Related Iraqi Currency Articles

Smooth Jazz Man: I'M POSTING THIS AGAIN WITH A QUESTION, DO YOU SUPPOSE THERE IS ANOTHER PURPOSE BEHIND THIS? IF THEY RV, PEOPLE ARE GOING TO INSIST THE BANKS SERVICE WHATEVER BAD LOOKING CURRENCY THEY HAVE AND THERE SHOULDN'T BE ANY LIMITATIONS FOR THAT. CAN YOU IMAGINE IF THEY HAD THREE OR FOUR 25K BILLS DAMGED AND SUDDENLY THEY WERE WORTH 75 OR 100 USD AND THEY COULDN'T GET THEM EXCHANGED AND EVEN WERE THREATENED WITH A FINE? OMG...THEY'D BE FIGHTING OR KILLING THE BANKERS! AND THAT'S JUST THE TIP OF THE ICEBURG, THEY COULD HAVE A THOUSAND DOLLARS WORTH OF DAMAGED BILLS!

Central Bank cancels meet the fine on the damaged money for the purpose of replacing



Tue Oct 28 2014 12:14 | (Voice of Iraq) - Add Comment - Alsumaria News / Baghdad
Iraqi Central Bank announced on Tuesday, the abolition of the fine to meet for the purpose of damaged coins replaced with new ones, adding that he is trying to clean the circulation of banknotes damaged.

The bank said in a statement, "Alsumaria News" received a copy of it, he was "for the purpose of encouraging banks and financial institutions to take over the securities and cash damaged and damaged and burnt from the public has been decided to cancel the fine imposed on the damaged leaves of the currency, which was reluctant banks received from the public on the grounds are met the imposition of the fine. "

The bank added that it "seeks to clean up the trading of banknotes damaged and burnt and damaged in the markets."

And still most of the Iraqi banks and financial institutions, as well as most traders refuse to handle financial damaged banknotes and often refuse received from citizens.



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The dinar.
Unmounted. Descending

Author:

Zia Rahim Mohsen

 

For we see Iraqi dinar exchange rate, it regresses to maintain stable exchange rate somewhat, which comes with a big question, what is the reason for the decline of the value of the dinar? Is that the reason for this is due to the poor economic policies pursued by the Central Bank? Or are there other reasons?!
Far and wide know the composition of the Iraqi economy, rentier economy is working on two contradictory; the first axis: the State's economy is dominated by over 80% of GDP, or so-called national income; in addition to his direct responsibility to provide 99% of the cash inflows of foreign exchange, and its direct link to the critical edition of the Central Bank of the movement. Theme II: the market economy that has the greatest efficiency in the management of the results of the State's economy, which is reflected in the budget in the Government expenditures, which represent 60% of all government spending. And yo'sharh from private to this market by outflows from the country's foreign exchange market and the desire to acquire foreign currency, accrued from Central Bank reserves, which represent a cover for those rights.
When the free market is dominated by the workings of the economy, and freedom in external conversion process in addition to using an open-door policy in foreign trade to the private sector, and with the absence of vision and development strategy for the development and advancement of economic reality, the economy turns into severe bilateral rent in foreign currency supply to foreign trade and import trade financing consumer character, which makes Iraq an incubator for consumption and export to other countries.
The CBI's work on keeping the stick of Center of balance between two contradictions: the economy of the State and the economy, and keep up with the rental market, which serves the marketing activity internal and outward movement of funds regardless of the results to build an economic model generates movement and outside the inflows in foreign currency away from these bilateral or highly polarized between different economies (the economy of the State and the market economy), and the inflows of foreign currency provided by the State economy, and other emerging from foreign currency gasping behind the private sector.
Over all, what was the reaction of the monetary authority of the Iraqi Central Bank? The CBI have exercised a policy of intervention in the foreign exchange market, reaching a stable level of the exchange rate "and is noted by citizens throughout the period Mr. Alshabibi Governor of the Central Bank so that the Monetary Authority has been able to maintain a stable price level, inflation dropped from secondary ten-year levels to one decimal place, add to that the rising Central Bank reserves of foreign exchange to a distant alasharitIn terms of dollar value "and is the highest in the history of the country" and with this, the Central Bank could not resolve the battle between market economy and the profit, between the State economy and predisposition to uniqueness in an attempt to find profit; a lack of vision for the movement of Iraqi economic system. Making the Iraqi economy lost trying to find viable solutions, resulting in the deterioration in the exchange rate of the Iraqi dinar, the trend towards economic freedom, and foreign currency swap rights maintained in dinar for the purpose of achieving economic stability, imposing a burden on monetary policy for the Central Bank to intervene to sell the dollar in a bid to maintain the stability of the exchange rate of the Iraqi dinar against other currencies Foreign, which needs a bold decision shows the outlines of the economy; either move to an open-door policy with all consequences resulting from attrition in oil revenues to ensure well-being and stability "with the apparent absence of development policy in the rest of the productive sectors" to be decided by the political leadership in the country and to the Central Bank because of incomplete economic system around the country after manyTalk about the transfer of $ 180 billion between 2003 and 2012, generated by the economy of the State after spending for the same period by the General almwazant $ 450 billion dollars, which remained absent development economy for lack of an attractive investment climate and the unresolved economic vision to this contradiction, and launches a free market mechanisms as emerging economic powers interested after 2003, the results of the economic stability of the country will continue to be vague and will coexist with parallel exchange market turmoil to unknown long-term consequences and possibly disastrous In price stability and the standard of living and a painful daily concerns in the economic life of Iraqi families and the general economic activity.

