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BatmaninIraq
06-18-2015, 08:42 AM
The issuance of sovereign bonds to reduce inflation and speculation .. taxation on the sale of the dollar and the rise in oil prices[/ltr]


June 16, 2015 in Slyder Add comment
[ltr]http://www.almuraqeb-aliraqi.org/wp-content/uploads/2015/06/10166821413310866863813212625030.jpg


Iraqi observer / Mushtaq Hasnawi


The effects of high price of the dollar in the domestic market questions do not end, Marine experts economy return largely to speculative currency, while the Committee on the economy parliamentary confirmed that the reason is the central bank's policy because they are "lagging behind" in control of the continuous rise of the dollar exchange rate, indicating that the central bank is unable to put to the dominance of mafias currency solutions, and it is known that the increase in foreign currency rates will impact on the Iraqi market through higher goods and commodities borne by the citizen rates, while the Ministry of Finance held meetings with international banks, representatives of the companies and international rating to determine the credit rating of Iraq for the sovereign government bond issuance to reduce inflation and to obtain hard currency to reduce the budget deficit.


Dr. Jawad al-Bakri said in a conversation with (Iraqi Controller) emphasized previously importance of issuing treasury central bank bonds which experience has exercised Iraq previously, it is important that the world is determined by the financial rating of Iraq in order to support these bonds, which are divided into two parts, the first internally as exposure These bonds for purchase by citizens, companies and traders, that after a year or more, according to the agreement simple and profits be returned, and thus will contribute to reduce inflation suffered by Iraq by withdrawing liquidity (dinar) from the market and this money will go to the government to finance its projects, he added There are bonds sold externally and is bought by international companies and some countries this process and will provide hard currency for the government and will determine the period of time to restore the money with a simple benefits and contribute to reducing the budget deficit for the current year ones and this global practice system and turn him America to finance its projects.



He continued: With regard to the rising dollar prices it is because of the financial crisis in which we live by the drop in global oil prices and speculation and tax of 8% imposed on the sale of the dollar, Iraq depends 96% in its budget on oil imports and thus lower those imports, especially as the central bank auction was selling (200 -300) million dollars


Today, due to lower imports of dollar it sells 75 million per auction, which was reflected on the amount of the offer, which fell rose demand for it, which leads to increased inflation and rising prices, we are embarking on the holy month of Ramadan, where demand for goods rises annually, but this year is different because demand Few Big Show.



For his part, MP Jabbar Abdul Khaliq member of the Parliamentary Finance Committee said in a conversation with (Iraqi Controller) that speculation behind the rise in dollar prices in Iraq to 140 thousand dinars per $ 100, noting that the price of the dollar fluctuation unwarranted but greed and speculation.



He added: "Banking deployed in country offices are the main reason behind the volatility in dollar terms, a subsidiary of a large mafias have direct links to politicians," explaining: "The volatility and inequality at the price of the dollar against the Iraqi dinar is not justified only by greed and speculation and exploitation."


He pointed Abdul Khaliq, that "mere addition of 8 percent on the cash price of the dollar is an economic crime and not the right of banking offices Add this ratio."



So counting member of the Committee of Economy and Investment parliamentary deputy Abdul Salam al-Maliki said in a statement, the Iraqi Central Bank management as "lagging behind" in control of the continuous rise of the dollar exchange rate, indicating that the central bank stands helpless in front of the dominance of mafias currency, as he emphasized that prices rose eerily in particular with the market near the holy month of Ramadan. Maliki said: "The central bank reluctant to management control of the continuous rise of the dollar exchange rate."