CENTRAL BANK OF IRAQ - RIGHT FROM THE HORSES MOUTH !
Central Bank: The rise of foreign currency reserves to 58 billion dollars
BAGHDAD - Mostafa Hashemi
Confirmed the economic expert Dr. Sumaisem peace that there is an intention to change the exchange rate for the Iraqi dinar against the dollar through the adoption of the Central Bank policy of reducing the dollar value of cash against the dinar to the extent that it is now (1200 dinars per $ 1). As the committee said that Iraq's parliamentary Ghaderaly improve the status of the dinar and adopt it as part of international reserves, as Iraq has more than (80 to 90) billion dollars in central bank reserves and this is positive for the benefit of the Iraqi dinar.
She's Sumaisem (citizen) that he issupposed to drop the price to equal the dollar more than the Iraqi dinar after deleting three zeros from the currency and thus we have achieved two goals of this procedure, "FIRST" RAISE THE VALUE OF THE DINAR TO THEDOLLAR and "Second" is the restructuring of the Iraqicurrency. Confirmed that the current exchange rate flexibility has to do with the market and the volume of loans and the volume of foreign remittances and bills of exchange rate discount in addition to the political orientation of the state.
And the effect on inflation this measure Sumaisem explained that this measure has to do with the reduction of inflation in Iraq, that if the improvement rate of the dinar and raised the zeros from the currency will be easy to absorb the inflation part of the restructuring of the economy as a whole in addition to the re-evaluation of the Iraqi dinar.
A member of the Committee of Economy and Investment parliamentary Abdul Hussein Abtan "It is certain that Iraq is able to adopt the dinar as part of international reserves, especially that he has a big supplier in the field of oil and more than (80 to 90) billion in Central Bank reserves and this affects positively on the Iraqi currency against the dollar and makes the dinar as its currency position as was previously the global currency. "
Alabtan called the Central Bank to improve the status of the dinar against the dollar, and (1200) dinars to the dollar is not the right thing.
For his part, said the central bank increase its reserves of hard currency to the $ 58 billion, attributing the increased demand for foreign currencies by the Iraqi banks and the lack of offers to rent the economy of Iraq.
The adviser said the Bank of the appearance of Mohammed Saleh for "Alsumaria News", the central bank's reserves of foreign currency amounted to $ 58 billion after the $ 50 billion at the end of last year, 2010, "noting that" the Bank was able during the last period of trade finance to the private sector and maintain market stability and curb high inflation that existed during the periods of years. " Saleh pointed out that "increased demand for foreign currencies by the Iraqi banks and the lack of offers for foreign currency in daily auction conducted by the Iraqi Central Bank of Iraq's economy back rent, which depends on oil imports in the general budget." Saleh said that "the State offers foreign currency to the Central Bank of Iraq to finance its expenditures in Iraqi dinars to the Central Bank, in turn, to meet the market need of foreign currency," noting that "the State is that supply of foreign currency, while the market is a student of foreign currency to cover the financing of foreign trade." Saleh pointed out that "Iraq does not receive external financial flows due to not send the Iraqi workers overseas savings of Finance to the country, in addition to the lack of investment companies large foreign workforce in Iraq." And said the central bank adviser earlier that the Iraqi dinar is not currency international reserve until it is handled in the outside, adding cash as a policy we aspire to be part of the Iraqi dinar and the precautions that needs to be a long time. The appearance of Mohammed Saleh said that the Iraqi dinar is the local currency convertible to other currencies, that is unlikely to deal in Iraqi dinars externally at present evidence is that the instructions do not allow the central bank to bring the Iraqi dinar, but the limits of (200) thousand dinars for the traveler. The central bank stressed the value of the dinar is not affected by high inflation rates in the country, denying the existence of any economic risks for the country as a result.The World Bank called Bank of Iraq and the Finance Ministry to take action to prevent increasing the persistence of high monthly inflation.
Saleh said that "fears of international financial institutions of high rates of inflation, monthly and annual amounts where it is under the control of the Central Bank of Iraq and there is no threat to cause deterioration of the value of the Iraqi dinar."
Iraq has seen a rise in inflation for the month of July in 2011 compared to the same month of 2010 by 7.1% after it was last year's 2.4% due to higher prices, housing rent allowances.
Saleh pointed out that the "dollar crisis and high prices, rents and higher wages for electricity and the main reasons behind the persistence of high inflation in the country." He explained that "the central bank adopts a policy of successful in reducing the rate of inflation and reduction in line with prices, demand and supply on the Iraq dinar and increase the monetary value."
Known that excessive inflation in the general level of prices and rising incomes in cash or a component of cash income such as wages or profits as well as high costs and over-the creation of cash balances. Fear and a number of economists from the continuing high rates of inflation in the country in the absence of mechanisms to limit the height of the government institutions involved in the management of the economy in the country.
