Central Bank: The currency auction sterilization of the enormous monetary mass

11/4/2017 12:00 am

Baghdad / Hussein Thugb
There is much talk about the sale window of the dollar and it is a drain on hard currency in the local markets. In contrast, the central bank calls it the "sterilizer" of the monetary bloc and has no alternative in light of the economic situation in Iraq.

Director of Financial Operations at the Central Bank of Iraq d. Mahmoud Mohammed explained: "The dollar sale window has two aspects, the first is the sterilization of the mass of cash as the dollar is exchanged in huge amounts of dinars resulting from budget spending and debt, pointing out that not to withdraw this amount of markets cause a huge increase in prices, In light of the low financial level of the macro economy.

He pointed out that the lack of presence leads to a major deterioration of the national economy from the technical side did not find who gives a viable alternative from the window selling the dollar.

Stable prices
He pointed out that the latest measures, which began in February of this year, could facilitate their results and reduced the exchange rates at a level consistent with the Central Bank's objectives of reaching stable and stable prices.

He pointed out that the security and political risks in Iraq caused instability, which leads to high demand for the dollar and the conversion of the real asset to the dollar, pointing out that the central bank continues to develop its electronic tools in order to maintain its objectives and maintain acceptable price levels.

Entry Permission
He reiterated that the window under the current circumstances is not an alternative, indicating that the problem we are suffering not bear the window exclusively, but the border crossings have important responsibilities in this aspect, stressing that the control of ports and that match amounts and type of material with what enters Iraq leads to the end of problems When the outlets give my entry permit in agreement with what the trader offers, here we can eliminate the problems.

Economists demand more than one occasion to cancel the dollar sale window and prepare it to drain the hard currency in Iraq because there is a defect in the supply of orders to the window selling the dollar, because, according to experts, more than the need of local markets of various goods.

Currency exit
The economic expert Ahmed Mukhlaf stressed in an interview for "morning" on the need to end the talk raised on the auction sale of the process through real activation of the productive sectors in Iraq, which in turn will work to provide different goods that meet a large proportion of the need of local markets and thus reduce the exit of hard currency from Iraq.

Activation of plans
He pointed to the possibility that the national economy is attracting more funds than the ones that come out through the activation of plans that promote the national economy and the most important industrial strategy and the strategy of private sector development, as well as the agricultural sector, which is an oil Always. The cost of Iraq has the fundamentals of development that make it able to achieve a multiplicity of financial resources and be more organized for its financial sector, stressing the need to begin work on the development of sectors with a rapid resource that contribute to the federal budget.