Central Bank procedures for the sale of hard currency caused the reduction rate of the dinar against the dollar

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Baghdad (news) report: Hussein Faleh after witnessed Iraqi dinar exchange rate stable remarkable for hard currency for a long time but he came back to drop, especially after the crisis the central bank that toppled Governorate Shabibi and a number of his staff, where he received the President of Supreme Audit Basset Turki Agency tasks until the appointment of a competent central bank carries out the administration. It started the new administration headed by Turkish taken a series of decisions and controls on the sale of hard currency in the auction, and ordered banks and banking companies abide by them. Where complained a number of owners of private banks and companies to mediate (banking) and specialists from restrictive measures taken by the Bank regarding the sale of the dollar as well as granting licenses for banking companies, making there is an increasing demand for the dollar paid Showing little of it, which led to increased price in the local market. Warning during their talk (of the Agency news) of the continuing decline in the exchange rate of the dinar in the coming period in the event of mitigation measures and facilities by the central bank. A member of the Finance Committee National Alliance MP Amin Hadi Abbas, pregnancy, the responsibility of the Central Bank to cut the exchange rate of the dinar against the dollar because of restrictive procedures in granting licenses for the operations broker companies (banking), to make the process confined to certain companies without the other. Abbas said (of the Agency news): There are companies still in control of the process of buying hard currency from the central bank because of the restrictions of the bank's management to companies broker to increase its capital, demanding the central bank to ease procedures for the sale of hard currency for companies to mediate to stop the monopoly of some companies on the procurement process . He added: process must be indivisible capital for companies to mediate so that there are no practical monopoly by some companies and banks as it was in the previous Directors of the Central Bank. He explained: that when these companies dominate the procurement process in the bank will auction fake receipts to grab the largest amount of foreign exchange. The Iraqi Central Bank announced the extension of a capital increase for companies to mediate in the sale and purchase of foreign currencies to December 31 of this year to be the last date for the extension. The Iraqi Central Bank has decided to increase the capital of existing exchange companies which operate in the market and companies under formation to 500 million dinars. For his part, warned the decision of the Commission of Economy and Investment deputy coalition blocs Kurdish Mahma Khalil, of continuing to reduce the exchange rate of the Iraqi dinar against the dollar as a result of the central bank's measures, which led to reduce the width of the dollar in the market. Khalil said (of the Agency news): The recent crisis, the central bank and changed his administration as well as the unstable political climate experienced by Iraq, make there is a growing demand to buy the dollar in the market by the citizens and convert their money into hard currency. He added: that the current management of the bank made it difficult process and the arrival of the dollar to the market and then to the citizens and traders because of restrictive procedures, which fears out large amounts of hard currency abroad or the occurrence of money laundering. He continued: the central bank should make it easier process pumping dollars into the market and then tighten the control on the process spent at home or abroad to prevent money laundering operations or the like. The Director of the Office of the banking and selling foreign currency Raed Aziz, said: The Department of the banking and credit of the Central Bank allowed the owners of private offices to sell foreign currency to open companies registered with a private b (banking) that allow the buying and selling dollar according to specific controls, different from controls earlier, which was taken by the central bank. He Aziz (of the Agency news): The bank requested an increase of the company's capital to (500) million Iraqi dinars, which is a large sum and difficult on a lot of citizens, where he was scheduled to begin corporate work early February, but the new regulations issued by Central obstructed the process of granting licenses to companies. He added: that the measures include conversion of special treatment procuring the license from the owner or managing director or shareholder to Criminal Department of the Ministry of Interior for ratification, as well as transferred to the Department of Economic Crime, and the money laundering section at the Central Bank. He called for: the need to ease the procedures for granting licenses to companies because it will facilitate the process of selling hard currency and fill the market need them, and also to contribute to the stability of the exchange rate on the grounds that any company that has a share weekly hard currency backed by the central bank and thus contribute to the control of the market. Refer Aziz: the reason for increasing the dollar exchange rate during the current period to limit the sale of hard currency on certain civil banks either banking companies it may limited quantities of each company's share (100) thousand dollars a week, they amount does not meet the needs of the dollar market. The central bank held daily sessions of currency auction except Fridays and public holidays, and the participation of a group of Iraqi banks, within which the sale and purchase of foreign currency, and the central bank process currency converter sold abroad, for some companies and citizens for a commission certain. The witness of the dinar exchange rate the relative decline Bsaara Iraqi against the U.S. dollar.

 

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Dedollarization..