PDA

View Full Version : Economists call for a return to work and raise the auction currency Article 50 of the



BatmaninIraq
04-02-2015, 06:18 AM
Economists call for a return to work and raise the auction currency Article 50 of the Budget Law [/ltr]

02/04/2015

Called experts Central Bank economy to re-work the auction currency and put strict controls on the dollar trading movement, stressing that the central able to in previous years to maintain the value of the dinar according to good monetary policy, and with drew that determine the bank sales to $ 75 million a day led to a disruption of the relationship exchange rate between the dollar and the price in the parallel market, promised to Article 50 of the budget, "a breach of the law of the independence of the bank," according to their opinion.

The economist said Maytham Laibi in an interview for the "long" that "the mechanism that was followed by the central bank through currency auction proven throughout the years," noting that "the intervention of Parliament in central work, through the inclusion of Article 50 in the general budget and identified sales law daily bank $ 75 million a day, led to the disruption of the relationship between the official dollar exchange rate and the price in the parallel market (the market) and also inhibits the independence of the central bank. "

He Laibi saying that "restrict the quantities sent negative signals to the market was reflected in a pessimistic outlook and then the relationship between the two rates of separation of larger, while the other way, is that the central bank to abandon its cheap dollar policy of the dollar to the forces of supply and demand and leave the larger to be determined value ", calling on the central bank and the government to" distribute the negative effects of the scarcity of dollars between the government and the public of traders and individuals by raising the value of the dollar gradually. "

He stressed that "the options taken by the Parliament regarding the currency auction, which came due to scarcity of the dollar as a result of lower oil prices."
For his part, an expert in economic affairs Ahmed Sabih said in a statement to the "long", that "the central bank pursued after 2003 a new monetary policy to improve the dinar exchange rate and get rid of the oscillations which he suffered, and through innovation currency auction, which has achieved great success to raise the value of the Iraqi dinar from the roof top up to 2,500 dinars to the dollar to less than 1,200 dinars / USD, "noting that the measure contributed significantly to the achievement of monetary and economic stability and contributed to the improvement of the purchasing power of citizens and increase their confidence that the dinar became fully repository for value instead of Dollar despite carrying a large burden of the government by providing the dollar at a cheap price. "
The expert added that "the decline in oil prices (source foundation to provide dollar) contributed significantly to the decline in Iraq's imports of that currency which reduced the central bank's ability to provide the dollar the previous quantities, as well as the operations of corruption and smuggling of the dollar and money laundering that accompanied the auction mechanisms." , pointing out that "these things have forced the central bank to take a series of decisions and actions that codifies the dollar selling at a low price and restrict them larger to cover import operations, and the move to create a sort of banking panic among speculators and citizens and local merchants for fear of losing the Iraqi dinar for its value dramatically , He also created a parallel market exchange rate increase by 100 dinars for the auction exchange rate. "

He called Sabih the central bank to "issue a statement to reassure the public to continue to sell the dollar through currency auction, and was accompanied by a regulatory policy of strict, for forcing the importers to sell their goods only in Iraqi dinars, according to the price of the currency auction (1190) dinars to the dollar, as long as he provided them in dollars and in accordance with those pricing before the importation of those goods and ready to provide them with more in the case of repeated import process. "

The Governor of the Central Bank on the Keywords, warned in an interview with the "long", published on the first Tuesday, the vulnerability of Iraq's assets and reserves abroad to risk booking in the case has been retained to Article 50 in the budget law, pointing out that the cap to sell the currency away from Central exercised an important tool through which monetary policy.

The prime minister Haider al-Abadi said in (23 March 2015) the need to develop to control the Iraqi dinar exchange rate mechanisms, and said he should be the existence of a sophisticated banking system in Iraq comparable to developed countries. Abadi talk came during a meeting with Governor of the Central Bank on the Keywords in his office in Baghdad, according to the website of the Office of al-Abadi, said the site where he was during the meeting, they discussed the strategy work of the Central Bank for the next period and the control of the Iraqi dinar exchange rate against foreign currencies.

The Prime Minister emphasized "the importance of the central bank maintains its independence and work to promote the financial and economic reality of the country and draw financial and economic policies that enable us to move forward towards what we aspire to."
He noted "the importance of Iraq has to be a sophisticated banking system comparable to developed countries," stressing "the need to put the control of the Iraqi dinar exchange rate mechanisms."

Economic Adviser to the Prime Minister Haider al-Abadi and demanded the appearance of Mohammed Saleh (February 5, 2015), the Central Bank to clarify the reasons for the low value of the Iraqi dinar against the dollar rise in the price in the local market.

Saleh said, "the central bank need to clarify the reasons for the high price of the dollar against the dinar, though slightly, and shows what actions and policies taken to preserve the value of the dinar."