Expert: recession, stock market revaluation of the dollar and threatening to exhaust
Expert: recession, stock market revaluation of the dollar and threatening to exhaust the hard currency
On: Friday 4/13/2012 6:30
Baghdad / range
noted economist as beautiful to the presence of depression in the Iraqi market for securities due to lower stock prices, which led to a shift towards buying the dollar to trade him and thereby raising the rate of exchange against the dinar.
Jameel said on Thursday: There are several factors that led to increase the value of the U.S. dollar against the Iraqi dinar, including internal factors such as increased drag on the dollar by the merchants and other third-party as a result suffered by Syria and Iran of economic blockade, making these two countries Iltjian to Iraq to buy dollars to save the their currencies.
He added that the inertia and the recession that hit the Iraqi market for securities due to lower prices of shares, companies paid to buy the dollar and traded for free from this recession happening in the Iraqi Stock Exchange, increasing the demand for dollar by the Central Bank, noting that sales of the bank Central limited and can not sell large quantities of the dollar because the demand to buy large and will affect the local currency because the dollar is the cover of her.
The beautiful the central bank can not pump large quantities of dollars into the local markets and is also able to stop the sales, this will lead to increase the price more, so be on the regulatory and inspection in the scientific community specialized protection of the local currency to take its part to reduce this phenomenon as it threatens the Iraqi currency and will lead to running out of hard currency of the country.
This could see the Iraqi dinar declined in value against the U.S. dollar, where the price of U.S. dollar equivalent of B (1300) dinars.