View Full Version : Baghdad resort to printing money and pay the dinar to decline

06-09-2015, 09:03 AM
Baghdad resort to printing money and pay the dinar to decline

Monday, June 8, 2015 21:50

The scarcity of the dollar leads to a widening gap between the official rate and the black market rate

The latest decline in the exchange rate of the Iraqi dinar state of confusion in the local exchange market, which also reflected negatively on the lives of Iraqis living, while the Iraqi Central Bank is considering a range of measures in an attempt to contain the crisis, including the issuance of a new currency from the category of 50 thousand dinars.

Arabs / Baghdad - Economists officials Financial Iraqis said that the decline of the Iraqi dinar exchange rate against foreign currencies resulting from the government's inability to meet the high demand for the dollar, which led to fluctuations in market transactions.

The decline in the dinar exchange rate on the black market price since the beginning of last month to record about 1230 dinars to the dollar, while the exchange rate was stable over the past years at 1223 dinars to the dollar.

The increased prices of imported goods, especially Algmaiahmgarnh with prices that prevailed two months ago, by up to about 10 percent, as an inevitable result of the deterioration of the dinar exchange rate.

said Abdul Razzaq al-Saadi, an economist and former head of the Securities Commission, that the decline in the dinar exchange rate against the dollar and exchange rate instability cause volatility in commercial transactions, and pay the high prices of goods in the domestic market.

The carry-Saadi, the Iraqi Central Bank is part of the responsibility of continuing deterioration of the value of the dinar Iraqi. "The lack of clarity of the central bank's policy on the stability of the exchange rates approved mechanisms led to fluctuations in the market."

He added that "the central bank needs to inter procedures that explain monetary policy in the country."

But the Iraqi Central, attributed the decline in the dinar exchange rate to the breadth of activity of speculators in the foreign currency market, and to capital flight abroad which reduced hard currency size (foreign) of the Iraqi market.

said Majid picture member of the administrative board of the Central Bank, "there are a number of reasons, which leads to lower exchange rates and increased demand for hard currency, despite the increase Display by the Central Bank of Iraq, including foreign travel requests, and capital flight. "

He stressed that the central bank actions only, are not enough to control the exchange rate, and must not interfere other government institutions concerned to limit capital flight operations.

He explained that The central bank decided to sell the dollar at about 1193 dinars to the dollar in 18 banks, to grant a three-point banks in the dollar, in order to stabilize the exchange rate, but said that measures real-time solutions.

Finance Committee in the Iraqi parliament and considered to determine the amounts the amounts sold by the Central Bank daily led to lower exchange rates.

CBI and betting on a new currency from the category of 50 thousand dinars put up over the next month, hoping to relieve the measure in the decline in demand for the dollar, which is what you think also of the Finance Committee of Parliament.

He said Jabbar Abdul Khaliq member of the committee, "the central bank was sells in the previous rate of $ 400 million a day, it has been the amounts sold the dollar recently reduced to $ 75 million a day, and this has led to increased demand for the dollar. "

"The new paper currency which is scheduled to put on the market next month, will have an important role in reducing the demand for the dollar, and the high price of the Iraqi dinar former average.

raised the continuation of the Iraqi currency deterioration, fears among the finance and economy in Iraq, which made ​​no secret of its concern that affect the fragile economic situation.

Observers believe that the decline of the Iraqi dinar exchange rate, began Since that former Prime Minister Nuri al-Maliki decided in September last year and suddenly exemption Central Bank Governor Sinan al-Shabibi, and request the President of Supreme Audit Abdul Basit Turki duties.

They said, that the action taken by al-Maliki then, befuddled central bank, which faced his administration sharply criticized the work and accusations of mismanagement and governance, has the effect that the central reputation in particular, the Iraqi Finance reputation in global financial markets.

It also pointed out that there are other factors contributed to the deterioration of the Iraqi dinar exchange rate and of them, especially in Syria, regional tensions, and insecurity in Iraq and paid capital money to flee abroad, in addition to consumer orientation clear to the Iraqi government.