Economic Committee: Central Bank of Iraq’s measures have ‘failed’

Posted: August 27, 2013 in Iraqi Dinar/Politics
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25 Aug 2013
The parliamentary economic committee has described the effort of the Iraqi Central Bank for maintaining the value of Iraqi dinar as ‘failed’. It has to be noted that recently the Central bank of Iraq has promised the nation that the organization will take care of the Iraqi dinar and will take significant steps to make it stable so that sustainable economic ambience prevail throughout the nation.

Mahma Khalil stated, “The central bank demands to maintain the exchange rate of the Iraqi dinar, and determine a fixed price against the foreign currencies, as it is unreasonable that there is a balance of a sovereign Iraqi exceed seventy billion dollars, and it remains the Iraqi dinar rate over 1200mm dinars to the dollar, and sometimes brings about this price on the black market. “

He added that “the policy of the central bank failed to maintain the exchange rate of the Iraqi dinar against a basket of foreign currencies.”

Khalil explained that exchange rate of IQD against USD depends on a number of things. This depends on the foreign reverses and along with that on some other factors. He pointed out that it is a good thing that Iraq has been released from all UN sanctions and this is a step forward towards the economic success of Iraq in near future. It has to be noted that after uplift of the sanctions, the IRQ rate against USD had fallen significantly. This is why Mr. Khalil thinks that it is the right time to take right measures to rejuvenate the currency exchange rate of the country.

“What distracts today dollar of deposits is not the real size of the Iraqi market needs,” he mentioned.
Observers and economists believe that the increased turnout to buy the dollar has led to a significant drop in the price of the dinar, and attribute this to smuggle most of it will offer daily Central Bank of dollars abroad.

The Iraqi Central Bank announced shortly before the new measures that it will restrict the availability of U.S. currency in markets where demand to buy them, amid suspicions suggest the smuggling of large amounts of hard currency for the benefit of neighboring countries.

The Central Bank of Iraq has issued new instructions to stabilize the exchange rate of the Iraqi dinar against foreign currencies select the stakes weekly for banks and money transfer companies.

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