Economists rule out a control on prices due to the continuing change

Tuesday - April 12th (April) 2016 - seventh year - No. 147

Parliamentary Finance proposes to the central «cancel» difference in the exchange rate between the auction and the market
Baghdad waves Ahmed trying Finance Committee in the House of Representatives, push the central bank to cancel the difference in the dollar 's exchange between the auction and the domestic market, and the expansion of dollar sales and not restricted to four banks price.
As economists warned that the application of that proposal, because of that market prices will not be fixed and moving towards high, which means difficult to control by the bank.

According to the Commission, that the proposal is designed to eliminate the phenomenon of "money laundering", as pointed out that the bank 's management is still "not convincing in the currency was floated." the Commission revealed that it plans to " Hosting the central bank governor in the parliament soon. " experiencing global oil prices since mid - 2014 , a continuous decline, the cause of a severe financial crisis in Iraq, whose economy depends on the proceeds of crude. That crisis was reflected on the central bank through its lower interest rate dollar, the fact that the government sells the next dollar of oil revenue to the bank in exchange for the Iraqi dinar , which was used in public spending , such as salaries, etc., in return demand for the dollar rose in currency auction, what the reason for a rise in price the dollar against the dinar to reach 1188 dinars to the dollar.

member of the Finance Committee Masood Haider, said in a statement to " the world", on Monday, " the committee submitted a proposal to the Central Bank requires unification of the dollar exchange rate in the auction currency to the bank with the local market through the elimination of the difference, as opposed to the expansion of the currency auction, non - monopoly on the four or five banks. "

He adds, that the central" currently studying the application of these proposals, they shut the door in front of the corrupt who steal Iraq 's money through money laundering operations. " the process of money laundering, is economic crime aims to legitimize Msthsalh money through forbidden methods for the purpose of acquisition, disposition or management; the sense of recycling funds generated by illegal actions in the areas of channels and invest legitimacy to hide the true source of her, to look as if they have been generated from a legitimate source, and examples of such unlawful acts, funds generated by kidnapping and terror funds, theft, embezzlement, bribery and others.
acknowledges officials in the economic file, that more than $ 15 billion under a year to fraud and money laundering in Iraq.
according to a member of the Finance Committee, " the bank is still not convinced the issue of float currency. "

Stated that there are three ways, handled by central banks with foreign currency; first is made up by the " limiting factor " to be adopted by the CBI, which includes a fixed exchange rate to the dollar price, and inject dollars into the market to maintain the stability of the price. The second method is called "float", and thumb the market is controlled exchange rate, while including third way , a "floating orbit," or unrestricted identify certain price for the dollar, and another represents a maximum him, leaving the currency floats between these two prices.
Haitham al - Jubouri, member of the Finance Committee in the House of Representatives suggested in a statement to " the world", the adoption of "unrestricted flotation" in the auction currency instead of "limiting factor."

in another context, he warned Haider, from listening to " the distribution of employees ' salaries in dollars, being the calls will raise the prices of goods and the food at the market, do not contribute to the stability of the dollar exchange rate. "

the Central Bank of the province and the agency on the Keywords, said at a seminar held yesterday in Baghdad, and was attended by " the world ", that his administration sees banknote" as part of our national identity , "noting that" proposals other about why do not you use foreign currency as dollar distribute the salaries of the staff, is the waiver of part of national sovereignty. "

regarding the money supply in the domestic market, Haider said it was up to 38 trillion dinars, while pointing out that" the House of Representatives would host the bank 's governor Central to talk about the central plans and policy towards economic fluctuations.
and see the head of economic media Center Durgham Muhammad Ali said "Cancel the difference between the price of the dollar in the central and the market price step is successful, considering that the market price will be variable and rise more, and can not be the time of the bank that is controlled by the . "

in terms of maintaining the stability of the market, he said , in connection with" the world "on Sunday, that" the central that uses tools and tightened controls over the sales and cash outlets, as well as for him to increase the number of ports so that creates a short circuit larger with citizen and small traders . "

with regard to the distribution of salaries stressed dollar" that those claims are unrealistic and can not be implemented and are incompatible with the general economic policies of all countries , "adding that" all the countries of the world are trying to combat the phenomenon of dollarization through enhancing the value and prestige of the national currency has, by adopting almost entirely in internal and external dealings. "

He stressed" the need to adopt policies to support the local currency , which is the backbone of economy column, they determine the living standards through purchasing power and levels of inflation, which in turn is heavily influenced if they were to adopt such a notion. "
and thus exclude Muhammad Ali, acceptance the proposal " in any way."
Furthermore, the bank 's governor on the Keywords , said at the symposium that " the banknote is part of the identity and sovereignty of the Iraqi state," adding that " the banknote subjected to some kind of forgery and manipulation , it is going on any human feeling that falsifications that prejudice entity of the state and its sovereignty. "

he continued:" it we look at the banknote as part of our national identity , "noting that" proposals that some were fired about why not to use foreign currency as dollar distribute the salaries of the staff is to cede part of the national sovereignty and identity national and therefore we must defend this paper either form or content or real value. "

He stressed Keywords on the need to " preserve the paper manipulation and show the proper manner and regulate circulation and stored must be at the highest grades that reflect their real value. "