Applicable: Government cancelled the functions and duties of the Central Bank by linking its monetary policy
On: Sun 08/04/2012 20:50

The continuing decline of the Iraqi dinar against the dollar

Baghdad. '
MP on the block in effect a citizen Faleh book issued by the Cabinet Secretariat, dated 15 March addressed to the Governor of the Central Bank of Iraq includes the monetary policy of the Government functions exclusively.

Iraq Dinar is a new low against the US dollar, bringing in local markets to 126, 5 thousand dinars for paper 100-dollar bills which will lead to the loss of citizen confidence in the Iraqi dinar to rise against the dollar over the past years.

He said in a statement the Euphrates news «this book as a cancellation of functions and duties Central Bank decree under the Constitution», «Central Bank is an independent body responsible for monetary policy». He explained that «this book is gross interference in Bank policy» pointing out that «if the adoption of such a mechanism would add this a failure of the policies adopted, whether in services or in government policy in poverty reduction or security policy».

He stressed that if the Government continued to "intervene in monetary policy, this means that the economy is in danger and will the confidence of international institutions and the trust of other countries invested in Iraq and non-solid shaky as the Government became involved in everything and there is no separation between the authorities and there are no independent bodies».

The Economic Commission in Parliament has hosted the Central Bank Governor, who promised to turn over control of the Iraqi dinar exchange rate and return to the previous $ 120,000 dinars per sheet $ 100 category.

At the time, brokers and owners of shops was banking that the «Iraqi dinar is declining and this will lead to the loss of citizen confidence in the Iraqi dinar to rise against the dollar over the past years». They added that the depreciation of the Iraqi dinar against the US dollar and growing daily as the decline began with the number one/one/witness after namera deterioration in price.

He feared that banking stores owners significant loss that may have been incurred as well as citizen as a result of this continuing decline of the dinar.

Points shop owner Abu Nasser to banking: decline in dinar concern us we don't know whether that would control the Central Bank or that it will continue to decline. He said the Central Bank policy is not clear nor know how pumping which can control the exchange rate in the market.

With shop owner Mohammad Karim says banking that there are problematic began to emerge in the fall in the dinar as most citizens have debts and some want the amount fixed price is called the dollar while the other party wants payment in Iraqi dinars. He noted that this would lead to some problems, which in turn affect the owners work as banking movement currently in the market between the flux.

Citizen Jassem Alwan, criticized the Central Bank for lack of control on the market price of political blocs overloaded because of liability and disputes that led to the rise of the dollar. He said the Iraqi dinar losing value and this adversely affect employee and the ordinary citizen because articles will rise its prices because the dollar is imported and this will lead to a decline in the standard of living of citizens.

And called on the Government to move quickly to save the situation because the paper category $ 100 to 127 arrived priced 1,000 dinars from 120,000 to 119 000 and this price you received did not arrive in years