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Thread: Victim of Iraqi currency financial embargo on Syria and Iran

  1. #1
    Join Date
    Dec 2004

    Default Victim of Iraqi currency financial embargo on Syria and Iran

    Victim of the Iraqi currency financial embargo on Syria and Iran

    12/04/2012 13:50:00

    The independent Iraqi news agency / listen...announced the Central Bank of Iraq in February from the application of new measures over the sales of the dollar, especially states that the buyer knows the bank for its customers, who asked him to buy the currency.
    Iraq is who gets huge monthly income from oil sales in dollars, and is surrounded by Iran and Syria, which suffer from an international financial embargo, an increase in demand for the dollar is leading the local currency to decline.

    He said the Iraqi Central Bank Governor Sinan Shabibi that "the political situation is relatively stable in Iraq and in the surrounding area has created a great demand for the dollar, leading to the high exchange rate of the currency recently."

    In response to a question about the possibility that the international financial embargo imposed on Iran and Syria in particular the main reason for this rise, Shabibi said "This is one of the things, but the region around us, which is generally relatively stable."

    And witnessed the exchange rate of the dollar Tuesday its highest level in front of the dinar since about four years in the domestic market, which is 1320 dinar per dollar, after it was last week at a stable level of 1230 dinars per dollar.

    Council of Ministers were quick Wednesday to announce the formation of a committee to study the "wiggle Iraqi dinar exchange rate and to provide appropriate solutions to prevent harm to the national economy," according to channel reported "Iraqi" government in a newsflash.

    And subject Iran and Syria to an international financial sanctions, the first over its controversial nuclear, and the second because of the suppression of a protest movement continued for nearly a year.

    And pay these sanctions Iran and Syria, which have witnessed a deterioration in their currencies to the search for hard currency may be Iraq, where since the end of last year's political crisis, one of the major sources since it maintains commercial and political good with these two countries.

    Shabibi said he was "at the beginning of the year, increased demand for the dollar by a large margin ranged between 40 to 50 percent."

    He said Iraq, which has a monthly revenue of oil more than seven billion dollars, "has the largest dollar reserves (60 billion), but this does not mean that it should be used without control or monitoring."

    The central bank announced in February from the application of new measures over the sales of the dollar, especially states that the buyer knows the bank for its customers, who asked him to buy the currency.

    This has led to a significant drop in sales then the dollar at an auction the central bank, which is held every week between Sunday and Thursday, where sales were a few million, but it returned in April to between $ 50 and $ 250 million.

    He says Mohammed Amri (40 years), a shop owner for banking in the Karrada district of central Baghdad that "the dollar exchange rate remained stable from 2008 until the beginning of this year."

    He adds, "the street needs to Atarwalmzad when the dollar is not pumping force us to move toward the black market."

    In turn confirms Saad Hadi Alwan (37 years), who owns a store of banking in the same area, "We have taken three days before a final decision that the stop for the dollar."

    He continues, "I turn from between 50 to 150 thousand dollars per day, but I stopped that what seemed to be vibrating and started to lose."

    The central bank's move came amid doubts about Iraqi officials try to Iranians and Syrian traders buy dollars.

    Shabibi stressed that "the financing of neighboring countries, the dollar is not something intentional, because Iraq is mainly dependent on imports significantly, but we nevertheless felt that some things require more than a need for imports."

    The Shabibi, who is preparing to appear before Parliament to discuss the issue of high exchange rate of the dollar, that Iraq "does not currently looking to stop auctions" on the currency, saying that "things are under control."

    The expert says Iraqi economic Crescent miller told AFP that "the dollar has become in recent escape abroad," adding that "Iraq is the only country among its neighbors, the closest that you get huge revenues from oil in dollars."

    He suggested "stop sales for a certain period," warning that "when the price drops shaken the confidence of the local currency of the citizen and then rise in food prices and rents construction and materials and all the terms of the aspects of life."

    In a shop selling electrical appliances in the area of vacant land in central Baghdad, sits a group of vendors waiting for customers, while welcoming the sales manager on behalf of Al Shammari (40 years), any visitor "As we sit without a job already."

    Shammari said that "the Iraqi society is afraid to buy when the shaking of exchange rates do not stabilize. If the market has stabilized at 1,200 dinars we work, or until we work on 1500 too, but up and down market kills all his joints."

    Shammari adds that "the volatility appeared about a week ago, and this did not affect the price of the goods we buy dollars and sell the dollar, but is influenced by the movement of the market, our sales have dropped about 50 percent already

    14 the number of readings
    "we aspire in the near future to the return of Iraqi dinar to what it was in the seventies and the beginning eighties against the dollar" - Dr. Shabibi

    I just did my job...You either get them out alive or you die trying. If you don’t die trying, you didn’t try hard enough." - Marine Sergeant Dakota Meyer, Medal of Honor recipient

  2. #2
    Join Date
    Nov 2007


    I always thought auction has been a big scam to white wash other currency and free dollar for all,I think problem is much larger than reported here considering free dollar for all for past several years. lets see how bad this will go.

  3. #3
    Join Date
    Nov 2007


    I wonder if this currency fiasco is taking toll to push ISX further down as we have seen in past couple of weeks, because if that is the case than a lot more down may be coming our way

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