#### Economic divergence of views on the proposal to replace the dollar in foreign currencies to reduce the deterioration of the dinar

Author: bian2 on: Sun 06/09/2013 02:51 pm


Source: Baghdad 4 / Report




BAGHDAD / WAP / dreams Furaiji: After the deterioration of the exchange rate of the dinar against the dollar in the local market ... Opinions varied about the feasibility and importance of the adoption of a basket of foreign currencies from the dollar alternative.


A number of experts, that the replacement of the dollar to a basket of currencies could halt the deterioration in the price of the Iraqi currency, in addition to that he will achieve diversified and balanced supply and demand measures and the adoption of a more stable currency than the dollar.

But the move did not live up to the economic expert on behalf of Jamil Antoine, who criticized during the recent Baghdad News Agency / WAP /, a proposal to replace the U.S. dollar to a basket of foreign currencies to control the deterioration of the Iraqi currency.

He said, "The deterioration of the Iraqi dinar was the result of increased demand for the U.S. dollar and the lack of display in the local market, as the Iraqi diversify the basket of currencies is a very important issue but it will not dominate the deterioration of the Iraqi dinar."

He expressed the need for, a firm monetary policy and fast by the central bank to control the deterioration of the Iraqi dinar.

Antoine accused what he called / mafias terrorist /, to withdraw dollars from the Iraqi market and smuggled to neighboring countries.

He explained, "The deterioration of the political and security situation in the neighboring countries of Iran and Syria prompted them to withdraw large amounts of dollar to control the deterioration of the economy."

He said economic expert, said that "in principle, that the presence of a basket of currencies to diversify the assets of Iraq to $ Aorwaly is gone is a logical and acceptable to protect the Iraqi economy in the event of devaluation of a currency to operate the second currency role / العكازة / currency other."

As a former adviser to the central bank and economist appearance of Mohammed Saleh, he saw, that the reasons for the deterioration of the Iraqi dinar, due to the policies and procedures hasty pursued by the central bank, which led to increased demand and tight supply of the dollar against the Iraqi dinar in the local market.

He told the news agency Baghdad International / WAP /, that "the dollar zone a large area is estimated at 85% of the world used to the dollar, as the world's reserves of the dollar is the biggest from the rest of other foreign currencies, so the dinar covered completely foreign currency much more than currency Other ".

But he pointed out the problem of "monetary exchange system in Iraq, and the lack of awareness of the cultural and economic center of the Iraqi citizen, as all of this contributes to the deterioration of the Iraqi currency to foreign currency."

Saw, that "the diversity of the currency is not a successful way to reduce the deterioration of the Iraqi dinar, which affected the local market process of supply and demand."

Promised that "Iraq is a zone of dollars and can not be dispensed with, and that the proposed currency diversification is a very small way to solve the problem of the deterioration of the currency of Iraq."

The economic analyst nice Abdul Salem Okkaily, counting that the increase in supply and demand has led to the need for foreign currency to be considered a global currency to deal with the issues in the travel and import or treatment.

He told the news agency Baghdad International / WAP /, that "the Central Bank of Iraq in the past had a monetary policy that is serious in controlling the exchange rate of the Iraqi dinar, but in the current period witnessed a policy of hasty led to the deterioration of the Iraqi dinar against the U.S. dollar."

He added, "The idea of ​​the diversity of the basket of currencies will reduce the problem of the deterioration of the Iraqi currency and the dollar stops at a certain extent, as the increase in supply and demand resulted in foreign currency led to a significant failure in control of the Iraqi dinar."

He said, "the problem of the deterioration of the currency needed to firm policies limit of the value of the suspicious rise of the value of the dollar, as the cause of the decline of the dinar back to the economic aspects of corruption process in general."

He called the Iraqi Central Bank, said, "rely on successful policies and controls firm to handle issues effectively Dinars."

As director of the International Bureau for Economic Studies Consulting Tawfiq inhibitor, has seen, to diversify the basket of currencies in the domestic market will contribute to solving the problems of the Iraqi currency and controls the rise or fall of the Iraqi dinar.

He told the Baghdad international news / WAP /, that "the issue of diversification of the basket of currencies need to educate the community culture in dealing with all the economic currency without failure or falsification in the process of buying and selling foreign currencies."

He inhibitor, that "Iraqi citizens are familiar with the use of the dollar more than the rest of the foreign currencies so enter other currencies without spreading awareness and culture disrupt the economic work in foreign currencies and expands fraud without the control of the Iraqi currency."

It is noteworthy that the Iraqi currency suffered a major setback in the last period, prompting the central bank to take strict measures to control the rise of the dollar against the Iraqi dinar. / End 4


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