Thread: In Light of New Article.....

Iraqi dinar continues gains against the dollar


Central Bank raises quantities of the American currency lower than market price



Exploits the Iraqi market long holidays, stopping auction currency official at the Central Bank of Iraq to restore its control of the currency exchange market and to complete all dealings according to exchange rates similar to those that were adopted before the start of bank's plan to strengthen the value of the dinar against the dollar, which had greatly affected the transactions commercial for the local market, in the best season, which precedes the holidays.
After the dollar exchange rate 1221 1214 dinars / dollar, which forced the market to match the prices of the bank managing the descent towards the dollar value against the dinar, and this policy will not stop at this one roof by workers in the auction exchange, but will raise the value of the dinar in the next few days to levels much higher than the current But gradually, in order to prevent fluctuations in the domestic market, which depends primarily in dealings in the dollar.
The Iraqi dinar has become a cover well and it was time to return to the previous value, and that this step aims to improve the standard of living of the Iraqi people and increase real incomes Most salaries in Iraqi dinars are also keen to make the government State budget also dinars, and this will reduce the size of the costs of projects and heading to the Government, which believes the dollar will be cheaper when the conversion.
However, the central bank denied, in a statement that some rumors to the effect by making the dollar value equal to 1000 Iraqi dinars, or less than current market prices by 22 points, and stressed the bank ceased operations after purchase through auction, and he is watching with great interest the phenomenon of low demand for the dollar in In the local exchange markets under a wave of rumors inaccurate So the dollar standing at the roof of a specific increase or decrease or even change categories currency lifting zeroes or other stressing that some promotes such rumors for commercial gain emergency is in the pockets of beneficiaries at the expense of the public campaign of foreign currency especially small savers.
He assured that the Central Bank monetary policy designed to improve the current exchange rate of the Iraqi dinar, which comes in the framework of economic policy for the country and the fight against inflation and economic stability and boost growth and the development of economic activity in the right context and harmonious away from imbalances or harmful speculation based on incorrect information base objective providing a favourable climate encouraging exploitation and speculation interests of the public at the same time stressing that the exchange rate is currently approved stable at the current level and not in any change will lead to adverse surprises audience and that any bank is ready to buy dollars from customers through increased daily rates and stable, according to policies adopted to him. He criticized the Shiite Mohamed Al Yacoubi such policies which seek to achieve the bank said in a statement yesterday, Thursday, «that there is an apparent contradiction between the financial policies supervised by the Ministry of Finance and monetary policies administered by the Central Bank, the former led to the rise in inflation and the second worked to promote exchange rates dinar against the dollar and suddenly have caused unusual volatility led to a great loss to many people and the accession of other segments to the poor class.

He said the Office of the sun banking, Abdul-Rahman al-Shamri told «Middle East» that the Iraqi market boomed and the short period of time during the holidays and vacation days previous, but has stopped deteriorating for three days for fear of the central bank put another dollar amounts below with the highest rates market, and here will be double the losses this time it has been forced to sell the dollar before the holidays when he arrived at the exchange rate 1106 1226 1220 1114, and concerned that look for the quick losses suffered by the commercial sector during the period of two weeks, as well as loss Mdechri hard currency. Auction the past two days witnessed a great recession in the demand for dollar buying banks participated in a few speculative operations all refrained from buying because of a currency by the bank at a lower price than the market and this is not in the interest of customers because the local market would be forced to change their prices according to the price of the auction and possibly lower than when buying from public, although the bank was able to sell 12 million and 800 thousand dollars at 1214 dinars / dollars, and also entered the purchaser as it purchased $ 390 million and A $ same price but adopted in the last sale price in cash sold 1226 dinars bought with less than deducting commission dinars one for every dollar sold or buyer.

Finance Minister Jabr Iraqi statement said Zubaidi told media recently that Iraq now has more than $ 21 billion and a huge quantity of gold to support the Iraqi currency, and the Iraqi dinar today is much better than some currencies because behind large amounts of gold and hard currency, stressing the Meanwhile, some zeroes on the lifting of the Iraqi currency, he made this proposal after assuming office in the Ministry of the Week and presented this proposal to officials in monetary policy at the Central Bank and then the central bank reluctant to accept this idea, but it became a strong dinar against the dollar ( 1250) after the (1400) I heard «that the Central Bank will meet to discuss the lifting of the three zeroes are positive atmosphere within the bank to accept this idea».

For his part, the bank denied the existence of such intentions and that the currently existing currency is adopted will remain in local dealings, but in the intention to withdraw all of coins from circulation and replaced but the same categories of paper and include the categories (25,50,100) dinars.

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