A relative balance of supply and demand for the dollar

Tuesday, May 2 2017 - 8:54 AM



Baghdad / Mustafa Hashemi Stabilization of the dollar exchange rate requires the reduction of manipulation at the official exchange rate set by the Central Bank of 1190 dinars to the dollar to buy after buying the official price to sell it in excess of 1225 dinars to the dollar these days.

 Ammar Ali al-Rubaie, the owner of a banking shop confirmed the control of a few banking companies and the transfer of money on the dollar market, pointing to the existence of a monopoly in the currency market, indicating that these companies are the actual control of the informal exchange rate by controlling the supply and demand in the banking market .

 "When companies sell foreign currency to the owners of the banking offices, they sell at a high price and when they buy, they charge a low price to ensure that they make fantastic profits in a very short time," he said.

 He pointed out that the difference between the official price set by the Central Bank and the price at which the dollar is sold in the exchange shops is more than 5 tiger, which is borne by the citizen because of the greed of a limited number of owners of major banking companies.

 Because of the circumstances experienced by Iraq in the nineties of the last century and the collapse of the value of the dinar, both traders and citizens resorted to the acquisition of the dollar and dealing in the sale and purchase as an alternative to the national currency being more stable according to their claim.

 And the role of the central bank in controlling this case, said the academic economist d. Majid al-Beidhani: The Central has adopted a period of procedures against banks wishing to enter the currency auction aimed at reducing suspicions of money laundering and would regulate the sale of currency to those banks and achieve relative stability in the dollar market.

 He added in an interview for "morning" that the quantities of dollars sold as remittances are closer to the quantity sold at home, which means a proportion of the balance in the supply and demand ranges in this aspect.

 The exchange rate of the dinar against the dollar stabilized during the past two days where the price of selling the dollar yesterday 125.750 dinars, while the purchase price 124,750 dinars.

Ahmed Mahmood, the owner of markets, said the reason was that the trader had bought his goods in dollars, meaning he had to sell them in dollars to recover his money with the profit margin.

 He added: "In all countries of the world when you buy different goods from supermarkets, it reduces the total price of what you bought, but in Iraq this situation is rare for several reasons, including that the owner of the shop needs alternative electricity generators and their owners in turn do not offer offers for the price of ampere, Market owners to refrain from lowering prices for citizens.

http://www.imn.iq/archives/152452