Iraq banks cut the price of the dollar to strengthen the stability of the foreign exchange market

Posted by on Oct 26, 2013 | Leave a Comment

20-06-2013 11:00 AM

Initiated most of the Iraqi private banks cut dollar exchange rates of 1189 dinars to 1183 dinars to the citizens and the 1178 documentary credits, in a move aimed at supporting the actions of the Iraqi Central Bank to stabilize the foreign exchange rate.

The «Central» Iraq announced in a statement, received a letter from the Association of Iraqi private banks which emphasizes «previously announced commitment to the initiative of three banks to sell the dollar eligibility to citizens at the lowest price. He said that the initiative «represent normal behavior show by Iraqi banks to stand with the trends of monetary policy, and the keenness of the Central Bank of Iraq with these banks to support the

Iraqi economy and raising the efficiency of fiscal and monetary tools.
Experiencing the Iraqi market fluctuations and clear in the exchange rate of the dollar against the Iraqi dinar, despite the actions taken by the central bank aimed to stabilize the exchange rate through the expansion of distribution outlets, and the inclusion of all citizens in the dollar to get through specific mechanisms.

Experts attributed the sharp volatility that accompanies the process of exchange of the dollar against the Iraqi dinar to the absence of a law regulating the process of converting foreign currency in the Iraqi market, which allows finding gaps are often acute in supply and demand. He urged the importance of «procedures contribute to the stability of the value of the Iraqi dinar in the local market, namely the adoption of a law that regulates the conversion process and external audit in the documentation submitted in order to buy the currency, with the largest amount of pumping in the local market through a variety of outlets.

The Vice-Governor of the Central Bank of Iraq the previous appearance of Mohammed Saleh in a statement to Al-Hayat, that the trade surplus in the current account «positive impact in improving the Iraqi dinar exchange rate, in terms of its impact on the value of the dinar and not vice versa.

He pointed out that Iraq’s economic policy is «based on the principle of freedom of foreign exchange, including not intersect with any suspicious transfers and contrary to local and international laws, such as money laundering.

Salih stressed, «the need to organize more accurate the outside of the conversion process, which depends on oil resources. Also saw «a need to address two options depends very central pattern, or the launch of economic freedom with the organization more». He pointed to «the ambiguity in the liberalization of the capital account payments, and we are still afraid of capital flight, which requires legislation, a law that regulates the Iraqi capital out». He pointed to the existence of a law «regulates the entry which is about investments, therefore we need a law to regulate the exit of the Iraqi capital to prevent inflating import bills.

And popped into the local economic community calls for the Iraqi Central Bank, to ‘activate the policy that has been followed since the period by subtracting the amounts than ever before through direct sales outlets for citizens ». And these invitations stressed that «the control of the central banks, which play the role of mediator between the student real currency and central bank, as well as make sure that the documents provided by the merchant. It also put forward proposals for the distribution of employees’ salaries in dollars, as is the case in Jordan, Lebanon, because it would raise the supply versus low demand.

Furthermore, invited the Executive Director of the Association of Iraqi private banks Abdul Aziz Hassoun said in a statement to «life», to «legislation law to protect citizens’ deposits in local banks. He pointed out that the Iraqi private banking sector «has great liquidity being able to invest funds deposited with him citizens, and make profits in the event of rewarding banking laws amended to allow this.

He said that would «lay the foundations for legal materials, protect the deposits of citizens and ensure their safety not only in private banks, but also the government. He explained that the legislation «such a law and its application in line with the growing calls to encourage citizens to deal with the deposit and investment banks. It was announced that the proportion of deposits in government banks’ ranging between 65 trillion and 68 trillion ($ 50 billion), of which 22 trillion dinars and deposits of private banks.

The banking system has in Iraq, 43 banks as well as the Central Bank. The property is distributed according to the seven state banks and 30 waged banks, including seven Islamist Add to six foreign banks.

The International Monetary Fund (IMF) called on the Iraqi Central Bank to take measures leading to the gradual liberalization of foreign exchange, through auctions carried out by the bank, so as not to repeat disorders suffered by the capital market last year.

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