Saleh told {Euphrates News}
that “the phenomenon of the increase in sales of foreign transfers from foreign exchange is due to the results of the important change that took place in the policy of the Central Bank of Iraq in dealing with foreign transfer and interfering in the monetary market through the shift in foreign trade financing mechanisms for the private sector from a compliance platform to new mechanisms represented in strengthening the accounts of correspondents of Iraqi banks abroad with foreign exchange at deliberate and sufficient levels commensurate with the requirements of financing foreign trade for the private sector of foreign exchange.”
He added, “After the compliance platform previously refused during the past months about 85% of external transfer requests, the policy of strengthening the accounts of Iraqi banks with their correspondents from sober international banks, became as an alternative policy, which is easy, easy and flexible,
which made the implementation of daily external transfer requests available and achieved through foreign correspondent banks directly without passing through the platform and with a high percentage of 85% of the total demand for those daily external transfers.”
Saleh explained, “This high change in the flexibility of transfers has reflected positively on the national economy, especially in the stability of the total supply and demand functions within the national economy in two directions, the first of which is {supply side},
represented by the availability of a wide commodity and service supply in the local market through flexible imports funded at the fixed official exchange rate of 1320 dinars per dollar.”
He explained, “The other trend is {the demand side}, which refers to the process of exchanging the Iraqi dinar to dollars for the purposes of financing foreign trade through the aforementioned transfers, which means that meeting the demand for the dollar represents a direct meeting of the demand for (foreign goods, services and benefits) for the benefit of the local market.”
He pointed out that “meeting the demand for foreign currency is an important pillar of the monetary policy of the Central Bank of Iraq, and achieving its operational objectives in addressing and controlling the excess domestic liquidity levels of the dinar, which constitutes the so-called {overcemand}. This control of local liquidity also represents a positive intervention of the Central Bank’s monetary policy in the cash market and control of the levels of that liquidity.”
Saleh continued, “This control leaves its positive effects in achieving a balance between the real current in the macroeconomic of goods, services and benefits and the monetary current within the economy itself,” noting that “such a balance between supply and demand achieves stability in the general level of prices and is the growth levels of inflation rates, which is reflected positively on the stability of the purchasing power of the dinar and the general monetary income.”
Raghid
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