A significant decline in the dollar's exchange rate against the dinar

4/3/2017 0:00

Central applied a new system to take foreign currency sale

BAGHDAD / Mustafa Hashimi
witnessing the markets these days , a decline in the dollar 's exchange rate against the dinar after it reached record levels during the past two years due to determine the year 's budget law of 2015 the central bank to sell the amount of dollars less than about one - third of the demand has led the high price of the dollar until the last of the month of February , which began experiencing significant declines week.

Economic academic Imad Rashid sees the need for a guarantee to be of the same coin value of close economic and acceptable in the official and free markets.

Rashid pointed out in his speech for the "morning" to be re - dinar exchange in the market price to the previous rates coincided with the intervention of the Central Bank of the enforcement of the monetary policy of devaluation of the dollar with the organization of the offer him tools, explaining that these actions of would achieve a balance in demand purchase of foreign currency.

The central bank said the decline in the US dollar exchange rate of the dinar in the local markets, came after the new system applied to window selling foreign currency, confirming its intention to take additional measures to reach the target price.

Rashid said coordination between the central bank and private banks , and added a significant role in maintaining the stability of the foreign currency exchange rate against the local, calling for greater between the two rates convergence (official market) by restoring control in the exchange rate represented the government supervises through the adoption of a deliberate mechanisms by the Central .

He pointed out that the stability of the currency exchange rates to protect against market risk volatility between decline or sudden and rapid rise in turn affect the general inflation rate.

Under Maishdh country, the intervention policy to adjust the exchange rate towards the achievement of stability helps to report the exchange rate equals the supply and demand for foreign currency, explaining the need to install the official exchange rate close to the level of equilibrium which would put maximum ranges and minimum exchange rate and be allowed to fluctuate between those limits and therefore reflected the stability of the markets.

The central bank said in a statement that " the implementation of the new system applied to a window sale of foreign currency led to a marked decline in the exchange rate of the dollar against the Iraqi dinar , " noting that " the new system removed the middlemen and hackers by changing requirements and actions toward simplification and transparency in selling foreign currency window operations, as the new system of window competition between banks believe on the basis of the extent of compliance with the rules to combat money laundering and terrorist financing. "

The bank added that " the success of the new system are encouraged to take additional measures that the legitimate demand for the dollar up to the target price by applying programs and new standards and rules to achieve a clear and transparent cover those operations."

The bank noted that "control over the exchange rates in light of the challenges of economic, financial and security situations are recorded monetary policy success in absorbing large shocks to Iraq , " stressing that " the improvement in oil prices and the elimination of the " Daesh "terrorist will be Mata significant impact in supporting the situation financial of the country, thus relieving the pressure on monetary policy and to allow them the opportunity to achieve greater monetary stability to this country. "

The local market has seen a marked decline in the dollar against the Iraqi dinar and by five thousand dinars to the category of $ 100.