The exchange rate and the parallel market noise 1/18
The exchange rate and the parallel market noise
Mohammed Sharif Abu Mayssam
Uproar provoked in parallel for buying and selling the dollar market last Wednesday, which resulted in the exchange rate appreciation in less than six hours to around 40 dinars to the dollar gives a very clear indication of the ability of speculators in the recruitment propaganda in order to prejudice the market movement and specifically the exchange rate , which indicates the fragility of the first monetary stability and to wasting in the body of the commercial selection in the market about the rumors and propaganda fluent employed speculators at any time in order to turn a profit or hurt the economy national.
The central bank, quickly lied reports that break into the premises, and stop Operations sell the dollar, stressing the continuation of the currency sale to finance foreign trade and meet the market needs of the dollar, but the fluctuations in the exchange rate has remained between 1250 to 1290 dinars to the dollar, it has not seen the market stable even writing this article, refers to a set of facts that should be recognized them to put processors in particular, and we are embarking on a phase will see more changes in the commercial and financial and monetary reality, and the first of these facts is the case of non-monetary stability, despite the significant attrition in central bank reserves resulting from the sale of the dollar in large quantities every day are not commensurate with oil revenues, if we know The function of the central bank next to his direct supervision on the performance of government and private banks is to maintain monetary stability and by, in order to create a stable climate for local and foreign investments that rely feasibility where a fixed rate in the price of studies of exchange.
It is clear that the beneficiaries of the support selling the dollar at the central auction by the import of goods at a subsidized price is estimated at 1182 dinars to the dollar, do not just huge profits they earn them and following them due to the difference between the subsidized price and the price of the parallel market for imported goods, as well as the value added to the profit margin, as taking advantage of their control and monopoly of the market and they make noise when what they want motives may be suspicious business or in order to damage the situation of stability of other motives leave it to the reader, and remained this case is prevailing since the start of the work of the Central auctions to this day, which means that the monetary stability practical sense will not be achieved as long as the country in a state of political and security confusion and as long as the traders who enter the auction Central are the speculators in order to reap more profits, which calls for the central to search for another way to intervene in the market and achieve monetary stability, if the government and private banks to adopt and more banking offices licensed to sell the currency mechanism Court included the sale of the designated quantity and at a specific price per day for those who have savings in dinars Iraqi banks to ensure not fall into the «dollarization of the market» and damage the banking system based on encouraging savings in local currency, along with the importance of the work of bank credits to ensure go remittances to finance foreign trade in order to stop the attrition in the central reserves, and as long as measures conducive always more noise in the markets as a result tattoo speculators, and the government as long as the past in its austerity and reform, the need for seriousness in the implementation of any measures will be an order of urgency.
We propose here to open the door to volunteers of the Central staff of government and banks to work within a team oversees the application of strict mechanism generally speculators to ease the damage to the poor classes during the next phase, as will experience of the middle class to a decline in its revenues due to adjustments in staff salaries and raise tax collection rates and collection services next to deductions Social Security and withholding support for the displaced folk crowd, what necessarily mean lower demand for luxury goods and entertainment services and non-essential goods rates, along with the importance of pressure on the departments of specialized banks to launch the Central Bank loans amounting to about 5 trillion dinars electronic mechanisms reduce red tape and corruption, after the private banks began firing small business loans supported by the Central also estimated trillion and 200 billion dinars, which means the possibility of meeting some of the local demand for goods, and thus relieve demand for the currency difficult and employment, especially since the application of customs tariff law, will add support for these elements available towards accelerating in finding solutions, but the foot-dragging and lack of seriousness would create a climate of noise speculators and users in order to raise prices, which requires condensation media to guide public opinion of the importance of relying on local product to limit the flow of the dollar abroad and activating the role of the real sectors and sectors chock her which will be placed in the service of the people and the national economy at the same time, and thus can skip to adapt the least damage on condition activating the laws that regulate market relations stage and in the forefront of the competition law and antitrust and consumer protection law and the law of work.
The current stage through which the Iraqi economy that are linked one way or another to the war on pivotal terrorism and corruption together, you need ideas and work hard to get out of the turn of the financial crisis and economic rent to the path leading to economic development as little as possible of losses that can be visited on the poor in favor of the class the bourgeoisie created by the scourge of corruption and financial mismanagement.