View Full Version : Centra faces the problem of the shortage of foreign currency

03-06-2015, 12:55 PM
Experts: «Central» faces the problem of the shortage of foreign currency

Osama imitator
Experts in economic affairs said that Iraqi banks began to suffer a shortage of liquidity in foreign currency (dollar), while the expected rise in the dollar's exchange rate against the devaluation of the dinar as a result of stopping the auction currency, grumbling banking customers of non-receipt of money deposited by the dollar, stressing that handed over the money Dinars expose them to significant losses. The expert in economic affairs Ahmed Fahmy that «the decision to stop the currency auction can be exploited in a positive way by the Central Bank and the Iraqi government», indicating that «the implementation of the resolution correctly is not easy, because we must limit the dollar and not to take it out of the market and thus strengthen the Iraqi dinar».

He Fahmy, saying that «the central bank's decision can be properly applied in the case has been spending pressure and reduce the affidavits and MIE Ki is not the dollar significantly».

He pointed out that «the Central Bank to develop appropriate plans for the success of the decision», but he also said that «stop the auction may be has significant disadvantages, due to increased demand for the dollar, because the bank had pumped $ 50 million a day in the auction, which may make the dollar rises against the dinar, which leads to the Iraqi currency influenced significantly ». Fahmi pointed out that «the basic objective of this step is to limit the hard currency by the central bank, especially after twice the price of the dinar during the past few days», expecting that «back down the central bank for its decision in the case affected the Iraqi economy negatively due to stop the auction currency».

banker defect
In the same vein, said an expert on economic affairs Maytham Laibi that «the banks to take such measures in emergency situations when facing a shortage of liquidity in foreign currencies», indicating that «Iraqi banks started having these problems because of the reduction of central bank sales of the dollar».

He added by saying that «not to distribute the financial dollar amounts have negative effects on customers and lead to an imbalance in the banking system, and weakens the confidence of individuals in the banking system and generates a panic, and lead to significant financial withdrawals, so the reserves become inadequate, especially since these banks operating funds of others does not have the money , which leads to lack of stability of the market, in addition to a state of non-confidence in the banks that leads to a lack of deposit of the citizens of their money in the banks in the future «.

He called Laibi banks dealing in foreign currency that «reassure its customers, it can Tkst customer payments, and those The money is there owed ​​banks and possible that the Ptksatha customers ».

parallel market
from his expert Ahmed Atwani believes that «sudden decision carries a lot of risk to the Iraqi citizens and the economy in general», indicating that «the central bank issued a decision under the pretext of limiting its on foreign exchange to finance trade Foreign ».

He Atwani saying that «the decision was made ​​to shift from exchange rate policy directed to a free exchange rate policy», adding that «the new policy adopted by the Central does not fit in with the nature of the stage through which the Iraqi economy, because domestic demand for foreign currency (dollar ) growing in the domestic market. » He pointed out that «the demand for the dollar will appear in the parallel market for foreign currency, so the increase in cases of speculation and lead to a large fluctuation in the value of the Iraqi dinar, and the transition from the state of stability in the local currency, and this volatility will impact on the low standard of living of individuals through high commodity prices and services ».

He expert that «the decision to stop the currency market will create a huge gap between the prices of locally produced goods and imported goods prices, not the central bank succeeds in implementing its decision in a positive way, but if used a strict policy in the control of foreign exchange».

negative effects
, in turn, said Mohammed Hassani, one dealing with the North Bank that «the bank refused to cash delivery in dollars for clients with the bank on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq», indicating that «a trader with banks who deposited money in dollars would be a great loss teams currency while Receives his money in Iraqi dinars. »

He added by saying that «the ordinary citizen is the biggest affected by this process», calling on the central bank and those specialized to «reverse the decision to cancel the auction currency because of its negative effects on the Iraqi market and citizens».

The Iraqi Central Bank announced suspension of auction Bank and the adoption of the banking system as being responsible for foreign remittances.

The governor of the Central Bank of the relationship, in a press statement «was finalized a new formula and leave the old ways, coupled with certain conditions can not remain governor at the central bank, which has the functions and tasks of great activities and important for the economy National », indicating that it is not true that the central stays busy selling the currency like ATM daily