Will the CBI will be able to address the low value of the dinar?
Posted on October 31, 2013 by kdorman
10-31-13 Baghdad, Mustafa Habib: At the door of the Rafidain Bank, the government stands hundreds of people in a long queue to buy the dollar after the bank allowed every Iraqi intended to travel to purchase 5,000 dollars at a subsidized price from the Central Bank of Iraq and the value of 1900 dinars per dollar.
Iraqi dinar is witnessing weeks ago marked decline against the dollar value returned by economists and Vice specialists in the matter of financial factors political, security and other financial because of the growing phenomenon of smuggling dollar outside the country.
central bank sold every citizen intended to travel 5000 dollars at 1900 dinars per dollar, as it sells banking offices at 1126 dinars, but brokers currencies and the owners of banking offices invested the opportunity to get hard currency.
game practiced by these is to send a group of citizens to government banks to replace the currency exchange for giving them a commission of $ 100 for each replacement process.
“talk” surveyed a number of citizens who come daily to the banks where he confirmed many of them that “the attributes of travel allow them to replace the currency price mentioned forged and banking offices provide them with the visibility of the bank staff to approve the purchase of $ 5,000. “
and adds many of them, mostly from the poor class, “The owners of banking offices give us the amount of dollar buying for not امتلاكنا this amount and later we reinstatement them dollar versus giving us a hundred dollars for that process. “
says economist Majid picture “The deterioration of the exchange rate of the dinar against the dollar due to many factors, including political and other security and a third related to financial management in the country.”
adds to “talk” that “the Central Bank a few months ago was sells between (50 150) million dollars per day, but soon increased demand for the dollar grew sales to $ 400 million per day.
Suri said that “the security situation tense and complex political situation pays a lot of traders and owners of capital to convert their money outside the country and switch their money from the dinar to the dollar for fear of the collapse of the dinar. “
Some companies non-Iraqi operating in the country decided to suspend the work of its employees and deported out of Iraq because of the situation.
says one of the officials in the Turkish company specialized in building homes in Baghdad that “the parent company in Turkey decided to withdraw all its employees Turks against the backdrop of crisis situations in the capital and the return of the bombings.
adds that “our work during the past two months saw a recession because of the lack of construction projects by the Iraqis.”
problem facing the forex market in Iraq, they are not subject to certain controls, and simply microchannel can any people in Baghdad and other Iraqi cities to get the dollar through hundreds of banking companies unlicensed or by the owners of stalls on the sidewalks, and does not cost much more than wages.
recognizes Kazem Jassim, the owner of a small office for banking in the Mansour district in Baghdad, that his work is not subject to censorship by the government or the central bank.
, he says, “to obtain a license by the Bank require a lot of regulatory approvals and subject to favoritism therefore preferred to work without a license seven years ago.”
deputies in the committees of integrity and financial parliament throwing a portion of the responsibility for the deterioration of the dinar exchange rate on the bank Central to being the executive responsible for fiscal policy in the country.
charges these MPs are focused on how to manage the central bank, and procedures that do not live up to the required level befitting the national economy, in the words of some of them.
member of the Integrity Committee in the Parliament MP Jawad Alshahyla said, “After replacing the Governor of the Bank Previous known integrity and experience Shabibi began dinar exchange rate against the dollar to decline and became the worst of the past, administration of the new bank was unable to control the smuggling of currency. “
Alshahyla confirms that his committee pursuing policies of the Central Bank under the Governor of the Bank’s New Abdul Basit Turki, according to initial reports drop policy cash, and adds, “There are staff corrupt in the bank must be held accountable.”
As a member of the Finance Committee in Parliament Magda Tamimi continued deterioration rate of the dinar against the dollar, and attributed to the presence of cooperation between the economic and financial institutions, and the lack of control of the ministries imported, such as health and trade.
Regarding the news the effect of smuggling huge amounts of dollar abroad confirmed that “the smuggling of dollars currently underway by traders against documents and forged documents, and goods and fake.”
CBI has already tried a few months ago to put an end to the phenomenon of the increasing demand for the dollar and enact new regulations to stop the conversion of dollars to out of the country when he called on all banks and banking companies to provide official documents about transactions to convert the dollar, and the closure of shops banking unlicensed.
economic expert on behalf Antoine summarizes the reasons for the deterioration of the dinar by three key factors, the most important of the political crisis, and the return of violence, and weak monetary and fiscal policies.
says Antoine For “talk” should “reconsider its fiscal policy and financial reforms include the sectors of banking, investment banks, and strengthening the private sector and to address the scourge of administrative and financial corruption in the country.”