Iraq: the cost of stabilizing the value of the dinar $ 200 billion since 2004

the cost incurred by the Central Bank of Iraq since 2004 to stabilize
the exchange rate of the dinar against major currencies $ 200 billion,
according to Iraqi officials, alerted to the possibility of growth of
the number in the coming months due to pressure against the dinar of UN
sanctions and Western Syria and Iran, which assesses Iraq with them
relations economic and strong

Adviser to the Prime Minister for Legal Affairs Mohammad Fadel, the
central bank about $ 200 billion out of Iraq by way of auctions to
support the dinar exchange rate and restore balance to the domestic
market for foreign exchange.

dropped the dinar exchange rate during the last few days against the
dollar to one thousand and 227 dinars per dollar, and 118 thousand
dinars.

He described the mechanism of monetary policy to Iraq b «unique» of its
kind in the world, told «life»: «nothing in the world today, a central
bank continues to hold auctions and pumped huge amounts of dollars to
support the fixed exchange rate of the local currency.

Since this is a new experience, she appeared with errors, and thus benefiting persons who are not traders ».

He said Fadel: «We buy and sell dollar, the dinar, and turn these amounts through auctions to the outside by way of remittances

There are people who participated in the auctions of the Central Bank and
they are not really traders, and did not go these amounts for the
purposes of the state and the private sector and cover the needs, but
into the pockets of speculators and smugglers have benefited from the
funds allocated to the projects and welfare of the people ».

The deputy governor of the Central Bank of Iraq the appearance of Mohammed
Saleh told «life»: «on the Central Bank until last year, nearly $ 180
billion in remittances in hard currency abroad, and of the mechanisms of
auctions the bank, and the expected arrival of remittances this year to
more than $ 200 billion »

He added << that this mechanism, any auctions selling the dollar, found
originally to serve the market and meet the needs of the Iraqi economy».

He stressed that «the central bank would not budge from his decision to
request notification of tax authorities to contribute to the auctions,
in order to know the reasons for the request large amounts of dollar,
and follow the movement of funds, we are obliged to apply the terms of
the international agreement on combating money laundering and terrorist
financing».

He did not rule in favor of continuing effects of the neighboring
countries, especially Iran and Syria, which imposed on them UN economic
sanctions caused the deterioration of the values ​​of their currencies,
but he denied that these two countries intervene directly in the
auctions of the Iraqi currency, he said, «The auctions dedicated to the
shareholders of Iraqi exclusively and will not allow any outside
interference by ».

He explained that the auctions have seen recently from the entry can be
named «speculators Ghosts», «They walk in as a local in origin, but they
are working in secret to make a profit under speculation on the black
market, and therefore continue to be strict in checking applications».

He pointed out that the Central Bank reserves of foreign currency have risen recently from 52 billion to more than $ 63 billion.

The«that the current plan of the bank tend to enhance the value of the
dinar against the dollar, and after the implementation of the project to
delete three zeros from the dinar, we will be able to apply through the
auction mechanism to make all the new Iraqi dinar equivalent of $».



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