Economic parliamentary: political reasons behind the deterioration of the exchange rate of the

Iraqi dinar against the dollar.

http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http://www.qeraat.org/news.php%3Faction%3Dview%26id%3D6110

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28/05/2013 - 13:02
| Source:



Economy and Business







Author: Ahmed Hussein

Advertise Alsumaria


alsumaria

Sumerian News / Baghdad

Ezzat parliamentary economic committee, on Tuesday, the deterioration of the

exchange rate of the Iraqi dinar against the dollar to political reasons, as he

emphasized that there are economic expert internal and external reasons

behind this deterioration.

Committee member said Ibrahim stirrup, in an interview for "Alsumaria News",

"The instability of the political situation in Iraq, which is reflected in the

deterioration of security in the country, led to a decline in the exchange

rate of the Iraqi dinar against the dollar."

The stirrup that "there are foreign agendas aimed at destroying the political

process and economic development in Iraq," noting that "these agendas is

currently working on political instability and security situation in Iraq, and the

continuing deterioration of the national currency, in addition to disable any

construction projects or economic development."

What was seen as an economist Majid picture, in an interview for "Alsumaria

News", that "the causes of internal and external behind the deterioration of the

exchange rate of the Iraqi dinar," noting that "the situation in the region,

especially to neighboring countries, which imposed an economic blockade

paid to obtain hard currency from Iraq. "

Suri pointed out that "the existence of an internal mafias seeking a dollar by

various means, in addition to psychological factors among citizens and confidence

in the dollar all this has led to increased demand in local markets."

The Iraqi market is witnessing a gradual rise in the dollar exchange rates for up to

1,300 dinars per dollar during the past week, having stabilized the exchange rate

on the 1180 - 1200 dinars to the dollar for more than a year.

It is noteworthy that the Iraqi Central Bank, monetary policy official in the country,

including the policies of the national currency exchange rates through a daily auction

conducted for buying and selling foreign currencies.

_________________________________________________________________________________________________________________________________________________________


Expert: the free market make of the banking sector needs to be updated in all banking laws
And the independent press - 01/15/2013 - 7:01 pm

20120824202543608910854646441081839992_778713148

BAGHDAD (Iba) .. Confirmed an economic expert Akram Abdel Aziz, Iraq's economy shifted from a highly centralized economy to a free market economy has made ​​the banking sector needs to be updated in all its banking laws to keep pace with global developments.

Said Abdul Aziz told the independent press (Iba) .. "The banking sector lacks the laws of modern play incident economic fact that all laws classic and need to be updated, are described: the conferences latest economic came plans supportive of the banking sector will promote incident practical economic."

He added, "The Law of the Central Bank Act known regulates monetary policy and regulates aspects of banking in all its details, but needs to be updated, that the transformation of the Iraqi economy to a market economy and open up to the developed world needs to be supportive elements and new laws."

