Economist: Dollar weakness of the central liquidity and will reach 1500 dinars

January 13, 2016 11:08



He attributed the economic expert Ahmed Kanani, rise in the dollar's exchange rate against the Iraqi dinar, to non-possession of the Iraqi Central Bank sufficient liquidity to cover the local market need it [the dollar].

Said Kanani, in a press statement that "the country suffers from a shortage of funds, so the high price of the dollar is very natural, because when there are strong liquidity in the country will stabilize the dollar and the exchange rate, but if there is a shortage of funds and lack of selling the dollar by the central bank to suit market, which currently sells half the value that fit the need of the market almost certainly will increase the size of the exchange rate. "

He added, "In general, the market daily needs $ 300 million, while the central bank now sells between 150 or 120 million, and this also has an effect," pointing out that "the central bank when it does not sell the required dollar amount, it is because he does not own the adequacy of liquidity cash to cover the dollar. "

He ruled Kanani the existence of "speculation by banking companies and sell the currency," explaining that "when you view a lot of the dollar in the market will drop the exchange rate, while the rise when displaying little of it", reiterating that the high dollar "just the rise and descent of the price as a result of supply and demand for the dollar It is a very natural question. "

He predicted that the dollar exchange rate is witnessing "a rise in the coming days, especially in the next couple of months, and perhaps more than in 1400 and up to 1500 dinars to the dollar, which is the currency exchange rate of $ 100 bills in exchange for 150 thousand Iraqi dinars."

Local markets saw yesterday, a remarkable increase in the dollar exchange rate against the dinar as the dollar stood at 1225 dinars [125 000 dinars per hundred dollars] after it was estimated in the past few days between 122 and 123 000 dinars for one hundred dollars.

And it reached the quantity sold to banks at the central bank auction of the third month of the date of January this Tuesday to more than one billion and 124 million dollars.

For their part, traders in the foreign currency market rise in the dollar's exchange rate against the Iraqi dinar attributed to a lack of supply of the dollar in the local markets, as Benoit's [where], "This rise is due to the lack of the Iraqi Central Bank sales in its daily auction of the dollar compared to weeks or the past few months, what the reason for a decline in volumes traded in the dollar markets, "explaining," The political and security situation taking place in the country to create unrest in the buying and selling. "

The government is planning, according to a memorandum of the International Monetary Fund, to finance the deficit in the balance of payments of withdrawal from Iraq, the foreign reserves held by the central bank, including make it go down to $ 43 billion in 2016 from 59 billion at the end of October Almadi.a

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