Cord traders prefer to deal in dollars and euros, rather than the Iraqi dinar

Observers: Cord traders prefer to deal in dollars and euros, rather than the Iraqi dinar

23/10/2014




Observers said that the security situation and the political and economic unstable in Iraq led to a decline in Iraqi dinar deal by some traders Kurds in the markets of the region and the shift to a more stable foreign currencies such as the dollar and the single European currency (euro).

Economic expert Jabbar beefy said in a statement to Radio Free Iraq that investors and traders Kurds fear of the collapse of the Iraqi currency as a result of the current situation, and the possibility that resort provincial government to deal in dollars under the abstention Baghdad for disbursement budget for the province, and the shrinking reserves of banks, the province of the Iraqi dinar.

He beefy as saying that “the Iraqi dinar parsimonious in banks in the Kurdistan Region as a result of the non-diversion of Baghdad budget province eight months ago, which led to the difficulty of paying salaries to employees in dinars and thinking in payment of salaries in dollars, as well as the low exchange rate of the Iraqi dinar, and the lack of stability against other currencies, All this pushed traders to replace their capital foreign currencies. ”
One semi-traders Kurds what is happening in the region and the scarcity of banks dinar to what happened during the nineties of the twentieth century, when the Iraqi government replaced the Swiss dinar and caused damage to traders Kurds.
“I think that fiscal policy is wrong for the Iraqi government may damage the local currency. Because you can not rely on the currency as long as Iraqi officials hint from time to time the possibility of changing the currency or delete Asfarha, and failure to pay the budget of the province, all that we believe that the foreign currency more than a guarantee for for traders. ”

Sirwan Rasheed shop owner banking in Sulaymaniyah pointed out that the exchange rate of the dollar against the Iraqi dinar is different depending on the category of the dinar any large groups that are the most popular and interest in banking markets.
He added: “There is a difference in the exchange rate of the dollar over the categories of the dinar small and large, may reach Alynho 20 000 dinars, and this because large groups of dinar easily transported to the banks of Baghdad to be transferred there to Dolar.ohnak another reason which Zeya damages in small groups that are traded in the biggest among citizens. refrain Most banks in Kurdistan for receipt, what leads to the devaluation of the dinar in the markets of the region. ”

It is said that the Kurdistan Regional Government of Iraq had hinted before that it will be spent for the salaries of its US dollar it gets from oil revenues in the event of continued non-diversion of the provincial budget.
iraqhurr.org