Militia » September 4th, 2016
Walkingstick » September 4th, 2016
Sun, 04 09 16
The Central Bank of the province on the Keywords day, that the fiscal policy of the Iraqi government in general is facing a shortage of Iraqi dinars on the local market, pointing out that the Ministry of Finance is selling 80% of dollar revenues to the central bank and then the latter to sell hard Eulma market gets to the Iraqi dinar .
Keywords and said L / Republic News / "There is a hard currency exit out of Iraq because of the security and economic conditions experienced by the country, pointing out that the central bank gives the spearhead of the individual to act in the funds, whether the currency conversion abroad for reasons to travel or invest outside of Iraq."
And that "the Iraqi dinar is an internal expenses, government contracts and its imports are considered hard currency, pointing out that" fiscal policy of the Iraqi government in general is facing a shortage of Iraqi dinars in the local market. "
And that "the Ministry of Finance get foreign exchange earnings increased by 100%, pointing out that the financial sell 80% of foreign currency to the central bank to be put up in the market to sell and get the Iraqi dinar is then cashed in the local market to be traded in terms of the payment of staff salaries ".
He pointed out that "the occurrence of financial crimes and thefts for some banks pay the central bank to intensify actions on the banks to protect the capital, stressing that the central bank has no any auction for the sale of hard currency in the whole of Iraq."
Experts: Ask a coin 100,000 dinars will increase prices and raise inflation
BAGHDAD / JD / .. warned a number of experts and specialists in the financial and economic affairs, the central bank from issuing a new edition category 100 000 dinars, and put on the market, because it will increase the prices of goods and driving up inflation as well as it would reduce the value of the Iraqi dinar and eliminate small groups of currency and thus will affect directly the citizens.
He revealed an official source at the central bank preferred to remain anonymous, the central bank's intention to issue a new edition of 100,000 dinars category to the market.
The source told / KD / "The category of 100,000 dinars printed and is designed such a model, and we will choose the right time to put on the market," noting that "put on the market will help to stimulate the economy through the operations of exchanges between traders and commercial transactions between the operating companies," as well as category of the 100 000 easy storage and load and is designed along the lines of the international currency system if the high level of security, it is difficult to falsify. "
He noted that "put on the market requires, inter alia, promotional media campaign to get to know them, and being equal to or close to the category of 100 US dollars."
For his part, economist Adel Mandalawi warned of putting large groups of currencies in the market because it will affect the citizens and indirectly in terms of increasing prices and rising inflation, as well as the collapse of the deliberative value of the national currency.
He told Mandalawi / KD / time that is appropriate to ask edition of 100 dinars fact that the Iraqi economy is going through a volatile and unstable, especially in light of the decrease in oil prices and a lack of revenue.
He added that this new category would cancel the deal for small groups and gradually be currency 1,000 dinars smaller class rather than 250 dinars.
Lama, an expert on financial affairs Nabil Mahdi, said that some of the analysts and economists begrudge that sell the dollar at the central bank auction of the same amount and the introduction of a class of 100 000 new dinars to the market without the withdrawal of the equivalent of the dinar will lead to the final collapse, "In my view it no relationship between the central bank auction, which is a fixed nominal price of the dinar against the dollar, and the introduction of 100 000 dinars category collapse of the dinar, but the effect will be to increase the number of times the monetary union trading (dinar) within the economy any increase money circulation in the Iraqi economy speed.
He added that "according to economic theory, the printed large new categories practical means to increase the money supply ratios (liquidity) which have fits directly proportional to the increase in money supply rotational speed (speed of trading) the speed of trading, which is proportional to the accelerating inflation caused by rising prices resulting from increased new demand on the supply of goods and services due to the increase of that cash. "
He continued, "as if the demand for domestic goods increased, the displayed quasi-static at the moment for lack of production of a multitude or, comparable to a foreigner so that local products, especially industrial fill the increasing demand of junk purchased a gap, as well as there are no modern techniques of agricultural production even provides a new view of the agricultural product fills the needs of consumer, leading to increased consumer demand to the direction of foreign product, which means that the dealer to increase the import of foreign products to meet the shortage of supply of goods imported from the front of the new demand resulting from increased liquidity. "
"The increase in Iraqi imports from abroad means more dollar absorption from inside Iraq to the outside, which means to increase the desire of traders and speculators on their access to dollar auctions central bank and increased that desire means to raise the price the dollar within those auctions Batalli to increase the proportion of low value of the Iraqi dinar against other currencies, including the dollar, which increases the desire of speculators at this time to get a dollar, even at a higher price than the previous price within Iraq to the expectation of the low value of the dinar at a higher rate from the current time and the high value of the dollar. "
This brings together experts and analysts that the time is appropriate to put up with large groups of currencies, given the state of the Iraqi market instability.
The central bank has issued a new edition last year, the category of 50,000 dinars to the local market with announced his intention to print a new currency Other category 100 000 Danar.anthy / 8 /