She cross-Aziz, "The banking sector needs to support the concrete in the development of future prospects in all fields and electronic dealings to keep up with the global system and improve the Iraqi banking sector." (End)



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Conferences - Details
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Baghdad Economic & Banking Forum

January 11, 2013 - January 12, 2013

The banking sector today is an essential pillar of the construction of any free economy. This sector supports the government and contributes to the process of economic and social growth. If the foundations used to build this sector are strong and solid, based on scientific planning, and abound with competence, experience and confidence, it will succeed in contributing to the development and investment plans in terms of construction, reconstruction and economic growth of the countries and societies.

Print Details
BACKGROUND The banking sector today is an essential pillar of the construction of any free economy. This sector supports the government and contributes to the process of economic and social growth. If the foundations used to build this sector are strong and solid, based on scientific planning, and abound with competence, experience and confidence, it will succeed in contributing to the development and investment plans in terms of construction, reconstruction and economic growth of the countries and societies.

Iraq represents a remarkable and ideal case for investment and construction projects, especially that the size of large investments necessary to achieve development requires a multi-disciplinal funding effort that can’t be limited to only one source of funding. Iraq is a rich and attractive country for investment due to its scientific and technical cadres, its natural resources, and administrative procedures and legal system that ensure the facilitation of investment and allow access to the Iraqi market and provide equal opportunities for Arab and foreign investments with the availability of mechanisms for financing and transfer of currency to and from Iraq.

Faced with this reality, the Union of Arab Banks is willing today to contribute in promoting this outstanding qualitative shift of Iraq, by holding the “Baghdad Economic and Banking Forum”. This forum is meant to be the first to shed light on major developments of the Iraqi economy, and to open the way before the international and Arab financial institutions, and the Arab banking sector to be the first to enable them to benefit from the developments in Iraq, to hold direct economic relationships with Iraqi institutions and take advantage of the future active role Iraq is expected to have.

The Union of Arab Banks - in cooperation with the Union of Iraqi private banks, and the Iraqi banks – has decided to raise this issue in this forum, in presence of a large assembly of Ministers of Finance and Economy, Central Bank Governors and decision-makers in the Arab and international financial institutions, in order to develop plans for growth, stability and progress, build “outstanding relations among the Iraqi banking sector and other Arab banking sectors, and strengthen the national economy allowing it to better face the challenges both internally and externally, by referring to experts, researchers and businessmen, by showing similar experiences to reach practical and serious recommendations that realize the objective of this forum.
AXES OF DISCUSSION Role of the banking sector in the economic development process
Government strategies to restructure the economy
Political stability and investment guarantees in Iraq
Arab financial cooperation and its role in the economic boom
Prospects for investment and reconstruction in Iraq and role of productive sectors (electricity, oil, telecommunications, housing)
Requirements of reform for the banking sector in Iraq (priorities and challenges)
Banking legislation to keep pace with the evolution of the banking industry
Development of information technology of Iraqi's banking sector
Success Opportunities of Islamic banking in Iraq.
OBJECTIVES Encourage opening Arab markets to trade and investment
Shed light on the achievements of the Iraqi government in restructuring of the economy
Shed light on investment opportunities in Iraq
Identify the requirements of the banking industry in Iraq
Identify priorities and challenges facing the business sector in Iraq
Present a platform for the Arab banking sectors to communicate directly with the Iraqi banking sector and building bilateral relations.
 

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The news agency Baghdad International » News » investigative journalism
- Iraqi citizen suffers from its national currency shattered!!
By: Bian2
On: Wednesday 11/21/2012 10:07 am

 
 

Baghdad / WAP / report Duraid Thamer: become rare and difficult to enter in the pocket of the citizen paper currency is torn or is glued or subject to paste and become those currencies that circulated Iraqi citizen concern has as taking vendors and shopkeepers and markets cars are reluctant to receive money after that become this Banknotes very old without trying to renew it and took cause them great suffering due to rupture more Currency constant use and lack of care citizen out and maintain when fade many times and others Asahbunha strongly packets Securities surrounded rubberized which exposes them to cut or damage that contributes to omission vendors and others for receiving those currencies which confused the citizens in how to dispose of them or traded.
.
So you'll find competent financial authorities solutions to this phenomenon? Why do not you released new coins compensatory shattered? And when there will be stiff penalties on the refrain of the receipt of torn currency? .

