How is priced dollar exchange control
2016/11/8 12:36:46 PM
Dollar exchange rate, on Tuesday, to 1300 dinars to the dollar, the highest altitude reached him hard currency against the Iraqi dinar in the past few months, after a flat for a long time on the price of 1200 to 1290 dinars.
And the exchange rate, it is important information that the information of the concerned Iraqi market every morning, to make some private traders accounts, and even vendors in the singular, and we must ask for it has been speculated on authorized each of us once, at least during his lifetime, but, who controls this price and how?
Supply and demand
To determine the direction in which the particular country's economy may be moving, traders are turning to many of the data, including gross domestic product, imports, exports, employment and unemployment, growth and religion and many other factors. Overall, it is usually referred to as the basics.
Like any other market, respond to currency changes value in the supply and demand, when the world needs more than the dollar, for example, the value increases, and when there is a great abundance of the dollar in the market, or demand falls for some reason, the value of land
World currencies are traded in pairs - the value of the currency rise or fall compared to another currency, and each coin is composed of three letter abbreviation, and be late to any currency pair is the base currency. Price shows at any given desired amount of the base currency time to completely equal to one unit of the currency front.
For example, when a pair of the dinar / US dollar Msara when in 1300, it means that it takes US $ 1 spent compared to 1300 dinars. If the value of the dinar rose, we'll dinar and the US dollar rises too, as is required more dollars to buy all dinars, as well as, if the value of the dinar fell, the price of a pair of the dinar and the US dollar will fall as well, where you need fewer dollars to equal each dinars.
Front value of the currency is no longer the only factor to determine the value of a given pair, it is clear that any change in the fundamental value of the currency also affects the relationship. So, in the same example, if the US dollar appreciated now, it'll go down the value of the dinar pair / USD, where he now needs fewer dollars to buy dinars each. If the US dollar falls, it will increase the price of the dinar / US dollar, where you need to more US dollars in order to draw all dinars.
So, we can say that the value of each currency pair rise and fall in proportion to the increase or decrease of the value of its currency front. Also, the same pair of currency value rise and fall in inverse relationship with increases or decreases in the value of the basic currency
Other major factors affecting a specific currency, interest rate set by the Central Bank of a specific country on the use of his money rate, as characterized by constant change interest rates value.
If the Iraqi Central Bank decided to cut its interest rate, you'll go down the value of the dinar normally, leading to lift the value of the dinar / US dollar. If the bank to raise interest rates, the dollar will go up normally, thereby reducing the value of the dinar / US dollar.
Central banks deliberately always to take a delicate balancing procedures, if a country's currency has appreciated more than it should, it will become their exports expensive have other countries looking for other places to export, are sometimes cut interest rates to try to stimulate the economy, but if fell more than it should have this will lead to inflation, Faihan filed a second time in order to slow growth
In the relatively stable countries on the economic level, tend to be high interest rates attract more foreign direct investments (and this is the reason behind the currency of that country rise frequently varying par with interest rates), on the other hand, tend to be low interest rates lead to stimulate lending inside State leading to economic growth.
In Iraq, comes the decline in the dinar exchange rate against the dollar after news of the launch of ancestor 10 million dinars, after the approval of the Ministry of Finance on the launch.
The former reason of natural causes in the high and low prices, but other reasons are often due to speculation by the speculators for their personal interests, such as converting part of the hard currency out of the country, in conjunction with the country needs it
The economists see that the Iraqi currency is weak structure because the highest category by the 25 thousand dinars, or the equivalent of $ 20, so Iraq tried to issue 50 thousand dinars a class and there is an intention to issue the currency higher (100 thousand dinars), and the currency will change the behavior of people in dealing with the currency and instead from to buy the dollar and sell its dealing