Consultant Abadi: the central bank to clarify the reasons for the low value of the dinar and the high dollar

Wednesday, February 4, 2015 14:57



[Baghdad-where]

The appearance of Mohammed Saleh, an economic advisor to Prime Minister Haider al-Abadi central bank demanded to clarify the reasons for the low value of the Iraqi dinar against the dollar rise in the price in the local market.


Said Saleh told all of Iraq [where], "the central bank need to clarify the reasons for the high price of the dollar against the dinar, though slight, and shows what actions and policies taken to preserve the value of the dinar."

He pointed out that "a determining central bank sales of the dollar in its daily auction was due to financial hardship, home to Iraq and maintain the bank's foreign currency reserves is linked with earnings of Iraq in the fall and rise and be maintained by reducing its demand for the dollar and cover basic it needs."

And "we have in Iraq and there are loose commercial goods in the market is not worth the import where there are stocks of durable household as materials and cars suffice Iraq for several years, but the import is continuing and this exhausts the state budget."

He Mshar Prime Minister for Economic Affairs, "the power of the Iraqi dinar, which is covered in foreign currency, according to the definition of the money supply more than one and a half times, but at the same time, we must achieve a balance in maintaining the amount of foreign currency exchange rates and the value of the Iraqi dinar."

He assured the economist and deputy governor of the former central bank "that the Iraqi dinar is strong but it needs to counter this decline Iraqi actions."

And witnessing the Iraqi market, a remarkable rise in the US dollar against the dinar as it is expected that the dollar sales decline in the central bank auction of this year, according to the law of the state budget, which began in Parliament on 29 January last is expected to be published in the official gazette in the coming days after the presidency authentication to put into effect.

The law stipulates that the central bank is committed to identifying sales of hard currency [dollar] in the daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process, and calls for participating in the auction the bank providing the introduction of cargo documents and statements of tax settling accounts and savings Alkmarki within 30 days from the date of buy it for the amount and otherwise apply to the bank penalties stipulated in the Central Bank Act or regulations issued it, and use other banking tools to maintain the strength of the dinar against the dollar.

It was not known if the price of the Iraqi dinar will be affected by the application of this article and observers fear that the lack of supply of the dollar in the markets will lead to a high price Bdinar.


http://www.alliraqnews.com/2014-06-14-07-34-14/165810-2015-02-04-11-58-05.html