Wednesday, April 11 / April 2012
Baghdad / Orr News
The exchange rate of U.S. dollar against the Iraqi dinar yesterday and today to the borders of 1230 dinars per one hundred dollars, despite the fact that the central bank urges paced action may contribute to the reduction of furan climb but which ruled that kicks a dead end what he called the central specter of the dollar and exchange rate covers three markets is local.
And launched an economic expert, Dr. Akram Abdel Aziz in Thalillagha of this phenomenon of the economic reality of pension in an attempt to shed light on the kinks behind the spread of this phenomenon, and begin to do so in her speech for the "ur" to put the Iraqi economy in general in terms of continuity of establishing reliability on the oil sector export of crude, accounting for the percentage of over 50% of GDP and over 90% of the income from foreign currency in Iraq as well as that the main artery in the financing needs of the general budget in detail and about all of the above, the basic problem of the Iraqi economy remained the same and we have seen the proportion of ad hoc expenses of consumption at the expense of what is intended for investment expenditures and what translates into the continued lack of diversity of sources of income-generating and wealth and profits according to the textile sector of the Iraqi economy on the one hand, and trends in public spending on the other, as well as limitations and the limited the private sector as a partner and companion in economic activity and the limited proportion of sectoral contribution to GDP.
And see about that in light of scarcity of supply of commodity and service of various kinds, the import is a crucial factor in meeting these needs and increase the demand for the dollar in particular and the trade balance has smallness and limited content export and the multiplicity and diversity of content import and therefore increase the demand in accordance with this hand side and is limited in the framework of analysis and that the increase in demand for the dollar means higher exchange rate and the depreciation of local currency and that of the axioms of economic literature.
Attribute the Central Bank of the reason for its actions heightened involvement covered by the auction currency to provide statements of their accounts and activities so as to control disposition of the dollar, prompting some to withdraw an evasion of settling accounts tax, this justification does not relieve the central provision of other reasons contributed to this mess statements information to third parties not aware of the results on the citizen or without a view.
She stresses the economic, the stability of the exchange the local currency and the continuation of the purchasing power of the unity of Monetary and stability should come from the effectiveness of the real sources of productivity of the economy and harmony in the work of the major markets of the Iraqi economy the real market for goods, services, money market and the labor market and are all in the absence of harmony and may come from poor productivity of maintenance of public and deflection paths for orientation, which serves the march of economic growth and limited inflation targeting as it enhances the stability of the unit of currency over foreign currency interview the other hand and under the conditions of the current Iraq and the conditions of the area around the van, there need to look promising in the mechanisms that would work to attract capital and foreign migrant domestic and inward so as to push towards increasing the supply of the dollar at home and ease the demand for it and perhaps this needs to be more support to banks pushed into the direction of coping continuing to progress and modernity, including in relation to insurance companies with regard to joints and other vital to the economy, especially to reconsider some of the laws that serve the investment process in Iraq in order to be effective and attractive elements of capital.
And in line with the above and return to the statement by the Deputy Governor of the Central Bank of the lack of restrictions on foreign exchange with respect to neighboring countries, says Abdul Aziz, "self-evident to say that this situation means a drain unit of foreign exchange and translation in more health and decline in the value of currency unit Iraq and its impact on the joints all the vital touch the lives of citizens and economic activity and the economy as a whole that this phenomenon need to be serious and serious stand to reduce and eliminate it. "
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