Mokhtassan: the phenomenon of the dollar exchange rate fluctuations and can be cured by natural

06/01/2013 12:00 AM

They impact on the economy

BAGHDAD - Hussein ثغب of Tamimi

Mokhtassan
confirmed that the phenomenon of monetary affairs dollar exchange rate
fluctuations in our local markets can be addressed by following the
central bank a number of measures that would achieve cash flow of hard
currency paths road right at the forefront of increasing the supply of
the dollar in the local markets. Competent
affairs cash Mohsen al-Zaidi said in an interview (morning): To
maintain or control over foreign exchange rates are among the most
important duties of central banks in the world, regardless of the
economic situation in this or that country because of its significant
impact on the movement of money and channeled in the form right
in various economic activities, financing and investment, making it any
stability of the exchange rate of the factors influencing the growth of
the economies of the countries and a magnet for foreign capital for the
purpose of investing at home in addition to other effects.

He
noted that the impact of the important successor fluctuating exchange
rates is a direct impact on the income of the individual in society and
its impact on the movement of goods and services, banking, indicating
that the effect of that up to the overall economy and the economy of the
family in particular where so they can be dispensed with a lot of
widgets that often ماتكون important for the family.

He
added that among processors central banks to keep the prices fixed or
semi-fixed exchange rates is to increase the supply of foreign currency
in order to confront the demand for real-time on the market until the
expiry is noticeable on demand in the Iraqi market, continuing demand,
which requires an ongoing and thus Valmaaljh this way need to pause,
despite It
is followed in many currency markets in other countries, which we
believe that the policy of control on the prices of goods and services
is more worthy of treatment does not mean it that determines the price
of a particular commodity or service, but rather to provide foreign
currency at fixed prices for the purposes of coverage of imports of
goods and services are real and within the controls Court
to prevent exploitation, and this in turn will lead to reducing the
impact of exchange rate fluctuations on the level of real per capita
income, or at the level of institutions, banks and growth, so they can
say: that the fluctuation of exchange rates can be contained.

Financial
expert Ali Vkika said: The phenomenon of low value of the transaction
Iraqi current is a natural phenomenon and not satisfactory and feasible
to restore the balance, but the terms of cancellation of work
restrictions current imposed by the central bank, and it's the other
important thing is to improve the climate and investment environment,
making it an attractive environment.

He added that the reasons for the
decline new in
the exchange rate of the dinar many in the forefront of that Iraq has
been and remains cross-border trade carried out by his sons with the
sons of neighboring countries such as Iran, Syria and Turkey, was and
still is the local currencies of dinars and Toman and lira covers an
important part of that trade along with the dollar.

He
said what is happening now is of a dynamic commercial exchange across
the border in the district of Kalar and Haj Omran in Kurdistan in the
north and in the Mehran Shalamjah south is an example of this trade. This
resulted in the accumulation of large Iraqi cash reserves among bankers
and traders Iranians, Jordanians, Syrians and Turks and others. The
increased acceptance of these Iraqi dinar confidence over the past five
years, which did not happen to him such confidence before that over the
decades.

He
pointed out that the other factor is what the central bank to be the
mediator between the Tax Authority and among the people of the
restrictions imposed by the player's role more severe making Enforcement
Accreditation documentary and importers transfers Iraqis entailed
obtaining prior approval from the General Authority for taxes. In
addition to the requirement of existing commercial and certificate of
origin parent and related freight and Altsrihh customs issued by the
ports Iraqi border, including supported the introduction of the goods
imported to Iraq, as well as the condition of consumer time your
ratifications official certificates of origin original in our embassy
abroad, and consumed the time and costs and delay in
the supply response to the request, which contrasts with the rules of
market economy and reduce government interference in the political to
the private sector, which led a lot of importers and those with the need
to transform the outside to buy foreign currency from the local market
free at 1300 dinars to the dollar, or sometimes more.

Although
the sale price of the official central bank is 1189 and that the
difference between the two rates is 1300 - 1189 = 111 dinars per dollar.

In
case of the need to convert million difference is 111 dinars 1.0
million = $ 111 million dinars and modify 93.6 thousand dollars. There
are importers and asylum foreign exchange accept afford to pay the
difference in the amount to invest the time and effort, what is required
to return the central bank to work to the principles of economic
liberalization and deregulation sterile and that the conditions and
restrictions imposed by the Central Bank of Iraq is the source of the
high value of the dollar against the dinar.



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