Exchange rate stability

[DWS112]

Exchange rate stability  

03 November 2019

One of the most important tools that contributed to the stability of the exchange rate of the dinar against the US dollar in the parallel exchange market, is the adoption of a method of sale adopts the implementation of proactive sales at the auction sale of the dollar at the Central Bank of Iraq, where the procedures are met to meet the requests of banks participating in the auction a day before within days Official working hours or before the weekend and other public holidays, to ensure the financing of foreign trade and the sale of cash in the following days, and then block the speculators in the parallel market.

This approach has been adopted since the 30th of May 2017, the day when the exchange rate in the parallel market witnessed a decline close to the official selling price. In which some speculators tried in vain to exploit the events and data witnessed in the country in order to reap profits. 

This approach has been very successful in achieving monetary stability that establishes the stability of the exchange rate in the parallel market, paving the way for an attractive environment for foreign investment, and ensuring the attraction of foreign capital, which is usually looking for monetary stability in investment environments, in order to develop economic feasibility studies that can be engaged in The probability of financial calculations of the project away from the fluctuations of the exchange rate is not calculated due to the data that may be experienced in the investment environment.

Therefore, the stability of the exchange rate in the parallel market these days in which our country is witnessing peaceful demonstrations withdrew its repercussions on the movement of the market and the nature of prices here or there due to the behavior of opportunists and parasites in the market of goods and services, and is clearly a clear indication of the success of monetary policy in the face of data in such Circumstances. This sends positive messages to the foreign investor about the safe monetary environment and the possibility of establishing feasibility studies for projects based on a fixed exchange rate that is only affected by a narrow range of speculation depending on the location of the data and the time of the event.

Hence, the arrangements made for preparing for an attractive environment for foreign investment, following the Kuwait Conference for the Reconstruction of Iraq held earlier last year, and the bilateral agreements concluded by Iraqi governments with many countries and companies are going forward in their timing, and that the possible changes in the political scene will not be It has an impact on the investment environment,👈    which is supposed to be attractive due to monetary and security stability and the development in the banking sector and the legal environment, after it remained a promising environment for sixteen years awaiting the influx of foreign capital.

[ComPLX]

Do you have the link?

[DWS112]

2 hours ago, ComPLX said:

Do you have the link?

sure!

http://alsabaah.iq/15919/ثبات-سعر-الصرف

[Donziman]

Yes fellow DV ers  We have a fixed exchange rate. 1290 dinars = 1 dollar. Sorry

but that's the way it is...

[Laid Back]

Exchange control at the rate of 1190 per IQD. Government controls the distribution of the US dollar.

This will change when they move to an open market economy. Then we will see the

real market value of the dinar.

 

Go RV sooner than later 

Go $1:1

[Engine1]

1 hour ago, Donziman said:

Yes fellow DV ers  We have a fixed exchange rate. 1290 dinars = 1 dollar. Sorry

but that's the way it is...

And I am thinking that's the way it will be. There isnt any reason for it to change and if it ever did it would cost Iraq a fortune.  Sorry 

[Calijim]

What they really should say “ we have these auctions to ensure the stability of manipulating the currency to line our pockets for our financial well being”

[Donziman]

So true Calijim. and thats why it isn't changing anytime sooon lol

[zul]

23 hours ago, Engine1 said:

And I am thinking that's the way it will be. There isnt any reason for it to change and if it ever did it would cost Iraq a fortune.  Sorry 

 

And I sincerely think it will cost Iraq even more (being an importing economy) if they continue to stay at the current rate when they have all the opportunities to start with a true value of their currency, coming out from a closed economy (article 14) into an open market where their potential of growth and prosperity are there, waiting to be realised...

 

I simply can't think of any sensible reason why they shd stick to their current 'program' rate.

[Engine1]

Zul, I hope you are right.