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5 Arab countries have released their currencies .. How were the "float" experiments?

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5 Arab countries have released their currencies .. How were the "float" experiments?

5 Arab countries have been free for their currencies .. How were the "float" experiments?

15 hours ago  [3/24/2021]  
Iraq in the world


5 Arab countries announced "float" their currencies completely or in part over the past five years, in an effort to teach their financial and economic crises.

According to Anatolia, total or partial floating trials in the five countries were not encouraging.

This step was harsh consequences for its citizens, especially vulnerable groups and low-incomes.

The recent significance of Lebanese, Lebanese concerns is increasing to floating the lira exchange rate, under the pressures of the International Monetary Fund, which may mean more local currency decline, and rise in prices.

Egypt

Egypt was the first Arab countries in abandoning the firm exchange rate against the dollar and edited the exchange rate fully, so that the price sets completely for the supply and demand mechanism.

It was immediate consequences of the resolution, a sharp drop in the exchange rate of about 8.8 pounds for the dollar to 18 pounds, what the country's foreign exchange reserves were weakened, and therefore their ability to secure the commodities, most of which are imported from abroad.

Inflation rose in Egypt during the subsequent months of floating resolution to exceed 35 percent, at a time when Egyptians deposited with local currency, due to land exchange.

To whom

This is the pretext of Egypt, and I am fully edited in 2017, in a move aimed at bridging the gap between the official exchange rate, specified by about 250 riyals for the dollar.

The move was due to the decline in the price of the local currency, within hours, to exceed 370 riyals for the dollar, which is the exchange rate on the black market.

Today, after 4 years on floating, Riyal exchange rates vary against the US dollar, but it is 850 - 900 riyals in the temporary capital of Aden, amid a scarcity of foreign exchange.

States such as Saudi Arabia and UAE have entered the central bank, by pumping deposits in dollars with a view to maintaining Real Madrid cohesion, but the department war and the absence of stability lost the country's majority of foreign exchange.

Morocco, West, sunset

After my experience of Egypt and Yemen in full editing of their two customers, and what is the owner of this popular protests, the Moroccan government has gradually chosen to appreciate the dirhams, as one of the provisions of the IMF reform program for the country's assistance.

In 2018, the Moroccan government decided to allow for the exchange rate of 2.5 percent or down in front of a basket of the euro (60 percent) and the US $40 percent, as a total of 10 years.

In March 2020, Morocco began a second stage of float, expanding margin to move to 5 percent up or down.

Morocco did not see any severe confusion in the partial floating process, because they were not a priority for the local economy, which was stabilized in commercial activities and payments, and the country provides a secure foreign cash.

Iraq

In the second half of 2020, the Central Bank of Iraq was faced in foreign exchange reserves, caused by the exploitation of the black market revocation between the official price (1183 dinars for dollar) and the parallel market price (1490 dinars for the dollar).

Under this pressure, and pressure from international institutions, the Iraqi authorities in December, on a partial float of the currency, to reduce the price of the dinar to 1460 against the dollar, with a view to eliminating the black market.

Iraqi financial justified the reduction of the dinar, against the country's financial crisis, following the decline in oil selling prices in world markets due to the repercussions of Corona virus.

The International Monetary Fund (IMF), supported its support for a decisions to reduce the value of the Iraqi dinar against the dollar, as part of the country's financial reform plan suffered from a suffocating economic crisis.

Sudan

Sudan was the last of the Arab countries that abandoned the firm exchange rate for their national currency. The Sudanese Central Bank in February was partial to a partial float of the local currency, an almost similar step for the Iraqi procedure.

Following the Central Sudanese decision to "unify the exchange rate," the price of the local currency fell from 55 pounds for the dollar (the official price to date) to 370 pounds, while an average in the current week 379.

"The decision is aimed at uniting and stabilizing exchange rate, and converting resources from the parallel market to the official market and attracting Sudanese transfers working abroad," a statement told by a "central" statement last month.

The Sudanese Central step is unifying the exchange rate, gradually up to support fuel and other basic commodities, in implementation of IMF demands as a condition to support the Khartoum reform program.

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