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Central banks in the countries of the world mainly aim to achieve economic stability by achieving stability in the monetary system and the financial system through their programs and strategies aimed at maintaining stability in the exchange of their local currencies against other foreign currencies and building sufficient foreign cash reserves to cover their local currency in circulation
according to special international standards issued by The International Monetary Fund also evaluates banks based on other criteria related to facing crises, challenges, economic, political and security shocks, natural and epidemic disasters in their countries, controlling stable rates of inflation and interest rates, and applying compliance systems and rules, combating money laundering and financing terrorism internationally established.
And since all countries of the world have been going through two economic and epidemic crises for ten months due to the global drop in oil prices, economic stagnation and slowing economic growth due to the Corona pandemic.
And that the above conditions suffered from Iraq and neighboring regional countries such as Iran, Turkey, Lebanon and Syria, in addition to the economic, political and security conditions and challenges that all these countries shared with Iraq in. One of the results of this was the devouring of the US dollar for the local currencies of the above regional countries and their collapse in very large proportions, for example. Currencies decreased against the dollar, so the Turkish lira became 730 pounds per dollar, and in Iran one riyal corresponds to 0.000024 dollars, the Lebanese pound 8,500 pounds and the Syrian pound 2,250 pounds against the dollar, while the exchange rate of the Iraqi dinar has fallen within its rates for the past two years.
So why was the exchange rate of the Iraqi dinar not affected except by a slight relative rise in the dollar exchange rate and a decrease in the purchasing power of the Iraqi dinar? In order for the economic analyzes to be accurate and not extreme of the reality of monetary stability in Iraq and the effects of the new and expected economic and epidemic shock on the exchange rate of the Iraqi dinar, which has stabilized for more than two years and is still strong and stable, and will continue as well despite international and local political shocks.
In order not to take the expectations of media exaggeration and create a state of fear among the public and the banking sector. I assert, through an insightful economic and analytical view of the state of stability in the exchange rate of the dinar, and from a neutral and transparent point of view, we note that the independence and the high, rational and balanced wisdom of the central bank and the availability of foreign cash reserves at the rate and proportion Which determines its sufficiency to cover the cash mass in circulation and to cover imports as the foreign monetary reserve is fully secured and Iraq ranks fourth in the Arab world, in addition to the strength and recovery of the Iraqi dinar and dealing responsibly and independently by the Central Bank
The applications of the monetary policy adopted by the Central Bank, which achieved stability in the exchange rate for more than two years, represent the real guarantees to protect the local currency from collapsing Q and to face this new shock.
It will be overcome as the economic and security shocks that the Iraqi economy suffered during the previous years have been overcome. The Iraqi dinar will remain stable and maintain its purchasing power despite the challenges.
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