Experts (range): the decision of the central bank to raise capital, the banks behind the decline of the stock market

[alan_coaks_3]

5 - 20 - 2012

The head of the Securities Commission Abdul Razzaq al-Saadi Enkhavd reasons, the general index of the Iraq market for securities very nature.

He said al-Saadi (range): The reasons for this decline is the result of investors awaited the budget for all companies and outcome of the election of those companies where the investor recommends the importance of choosing investment locations

Through the control of those companies and study its present and future, stressing that this situation is very healthy and normal, indicating that this case stand out annually since 1992 and so far, and usually gets down at the end of each year.

Saadi said: The second reason is the fluctuation of the value of Iraqi dinar against the dollar, making some money owners trading in their money in buying and selling process and these will be gone in the next few stage.

For his part, Executive Director of the Association of private banks, Abdul Aziz al-Hassoun: The Association may be diagnosed this case has long been an alert based on the market and the central bank to drop that will happen to the market index is generally a result of central bank's decision on increase of capital for the banks to the limits significantly.

He Goldfinch: This decision prevented many of the shareholders participating in the capital increase, where we see there is a great offer for the shares traded for the sale, especially in the banking sector, which accounts for 90% of the daily trading volume of the meetings of the Iraqi market for securities that so they can be a loss and a decline in share price one.

In turn, the economic expert Thamer Alheimus: The main reason behind the decline in the general index of the Iraq market for securities is the dominance of the private banking sector, the owner of the money supply the largest in the process of buying the dollar in daily auction of the Central Bank of Iraq. He Alheimus This auction has seen fluctuation in the exchange rate Iraqi dinar against the dollar as treats many investors and non-Iraqis, especially through these banks, and demand the current daily to the dollar up to $ 500 million a day buying with the central bank to sell limited amounts not exceeding $ 300 million in daily auction, which requires a mass cash in hard currency , which made many investors are waiting the stability of exchange rates.

Sales of the Iraqi Central Bank Bmzadeh for buying and selling foreign currencies at the end of its weekly, last Thursday to a record $ 265 million versus $ 153 million the previous session, a basic 1166 exchange rate of dollar for dollar. The bulletin issued by the Central Bank of the total volume of demand for the dollar was 265 million and 55 thousand dollars, covered by the central bank at an exchange rate baseline of 1166 dinars per dollar sales were recorded the previous session, the amount of 153 million and 330 thousand dollars. This comes after a sharp decline of the dollar sales in the Central Bank on the fourth of April, after his decision to tighten the conditions of sale currency, reaching less than half the average normal to the need of the market daily, which ranges between 150 to 160 million dollars a day. The sales meeting last Thursday, higher than the average sales routine over the past few years, after they have fallen significantly since early February current, compared with the end of 2011 and the month of January last, and which averaged about 200 million for the session, after the increase in demand in an unprecedented way, because of the sanctions imposed on Iran and Syria and the decline in exchange rates of the lira and Altoman half. Which called for the central bank to tighten foreign currency sale to private banks are required to disclose the clients of the applicants purchase, according to the instructions adopted at the first of February 2012, and ratified the instrument on the use of a single customer for the purposes of tariff. To return the central and emphasizes procedures for the sale of money orders last week, and declares it responds to the orders, but the existence of accountable tax year, and official documents to prove that the money is going to trade already, bringing the dollar exchange rate locally abruptly up to 1270 dinars per dollar, after it was at 1240 dinars per dollar.

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