Multiple outlets dollar economic gains for the country

[alan_coaks_3]

6 - 19 - 2012

Having contributed to lower prices and declining inflation rates

Baghdad-Haidar fleih, vernal

Can't say for sure that the Central Bank had succeeded in reducing the value of the dollar, which hit a record over the past months, however, (Central) and to a large degree of continuing high dollar against the dinar, and succeeded in imposing a monetary policy aimed at reducing the high levels of inflation, which can be obtained by increasing the prices of materials, goods and services that sometimes because of the dollar price spikes to obstruct trade movement.

Opinion of specialists Central should work intensively on creating balance fixed price with dollar Iraqi dinar, this command by specialists would eliminate mutations in prices in local markets.

And amid an expected Central Bank Deputy Governor Dr. Mohammad Saleh appearance with the fall in the price of the dollar in the coming days, commissioned articles in local markets without movement, although the vast majority of materials available in local markets and importers depend primarily on prices in dollar prices in Iraq, but have not seen any decline in the dollar despite the decline will clearly inform 123 thousand dinars for every $ 100.

Observers attribute partly to increase demand for goods and products in local markets, and this creates a kind of imbalance between supply and demand, demand and limited supply remain on what is it so the price goes up or in rare cases a certain price settle at, and this is what is happening now in local markets despite the decline of the dollar in Iraq which is the base currency to finance imports and most commerces entering the country.

Economic expert commends on Andrew, by Central when allowed to sell the dollar at low prices to citizens in Government and private banks, this is likely to reduce foreign currency value clearly in the coming days, particularly on the future numbers of Central participants in its auctions daily to sell the dollar according to Andrew, which noted that monetary policy is moving steadily towards correcting the many tracks economic and lifting Iraq dinar to the rest of the foreign currency Notably the dollar. Despite what Andrew sees positives in the process of selling dollars in Government and private banks, economic researcher raised good underlines the importance that the sale process is adjusted, should be limited to cases identified by the only Central and to overcome some of the obstacles faced by those wishing to get a dollar from the Government or private banks.

Hassan said that selling the dollar in Bank outlets other than the Central Bank would reduce prices significantly, however, Hassan expressed fear that gets out of selling to speculators and therefore the potential economic gains would dissipate before that step.

Hassan urged the need for the expansion of private and Government banks in selling the dollar, calling on them to search for persons who wish to replace the local currency to the dollar, particularly patients and persons who transfer funds simple abroad for study or other purposes only to be commercial.

The Central Bank announced that the Rafidain Bank and Rasheed directly selling the dollar for IQD 1189 rate citizens, as well as grant powers to sell the dollar for four private banks Central's price, considering that the move to benefit the citizen directly from currency away from the monopoly exercised by the other.

Deputy Central Bank Governor Mohammad Saleh appearance that Rafidain Bank and Rasheed started selling the US dollar monetary price determined by citizens Bank and is around 1189 dinars to the dollar.

Saleh said the sale would be under instructions and current uses in the use of foreign currency and travel, treatment, testimony and pilgrimage, noting that the amount required by tourism is about ten thousand dollars.

Saleh said that the purpose of this step is to benefit Iraqi citizen directly from currency away from monopoly by some, pointing out that what we are witnessing today from the fluctuation in currency exchange is just bubble soon evaporate.

Inflation ratios have declined markedly during the last month compared to the same month last year, inflation fell by 2 percent in the month of may of last month in the past year and 1.3 compared with last April.

Linking a number of specialists in economic decline rates of inflation that the depreciation of the dollar, arguing that the dollar is the monetary value of the total imports in Iraq, which led to a decrease in total imports prices fell after the dollar. According to a statement by the Ministry of planning that the CSO's annual inflation report was completed for the period between May 2011 and may 2012, based on field data collection on prices of goods and services through the consumer basket sample selection of outlets in the governorates of Iraq All, stating that these rates are calculated from the goods and services, including food, rent, transport and communications, health, education and other consumer possesses it.

The report showed that annual inflation indicators for the period decreased by 2 percent as inflation has become compared to the previous year 7 percent after inflation was registered 9 percent, indicating that the decline in annual inflation due to lower prices of food, especially vegetables, this demonstrates that the Iraqi market is closely linked to the dollar and inform him of exchange rates, which the Central bound by economist Mehdi Al-Ani to seek tirelessly behind the factors which it deems effective in reducing dollar rates, suggesting Increase sell auctions, and to allow for the application of this idea in a number of provinces, particularly trade, expected to happen is some kind of balance between the dollar and demand it.

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