The deterioration of the Iraqi dinar against the U.S. dollar straining the shoulders of the Iraqis
Deteriorated the value of Iraqi dinar against the U.S. dollar, despite Iraq's vast oil revenues, to reach its value in the month of April / April this year to 1.320 dinars per dollar. The reasons for this decline is not just about the monetary policy of the Iraqi government, but due to political developments in the Middle East as well. In the light of Western sanctions imposed on its neighbors Syria and Iran as Iraq's only outlet for these two countries to get on the dollar and revive the monetarist Ahtaatiehma it.
Causes of the crisis?
In this context, attribute the economic expert in the Iraqi Economy Development Center Imad Shehab reason for the devaluation of the Iraqi dinar against the U.S. dollar to a variety of reasons, "most notably the increased demand on the dollar instead of the dinar, which impacted negatively on the reality of the economy in the country." He adds in a dialogue with Shihab DW Arabic that "the smuggling of foreign currency (the dollar) to Syria and Iran, which suffer from economic sanctions as well as the tendency of traders and Iraqi businessmen saving the dollar instead of the Iraqi dinar has contributed significantly to the worsening crisis." This demand has risen, according to a statement to the Iraqi Central Bank Governor Sinan Shabibi, to almost 50 per cent since the beginning of the year.
Haider Mohammed Mahdi, in Baghdad ATM
For his part, emphasizes the economic expert in the Iraqi Economy Development Center Imad Shehab "the need to address the crisis through an approach that central bank monetary policy re-balance rate of the dinar against the dollar at the auctions (daily for the sale of the dollar by the Iraqi Central Bank), through the recovery of the market in dollars , in order to prove the limits of a certain rate of the dinar. " This assertion comes amid accusations by the economists of the Central Bank of Iraq not to follow the political sound monetary and non-use of tools cash correctly, confirming the existence of an abundance of foreign currency at the bank can be used in optimal time, as evidenced by achievement of its reserves of foreign currency about $ 60 billion.
To meet the growing demand for the dollar, has exceeded the need to finance the country's imports of goods and commodities, the CBI to announce a series of actions, including those related to knowledge of traders who buy dollars in auctions Bank, in reference to some of them had bought for others may exist outside Iraq's borders. He also issued instructions to limit sale of hard currency to Iraqi citizens authorized to participate in a fundamentalist Mzhadath only.
Parties taking advantage
For his part, reveals a professor of economics at the University of Baghdad and the deputy editor of the masses of the Baghdad Karim Jabr ligature for the beneficiary of the worsening crisis of the dollar in an interview with DW: "Syria is Iran and most countries benefiting from the decline of the dinar against the dollar," noting that "economic sanctions international financial and imposed on these two countries led to a decline in their currencies Mahlitin, which impact negatively on the Iraqi economy. " He called for an economist to the need for tight monetary policy by the Central Bank and the Ministry of Finance of Iraq, "and the only value of the dollar will continue to rise for up to a record, and that would overburden the citizens of Iraq." Vtathirat rise of the dollar intensified with the adoption of Iraq entirely on imports to cover the most basic belongings in various fields, in the absence of many of their domestic industries during the past two decades.
U.S. dollar beneficiary of the deterioration of the Iraqi dinar
Fears of a return to past
Past economic collapse in the near past is still present when collapsed the Iraqi currency after the Kuwait war early nineties of the last century and the subsequent economic sanctions, was the first results of the collapse of the Iraqi dinar, to become the U.S. dollar is equal to nearly three thousand dinars, up from the Iraqi dinar is equal to three dollars U.S. in the seventies and eighties. These fears seemed to clear the views of Iraqi citizens interviewed by DW. "Is no longer my monthly salary sufficient to meet the food my family daily due to the falling value of the Iraqi dinar against the dollar and rising food prices and demands of other basic," This is what the beauty of Bashir Ahmed, an employee in a government department in Baghdad, who receives his salary in local currency.
He adds Ahmed (53 years) in dialogue with DW that "the high value of the dollar, which forms the backbone of the Iraqi trade through the import of commodities and goods, may form an opportunity to raise the greed of merchants in the value of these consumables," he said.
The Hassan Farhan sticks, the owner of a workshop for the manufacture of leather bags in Shorja market in central Baghdad, is the other complain about falling value of the Iraqi dinar, noting that "with the high exchange rate of the dollar has become everything expensive on the market, which gets tired a lot of low-income" . While busy with sticks (43 years), the exercise of his profession daily, wondering tone of anxiety and fear: "I do not know what lies behind this surge in prices of goods and goods", calling on those responsible in the state to take the necessary measures to prevent the continued high value of the U.S. dollar against the Iraqi dinar.
Peace Hussein Alwan, one of those affected by the decline in value of the dinar
The peace Hussein Alwan, an owner of a shop selling household electrical appliances in the Karrada district of Baghdad, says: "The instability of the dollar exchange rate impact significantly on the movement of the market," he reflected on his sales, which fell largely because of falling value of the Iraqi dinar against the dollar U.S..
According to Haidar Mohamed Mahdi (51 years), the owner of a franchise in the region of the eastern door heart of the capital Baghdad to halt the Iraqi Central Bank to pump liquidity into the market in an auction market, the cause of decline in the exchange rate of the Iraqi dinar against the U.S. dollar, "which prompted traders to increased demand for the withdrawal of the dollar and buy from the black market. "
While busy to monitor exchange rates currency via his mobile phone, which he described as "erratic" and unstable illustrates the Mahdi (27 years), in his interview with DW Arabic: that "the price of the dollar (U.S.) into the Iraqi market, a stable four years ago, but with the change procedures for the central bank has become Price disturbed. "
Raised the issue now to the Commission within the corridors of parliament for discussion, will dispel the fears of yesterday's action near the Iraqi economy inflation burden on their already overstretched consequences of that past?