Petrodollars cause big problems between the government and the oil-producing provinces

by **Ponee** Mon Feb 02, 2015 10:53 am

Counting a member of the Economic Commission parliamentary, on Monday, that the current high price of the dollar against the dinar, "temporary," although it did not happen under even worse than that the country is undergoing political and security conditions, criticizing the financial budget law for the contents of paragraphs "is sound and other raises questions, "while banker attributed this rise to the central bank to reduce its sales for the half of it, and citizens rush to buy it.

Long-Presse correspondents in Baghdad and the provinces noted that the price of the dollar against the Iraqi dinar rose again on Monday, from 1250 to 1260 Iraqi dinars.

The MP said Ali al-Maliki, in an interview to the (long-Presse), "The rise experienced by the dollar in the local market did not happen for a long time and under much worse than those that are currently taking place in the country's political and security situation," noting that "it was expected to be dollar exchange rate will be reduced to approximately 200 thousand dinars, only instead of rising. "

And saw a member of the parliamentary Economic Committee, that "some of the paragraphs of the general budget for the current 2015, a source of wonder, and other improper and ambiguous," expected to "return the dinar exchange rate against the dollar to normal after a month from now."

For his part, attributed the banking office that the cause of increasing the dollar's exchange rate against the dollar is the decisions chest Iraqi Central Bank to reduce the quantities sold of the dollar.

The owner of the office, Ali Saad, said in an interview to the (long-Presse), "The dollar exchange rate began to rise suddenly even now 1,260 dinars, after it was up to 1230 just a week ago," attributing it to "minimize the Central Bank of the daily quantities of the dollar, which sold in the auction to nearly half. "

Saad said, that "a lot of banking offices merely to buy the dollar and sell it for fear of not rise more in the coming days," noting that "a lot of people have started queuing up to buy the dollar will lead to a height of more against the dinar in the coming days."

The dollar rose in the coming days to gradually up to 1,260 dinars, the highest rate in years.

The Iraqi Central Bank to sell dollars to banks at a price of 1166 dinars to take is to sell to dealers.

It is noteworthy that the current year's budget law, committed the Central Bank of Iraq, in paragraph 50, identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed 75 million, with the exercise of justice in the sale, and claim the participant in the auction the bank providing the introduction of goods and data documents settling accounts and tax savings Alkmarki within 30 days from the date of purchase of the amount, and so it applies penalties stipulated in the central bank law or instructions issued by him, and the use of other banking tools to maintain the strength of the dinar against the dollar.

The Central Bank of Iraq, announced on Sunday, (the first of February, the current 2015), take five resolutions for "support" the development of the Iraqi economy, stressing his agreement to cover bank accounts abroad to "US dollar" to cover imports, while the importance of " accelerate "legislation Deposit Insurance Act, hailed the formation of a committee to reconsider the structure of interest among its" approval of the Central Bank to cover the bank accounts abroad in US dollars to cover imports of customers and for other purposes without having to go through the window of the currency sale at the Central Bank of Iraq. "

The Iraqi Central Bank announced last week, to take the necessary measures to boost liquidity in the banking system, and decided to facilitate the procedures for the sale of foreign currency "to sustain the exchange rate."

The Central Bank of Iraq, had announced in (the 18th of January 2015), that the financial reserves of Iraq is equivalent to one and half times the weakness of the currency bloc, returned it the "best rates" in the countries of the world, as he emphasized that Iraqi financial institutions are "unable" to cover The fiscal deficit, he stressed the need to reconsider the structure of the budget and spending and diversify sources of income and achieve investment more broadly to address the decline in oil prices.

The Iraqi Council of Representatives passed last Thursday (29th of January the past), the financial budget for the current 2015, an amount of 119 trillion dinars, the equivalent of $ 117 billion, and a deficit of about 25 trillion dinars, or about 23 billion dollars, and calculates the price a barrel of oil at $ 56 a barrel, while the President of the Council stressed, Saleem al-Jubouri, it is the first time that the adoption of the budget is during the first month of the year, returned to the "achievement" is calculated to parliament.

2015-02-02

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