PDA

View Full Version : Central: Almatachewn the currency auction cause to raise the exchange rate



BatmaninIraq
03-14-2015, 05:26 AM
Central: Almatachewn the currency auction cause to raise the exchange rate

World - Baghdad
attributed the Economic Adviser to the Prime Minister continued rise in the dollar's exchange rate against the Iraqi dinar to "administrative restrictions", claiming that the Iraqi economy "will not be affected by this rise," while ascribed the central bank to "categories were subsist on the bank auction."

Committee economy Parliamentary indicated that the Bank has provided an appeal to the Federal Court to clear the auction 75 million dollars a day in the budget, which led to cover the merchant need of hard currency on the black market.

witnessing the dollar's exchange rate against the dinar continuous rise despite the central bank action to maintain stability; During the past two months Iraqi market has seen a gradual rise in the dollar's exchange rate against the dinar, currently up to 1228 dinars to the dollar,

the highest rate up to the exchange rate in two years, for his part, described the Governor of the Central Bank on the relationship, this rise "slightly due to speculators," explaining that "This rise comes after the Bank has developed new mechanisms to sell the dollar at the auction."

Keywords explains that "This rise is due for speculators in the dollar and some groups that were subsist on the bank auction before," he said, adding that "the bank's expectation for such a rise in the dollar ,

which is justified and reasonable and not true at the same time. "
The Keywords that "this increase is considered normal when you move from one stage to another or from one mechanism to the new mechanisms to sell the currency."

Member of the Economic Committee, Najiba Najib, says that "the budget bill for the year The current 2015 included a restriction or condition within one of its articles, which is not to exceed the sales of the Bank conducted by more than $ 75 million per day auction,

"indicating that" new procedures to sell the currency imposes the existence of documents of any order to buy dollars by participating in the bank auction banks, These amounts can be obtained only after 15 days. "

confirms Najib that "the Bank provided an appeal to the Federal Court to cancel this requirement in the budget," unexpected gain appeal there to be free to sell the dollar auction of the bank, and therefore this will be reflected in the reduction of prices of the dollar. "

Helal Miller, an economic observer, believes that "the budget for the current year reduced the central bank sales of $ 300 million to $ 75 million a day, causing a rise of the dollar in the market."

Miller adds that "high dollar prices globally against the euro and sterling was another reason in rise locally, and that the dollar supply in the domestic market is very small, which led to a rise to 1228 dinars to the dollar. "

For his part, Economic Adviser to the Prime Minister Dr. confirmed. The appearance of Mohammed Saleh, on Tuesday, that the high dollar prices came as a result of administrative constraints and not because of the weakness of the financial reserves, adding that a strong Iraqi economy will not be affected by this increase.

Saleh said in a press statement that "the main reason lies in the restriction of the central bank in Article 50 of the federal budget 2015, which provides for the central bank's commitment to allocate $ 75 million for the purchase of foreign currency,

"he said, adding that this would" reduce the flexibility to expand the sale, in other words if it came requests exceed 75 million dollars, the bank will not be able to be covered, thus resort merchant to the black market. "

Saleh added that "the Central Bank to develop procedures for the collection of tax and customs tax profit from the merchant in advance, while the foreign currency conversion and this new mechanism,

" noting that "this mechanism is excellent in achievement and raise tax revenue for Iraq, but at the same time is considered burden on traders. "

Saleh said that "the central bank has a liquidity reserve covers and a half times," pointing out that "the high dollar prices is due to administrative constraints and not because of the weakness of the reserve, and a strong reserve but administrative restrictions stronger than he."