5-25-13 Alsumaria news/Baghdad
Record US dollar in the local market has risen sharply over the past few days, if the price of the dollar around 1280 was IQD last month at around 1,200.
Foreign currency dealers said in Baghdad, in interviews for “alsumaria news”, the exchange rate of the US dollar, rose markedly since early this month, but this height peaked on Wednesday, after a record per dollar 1,285 dinars.
Neighbouring countries and internal reasons behind the dollar’s rise in the market
At the time of Central Bank seeks through the currency auction for years, to keep the exchange rate of the Iraqi dinar in the currency market, the exchange rate is volatile clear since late last year.
The Economist says in an interview, Majid graphic for “alsumaria news” that “the regional situation in the region, particularly the situation surrounding Iraq’s neighbors, especially Iran and Syria, one of the main reasons behind the dollar recently in the Iraqi market”, noting that “sales of Central Bank cash have risen recently over adapters due to cash in those two States treated their trade because of the economic embargo imposed on them.”
Mock said that “the Bank’s sale of $ 100 million a day it would mean the sale of $ 500 million a week and thus there is a $ 26 billion goes to outside Iraq for import”, noting that “most of these sums are smuggled out of Iraq without benefit.”
Mock notes that “the difference in the Iraqi Central Bank to sell dollars and 1189 dinars per dollar and what is in the local market of 1280 dinars per dollar encouraged speculators, traders and citizens to go to buy dollars from the Central Bank for the purpose of taking advantage of the price difference, which has increased the demand for dollars”, pointing out that “this rise cannot be reduced without regulating trade weamelbat import to Iraq.”
Central Bank sells at auction its currency US dollar per JD, 1179 by private banks and supply companies, but does not sell directly to citizens, while selling private banks authorized to sell the currency, dollar, by citizens, 1,189.
Mafias to smuggle currency
Economist alecs Antoine “demand for the dollar than before because the mafias are collecting dollars and smuggled out of Iraq on the pretext of import operations from outside Iraq”, stating that “the quantities coming out of Iraq are not commensurate with the amount of goods entering.”
Antoine says in an interview for “alsumaria news” that “Iraq has five offices for laundering these offices, however, are still below the level in the detection of smuggling hard currency outside Iraq, stressing” all parties must cooperate among themselves whether the Central Bank or border control and customs taxes and fight corruption and increase oversight and internal stakeholders. ”
And it looks like the banking offices in Baghdad about the cause of this rise, but there is agreement that there is a demand for dollars exceeds supply in the market.
The Bank says the axe in Karrada Mohamed Ibrahim in an interview for “alsumaria news” that “Although the Central Bank sold the dollar to citizens by Government and private banks, but demand for dollars is greater than before”, stating that “every dollar buys daily from citizens and limits of $ 50,000 find buy traders either through cash or in the form of remittances.
Official: stop the World Bank from selling the dollar remittances market befuddled
The Central Bank says he seeks through the currency auction for years, to keep the exchange rate of the Iraqi dinar in the currency market, but the exchange rate is volatile clear since late last year
The Bank does not provide any explanations for the discrepancy between the price and the market price, although it is responsible for monetary policy in the country, including exchange rate policies and the daily meetings of the buying and selling of foreign currency except official holidays the Bank depends on these auctions.
The Director shows a Bank of Government of the Ministry of finance in Baghdad in an interview for “alsumaria news” that “Iraq’s Central Bank stopped selling dollars in the form of transfers for the purpose of organizing anew the befuddled local market prompted traders to buy the dollar in the domestic market resulting in a higher dollar price in this market.”
The official added “prices remained high even after the Central Bank selling by foreign remittances,” he said, adding that “what we are witnessing today is rise in these prices is speculation of currency traders on a high level.”
And the Central Bank of Iraq in February 2012 all banks participating in an auction to buy and sell foreign currency must disclose its customers as a condition for obtaining foreign currency, confirming that there is an incorrect purchases but fictitious and is otherwise legal and banking rules.
I tried “alsumaria news” get permission from officials at the Central Bank, explains the reasons for the high dollar exchange rate, but the Bank’s information Office were required to have formal letter includes an explanation of the reasons for the request for permission, written questions for consideration, and might answer them. It is known that the exchange rates change rapidly, requiring explanations accompany.
Local currency traders expected, Iraqi dinar rate to continue to fall against the dollar, in what they described as “incomprehensible policy of the Central Bank of Iraq”.
The Central Bank was given some private banks in Baghdad by selling dollars directly to citizens in order to meet the growing demand. Private bank sells $ 5,000 for every person holding an Iraqi passport at a price not to exceed the 1,189 per dollar. But observers and currency traders say that this procedure did not contribute to the stability of exchange rates, having turned to the door to corruption, because most of the funds going for direct sale to customers.