Between the currency auction and hiring support loans

2/24/2016 0:00

Mohammed Sharif Abu Mayssam

Despite the expected Alarbakat that accompanied the application of the tariff law and the lack of a sufficient time to adapt to this changing, but the positive results and apparently began to be reflected clearly on the sale of the dollar rates at the central bank auction .. as rates of sales ranging from 170 levels to be decreased 200 million dollars a day to levels between 100 to 110 million dollars during the past few days, while the exchange rate remained in the parallel market at rates ranging up and down slightly varying at 1240 dinars to the dollar, which is likely to further decline in demand for the dollar with acceleration levels Duran domestic production, which observers expect when entering into force the central bank to banks specialized loan wheel.

Dinar exchange rate

However, there is a problematic unexpected must be taken into consideration when trying to explore the dinar exchange rate against the dollar in the parallel market in the days and months ahead, as will the market pumping cluster of large cash through specialized banks through loans aimed at supporting industrial and agricultural projects and projects chock have the aim of construction and operation by businessmen and investors and owners of small and medium enterprises support, which requires the urgent need of hard currency to finance foreign remittances for the purchase of production machinery and equipment lines, which will mean increased demand for the dollar in the parallel market in the case of granting loans directly to target them and thus the possibility of higher dollar exchange rate in front of the dinar due to increased demand in the domestic market, while the other refers to the intention of parties based on the granting of these loans by opening letters of credit to finance foreign processors of this equipment in order to ensure go funds these loans to its objectives is likely to rely on the central bank auction to obtain hard currency to finance the purchase of these hardware.

On this basis, it is likely that the central support of the mechanism to be adopted in its daily auction to finance foreign trade.
Supporting entrepreneurs

As it sells the dollar price subsidized and of 1182 dinars to the dollar, and this is what will be new support for entrepreneurs in exchange for central cede large dollar bloc if we know that the loans obtained from the Agricultural Bank and the Industrial Bank in charge of granting the real sectors of about 3.333 trillion dinars of the total 5 trillion dinars, and one loan that can be granted by these banks for entrepreneurs could be worth up to 20 billion dinars.

Monetary mass transfer

Meaning that a large part of the money supply will be converted the corresponding dollar overseas, a figure that has no less than two billion dollars if we exclude the materials involved was commissioned in construction as a productive materials locally, which will weigh the likelihood of increased dollar selling rates in the central auction cash reserve account in favor of the top beneficiaries of these loans.

From the above can be excluded likelihood of granting loan amounts directly to the creation of projects that need to equipment imported for fear that these loans do not go to their goals as well as Szbbh of pressure on the parallel market to sell the dollar leads to rises in the exchange rate in conjunction with the pressure that Ciecklh application of the tariff law on the consumer as prices have likely rises in inflation is affecting the poor and middle classes, in conjunction of the low rates of income resulting from the decline in monthly salaries to the category of not a few of the staff and the state of deflation taking place in the markets and is likely to resort to the style of the opening credits and buy dollars from the central auction to finance the purchase of such equipment, and therefore can support the employment resulting from the exchange rate difference between the official price and the price of the parallel market, as well as resulting from the lower interest rate of unmet of these loans, which do not exceed 5 percent by forcing large a set of commitments that can entrepreneurs support that contribute to achieving the objectives associated with loans in order to raise the contribution of the real sectors in the GDP if the winning project owner is required on the loan recruit specialists from the university degrees specific numbers in each project, according to terms of reference.

And registration of workers in these projects are officially in the Labour and Social Affairs Department, as well as the importance of adhering to laws and regulations standardization and quality control system and load projects a responsibility to protect the owners and to ensure that workers and consumers through activation of labor laws, consumer protection, then feel everyone should support does not target a class without the other to achieve economic prosperity and new economic selection will not neglect the social justice component, and aims to support everyone and is not limited to the owners of capital in the sector Business.