Experts: The Iraqi-American Agreement Is The Beginning Of Exchange Rate Stability, 17 nov

 Experts: The Iraqi-American Agreement Is The Beginning Of Exchange Rate Stability

 Baghdad: Huda Al-Azzawi   Experts and officials in financial and economic affairs praised the agreement of the Central Bank of Iraq and the representative of the US Federal Bank, regarding strengthening the balances of Iraqi banks in dollars and increasing their number, and  strengthening other local banks with balances from a basket of international currencies, indicating thatb this step will contribute to the stability of the dollar exchange rate and reduce the influence of the market.

Parallel  Engaged in speculation.

Advisor to the Prime Minister for Financial and Economic Affairs, Dr. Mazhar Muhammad Salih, indicated in an interview with “Al-Sabah” that

 “the Iraqi monetary authority holds foreign currency reserves, which are the highest in Iraq’s financial history,” indicating that  “Iraq has the highest foreign currency reserves and commercial efficiency.”

 High,  today the reserve currencies are sufficient for Iraqi trade for a period of (fifteen months), while the standard   Global is (three months).

 He explained, “External financing for the private sector takes place through the compliance platform, which required conditions that lasted for a year from last October to this November, and

 thus the banks adapted on the basis of global compliance with the use of foreign currency for the purpose of trade and not for other purposes that cause problems for the state.”  He noted,

  “The agreement between Iraq and the United States indicates the presence of high flexibility in financing the private sector, by strengthening a number of banks in dollars, which have adapted themselves to global compliance and will finance Iraq from major global commercial centers.”

 Saleh pointed out that   “more than 85% of the demand for foreign currency is done through the external platform managed by the (Central Bank of Iraq), by enhancing the balances of foreign banks, while the parallel market constitutes only 15% of the speculators’ market,” stressing that

 “This agreement constitutes the beginning of price stability in the exchange market.”

 For his part, the rapporteur of the Parliamentary Finance Committee for the fourth session, Dr. Ahmed Al-Saffar, indicated in an interview with “Al-Sabah” that

 “the process of strengthening the banks will positively affect the exchange rate of the dollar,” indicating that “the point is not in increasing the number of banks, but in the amounts that are made.”

Adding them to the balance of these banks first, and secondly by monitoring these banks and ensuring that these amounts reach citizens and merchants,

 especially since some of these banks take dollars from the currency window, but these amounts do not reach the market but are used for speculation purposes,

which is the main reason for the large difference between The price of the dollar in the parallel market and the official price.

Al-Saffar pointed out that  “increasing the number of banks and enhancing their balances will contribute to reducing the price of the dollar in the parallel market,

provided that these banks are monitored and ensure that those dollars are delivered to citizens and merchants,

in addition to verifying the truth of the documents submitted through the platform regarding materials related to transfers.” And remittances. He explained,

“The bulk of this money that goes out the window goes to remittances and is not real.

The process lies in two points:

(Monitoring transfers and ensuring their authenticity), and

secondly (monitoring the funds that go out the window through participating banks), and whether they actually reach the parallel market or are they used

For speculative purposes.

In addition, the economic affairs analyst, Jalil Al-Lami, said in an interview with “Al-Sabah” that

 “what happened is a new reform step by the Central Bank of Iraq by reaching an agreement with the representative of the United States of America responsible for foreign transfer operations.”

 To cover imports.

 He stated, “The matter does not affect the issue of cash or (cash), but rather the delay procedures in the electronic platform, and the return of some transfers in the currency buying and selling window,” explaining,

 “In the first place, the problems related to rejected transfers were resolved, as it was agreed that The rejection of remittances is based on strong reasons, which will achieve more streamlined transfer process than before, and

thus this will partially affect the demand for the dollar, which limits the possibility of its rise, and after that temporary stability will be achieved for the dollar, and then return later.

 To a gradual rise.

An Iraqi government source had previously revealed an Iraqi-American agreement aimed at strengthening the balance of 10 Iraqi banks in dollars.

 He also revealed an increase in the number of Iraqi banks whose balances in Chinese yuan would be enhanced through the Singapore Development Bank to 13 banks, while

 the number Banks that have strengthened their accounts in Indian rupees with the Development Bank of Singapore 2, and other banks will be added within the next two weeks.  https://alsabaah.iq/87235-.html