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Indicators on the seriousness of the Iraqi dinar because of the security crisis and the government strongly reassure reservists
Thursday 10 July 2014 14:33
Qurtas News / Baghdad
Experts warned in finance and economics, on Thursday, that the security incidents in the country has made the recovery of the Iraqi dinar has been very slow, while reassured that government agencies do not fear the local currency because of the strength of the reserve and monetary and fiscal policies currently being followed.
The financial expert said Ghanem useful for "Qurtas News", that "There is no doubt that any security or political turmoil gripping the country have side effects on the economy, especially the Iraqi dinar, which is still struggling with other currencies for years in order to survive."
He explained that "security events that take place now in a number of provinces of North and West have had a negative impact in the first of her days, but procedures stakeholders of the central bank and the government was very quick and Tlavt danger, but that did not prevent the development of the dinar at risk," noting that "the citizens and businessmen have become aware of the inability of the dinar to respond to such a crisis. "
And between Ghanem that "citizens and businessmen are resorting to other alternatives to protect them from the risk of loss and is not relying on the dinar, real estate or other property, but transform the Iraqi currency to the dollar and gold jewelry, but the dollar is the favorite now than gold because of the ease of transportation and save it."
He continued that "the overwhelming response to buy the dollar after security events certainly raise the exchange rate of the dollar against the dinar, forcing the central bank to sell large amounts of it in its daily auction to cover the market need of hard currency," adding, "but the increasing demand for the dollar significantly poses a threat the Iraqi dinar. "
He Ghanem that "the merchants forcing their customers adults to buy their wares dollar is another reason for the increased demand for the dollar," warning that "smuggling currency out of the country are also caused embarrassment to the dinar against the dollar, and here comes the role of the government to control the market through inspection teams, laws and regulations that force the firm to handle the dinar traders. "
Among financial expert Faisal Wasti that "shakes the dinar against him is recovering slowly after it was advanced significantly forward against other currencies."
The Wasti in his speech for "Qurtas News", that "the policy pursued by the government, whether the Ministry of Finance and the banks or the central bank, need to be re-examined because it is found the economy, especially the Banking Act and the mechanism used in the auction currency."
He stressed that "the general index of the stock market experienced a remarkable decline in the number of dealers of non-Iraqis in it, especially in the banking sector, where he arrived decline to about two billion dinars, or about 1.0009 million thousand dollars, equivalent to a decline of 66% from the same period in 2012 where deal reached six billion and 400 million dinars, or about five million and 300 thousand dollars.
He attributed the cause of decline in the volume of investment in the stock exchange of non-Iraqis to "the deterioration of the security situation during the current year, which greatly affected the size of the turnout."
It is consistent with the opinion of a member of the Finance Committee in the previous Parliament Najeebeh Najib, Affirming that "the security situation in the northern and western regions of the country directly affected the construction of the economic outlook and the basis of economic feasibility and created some sort of recession."
She said in her speech for "Qurtas News", that "the economic outlook have made the opposite fear economic processes that directly impact on investment demand and then the desire to invest, which fall in earnest."
She Najib that "constant threats of Odh security is the direct cause for the creation of economic recession since the decline of investment projects reduces the demand for labor, which increases unemployment rates dramatically and effective and then the lack of access stomach spending and lower consumer demand leads to the accumulation of goods, especially consumer them. "
But denied the Iraqi market for securities, denied that the security situation and the reason behind the recent decline in trading volume, stressing that the security situation does not have any impact on trading and transactions in the market.
The head of the Securities Commission Abdul Razzaq al-Saadi, in his interview for "Qurtas News", "The current situation in the provinces of Nineveh and Salahuddin, Anbar and areas of northern Diyala did not affect trading and trading in the stock market," explaining that the market "oscillates rise and fall like any other market Last fall and can not connect to security conditions. "
In turn, the Central Bank of Iraq, the Iraqi dinar strongly strong reserves "and can not be influenced by the fierce attacks of the terrorists."
The central bank governor said Abdul Basit Turki, in his interview for "Qurtas News", "cash reserves in support of the Iraqi dinar has so far 70 billion dollars and this can be for him to support the exchange rate of the dinar against the dollar."
He pointed out that "Alahitati cash believer largely because it is not in Iraq but in the states and other banks in Europe and other countries, it can not be affected by the terrorist attacks, and the reserve of gold also has a significant impact on keeping the economic balance in the country."
He said that the Turkish "The arrival of gold reserves until the first half of this year to 90 tons would be motivated to diversify reserves of Iraq and not to rely solely on the currency, so that there is a cash reserve and went great they can keep the country's economy."
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