Central bank: speculators are taking advantage of statements made by officials to manipulate exchange rates

January 14, 2016 14:28

He denied to storm the building and confirmed not to stop selling the dollar
The Central Bank of Iraq, on Wednesday, Iraq, subjected to an economic war, accusing speculators broadcast the rumors for the purpose of raising the price of the dollar in the local markets, while stressing that he continues his work through currency auction, noted that the existing cash reserves reassuring.
He denied the Iraqi Central Bank, the rumors about the storming of its premises or that there is a lack of liquidity or operations to stop selling the dollar, noting that some of the "abusers" are taking advantage of statements made by officials to manipulate exchange rates in the markets.
In the meantime, economists favored the expiry of the current crisis over the next week, calling the official authorities to take urgent measures in order to maintain the hard currency rates.
According to Director General of the cabinets and the version in the central bank Ahsan Shomran Yasiri in an interview with "New Morning", that "a new war waged on Iraq added to the current challenges through delude citizens that the economic situation is in danger."
Yasiri He continued that "speculators seeking by broadcasting rumors to confuse the Iraqi financial situation," pointing out that "adequate precautions and not worrying."
He pointed out that the banking official, "the central bank continuously work in the currency auction according to legal procedures and that things are going according to normal procedures."
In a related development, the bank said in a statement received "new morning" that "rumors that were fired on storming the central bank or that there is a lack of liquidity or operations to stop selling the dollar baseless," denying "the rumors in toto."
He added that the bank "continues to work window sell the currency and meet the market needs of the dollar in light of the strength of its reserves of foreign currency," adding that "some of the speculators and other abusers who, during the past few days to exploit the statements of some officials and politicians, as reflected fixing the exchange rates in the local market. "
Bank and called on citizens and the media to "be alert to these malicious rumors, which aims to confusion and confuse the Iraqi market within the campaign waged by the enemies of our country."
For his part, economist Maitham Laibi sees in his commentary to the "New Morning", that "the statements Almichjnh to some politicians and pessimism about the state's inability to fulfill the salaries and the continuation of the financial crisis are all factors that led to the rise of the dollar, in conjunction with the continuing decline of international oil market."
And mortgage Laibi "dollar return it to its former central bank's ability to defend the official prices of the ordinary without the impact of what is happening in the market now."
He added that "this would be through an increase in the dollar amounts in the currency auction, in addition to the delivery of reassuring messages to the street dispel fears that prices will continue to rise."
But he worried about "the survival of the current situation, which leads to the consumption of the entire bank reserves of 54 trillion dinars in two years."
In this case, coffee asserts that "Iraq will be in front of two choices: either to reduce salaries and imposing new taxes, and this will play a difficult choice Rose angry reaction from the street."
He added, "The second solution would be through borrowing from the central bank or private banks or individuals," pointing out that "past experiences indicate the adoption of the government to borrow from the central bank to increase the national currency pump leads to lower purchasing power."
But another expert, Abbas Ghalibi likely in his statement to the "New Morning", the return of dollar prices to normal at the end of next week.
He continued that "the increase now temporary, may not exceed the price of the dollar in the harshest of conditions dinars in 1130," calling "the central bank to intervene immediately in order to end this situation."
Said Ghalibi "on the bank to impose the official prices, and do special work laws, in addition to exercise its oversight role in pursuing money laundering operations and other legal violations including things back to normalcy and conducts positive messages to the street the possibility of control over the economic situation."
It is noteworthy that Iraq is suffering from the global economic crisis because of the collapse in oil prices led to take a number of austerity measures at all levels.