View Full Version : Finance proposes the adoption of flotation

09-16-2015, 08:59 PM
Parliamentary Finance proposes the adoption of flotation unrestricted for the price of the dollar and the central Amtin b reserve meet the needs of the market

Wednesday 16 Sep 2015

Baghdad waves Ahmed of the Finance Committee in the House of Representatives propose to the central bank and the government to adopt "restrictive flotation" in the auction currency instead of "limiting factor" that determines a fixed exchange rate to the dollar price, trying to keep it to fill the market need of hard currency, but officials in the bank stress the latter is subject to economic variables and the movement of the market, noting that Iraq's cash reserve covers the private sector needs hard currency, as well as the money supply of the Iraqi dinar by 160 percent.

The head of the Finance Committee in the House of Representatives, Haitham al-Jubouri, said in an interview to the correspondent of "the world", yesterday , that there are three ways to deal by central banks with foreign currency; first is made ​​up by the "limiting factor" to be adopted by the CBI, which includes a fixed exchange rate to the dollar price, and inject dollars into the market to maintain the stability of the price.

The second method is called "flotation "Jubouri explains that it" thumb market is controlled exchange rate, "noting that" this way pose a threat to the exchange rates, being subjected Iraqi dinar to collapse.

"include third way, a" floating orbit ", or restricted, according to al-Jubouri, the" Select a specific dollar price, and another represents a maximum him, to leave that currency floats between these two prices.

"Jubouri He said that if exchange rates exceeded the maximum the central bank to pump quantities of the dollar as the local market need, noting that his committee suggested the central bank and the government Adoption of this method "being the best, and supported in most countries of the world."

The Jubouri revealed earlier to send 15 thousand purchase invoice currency "rigged" to justice, and stressed that a large number of companies that have turned to money "fake", as called for the formation of a competent financial courts financial matters.

For his part, sees the Board of the Central Bank member Majid picture in connection with "the world", said the bank is trying to maintain the stability of exchange rates, adding that the monetary policy and instructions "change according to economic conditions experienced by the country." .

and see world oil prices since the middle of last year continuous decline, because of the use by some countries to increase Marodha against the lack of demand for it.

He says that the picture of the monetary Bank reserves fell to $ 60 billion due to lower crude prices, but he assured that this decline does not threaten the collapse of the local currency "Being fill 160 percent of the money supply of the Iraqi dinar."

The governor of the Central Bank on the Keywords may Hoon earlier fears, which says that the continued downward pressure the Iraqi dinar, which sells "the central bank" to banks and dealers who obtained licenses at a price fixed in 1166 dinars to the dollar .

"If we look at the markets these days, we will see that the price is very stable, and very reasonable."

The local currency plunged to about 1400 dinars to the dollar on the parallel market in mid-June 1228 week earlier.

As part of the government's efforts to bridge the budget deficit, marketed Baghdad, the first version of its international bonds in nine years in Europe and the United States this week.

The government Taml collect six billion dollars of those dollar-denominated versions, but Keywords said that the first phase will be to collect two billion dollars, and the expectation that the interest rate exceeds the eight percent due to concerns security.

Baghdad is also planning to issue local bonds worth five billion dollars, starting from the last quarter of this year.