Tuesday, November 3, 2015

CBI Can Handle Currency Issues, 3 NOV

A famous economist Dr. Fadel Awad Ismail revealed that Iraqi monetary policies have induced a considerable decrease in the inflation rate in the previous period 2007 to 2010. It also contributed for the accomplishment with the efforts of authority to implement monetary policies in perfect manners to maintain the Iraqi dinar exchange rate against the U.S dollar by the foreign currency auction of buying and selling at the Iraqi Central Bank. We experienced administratively and progressively a minimal high exchange rate of Iraqi dinar towards the betterment against the U.S dollar. It also contributed to degrade the U.S dollar and its increasing demand in the local markets to stabilize the Iraqi dinar currency and economy of Iraq. As a result, the overall demand of the U.S dollar decreased significantly which was increasing by a continuous decline in the Iraqi dinar exchange rate in the domestic markets.
He also explained that the Iraqi Central Bank adopted two major paths to stabilize the Iraqi dinar exchange rate. First of all the involving of the CBI in the local currency market in order to tackle the exchange rate of foreign currencies especially the U.S dollar and second is by increasing its financial assets such as saving deposits in the Iraqi dinar currency. The CBI has now included some administrative methods to maintain and regulate the foreign currency. He also said that Iraqi Central Bank is continuously conducting the auction of foreign currencies since October 2003. He added that Iraqi Central Bank sold a heavy amount of foreign currency to governmental banks, private banks and authorized money transfer companies with a reasonable price in their auction of foreign currencies.

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