Member of Parliamentary Finance answers .. What will happen if the central bank stops selling the dollar?
Economy 05/1420 11:21 3366
Baghdad today - Baghdad
Member of the Parliamentary Finance Committee MP Ahmad Al-Saffar confirmed on Thursday (May 14, 2020) the necessity of the dollar sale window in the central bank, while revealing the repercussions of what happens if the bank stops selling the dollar.
Al-Saffar said in an interview with (Baghdad today), that "the central bank is an independent institution that has no room for parliament or the government to interfere in its work," stressing that
"the bank has a mission which is to maintain the Iraqi currency's price, i.e. the purchasing power of the dinar and its value against other currencies, including the dollar."".
He added, "The central bank’s selling window to the dollar is one of the factors that contributed to the stability of the exchange rate during the last period," pointing out that
"the selling process was interrupted for a short period that led to an increase in the exchange rate of the dollar and a decrease in the value of the Iraqi dinar, which means that the owners of limited income will be affected because of the high Prices of goods and merchandise."
Al-Saffar pointed out that "the dollar sale window is very necessary to preserve the value of the Iraqi currency, but the amount of sales and its mechanism need to be reconsidered according to specific considerations, that is, that the sale process is specific for traders who import goods and goods in exchange for official papers," noting that
"there is a recent talk that Others and banks that benefit from the sale."
The Central Bank of Iraq confirmed, yesterday, Wednesday, its commitment to a list of criteria that include compliance points, in the introduction of banks to the window of sale of foreign currency.
Ihsan Shamran Al-Yasiri, Director General of the Central Bank’s Accounting Department, said in a statement that “discrimination does not exist in entering the currency sale window, but some banks do not meet the criteria adopted by the bank, for quality and compliance with decisions, especially regarding money-laundering units.”
Al-Yasiri added that "some who fail to reach the criteria of the Central Bank, are accused of discrimination."