Experts: Central Bank faces the problem of the shortage of foreign currency and claiming to reassure customers

[yota691]

02/23/2015 (0:52)   -   the number of readings: 51   -   Issue (3296)
 
 

Experts: Central Bank faces the problem of the shortage of foreign currency and claiming to reassure customers


BAGHDAD / Ghazanfar Laibi - Amer supporter 
 

 Experts in economic affairs said that Iraqi banks began to suffer a shortage of liquidity in foreign currency (dollar), while the expected rise in the dollar's exchange rate against the devaluation of the dinar as a result of stopping the auction currency, grumbling banking customers of non-receipt of money deposited by the dollar, stressing that handed over the money Dinars expose them to significant losses.
 
 
The expert in economic affairs Ahmed Fahmy in an interview for the "long" "The decision to stop the currency auction can be exploited in a positive way by the Central Bank and the Iraqi government," noting that "the implementation of the resolution correctly is not easy, because we must limit the dollar and not to take it out of the market and thus strengthen the Iraqi dinar. "
Fahmi added by saying that "the central bank's decision can be applied correctly in case of spending pressure and reduce the affidavits and incidentals are not to the dollar significantly." 
He pointed out that "the Central Bank to develop appropriate plans for the success of the decision," but he also said that "to stop the auction may have significant disadvantages, due to increased demand for the dollar, because the bank had pumped $ 50 million a day in the auction, which may make the dollar rises against the price of the dinar, which leads to the Iraqi currency affected significantly. "
He Fahmi said that "the main objective of this step is to limit the hard currency by the central bank, especially after twice the price of the dinar during the past few days," expected to "decline the central bank for its decision in the case of the Iraqi economy negatively affected due to stop the auction of the currency."
In the same vein, said an expert on economic affairs Maytham Laibi "long", that "the banks to take such measures in emergency situations when facing a shortage of liquidity in foreign currencies," noting that "the Iraqi banks started having these problems because of the reduction of central bank sales of the dollar ".
He also added that "the lack of distribution of financial dollar amounts have negative effects on customers and lead to an imbalance in the banking system, and weakens the confidence of individuals in the banking system and generates a panic, and lead to significant financial withdrawals, so the reserves become inadequate, especially since these banks operating funds of others do not owns that money, which leads to market instability, in addition to a state of non-confidence in the banks leads to citizens not to deposit their money in banks in the future. "
He called Laibi banks dealing in foreign currency to be "assured its customers, it can Tkst amounts customers, and that the money owed by banks and found that the Ptksatha possible for customers."
For his part, sees expert Ahmad Atwani told the "term" that "sudden decision carries a lot of risk to the Iraqi citizens and the economy in general," noting that "the central bank issued a decision on the pretext of its limited foreign exchange to finance foreign trade."
He Atwani said that "the decision was made to shift from exchange rate policy directed to a free exchange rate policy," stressing that "the new policy adopted by the Central does not fit in with the nature of the stage through which the Iraqi economy, because domestic demand for foreign currency (dollar) growing in the local market. " He pointed out that "demand for the dollar will appear in the parallel market for foreign currency, so the increase in cases of speculation and lead to a large fluctuation in the value of the Iraqi dinar, and the transition from the state of stability in the local currency, and this volatility will impact on the low standard of living of individuals through high commodity prices and services. "
The expert continued that "the decision to stop the currency market will create a huge gap between the prices of locally produced goods and imported goods prices, the central bank will not succeed in implementing the decision in a positive way, but if used in a strict policy controls on foreign exchange." In turn, Mohammed al-Hassani said, one dealing with the North Bank "The bank refused to hand over the money in dollars for clients with the bank for the second day in a row on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq," noting that "a trader with a bank that has deposited his money dollar would be a great loss teams currency received his money when the Iraqi dinar. "
He added by saying that "the ordinary citizen is the biggest aggrieved of this process," calling on the central bank and the specialized agencies to "reverse the decision to cancel the auction currency because of its negative effects on the Iraqi market and citizens."
The Central Bank of Iraq (February 21, 2015) stop working ERA Bank and the adoption of the banking system as being responsible for foreign remittances.
The governor of the Central Bank of the relationship, in a press statement "was finalized a new formula and leave the old ways, coupled with certain conditions can not remain governor at the central bank, which has the functions and tasks and activities of a large and important for the national economy," noting that it is not true that remains central busily selling the currency like ATM daily basis. "

[hmmm]

Large fluctuations? Ok:) growing pains !?

Edited February 23, 2015 by hmmm

[one2one]

they need to get away from the dollar and revalue--start using their own currency

[Texstorm]

Dang if they do and dang if they don't ! Come on Yota call them up and tellem ! GO RV !

[keylime]

Pressure breaks pipes and hopefully banks as well....RV or bust!!!

[navira45]

Looks like Iraq is going for a free float....come on Iraq! Release the Kraken!

[captl1]

Just a button push away.

[jeepguy]

starting  sound like the  one  head line  I am waiting  for ------>  mad  rush , too  obtain dinar , frenzy  to gain currency , pressure to central bank  release notes   

.

[gymrat76541]

Revalue the dinar to 1 to 1 and no one will want to use the dollars! There would be no need!

[Markinsa]

Revalue the dinar to 1 to 1 and no one will want to use the dollars! There would be no need!

 

That would definitely add to the liquidity.

[blueskyline]

the decision was made to shift from exchange rate policy directed to a free exchange rate policy,.......So are we now floating ?!?! I know there is NO change to be seen yet . But this here sounds like we are floating

[blueskyline]

I'm not picky any direction toward some kind of movement !

[WheresmyRV?]

Awesome article here, they are definitely going to be doing something shortly! 

[MyLadiesDaddy]

Agreed, something definitely seems about to pop.

[Big_J]

[ChuckFinley]

I am ready for that pop to go BANG. It will be interesting to see Adam take on this.

[moneysoon]

I think they would want to work out all of the kinks before taking any additional steps. Things will happen but crawling comes before walking.

[235snack]

Seems they are short supplying the dollar, which will increase the value of the dollar and decrease the value of the dinar....is this a way for them to pull in as much dinar as they can?

[eburt]

Why won't these guys RV their currency?  This will resolve all the issues they are having with the shortage.  I mean what is the CBI trying to prove?  They just stop the auctions and now they still making excuses not to RV their currency - Maybe they need to place someone in the CBI that is not scared to pull the trigger of RV.....

[Laid Back]

I remember the words of Doc31. " before we see an increase of the exchange rate, the auctions have to stop"

I think this is the last step before the increase of the exchange rate.

Go Iraq

Go CBI

Go dinar

Go strong $1.13:1

Go March 01

[txdinargirl]

Bump

[sandfly]

LGD LET IT POP