Deputy Governor of the Central Bank of Iraq: either to provide back up or leave the consumer faces fluctuations alone

17/04/2012 PM - 10:39 PM | Hits: 37

Deputy Central Bank Governor Dr appearance of Mohammed Saleh: The treatment for the problem of high exchange rate requires taking one of two options either to cover the demand to provide a large reserve of currency or to let the consumer faces the consequences of fluctuating exchange rates. Stressing that the speculators in the currency market and put the bank in front of critical options to address the recent rise in the Iraqi dinar exchange rate against the dollar, and revealed new measures to reduce the phenomenon of bleeding of the currency.

He added that the first choice threatens the currency reserves significantly, which is likely second choice as a temporary solution pending the implementation of new measures, which said it will eliminate the phenomenon once and for all, and with respect to the new measures revealed the Deputy Governor for a new system to reduce withdrawals currency leads to higher prices, the dollar exchange against the Iraqi dinar.

He continued that the bank in connection with the introduction of a new system to eliminate what he called ghost traders who deal with the bank, include a demand for maternity leave new import from the Ministry of Commerce. And that the new system and will eliminate once and for all the operations of the currency was withdrawn through the detection of suspicious points to spend that money on the deal and thus the basis of disclosure of financial, tax, noting that currency speculators as long evaded tax accounting, and thus will be unable to issue import licenses.

And said: will have a dealer after the application of the new system highlight the import license as a condition for entering the auction indicating that the new measure will ensure good faith statement dealers in the market currency. He pointed out that Iraq's reserves can cover the demand of hard currency, while the new measure taken to protect Iraq's reserves of interventions malicious tamper-economic security of Iraq.

He noted that the Iraqi currency is strong because it is covered extensively, despite a single dollar of the Iraqi economy and that the bank can absorb any momentum on the application within moments and in the presence of a large strategic stocks of hard currency, but he is trying to impose adequate protection of the national economy