Said Ahmed Ali Jaber (employee) told Baghdad International / WAP /: that this phenomenon exists in all countries of the world but in other countries received popular unlike what is happening we are supposed to banks isolating banknotes affected and printed new alternatives have to remain Currency trading under and on an ongoing basis and this has not happened so far and I do not know what are the reasons for not printing new banknotes save the citizens from these daily suffering.

The Lamia Abbas Jassim (university student), said L / WAP /: I Banknotes torn from various categories and does not accept a road from shopkeepers or drivers cabs handled or discharged and I am confused about how to deal with knowing that some banks do not accept receipt or replaced when their review under the pretext of work or momentum that the majority of these currencies is we do not have coins under our hand at the present time.

While Haider said Hassoun Matar (teacher) for / WAP /: the failure to print new currencies during these years due to the idea of ​​turning these currencies and replacement, deletion of zeros from where there will be coins a new Iraqi without zeros to facilitate trading and increase the purchasing power of the currency has been this just an idea, but it seems serious in the recent period through what we see on television or newspapers tell us.

The Rasha Fulayyih Hassan (employee) in a statement / WAP /: "The majority of Iraqi banks are imposing these currencies on account managers who can not find a way, but give it to the employees with their salaries and refused to receive these currencies, they are waiting queue may range up to days until Do not repeat one of the account managers then, it will Babdalha us and giving us the other currencies, it is a puzzling phenomenon not know how to get rid of them?.

The Saif Salah al-Lami (taxi driver) in a statement / WAP /, to that objection is not on these currencies damaged it inevitably will be spent will remain in their houses, but the problem that dealing with difficult and accepted by one and this phenomenon does not include currencies without the other has hit damage Most banknotes due not to deal with them in a civilized and good there fade several times and others strongly Asahbunha of securities packages surrounded by rubber, which exposes them to cut and tear.

And demanded decent Nasser Hamadi (housewife) to find solutions to this problem when she said: that this phenomenon are becoming increasingly in recent after being banknotes many to rip and tear due to use frequently and must find solutions to this problem, it is unreasonable to go to the market to buy what I needed to find a lot of shop owners selling vegetables refuse to receive for what they buy it on the grounds that the amounts torn to go back to the house I have bought a few which I wish to purchase the house under such excuses.
He stressed Muhammad Ali Qasim (owner of a shop selling food) that it was impossible to enter into our pockets daily paper currency is torn or is glued or subject to paste until it became a source of concern to us because of its refusal and rebuke shoppers in case of non-receipt her and took some of them often and work under pressure and fear of non-traded when taken from the people because the majority of vegetable vendors and shop owners and other car drivers do not receive money.

Stands Nadia Salem Prism (teacher) confused and hesitant in how to deal with these securities is accepted by the others, saying: When I go to the market to buy what you need family food, clothing stand confused in front of hesitation shop owner a stir amounts that I give him a look out carefully If satisfied taken and if not convinced he took it back to me and refrained from dealing with those legal papers and odd banks and accounts in circles recognizes employees and citizens shattered those currencies which have become a heavy burden on all people.

The home Hadi Thamer Karim (owner of a shop selling clothes): Ban all banks the world has people especially received where all banknotes torn and prepare lists them and sends them to the central bank for the purpose of destruction and printed alternative after taking numbers old and seems that the competent authorities in Iraq, uninterested for this matter and do not want to print a new editions.
The Wael Ghanem Hamid (taxi driver) on our currencies National made of paper is good and edition is also good but why are all this damage? Even we were puzzled and started Kmtdaulin to this currency and how to promote them after that we reserve currency is torn inside our homes and we spend in anticipation of the future.

It showed Faiza Hussein Jassim (employee): that the majority of employees and I'm one of them when we receive salaries, we find many of them contain those currencies what prompted us sort the good from Ripper for circulation hoping to take her shop owners or drivers of taxis, keep them as good for we use after Ripper him.

And suffered Abbas Rasim Hassan (retired) on wages received from the ports to the large papers shattered where when he says: our salaries low and our requirements so many plus those securities shattered that contribute to the difficulty of paying our debts or to owners of generators and after discussions and Atabat long with his port delivery salaries given us some other and Nhtar department in how to dispose of them, so must help citizens who became suffers from its national currency that do not promote torn.

