Dollar adoption achieves Alastaqrarvi business dealings

Dollar adoption achieves Alastaqrarvi business dealings

Last updated: May 19, 2016 - 10:46



BAGHDAD: Iraq News Network to link the trade deal the Iraqi external dollar is of benefit to the economy in order to achieve stability being kept pace with general global trend. The positive this through facilitating the opening up of the Iraqi economy to the world, explaining the difficulty of replacing the foreign business transactions in a currency other being would create an imbalance in the global currency market in terms of increased demand for a particular currency without the other. There is no economic reason why Iraq to deal in euro instead of the dollar, but the dollar culture of the region in general make it difficult to do business in euros rather than dollars. Among these reasons is that the US currency global currency long and are dealt to sell oil for a long time, highlighting the dominance of the dollar on the rest of other currencies such as the euro, for example , although he global currency recognized , but it is modern currency, stressing at the same time as reflecting the weight of the block EU states. The Iraqi market is witnessing months ago a remarkable rise in the dollar against the local currency after it saw in 2011 stable in the dollar exchange rate continued for nearly two years , scoring a price hovered in the range of 1220 dinars per dollar, but the decline in the sale of the Central Bank of it, due to lack of the supply of dollar derived from the sale of oil , which reflected falling world prices on the rise, making the dollar achieves rapid leaps and sometimes reached to eight degrees compared to previous periods. That the exchange policy in Iraq was built on the basis of traffic in one direction only , which does not accept progressive climb in the nominal exchange rate of the dinar as the main tool in the inflation - resistant. This administrative way in moving the nominal exchange rate was offset by banks and remittance and exchange companies conduct in dealing dollar buying and selling, which revealed the close relationship between the imposition of selling prices are high for the dollar beyond the official purchase price to traders, companies, businesses and lower the price of the dinar. Among Fadel said that this contradiction between the rigidity of the price administrative (exchange rate) and high flexibility to push the exchange rate under pressure application parties to the dollar to end - applicants and seeking the maximum profit, meant to restrict anti - interference of inflation pursued by the central bank 's policy through administrative control value exchange foreign and local currency . He explained that dealing in foreign currency in the market are at higher than the official price, the exchange rate sellers and importers will reap the profits of the monetary union it was greater than what can be achieved in light of the market mechanism and the imposition of restrictions on foreign currency sales. He pointed out that the actual impact or real to install the dinar exchange rate administratively interfering with a free exchange rate of the dinar value less than the official exchange rate indicates that there is a reduction veiled or implicitly to the value of the local currency in the market. It repeated the announcement of the intention of the monetary authority to reduce the price of the dollar to 1000 dinars to the dollar a clear framework for this policy and Find at the same time with the official and popular circles sense not to accept any deterioration in the price of a swap dinar to the dollar has established and therefore resist any amendment in it that was necessary from an economic standpoint in the future, and so lacked rate policy flexibility necessary to draw a limit to the official exchange rate volatility between them and absorb any embarrassment as a result of exchange rate volatility.

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