Iraq: the high value of the dinar against the dollar after the regulatory action
23/05/2012 16:06

Baghdad, May 23 / May (Rn) - The Finance Committee representative on Wednesday that its proposal submitted to the Central Bank of Iraq on increasing the number of agencies responsible for the sale of hard currency (bank Rafidain and Rasheed) which was applied during the last few days has contributed to raise the value of the dinar against the U.S. dollar.

He acknowledged the Iraqi Central Bank earlier in the presence of an imbalance in the Iraqi dinar exchange rate and confirmed his quest to unify the exchange rate between him and the local markets while at the same time denied any deterioration of the value of Iraqi dinar. The central bank has accused the four countries to "conspiracy" to hit the financial economy of Iraq to empty its market of its financial strength, indicating that the free trade corridors in Iraq is becoming the means adopted to hit the economy. And saw the price of the dollar relative to local currency increased during the last few weeks and reached the exchange rate to about 1127 dinars to the dollar in the domestic market while the stable exchange rate of 1166 at an auction the bank, which he attributed Officials companies banking local to the central bank from making further action in the auction sale of foreign currency . A member of the Committee Secretary Hadi, told the Kurdish news agency (Rn) that "There is a higher value of the Iraqi dinar against the dollar after the application of the Central Bank of the proposal made by the Finance Committee spends Auction diversification of foreign exchange and not restrict them to a limited number of companies." He said the Secretary that "this action contributed to raise the value of Iraqi dinar against the dollar and the central bank will be in accordance with the procedures to maintain the stability of this state." And picked up local media reports about the widening phenomenon of smuggling hard currency from Iraq to Syria and Iran on the border crossing points unless confirmed by the Central Bank of Iraq. And subject its nuclear program by Iran and Syria as a result of popular protests to UN sanctions are harsh and markets both countries to an economic collapse because of poor cash flow of hard currency. The main task of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign currency reserves and the organization of the banking sector.