Central abstentions on demand for the dollar exchange rate raises

12/20/2016


Baghdad/peace Zidane


The Commission intends to finance the House, hosting relationship Central Bank Governor and Minister of planning, trade and finance to discuss the dollar, while the Economist finds that lower the value of the dinar due to failure of Central Bank dollar purchases coverage window selling hody daily, stressing that the continued decline in the value of the dinar would lead to rising inflation.

And witness the dollar fluctuated during the past few days as the price ranges between 1300 – 1310 dinar in local market selling Central Bank sold to participating banks in the currency auction of 34 banks and 15 financial transfer company for the price of 1190.

Member of the Finance Committee in the House of representatives, Magda Tamimi said "range", that "a dollar-dinar genital mutilation in the current period due to speculators in the dollar who enforce their control on the currency auction hosted by the Central Bank every day", noting that "speculators are getting the official central bank rate dollar arguing import, they raise the price when sold in the market."

"The Finance Committee in the House of representatives will host Central Bank Governor relationship to discuss actions against spoilers in a currency auction, saying it" put him a court to reduce corruption in the auction through the hosting of trade ministers, planning and finance in addition to the Governor of the Central Bank.

Central Bank covers 95% of daily private imports sold in the market while the other 5% covers the need of people to travel for tourism, treatment and saving at home as well as parents to send some money to their children studying abroad.

For his part, said the Economist, Abdul Rahman Al-Mashhadani "range", that "the dollar in the domestic market would hurt citizens and raise inflation degrees especially ruling currency today in Iraq is the dollar," he said, adding that "the dollar lifted coincides with cutbacks in State employees ' salaries and thus lead to deprivation of the many services that was obtained in the past."

Mashhadani said the dollar at the market ", the Central Bank could not keep up with the demands of the market and the private sector, which covers 95% of the market need", indicating that "demand for the dollar in window selling Central Bank nationalization is estimated between $220 million and $300 million, while the Bank put $150 million approximately to sell."

The Economist said that "the remaining amount of traders demand coverage of domestic market through banking companies leading to the dollar, indicating that the Central Bank could not" cover the local market imports would lead to a strengthening of the dollar and the result will reflect negatively on the citizen ".

"Mashhadani drew the dollar sold at window by the Central Bank to cover imports and expenses of Iraqis who go to the world of tourism and treatment as well as Iraqis who are studying abroad," adding that "Iraqis have turned in the current period to hoard dollars instead of dinar.
Experiencing Iraqi market recession as a result of rising commodity prices due to the measures taken by the State to deduct a portion of employees ' salaries.

While food dealer Ahmed Rahim "range" to "import goods from neighboring countries have dollar and therefore any rise in price will reflect negatively on the citizen through higher prices", asserting that "the retailer will have to raise the price of the item if the item 1000 dinars will sell at a price 1250 dinars and thus playing a citizen from buying it."

He drew "kind of luxury goods will be affected very heavily purchased by people, yuppies," adding that "the dollar encourages to reactivate the role of industry".


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