: Tuesday 10.27.2015 1:05
Baghdad news / Abdul Ghani Qahtan al-Saidi
said economist Abdul Rahman al-Mashhadani to stop the currency auction in Iraq in implementation of the IMF conditions will lead to a catastrophic inflation in Iraq. Mashhadani said in an interview for "Baghdad News" that "one of the terms of the International Monetary Fund to grant a loan to Iraq, is to raise support for the national currency through stop the currency auction at the Central Bank, and that the dollar's exchange rate against the Iraqi dinar is one of the basic conditions of the International Monetary Fund through the International Covenant agreement signed by Iraq in 2004, and therefore, this condition will be of the impact of harsh Iraqi economic reality. "He said al-Mashhadani said" Iraq resorted to the International Monetary Fund for a loan to improve the economic reality, so took advantage of Iraq's need for this loan fund, making it imposes removal of subsidies on the national currency clause ". He said al-Mashhadani, that" the productive sectors such as agriculture does not make up only 5.3% and the industry is closer to 6% of gross domestic product, so you are relying on imports from abroad through the provision of hard currency, and therefore there should be coordinated between the national currency and foreign currency, and this will only be through an auction daily currency, which is evaluated Central Bank. "Among Mashhadani said" Stop the currency auction will increase the demand for hard currency in the local market, and thus lead to higher Iraqi dinar exchange rate against the dollar, which would increase according to preliminary projections to 2250 dinars to the US one dollar, if increased exchange rate the dinar against the dollar, it will lead to higher inflation rates insane and will affect the real incomes of Mozvien and citizens, and we will see the same situation experienced by the country in 1996 ". On the other hand, the expert lion Mohammed Ali said" stop the auction of daily currency pursuant to the terms of the International Monetary Fund will be a negative impact on the Iraqi economy. "said Mohamed Ali in an interview for" Baghdad News "that" oil sales arrest in US dollars, while the general budget charged as Iraqi dinars, so the central bank auction of works on stabilizing the exchange rate according to the mechanics of global financial controls in place . "said Mohammed Ali that" the Iraqi financial situation does not accept any tremors inflationary, being a very sensitive market, and standing on the healed the abyss, so it is logical to cancel the daily currency auction at the Central Bank, "noting that" the International Monetary Fund puts the general standards, has be these standards positive effects on the countries and negative effects in other countries, including Iraq. "said Mohammed Ali that" Iraq in the current circumstances importing everything and does not produce anything, so the provision of foreign currency operation to cover these revenues exclusively through the bank auction Central. "
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