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Dollar trading phenomenon invading Iraqi markets

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BAGHDAD - Bashir Khazaal
Many trading the U.S. dollar in most commercial transactions within the Iraqi market, especially after 2003, and became easy to be run by any person regardless holdings of U.S. currency in the supermarket or even when the owners Bsttiyat of cigarettes, it is no longer limited to the shops banking, which were approved, the work has At the end of Tsaininiat the last century and the other non-licensed doubled prepared hundreds of times, the owners of the business dealings in import and Altsidirwalakarat and stores of gold and shows sell cars and the rest of the other economic activities carried out most of their transactions in dollars instead of the Iraqi dinar, this is payment of most segments of society to embrace the phenomenon of dollarization, which reached fairly simple transactions in the shopping process, which led to the spread of the owners of Bsttiyat banking on the sidewalks and at entrances to commercial streets scattered throughout the rest of the capital Baghdad and other governorates.
In the market for a nice commercial business transactions take place for buying and selling food in U.S. dollars and are of such transactions, either by transfer of funds through banking offices, or direct delivery, which avoids most of the traders because of robbery, theft and robbery taking place between now and then.
Hamid Kazem dealer sells large quantities of flour imported to the contractors in the local markets back the cause of his handling of the U.S. dollar instead of the Iraqi dinar, saying: Buy large quantities of flour up to hundreds of tons per month, the price per ton up to (one million and eighty) dinars, the price 100 tons is equal to (one hundred million eight hundred thousand dinars, when we want to pay 200 or 400 tons, will be counting denominations and carry them very difficult for the merchant and required time is not available in commercial transactions that are done very quickly through the book and Alqtoat that are most often through mobile phones , and therefore confined to the trading process on the dollar, which facilitates the process of receiving and delivery, the amount of $ hundred million Iraqi dinars, turn to 90 thousand dollars approximately, and this amount can be easily carried by the merchant.
Haji Qasim Rezouki the owner of the distribution of material Alskraly traders secondary reason for the expansion of the phenomenon of the dollar, saying: convert currency from the dinar to the dollar and vice versa may cost us in cumulative losses as a result of difference of exchange, which is remarkable when you exchange large sums of money, a trader buys from the importer dollar and does not accept local currency, in Last week I bought 350 tons of sugar, the price per ton of the Iraqi dinar is 660 000 dinars, the equivalent of 33 000 dinars per bag when put to the consumer, the price inclusive of currency borne by the merchant and the citizen, because when I bought 100 tons, for example price of 65 thousand dollars afford to take a cost-recovery amount of Iraqi currency and converted to the dollar again, which is witnessing a rise and fall slightly sometimes, but it affects the trader because it handles large amounts may not be noticeable in the dealings of the local markets, is not meant here that the Iraqi dinar in the place of mistrust, but rather the contrary, but the limited categories of cash and limited to the category of 25 thousand dinars unfavorable to us as traders easy handling because of the size of the local large Nkhtzelha amounts in U.S. dollars, for convenience.

Banking stores
The number of shops banking approved in 1998 in all parts of the capital Baghdad, 360 offices, in that year the government allowed the time the work of this office after he was forbidden to prohibit the consumption of foreign currencies, and a doubling of this figure at present so can not be counted not in Baghdad alone, but in all governorates Iraq to the economic activity and the large financial transactions, especially after the opening of trade on different markets.
Hazem Abdul Redha shop owner for banking in the neighborhood of the banks said, we convert the cash Baldolarmen Iraq to countries like Syria, Jordan, Egypt and the Gulf states and vice versa and Nsthsal fee simple does not exceed forty thousand dinars for each (Book) (ten thousand Dolaramirka), shall be deposited the amounts we have in exchange for receipts received , and we convert the Iraqi currency to the dollar for the beneficiary can be dealt with abroad, mostly the deposit amount in dollars to avoid the difference of exchange, especially in large amounts.
He explained that the appetite for the dollar continues to increase so that some of the staff and other professionals have become remit their savings to the U.S. dollar, rather than the dinar increase in security despite the exchange rate stability and the strength of the Iraqi dinar, which began to regain confidence gradually through our monitoring of the market, and at times rises dollar exchange rate due to the increase in demand for the deal most of the local market currency, the U.S., even butcher or fishmonger or restaurant owner accept to pay him the dollar, and sometimes exceed dealing Baldolaraly the dinar, and this causes confusion and in multiples of the national currency and reduces the moral worth when the Iraqi citizen.

