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The reasons for the low rate of the Iraqi dinar against the dollar and the suggested solutions
6/20/2015
That one of the reasons for the high price of the dollar against the Iraqi dinar is to reduce the central bank sales significantly in terms of reducing sales of $ 300 million to $ 75 million a day, but this reduction is relatively balanced with the Iraqi oil sales, and there are some politicians justified the reduction of central bank sales is due to lower the price of a barrel of oil, and this justification is not convincing because the central bank sales were $ 300 million a day when the Iraqi oil sales of about 2.4 million barrels per day at a price of $ 100 and any oil sales were equivalent to 240 million dollars a day
Today, the price of a barrel of Iraqi oil dropped to about $ 55 and increased exports to 3.1 million barrels per day of oil sales fell to about $ 170.5 million per day
If we want to calculate the proportion of oil sales in dollars daily rate between the two periods above equals the sum divided oil sales currently on oil sales in the previous period, namely: 170.5 / 240 = 71%
And it was the central bank's reduction of 71% from sales of $ 300 million which is equal to 170.4 million dollars a day, not $ 75 million a day because the bank reduced the proportion of sales to 25% and not 71%
And if identified central bank sales of $ 170 million a day the dollar exchange rate in the domestic market will fall to less than 1280 dinars to the dollar.
The reason for reduction of central bank sales to $ 75 million is the previous government and the parliament, where the previous government by adding paragraph is studied within the budget law obliges the central bank not to sell more than 75 million dollars a day and the longer this paragraph interference in the independence of the Central Bank Affairs and contradiction Bank Act and the mechanism of work .
When the central bank to increase its sales to $ 200 million seen a decline in the dollar price in the local market are looking to 1350 dinars, and if the central bank continues to this ratio will drop the dollar to about 1250 dinars
On the other hand there are other reasons that led to the high sale price of the dollar in the domestic market is the existence of banking companies as an intermediary between the customer and the central bank and therefore curtail the role of intermediary companies suggested that the central bank will sell directly to the customer or through government banks
If we assume that the price of the dollar in the domestic market in 1350 dinars and the sale price of the central bank in 1190 dinars The difference is in favor of the banking intermediary companies Rather than exploit the intermediary companies of these profits outrageous and without any effort also allows the intermediary firms of manipulating the Iraqi market economies and therefore we suggest the central bank to raise price the dollar to 1250 dinars and directly, without any intermediary, and here will be the customer's beneficiary and the central bank beneficiaries also as well as the citizen to reduce the relatively inflation due to ensure low dollar exchange than 1,350 dinars on the black market price of 1,250 dinars, or at the new central bank also said the new price will provide service to the government because government buys annually Iraqi dinars for the benefit of the operating budget by about $ 70 billion and the government will get a new gain because of a difference the old price of the dollar and of 1190 dinars proposed new price 1250 dinars to the Central Bank and an estimated annual difference in favor of the government in the amount of about 4.2 trillion dinars, equivalent to $ 3.36 billion, according the new rate of the Central Bank and this amount is enough to create a port of Faw, for example.
If the central bank can not directly sell without banking companies 'intermediate' can be part of the employee's salary in dollars, while distribution to the unstable security and economic situation of the country.
The article expresses the opinion of the author and do not necessarily reflect the viewpoint of the most important news
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6/20/2015
That one of the reasons for the high price of the dollar against the Iraqi dinar is to reduce the central bank sales significantly in terms of reducing sales of $ 300 million to $ 75 million a day, but this reduction is relatively balanced with the Iraqi oil sales, and there are some politicians justified the reduction of central bank sales is due to lower the price of a barrel of oil, and this justification is not convincing because the central bank sales were $ 300 million a day when the Iraqi oil sales of about 2.4 million barrels per day at a price of $ 100 and any oil sales were equivalent to 240 million dollars a day
Today, the price of a barrel of Iraqi oil dropped to about $ 55 and increased exports to 3.1 million barrels per day of oil sales fell to about $ 170.5 million per day
If we want to calculate the proportion of oil sales in dollars daily rate between the two periods above equals the sum divided oil sales currently on oil sales in the previous period, namely: 170.5 / 240 = 71%
And it was the central bank's reduction of 71% from sales of $ 300 million which is equal to 170.4 million dollars a day, not $ 75 million a day because the bank reduced the proportion of sales to 25% and not 71%
And if identified central bank sales of $ 170 million a day the dollar exchange rate in the domestic market will fall to less than 1280 dinars to the dollar.
The reason for reduction of central bank sales to $ 75 million is the previous government and the parliament, where the previous government by adding paragraph is studied within the budget law obliges the central bank not to sell more than 75 million dollars a day and the longer this paragraph interference in the independence of the Central Bank Affairs and contradiction Bank Act and the mechanism of work .
When the central bank to increase its sales to $ 200 million seen a decline in the dollar price in the local market are looking to 1350 dinars, and if the central bank continues to this ratio will drop the dollar to about 1250 dinars
On the other hand there are other reasons that led to the high sale price of the dollar in the domestic market is the existence of banking companies as an intermediary between the customer and the central bank and therefore curtail the role of intermediary companies suggested that the central bank will sell directly to the customer or through government banks
If we assume that the price of the dollar in the domestic market in 1350 dinars and the sale price of the central bank in 1190 dinars The difference is in favor of the banking intermediary companies Rather than exploit the intermediary companies of these profits outrageous and without any effort also allows the intermediary firms of manipulating the Iraqi market economies and therefore we suggest the central bank to raise price the dollar to 1250 dinars and directly, without any intermediary, and here will be the customer's beneficiary and the central bank beneficiaries also as well as the citizen to reduce the relatively inflation due to ensure low dollar exchange than 1,350 dinars on the black market price of 1,250 dinars, or at the new central bank also said the new price will provide service to the government because government buys annually Iraqi dinars for the benefit of the operating budget by about $ 70 billion and the government will get a new gain because of a difference the old price of the dollar and of 1190 dinars proposed new price 1250 dinars to the Central Bank and an estimated annual difference in favor of the government in the amount of about 4.2 trillion dinars, equivalent to $ 3.36 billion, according the new rate of the Central Bank and this amount is enough to create a port of Faw, for example.
If the central bank can not directly sell without banking companies 'intermediate' can be part of the employee's salary in dollars, while distribution to the unstable security and economic situation of the country.
The article expresses the opinion of the author and do not necessarily reflect the viewpoint of the most important news
[You must be registered and logged in to see this link.]
