Lifting the Iraqi dinar exchange against the dollar

[rockhound60]

Lifting the Iraqi dinar exchange against the dollar

BAGHDAD -27/01/2012

Central Bank of Iraq finally lifting the dinar exchange rate against the U.S. dollar in the auction by (0.34)% to the equivalent of 1166 dinars to the dollar after that remained stable for a long time in the level of 1170 dinars.

The Deputy Governor of the Central appearance of Mohammed Saleh said that this action "is part of the implementation of Bank policies Judge to maintain the general level of prices in the domestic market and the purchasing power of the Iraqi currency as well as to the real exchange rate, ie the purchasing power of the dinar is higher than its nominal." He explained that this is the result of the surplus in the balance of payments of Iraq and the large reserves of the Central Bank of hard currency, which exceeded 60 billion U.S. dollars "in the face of a state of growth, the importer of the rate of inflation requires, of course, the equation of the real exchange rate counterpart, the nominal protection of the national currency."

He also stressed the benefit in this context that raise the value of Iraqi dinar by 3.4%, "which may seem at first glance a low rate, although it is in fact a monetary value large part of the financial settlement large inter-bank" that this lifting "sends a strong message confirms the strength and stability of the currency national and the promising future of the Iraqi economy "and dispel all fears of the possibility of a deterioration of the latter, as he put it.

Iraqi economists saw their part, that "the issue of maintaining the stability of the general level of prices and the value of local currency" are not the real reason behind the central bank raised the value of the dinar against the dollar, which lies in the Bank's attempt "to curb the apparently high rate of demand on the U.S. dollar in the auction Central since the beginning of December the first of December of last year 2011 to the present day. "

In this regard, the professor of financial and economic policies at the University of Mustansiriya Maytham Laibi that "the high rate of demand on the dollar from 150 million a session in the auction the bank to exceed the threshold of $ 300 million to finance the needed external market for both Syria and Iran are subject to economic sanctions is What to pay for taking the CBE board to raise the exchange rate of the dinar. "

و He assured the coffee, "It was also this positive ramifications on the economy and the economy of the Iraqi citizen, it has a negative impact Badtarar interview is the central bank to continue to pump more hard currency in the domestic market means to drain reserves from the national final."

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[easyrider]

wow, lots of articles about the dinar coming out they sure are gearing up for something it seems. Make your move Iraq.

Edited January 28, 2012 by easyrider

[JayLee202]

I hope they're right

[Az Joe]

We can only hope.