Central Bank: the security situation will not affect the Iraqi dinar and expert confirms … storage of foreign currencies will be temporarily -Translated Article
Editor: HH, SHS
Long-Presse / Baghdad
Said the Iraqi Central Bank, on Thursday, that the security situation in the country “will not greatly affect the Iraqi dinar,” and attributed the cause to “the power of the Iraqi dinar and the precautions that supported”, as noted financial expert said Iqbal Iraqi citizen to store foreign currency would be “temporary”, pointed out that the Iraqi economy because the governor to balance the dinar per covered 1.3% of one U.S. dollar a “one and a third.”
The governor of the Iraqi Central Bank and the Agency Abdel Basset Turki said in an interview (range Press), “The task of the Iraqi Central Bank, according to its law is to keep the dinar stable against other currencies,” noting that “the bank’s management studied and researched the course of the security situation of the country’s and its impacts on the financial situation in the country. “
The Turkish that “what exists of a reserve of hard currency to the Central Bank will be capable of controlling the exchange rate of the dinar against the dollar,” he said, adding that “cash reserves in support of the Iraqi dinar is 70 billion dollars and that the central bank is able to support the exchange rate of the dinar, which currently stands at 1200 dinars to the dollar, so there is no fear on the dinar at the moment. “
For his part, said the financial expert Mazen al-Khafaji, said in an interview to the (long-Presse), said that “there is a slight rise too in the exchange rate of the dinar against the dollar because of the Iraqi citizen and nature in such things such resort to the storage savings is the most fitting what stores have the foreign currency for the purpose of assist him in case something happened in the country, “adding that it would be temporary and can not last for a long time because of the nature of Iraq’s financial dealings.”
He said al-Khafaji, he was “following the increase in demand for the dollar there will be a rise in the exchange rate of the dollar against the dinar, and here comes the role of the central bank, which will try to work on widening the sale of dollars in the currency auction has in order not to exploit the current situation and the rise of the dollar against the dinar.”
The al-Khafaji said that “there are other things possible to maintain the Iraqi dinar and the economy in general in these circumstances, Kahtiatat Central Bank and the export of Iraqi oil.”
He said al-Khafaji, that “the dinar is covered, according to central bank reserves at 1.3% ie, that the Iraqi dinar, an indoor one and a third of the dollar as well as that Iraq is the export of oil, which would be the southern regions of safe and so would be an abundance of the dinar against the dollar existed during operations to sell oil on the world market “.
And witnessing the Iraqi market a remarkable increase prices of goods and food since the first day of the fall of the city of Mosul, however, the terrorist organizations, which called for most citizens to turn to buy some basic food items to be stored for fear of depletion of the markets as well as to store a number of payments in hard currency (dollar).