The stability of the Iraqi dinar remains threatened in the absence of development

May 1, 2010 · Posted in NEWS
Knight life

Challenges facing the Iraqi economy begins to talk about it does not end. He destroyed the economy of a country of war and international sanctions emerging industries and infrastructure, it empties it of minds and talents in science.

Show the destruction of the national economy Bosta forms in the collapse of the national currency.
After the Iraqi dinar exchange rate more than three dollars became a citizen needs a vehicle carrying overlooking the village paper to the bakery to buy a few loaves. Citizens still pay more than one thousand Iraqi dinars to buy one dollar. Under the Iraqi dinar exchange rate stable, more or less since 2004, thanks to policies of the Central Bank of Iraq. This has contributed to the relative stability in keeping inflation within the scope of control.

Economic expert at the Central Bank on behalf of Abdul-Hadi said that the stability of the Iraqi dinar will contribute in providing a suitable environment for investment and to allow traders and investors to make their decisions based on realistic indicators for the Iraqi economy. Abdul Hadi said the central bank can raise the Iraqi dinar exchange rate against the dollar, with its means of intervention in the financial market but only if it be a gradual process without spasm sour the atmosphere of financial transactions.

The global financial crisis and the recession that hit the global economy in the fall of prices of many consumer goods, but Iraq did not touch such a fall in the Iraqi market. He attributed the economic expert, Abdul Hadi of this phenomenon to the monopoly that some traders.

Reservations economists raise the value of the Iraqi dinar, convinced that the benefits of such a step would be the trader and not on the consumer, as an economist as Abdul Hadi. It is well known that Iraqi oil revenue is the main source of national income and to provide more than ninety-five percent of the state budget.

Since oil prices are calculated and paid in U.S. dollars, this reliance on oil exports resulted in a link directly linked to the national currency in U.S. dollars. This provision has become a feature of the Iraqi economy as general manager of statistics at the Central Bank for the appearance of Mohammed in an interview with Radio Free Iraq.
He noted that the form of benefit to the demand for foreign currency which is the cover of the Iraqi dinar at this time depends on the investment activity development or consumer.

The Director of Statistics at the Central Bank said the bank’s policies to maintain currency stability alone is not enough without the diversification of national economy, which continues to import everything, as he put it.
Witness the international financial institutions like the World Bank and International Monetary Fund that the Central Bank of Iraq has succeeded in curbing inflation rates are calculated to single digits in the 3 to 4 percent per year.

Contributed to the audio file colleague Khaled Waleed, who met with officials at the Central Bank of Iraq.

http://www.iraqhurr.org/