cash reserves were only $10 billion. Today we have $74 billion in reserves and the government exchange price is 1250 dinars for the dollar,” said Ameen Hadi, a member of the influential Financial Commission at the Iraqi parliament.
The drop in the currency value has puzzled analysts since the Central Bank’s coffers currently brim with hard cash.
Previously, the bank’s daily auctions of selling more than $150 million to other banks and the public used to be a stabilizing factor.
But the analysts say demand for the greenback in Iraq has skyrocketed following the rebellion in Syria and the tightening of U.S. and E.U. sanctions on Iran.
Hadi said the parliament wanted to hear from the Finance Ministry and bank executives on the reasons for the currency’s instability.
Iraqi Finance Minister Rafi Al Essawi resigned early this year in support of Sunni protestors in the Province of Anbar.
But Essawi was facing government allegations of fraud and corruption as well as involvement in ‘terrorist’ attacks.
The ministry is currently administered by the Minister of Planning Ali Al-Shakarji, who acts as Acting Finance Minister.
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