February 3, 2017
Iraq: Calls to raise the value of the dinar
Registration of the Iraqi economy, experts do not rule out a relatively rebound this year compared to 2016, «in the event of rising crude oil prices continued worldwide». They expected the government to take the initiative on economic reform «a broader dimension to the level of activation of the special efforts supported any productive sectors of industry, agriculture and services.»
And approaching experts forecast a lot of calls to correct the value of the Iraqi dinar and the path, consistent with the exceptional economic situation in which the country is going through, with many believing that the official pricing of the dinar against the dollar is unrealistic in the current circumstances.
Economic academic Essam Mahouelle called in an interview to «life», noted that this year be the year to enhance the purchasing power of the dinar and the ability of «strengthens the confidence in the national currency, which represents the sovereignty of Iraq». He stressed the need to «restrict foreign business dealings only in dollars.»
And ways to raise the price of the dinar, Mahouelle saw the need to «manage the country's affairs, economic mentality and look long-term, along with a quote economic experiences of states passed in conditions similar to those in which the passing of Iraq, as well as the reduction of trading the dollar in the domestic business transactions to support the national currency.» He stressed that the supervision of the Central Bank and coordination with economic authorities and relevant ministries «role in enhancing the value of the dinar by preventing the circulation of foreign currency in the local trade for whatever reason, and counted only foreign transactions». He stressed the importance that the «private and government banks take action to deal strengthens Iraqi dinars».
The dollar exchange rate against the dinar will fluctuate up and down, as he was about 4 thousand dinars in the nineties in the dollar, and scored a gradual decline after 2003 to continue to fall to 1200 dinars to the dollar in the last ten years. And it rose again after the adoption of the budget in 2015, and to require the central bank to determine its sales of foreign currency in accordance with Article 50 of that year's budget law.
Mahouelle He pointed out that «importers of goods were turning the dinar to the dollar when paying their price by banks, as the audience did not feel the importance of the US currency only when traveling abroad and are turning to banks, turned them dinar to the dollar in foreign currency and give them cash or instruments travelers after bank approval Central and under the foreign exchange law. »
He was an expert in the industrial sector Aqeel al-Saadi, said that the government's initiative to reform the economy «will take a wider range with the central bank's quest to launch industrial and agricultural loans, as well as legislation supporting the private sector laws and the transition to a market economy».
He said the financial expert Thamer al-Azzawi, «the new year will see a recovery in the capital market, with the trend to increase the foreign currency sale and provided outlets for citizens, as well as the central bank is keen to maintain the value of the Iraqi dinar and the dollar exchange rate». He explained that the new year «will see a greater reliance on technology in financial transactions, as well as to facilitate the transactions of the citizens in the banks.» He predicted that «Iraq Stock Exchange achieved a wider traded compared to last year, during which the record trillion traded shares of companies contributing to Iraq, because of the direction the state to move to a market economy».
He guessed expert Rahim al-Shammari, that «the sale of crude oil price increases in the world markets, because of« OPEC »and nations outside the Organization agreement means that the coming months will see a rise in prices». Did not rule out that the «estimated price of a barrel of crude oil between $ 55 to $ 65.»