Local produce and foreign exchange rates
07/5/2018 12:00 am
Walid Khaled Al-Zaidi
Foreign exchange rates in each country are affected by demand and demand.
We in Iraq do not go out of this economic process.
Foreign currencies such as the dollar or the euro are rising and their exchange rates fall mainly on the amount of demand by state institutions, private sector companies or individuals To facilitate the process of obtaining goods or services from abroad or in the case of travel to the countries of the world Different.
What is important in this area is the request of the State institutions for foreign currency as the largest source for these currencies, because of its wide circle in economic relations and trade exchanges with different countries of the world dealing with foreign banknotes, which we have difficult currencies, or values of purchase High.
Among the things that the Ministry of Commerce needs from foreign originators are the ration card items, which are available only through the purchase of companies specialized in the supply of food mainly, to deal in foreign currencies, especially the dollar most traded in the world markets, where Iraq believes the ration card items from abroad Over the past period, it is necessary to buy (withdraw) large amounts of the dollar from the foreign exchange market to fill the process Purchase.
Which keeps the exchange rates of the dollar and the rest of foreign currencies for the exchange rate of the Iraqi dinar high relatively.
The recent action of the Ministry of Commerce, which decided to secure the flour and sugar from the local product for the purpose of distribution within the ration items to citizens.
The most important of which is the process of buying these materials from two local crops depending on the national currency (dinar), which reduces the amount of demand for amounts as funds allocated in dollars and other foreign currencies To buy these two items of global originators and ease the financial burdens that weigh heavily on the treasury Country.
In economics and finance, the value of needs increases mainly on increasing demand and vice versa. The value of the dollar is lower than the value of the dinar adopted by the Ministry of Commerce to buy flour as a domestic crop and sugar as crop National.
Such behavior is an important fact that raises a very important issue for the nature of external and internal factors, which contribute to a large extent to the actual need to fall within the framework of national public requirements of domestic payments.
It should be recalled that a group of experts and specialists in financial and economic affairs have been encouraged to process the revaluation of the Iraqi dinar against the value of the dollar and other foreign currencies depending on the frequent circulation in the purchase of ration items and not limited to international purchases that rely on foreign currency from external sources, Is a practical way out of some of the dilemmas suffered by the Iraqi national economy related to the large foreign exchange of the proceeds of Iraqi oil sold in the world crude oil markets.
Iraq, which has risen and overcome many of the challenges and difficulties on the path of emancipation is today in a better way than to open the way for reforms and economic treatments studied that would rid the country of many constraints and self-reliance and the activation of benefits based on the possibilities and capabilities National.