Deterioration of the Iraqi dinar from the dollar smuggling to Iran and Syria, 2 APRIL
02/04/2013 09: 03
Facing the Iraqi dinar fell rapidly in value, rising US dollar registered 1,270 dinars per dollar, versus 1,220 euros in mid-March. And ascribe to this worsening mainly to smuggle hard currency (the dollar) to Syria and Iran, which suffer from economic sanctions, have caused shortages of hard currency, and this is one of the main reasons for the increase in demand for dollars by Iraq, so declining Iraqi dinar exchange rate.
For his part, refer the decision of the Commission on economy and investment Deputy/Kurdistan blocs Coalition Mohammed Khalil, the reasons for the low exchange rate of the Iraqi dinar against the US dollar to political problems in the country and the deterioration of currencies in Iran and Syria to the international currency.
Khalil said: UN sanctions imposed on Iran and Syria led to the decline of the Toman Iranian and Syrian lira against the u.s. dollar, making Iran and Syria is in dire need of foreign currency.
He added that Iraq is a central merchant trader and import the goods without limitations prevent reverse McCann in the previous system, there is a close relationship between Iraqi merchants and traders from neighboring countries and that the currency could be issued to States of Iran and Syria.
He pointed out: the political and security problems in Iraq also contributed to the devaluation of the dinar against the US dollar by pushing citizens to convert their money into dollars, they make there is a growing demand in the market on the dollar without the dinar.
And Deputy Director of the Central Bank in northern Iraq, czish Mohiuddin, in remarks to the Anatolia, because of the rise of the dollar against the Iraqi dinar to high demand markets and declining supply due to the policies of the Central Bank of Iraq.
As Vice President, said the Finance Committee Coalition Kurdish blocs Deputy Ahmed Faizullah, Iraqi dinar exchange rate return to normal rate against the US dollar, the requirement to take the necessary procedures of the Central Bank and the use of international expertise to support the national currency.
Faizullah stated: that the country suffers from flop to monetary and economic policy, where the funds go out of the country to imports over the funds that come to the country from oil sales and other, plus there are other funds wasted in different ways.
Confirmed: that the Central Bank is required to take the necessary measures to recover the value of the Iraqi dinar to the natural rate against the US dollar, and the use of international experience and recommendations of the International Monetary Fund to support the national currency.
This testifies to the dinar declined in value against the u.s. dollar during the current period, as a result of the actions of the Central Bank to sell hard currency.