For his part, warned member of the parliamentary economic committee Aziz al-Mayahi of the exploitation of some gangs pumping counterfeit currency into the market during the switching process damaged by a new categories of existing currency by the central bank calling to take significant steps to tighten control on the process of change to prevent this from happening. Said Mayahi press statement: After the failure to reach an agreement to implement a project to change the existing currency by deleting the three zeroes from the current period, Valtjo central bank about the currency exchange current damaged to another through a new contract with a foreign company to do so and added: must be implemented process according to legal procedures tight because there are criminal gangs specialized economic counterfeiting currency exploit this opportunity to ask groups forged to the domestic market and thus will affect the financial and economic situation in the country has announced the CBI for his contract with a British company to replace the currency damaged with new ones. / End

Head of Finance Committee: There will be five to seven models of new currency issued by CBI

Posted: July 26, 2012 

Head of the Finance Committee in the House of Representatives Haider al-Abadi, Thursday, for the presence of five to seven models for the new currency has provided the central bank, pointing out that the addition of three languages ​​by pointing out the existence of six categories and six categories of paper and metal.

Ebadi said in an interview that “five to seven companies provided models for the new currency to the Central Bank, which in turn will choose one of them,” explaining that “the models contained the Iraqi cultural sites, and three languages: Arabic, Kurdish and English.” 

He added Abbadi that “the form of currency the new not far from the image of the dinar familiar with the people,” explaining that “the paper currency would be the categories of five dinars, ten dinars, and twenty five dinars, hundred dinars, as well as a proposal to add a class two hundred dinars.”

Ebadi pointed out that “the coin will be the fiftieth category fils, fils, one hundred, five hundred fils, and a quarter dinars, one dinar, and two dinars,” stressing that “put the speed into account the distinction between the different categories.”

The head of the Finance Committee in the House of Representatives, that “there will be a new technology in the new currency to prevent forgery, and the unemployment age of the currency, and not to damage quickly.”

The Finance Committee of the House of Representatives, expressed in (July 13th of this month), support for the replacement of the existing currency, while the central bank’s readiness required for this step, confirmed that the bank needs another year to begin the process of replacement.

http://bit.ly/LR3ETd



Seven models of the new Iraqi currency contains three languages

Posted 26/07/2012 10:04 AM

Babinaoz (Reuters) – Head of the Finance Committee in the House of Representatives Haider al-Abadi, the presence of five to seven models for the new currency has provided the central bank, pointing out that the addition of three languages ​​by pointing out the existence of six categories of paper, six categories of metal.

Ebadi said that “five to seven companies provided models for the new currency to the Central Bank, which in turn will choose one of them,” explaining that “the models contained the Iraqi cultural sites, and three languages: Arabic, Kurdish and English.”

He added Abbadi that “the form of currency the new not far from the image of the dinar familiar with the people,” explaining that “the paper currency would be the categories of five dinars, ten dinars, and twenty five dinars, hundred dinars, as well as a proposal to add a class two hundred dinars.”

Ebadi pointed out that “the coin will be the fiftieth category fils, fils, one hundred, five hundred fils, and a quarter dinars, one dinar, and two dinars,” stressing that “put the speed into account the distinction between the different categories.”

The head of the Finance Committee in the House of Representatives, that “there will be a new technology in the new currency to prevent forgery, and the unemployment age of the currency, and not to damage quickly.”

The Finance Committee of the House of Representatives, expressed in (July 13th of this month), support for the replacement of the existing currency, while the central bank’s readiness required for this step, confirmed that the bank needs another year to begin the process of replacement.

And announced by the Finance Committee’s parliamentary Najiba Najib in (the third of July, current), that the budget next year 2013 will be the new currency after deleting three zeros from the current currency, arguing that the reluctance of traders and companies from trading in Iraqi currency behind the adoption of the Central Bank of the project to delete the zeros.

Hosted the Parliamentary Finance Committee, in (26 June), Deputy Governor of the Central Bank of the appearance of Mohammed Saleh to discuss the mechanism that will be followed by the bank in the process of removing zeros, and how long this process and the variables that will occur on the exchange of currency.

