Central bank sells gold to raise the value of the dinar

Admin Sun Apr 20, 2014 10:11 am

Baghdad

He said the academic economic Dr Majid Baidhani "said a central bank to activate the monetary policy tools and the willingness to sell gold to the public would be granted dinar greater strength as well as it reduces the dollarization phenomenon experienced by the economy.

Added Baidhani in a press statement that" the adoption of this measure requires increase in central bank reserves of gold as a cover for the currency, and the promotion requires finding a basket of currencies to assess the economy vulnerable to dollar prices up or down.

The reserves rose central gold recently from 38 to 90 tonnes of the precious metal after it announced the purchase of 60 tons in the past few weeks for the purpose of selling it to the public, after contracting with companies to Sikh to ensure the presence of gold purity high and the origins of well-known global and used as part of their savings.

It is hoped that the proportion of gold allocated to the Mint about 11 tons, and determine the public need and desire for the allocation of additional quantities Stamping to sell to jewelers and investors.

Said Baidhani that monetary policy tools two types quantitative tools and tools of quality and different conditions of use depending on the economic situation of the country for example, in the case of inflation, the policy goal achieve economic and price stability either in the case of deflation have as their goal to achieve economic growth and increasing employment.

He said the actions taken by the central bank reflect the real familiar with the economic reality of the country, where the launch of gold to the public would control the levels of liquidity so as to raise the rate of adoption of the public on the real financial assets represented by the precious metal rather than dependence on foreign currency.

He stressed that "this measure would reduce the phenomenon of dollarization suffered by the economy, where most of the business transactions and trade within Iraq are in dollars rather than rely on the on the dinar, what caused the phenomenon akin to a large extent the currency float.

Said Baidhani that the weakness of public awareness of the importance of buying and selling shares in the local currency dramatically in the emergence of dollarization, which severely hurt the national economy, adding that this called for reasons that central to the practice of monetary policy tools effectively to save the economy from deteriorating and to enhance the strength of gold dinar.

http://www.almowatennews.com/index.php/2013-04-19-21-18-06/8676-2014-04-08-18-33-22.html