Financial demands reducing value of dinar against dollar rather than external borrow
2015/12/28 (00:23 pm) - hits: 823 - (3534)
Representative financial demands by reducing the value of the dinar against the dollar rather than external borrowing
Baghdad/Nur Ali, Ibrahim Ibrahim
The parliamentary Finance Committee, confirmed Sunday that the decision to reduce the value of the Iraqi dinar against the dollar is not fortuitous, that work began two months ago. With expected price selling dinar to the dollar to 1400 dinar during the coming weeks and is an alternative to foreign loans, economists said that the decision to raise the value of the dollar against the dinar is one of the conditions set by the IMF to extinguish and release loans.
Member of the parliamentary Finance Committee, Ahmed Rashid, parenchyma "range", that "the decision to reduce the value of the Iraqi dinar against the dollar was not new and was introduced two months ago, but the Central Bank has not announced today revealed gradually."
He added that "the Central Bank is responsible for the stability of the Iraqi dinar against other currencies, and the parliamentary Finance Committee has discussed how to increase the value of the dollar without causing confusion in the local market, and personally requested the research study on the subject of
All respects. "
Rashid said that "the decline of the dinar against the dollar would increase inflation, the dollar on what today would be detrimental to the State, because the amount of demand will increase daily, and it is possible that the State cannot pay this amount."
"Our study with one of the financial advisers focused on Government support for the dollar gradually, and the days and months ahead will see changes to monetary policy, there are benefits earned through devaluation of the Iraqi dinar."
Meanwhile, a member of the parliamentary Finance Committee said Majida Al-Tamimi "range", that "the devaluation of the Iraqi dinar against the dollar and other currencies is one of the alternatives an alternative to foreign borrowing, and the procedure by which the State can ensure staff salaries and expenditure and thus reduce the financial deficit, and this action taken in such critical situations."
"There are expectations that up to 1400 dinar selling price, and in case of application of this decision, the purchasing power of citizens will decrease, and the amount will be received by an employee from his or her salary does not block the little needs during the month, but it is one of the alternatives that were presented to the Government for not borrowing and could solve the crisis."
On a related level, says economist ressan Hatem, in an interview for "the range", that "the decision to reduce the value of the Iraqi dinar against the dollar is one of the conditions set by the IMF to extinguish and release Iraq accumulated loans years ago."
"The declining value of the dinar against the dollar by 1 to 2 ten would harm low-income holders of savings, and this action is a kind of impulsive and must be carefully applied, it could damage the value of the Iraqi dinar."
Hatem said: "I don't think that this decision would have benefits for the State at the moment, the Iraqi economy is dependent on oil revenues revenues only without the diversification of sources of income."
The increased "there are implications for the Central Bank by the Government and the International Monetary Fund to reduce the value of the Iraqi dinar, may be forced to this."
He said the economic reform Institute Advisor Ahmed Al-Husseini, Tuesday (23/Dec/2015), to (range), that "the devaluation of the dinar against the dollar mistake involving a very serious repercussions", stating that it "leads to inflation, particularly under the State austerity and reduced salaries."
Husseini adds that "go to such an action requires the production of goods and services covered, and not, as is the case in Iraq where almost everything is imported," Noting that "directed the Central Bank to raise the exchange rate of the dollar will hurt the middle class and the poor more suffering, compounded by requiring it (the Central Bank) to pay attention to the implications of that."
In turn, business Union Member muhannad Sabri, told the (range), that "they hit in the political decisions of the Government reflected negatively on the economic reality," returned to "prosthetic solutions do not benefit the Iraqi economy and on the Government to find a radical solution to a one-sided economy depends almost entirely on oil."
Sabri explains that "Iraq is living in dire situation of dependence on oil", calling for the need to "revitalize agriculture, industry, tourism and other sectors important to diversify sources of income.
In the opinion of a member of the Federation of businessmen that "raising the dinar value will reflect negatively by emphasizing commercial realities, where the will lead to unequal equation as a result of the abundance of the dinar against the dollar, few in a country most trade dealings the dollar, imports almost everything."
Sabri asserts that "the decision to reduce the value of the dinar is correct only if the national industry of production of real substitute importer and meets the need of the citizens."
And the Central Bank said in an interview with the (range) that "the selling price of the dollar has not changed and is still equivalent to Alpha and 166 DT", stating that "the Board of the Central Bank met a few days ago and was included on its agenda to modify the sale price of the dollar against the dinar, but didn't think so. The source said on condition of anonymity, said the Central Bank is always trying to find solutions that support the Iraqi dinar and maintain stability ".