Dollar adoption achieves Alastaqrarvi business dealings

5/19/2016 0:00

BAGHDAD - Mostafa Hashemi - Imad emirate

A leading academic economist Dr. Essam Mohammed , said linking trade deal the Iraqi external dollar is of the economy benefit in order to achieve stability being kept pace with general global trend.

Between »Sabah» positive this through facilitating the opening up of the Iraqi economy to the world, explaining the difficulty of replacing the foreign business transactions in a currency other being would create an imbalance in the global currency market in terms of increased demand for a particular currency without the other.

For his part, interested in economic affairs Abdul - Zahra Mohammed: There is no economic reason why you have to contend Iraq in euros instead of dollars, but the dollar culture of the region in general make it difficult to do business in euros instead of dollars.

He »Sabah» among these reasons is that the US currency global currency long and are dealt to sell oil for a long time, highlighting the dominance of the dollar on the rest of other currencies such as the euro on For example , although he global currency recognized , but it is modern currency, stressing at the same time it reflects the weight of the mass of the European Union.

The Iraqi market is witnessing months ago a remarkable rise in the dollar against the local currency after it saw in 2011 , stable in price dollar exchange lasted for about two years , scoring a price hovered in the range of 1220 dinars per dollar, but the decline in the sale of the Central Bank of it, due to lack of supply derived dollar from the sale of oil , which reflected falling world prices on the rise, making the dollar achieves rapid leaps reached sometimes to eight degrees compared to previous periods.

In turn , said the economic academic d. Awad Fadhil, that rate policy in Iraq was built on the basis of traffic in one direction , which does not accept only climb ripple in the nominal exchange rate of the dinar as the tool 's main inflation resistance.

He said: This administrative way in moving the nominal exchange rate was offset by the behavior of banks and money transfer companies exchange dealing , buying and selling dollars, the close relationship between the imposition of selling prices are high for the dollar beyond the official purchase price to traders, companies, businesses and lower the price of the dinar revealed.

among Fadel said that this contradiction between the rigidity of the price administrative (exchange rate) and high flexibility to push the exchange rate under pressure parties on application to the dollar to end - applicants and seeking the maximum profit, meant to restrict anti - interference of inflation pursued by the central bank through the administrative control value of foreign exchange for the local currency policy.

He said that dealing in foreign market currency are at higher than the official price, the exchange rate sellers and importers will reap the price profits on monetary union larger than can be achieved in light of the market mechanism and the imposition of restrictions on foreign currency sales.

he pointed out that the actual impact or real to install the dinar exchange rate to intervene administratively with an exchange free of the dinar rate value less than the official exchange rate indicates that there is a reduction veiled or implicitly to the value of the local currency in the market.

He said: I have founded the repeated announcement of the intention of the monetary authority to reduce the price of the dollar to 1000 dinars to the dollar a clear framework for this policy and Find at the same time with the official and popular circles sense not to accept any deterioration in the price of a swap dinar to the dollar and therefore resisting any amendment in it that was necessary from an economic standpoint in the future, and so lacked rate policy flexibility necessary to draw a limit to the official exchange rate volatility between them and absorb any embarrassment as a result of exchange rate volatility.