Central: shifted from mediation to end-buyers ... Expert: affecting the exchange rate
Private banks, contribute to raise the value of the dollar against the dinar

Central Bank of Iraq puts new regulations for banks participating in the auction dollar (archive)

BAGHDAD - Firas Al Hamadani Saadoun

Taken the CBI decision required the banks to participate in the auction to sell the dollar determine the selling price and commission in order, starting on Wednesday, after the recently discovered transformation of banks and brokers to "buyers finalists" and sell the dollar at about 5 times the commission normal. He warned the central bank taking it out of the auction indefinitely if it violated the resolution. The Economist commented on the decision that comes in the central part of the "war" between the bank, which wants to commit his instructions of private banks, and the latter aimed at the greatest profit, noting that those banks obtaining commissions double A decrease is part of the dinar exchange rate against the dollar. On the other hand the Central announced the renewed rise in daily sales of USD 3.5 million due to application of "organizational measures" to ensure "transparency" transactions, to the rate of $ 110 million a day.

Sales of the dollar at an auction the central bank, on Monday, versus $ 109 million down from 111 million in a session on Sunday.

Hosted economic and investment commission in the House of Representatives, on Monday, central bank governor and his deputy, and a number of officials in the bank, to discuss monetary policy, and the conditions of the local currency and foreign.

In an interview with "the world," said the appearance of Mohammed Salih, Deputy Governor of Central Bank of Iraq, "we discovered that the banks took the exercise and function of the final buyer is not mediation, and took sells above the price to the buyer between 54 and 56 dinars per dollar instead of 10 dinars per dollar, has created a market parallel", "The banks Ahtkratna and monopolized the market taking advantage of the official (central bank)."

Participating banks and 45 branch bank at auction the central bank, which regulates 5 times a week, except holidays.

And select for "starting on Wednesday (tomorrow) to prevent the banks make orders if it does not determine the sale price, a central bank rate + commission not exceeding 10 dinars to the dollar," and followed by saying, "This will ensure the price was cheap, fair competition," and warned " that is contrary to the auction to come out of the indeterminate. "

And the sale price of U.S. currency, between the "We sell the dollar is currently at 1166 +13 JD commission on every dollar we take the final price becomes 1179, and 1189 to sell banks and share the commission with money transfer companies."

And meaningful instructions of buying and selling imposed by the central bank to banks, starting from tomorrow, said Maytham and coffee, an economist, "There is a war between the central and private banks The former wants Aarzakhha to his policies, and aims to determine the exchange rate of the dinar against the dollar, and to avoid any sudden increases, while aimed at banks to make a profit, "he continued," the greater the demand for the dollar profits of the largest banks will, and here the central bank wants banks are required to select orders according to perceptions about the number rises or drops a little. "

And between the coffee that the low exchange rate of the dinar against the dollar in the market, "part of raising the margins of the commission on the part of commercial banks that do not oblige the determinants in buying and selling, and another part is that there is strong demand for the dollar against the display is scarce, making the banks or financial companies impose high prices of dollars. " The mention of the coffee that "the central bank knows that there is a demand for the dollar is greater than the Iraqi trader need him, as he knows that these days the dollar goes to Syria and Iran."

On the other hand, said the deputy governor of the central bank "bank sales of dollar rose from 3.5 million Dorlar to 60 million, and between 100 and 120 million dollars now, after taking banks adapt to package organizational procedures in order to avoid sub-an attack on the window of foreign currency (the auction ) since the beginning of last December with the U.S. withdrawal, and the announcement of No. 2012, which balance the $ 100 billion, which encourages demand for dollar, the more you grow as expenditure grows the demand for the window. "

The date of the establishment of a window in the foreign currency the central bank to October of 2003.

Saleh said "the rate of sale of the Central Bank from 150 to 200 million, but requests and reached $ 450 million did not Nlbha, because many of the names that have proven to requests unambiguous, and that the method of bidding by the question marks, although we are not afraid of selling or We have no restrictions on it in the natural situation, because we have covered liquidity in foreign currency. "

To avoid suspicious transactions adopted a central "way (know your customer), the international rule of the Basel Convention in the fight against money laundering to prevent the banks from the bosom of the money contaminated, at the request sufficient information, a bank account is under way, and the liberalization of a certified check, paid by the bank for the company money transfer, and include a copy for the instrument with the transaction (purchase order). "

Saleh said that "this dish on February 1 the current sales fell from 200 million to 3.5 million dollars." "We made sure that many of the applications were submitted fictitious names or the names of real owners, but are afraid to reveal their names because of the culture of fear", and was followed by "can not do business with fear, as there is no dealer without a large bank account."

According to Saleh, "the central bank buys dollars from the Ministry of Finance in the form of deals and sell the dinar at the auction itself and is Vaúdtna Nsthsalha commission from the banks because we needed to meet the cost of printing currency (Seanorj) and other things."

Attribute the benefit of buying the currency from the Ministry of Finance that "Iraq is different from Malaysia, Singapore and China, which gets her flows in dollars as a result of their exports. Iraq does not make the non-oil, which goes part of the proceeds for importing the government, such as ration card and contracting carried out by the Bank of T. Me. Aye."

According to the website of the House of Representatives, the committee of economy and investment in the Council under the chairmanship of Ahmed al-Alwani, hosted, on Monday, Shabibi central bank governor, and his deputy, the appearance of Mohammed Saleh, and a number of general managers in the bank. And between the site hosting the discussion led to the Iraqi dinar exchange rate / and inquire about the validity of information on the entry of counterfeit currency into Iraq, as well as the constraints faced by the Central Bank in order to develop appropriate solutions.

Article (103) Second of the Iraqi constitution, "the Central Bank of Iraq is responsible before the House of Representatives ..".

In a statement to Twilight News said Abdul Hussein Abtan member of the parliamentary Economic Committee that the House supports the policy of the Iraqi Central Bank, and feel reassured about the diaper on the Iraqi currency.

The Central Bank of Iraq, announced on the sixth of January, rising foreign currency reserves to $ 60 billion, for the first time in the history of Iraq, after it was in 2010, its reserves of 58 billion dollars.