Warn financial exploitation of the cash reserve for development projects
Baghdad: A number of financial experts warned against the exploitation of the Central Bank's cash reserve estimated at 60 billion dollars by the Government to economic development projects, noting that it is a cover for the local currency.
The local market saw a slight increase in dollar l.d, called the Economist on behalf of Jamil Anton to keep those balances at the Central Bank as a cover for local currency upheavals high dollar weak confidence of Iraqis in local currency because it seeks to exploit these assets for development processes according to some officials.
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And Anton l (long): the recession which hit Iraq market for securities pay some speculators to dollarization has created an increased demand for hard currency as well as recent events in Iran and Syria, indicating that Iraq is influenced by the markets around them in addition to applying tariffs alkmerket would increase demand for the dollar.
Financial expert said Hilal Miller l (range): Central sales accounted for 150 million dollars but what happened from the smuggling of currency called the Bank to reduce the width of the dollar offset by an increase in demand by independent non-political situation in the region because the flight of dollar means the absence of local currency balance.
Miller said: that advocated the use of funds from the Central Bank did not understand anything because it is the cover of economy to currency as saying, pointing out that from 1990 to 2003, called the coup cash coins were printed without balance leading to monetary inflation caused by collapsed dinar.
The Deputy Central Bank Governor Mohammad Saleh appearance rise in the dollar within border controlled by the Bank, pointing out that the balance covers more than the value of the dinar before the market.
He said Saleh (term): the troubling phenomenon began in December as dollar demand Azad abnormally exceeding 450 million dollars because of some traders who import goods and do not have an account as well as the attached domestic markets surrounding the bank payment markets to reduce the quantities of the dollar.
Representative community believes that a strong dollar to dinar caused by taking the Central Bank new procedures and controls of foreign currency and this lack of impact and the Bank was not pumped these controls previously affecting the price action, adding that such action by the Central Bank came at the wrong time and was supposed to inform economic Committee in the House details procedures for discussion and to know the extent of their impact on the economic situation in the country.
The Central Bank began applying the new procedures regarding sales of the dollar, leading to a significant reduction in rates of sale at auction weekly hosted by the Bank.
Pointed out that there are traders are buying dollars from the Central Bank of Syria and smuggled to Iran which are subject to an international economic embargo.
And some attributed the rise in the dollar against the dinar to external and internal influences, including links to international sanctions against Iran and Syria and returning to us withdrawal from Iraq.
Calling the Central Bank should take certain actions that would limit that altitude such as pump larger quantities of dollar.
In the meantime, the Council of Ministers formed a Committee to study the volatility of the exchange rate of the Iraqi dinar, that the Commission will present appropriate solutions to prevent harm to the national economy.
Director of public information unit in the Secretariat of the Council of Ministers, in an interview with Abdel Zahra altalkani for "Sumerian news", "the Council of Ministers, formed a Committee to study the Iraqi dinar price volatility," he said, adding that "the Commission will present appropriate solutions to prevent harm to the national economy."
He was speaker of the House of Osama alngivi, (10 April 2012), that the Council will host the Bank Governor Sinan Al-Shabibi hearing to issue dollar Iraqi dinar, in attributing causes to weak Shabibi local production and weak government actions.
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