Albesttiyat banking
Muhammad Massari's peanuts for the sale of cigarettes and candy in the fight he said: I practice the work of banking since 2004 and through the sale and purchase of the U.S. dollar, buy banknotes from the category of hundred dollars exclusively (one sheet at 119 000 Iraqi dinars and sell them to (120 thousand) and the price is not fixed and is subject to high and a slight decrease as the market need and supply and demand, and buy my goods from cigarettes in U.S. dollars, and some traders Aigblon Iraqi currency, except in cases where the recession in the market and there is no strong movement in the buying and selling, and so he took the market and for more than four years ago, depending on the dollar U.S. deal and reached the amount of the transaction to the dollar single (two dollars, three dollars) accumulate as the price of goods, quantity, bringing the number to four or five thousand dollars, customers market here are either of the owners of the markets and supermarkets buy large quantities of cigarettes and candy, and the payment is in U.S. dollars, and if The Iraqi dinar, the price may increase slightly teams 1000 dinars or less than that and some people are employees and others are turning their savings or a portion of their salaries to be paid in Iraqi currency to the U.S. dollar, and they are many and we have customers from both permanent and long periods.
• What Hospb resorting to the U.S. dollar do you think?
• think through what I see in the market that merchants and citizens have confidence in U.S. dollars more than the Iraqi dinar on the grounds that the currency in circulation in all countries of the world and accepted a large traders and became an official way to handle the dinar, but surpass it.

Financial legislation
Economic researcher Abdul-Rahman Al-Ghazi pointed to the need for there to be legislation for the new laws governing the work of banking offices spread remarkably, it is some particular offices is approved work relating to money laundering or deliberation of money stolen or obtained from the operations of corruption, and thus will face state difficult significant in controlling the entry and exit of foreign currency, especially as we face a security situation difficult depends basis of financing terrorist operations in which to get through funds from abroad and at home, these amounts will not be in Iraqi currency but U.S. dollars globally traded to buy weapons and other equipment this side, side Alachritalq restore the confidence of the Iraqi dinar himself and re-circulated in the States neighboring currency cash it worth purchasing large, in the early eighties of last century was the Iraqi dinar spent three Jordanian dinars, and in the mid-seventies spend three dollars U.S., for us to imagine the power of Dinaracharaúah in the rest of the region in that period, if it continues the phenomenon (dollarization) the currency in this way the broad markets and trading will remain the Iraqi dinar suffers from the dominance of the dollar because of customer confidence in this currency, and ease of use, and therefore, there should be new laws governing the structure of the currency in Iraq, and redraw the monetary policy according to feasibility and not as a chaotic keep the Iraqi dinar Aruah place for years, should Nstvad of monetary policy sober for some countries in the region and the world and learn about the experiences of the modern economy, neglect of such a phenomenon would lead to economic problems accumulated over the years and hard Halanha easily and is still the opportunity available to institutions financial policy to draw again.

Economic imbalance
Deputy Governor of the Central Bank of Iraq the appearance of Mohammed Saleh spoke about this subject, saying: The continuing phenomenon of dollarization of the Iraqi market and the duplication of transactions in different currencies, something negative needs to implement the program is able to restore confidence in dinars, dollar U.S. accounts for about 40 percent of the local trading, Iraqi market is not removed from the market
Almdolrh, and this negative phenomenon means that there are flaws in the domestic economy and international relations, will lead to a deterioration of the currency market, locally and externally, the latest estimates reported that between 35 and 39 percent of transactions are in foreign currencies in domestic markets, Valsafqat large as buying homes, cars, gold, and import goods and goods held in dollars, and small dinar, the problem of dollarization due to a lack of confidence in Iraqi dinars, which has become of strong currencies and trading up in the markets of neighboring countries, and the reason for this is due to a malfunction in the structure of the Iraqi currency and the weakness of composition, and higher paper we have is from the category of 25 thousand dinars the equivalent of $ 20 and, therefore, need big cash payments to the largest groups to facilitate the payment and pregnancy, especially when the
Iraq has so far preferred to deal cash unlike the world that have crossed this stage and the mechanisms used to pay easy and simple, such as cards, instruments, devices and other electronic payment.
* Do you have any solutions to the phenomenon of trading foreign currencies in the Iraqi market?
- The solution lies in the application of the most prominent project to delete the zeros for the restructuring of the dinar and the equation of the phenomenon of dollarization, and would deal in the Iranian and Kuwaiti dinar and the Saudi riyal, said:
«It is within the scope of transactions tourism, due to the convergence of the border and the presence of tourists make these transactions as a form of facilities, Alammertabiei in all countries of the world is that the transactions are in the national currency, this would be the best, and restricts the use of other currencies in foreign dealings, but the Iraqi citizens accustomed to dealing the rest of the Currency, and the observer sees the movement of prices, and it has become accepted as a phenomenon and this process will continue unless it is a restructuring of the new Iraqi dinar.

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This is a great article it is saying that the iraqi people and business men are sick and tired of the low value of the dinar. It makes even ordinary things like ordering supplies for business a pain in the arrs> that the only main reason that they are using dollars in the first place is because it is much simplier to get transactions handled. They re not trying to sit there and lug around or count their money all day to pay for stuff. they are trying tomake a living. So they are pre paring the people that already use the dollar to get used to using the dinar because it will be the same value.

Bye the sea


Anikan thank you for the article. Very good to read.

Prudence, great thoughts and recap. Thanks for taking the time.

Best regards, bye the sea



their neighbor, Iran, whose currency is free falling thanks to US sanctions at the tune of 40-59% > makes US dollars the only 'safe' bastion for their people. To make it worse, dollar traders have been officially stopped by Iran government making black-market dollars worth even more. Any surprise they are getting them from Iraq??



Thank you. I like the very last sentence Smile

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