The member of the Finance Committee Haitham Jubouri on 15 May 2012, that the month of January of next year 2013 will see the deletion of three zeros and the replacement of the currency, while September will see the next 2012 direct printing the new currency in different categories.

The central bank was accused, in (12 September 2011), government bodies obstructing the monetary reform and vowed loaded persecuting those actors responsible for exposing the financial interests of the country to danger.

What was seen as an adviser to Prime Minister for Economic Affairs (25 August 2011), to raise zeros from the currency is the biggest corruption in Iraq if it was during this period, and fall under the name of tampering with the economic, warning of “mafias currency” is preparing to rig the trillions of Iraqi dinars to replace them in light of the planned changes.

It is noteworthy that some economists believe that Iraq is ready for the time being to delete the zeros of the Iraqi dinar, pointing out that the deletion needs to be a security and political stability as well as economic stability.

http://bit.ly/LPBTzb



Iraq’s monetary policy development will be topic of discussion between Gov of CBI, Presidency of the parliament and Minister of Finance

Posted: July 26, 2012

Discussed the Presidency of the Council of Representatives monetary policy of the country, with Finance Minister Rafie al-Issawi and Central Bank Governor Sinan Shabibi, and the President of Supreme Audit Abdul Basit Turki, according to a statement issued by the Council on Wednesday.

The statement said the agency received news the future a copy of it, that “House Speaker Osama Najafi, discuss monetary and fiscal policy of the state and the exchange rate of the dinar and the dollar exchange rate and the relationship between the House of Representatives and the government and the Central Bank, with the Minister of Finance and Central Bank Governor, the President of the BSA.”

The statement pointed out that “the meeting was attended by Deputy Chairman of the Board Representatives Qusay al-Suhail, Arif Tayfur and with the participation of MP Ahmed al-Alwani, Chairman of the Committee of Economy and Investment and Deputy Haider Abadi, head of the Finance Committee as well as a number of advisers Chairman of the Board of Representatives. “

The statement added that “The meeting agreed to form a committee to follow up with a key of the Finance Committee and the Committee on Economy and Investment and financial adviser to the President of the House of Representatives to discuss the recommendations of the President of the Office of Financial Supervision and the Minister of Finance, which provides what has been agreed upon at the meeting on monetary and fiscal policy of the country.

http://bit.ly/NKZ640



Finance Committee discloses it will be issuing large segments of the Iraqi currency in 50, 100, 200)

Posted: July 3, 2012

3/7/2022

Member of the Finance Committee of the Liberal bloc MP Magda El-Tamimi, “Central Bank of Iraq promised if delete zeros from the currency will make large parts of the coin ( 50 , 100 , 200 ) .

Said Al-Tamimi told the reporter summarized the news agency news (latest) If the consent of the Prime Minister on the deletion of zeros will be issuing large segments of the Iraqi currency (50, 100, 200) dinars for small groups it will issue class (25, 50.100) Fils as well (250, 500, ½, 1, 2) JD ” .

Tamimi said that the Finance Committee has formed a Committee of aadaha with the retirement of the General salaried retirees and the coming months will be settling employee salaries by service and certificate.

http://bit.ly/NtYNaj





| Home | Economic News

Iraqis trust the dollar and preferences on the local currency

29/04/2012 13:47:00
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The independent Iraqi news agency / Baghdad - handsome as ... most Iraqis would prefer to deal in dollars rather than local currency reflecting the lack of confidence in national currency by the citizens. Experts blame this phenomenon to the large fluctuations in the value of the dinar since the nineties, which was born out of fear and concern among a lot of loss.

Prevailed since 2003, in the U.S. war on Iraq, the phenomenon of large-dollar deal, at the state level and the individual alike.

 

According to Zaki, Hamza from the banking district of Kadhimiya today that it is easy to conduct foreign currency anywhere in the shops, whether you want custom or even street vendors and owners (stalls) on the sidewalks. Hamza and refers in this regard to the enormous proliferation of banking stores in Baghdad and other cities after it was limited in number in the nineties of the last century.

 

But what is worrying, according to Hamza that most Iraqis prefer to deal in dollars instead of the dinar and that the desire for a very large acquisition reflects the lack of confidence in national currency by the citizens.

 

This is because an activist in the finance and banking Ahmad agent to the high prevalence of fluctuations in the value of the dinar since the nineties, was born in fear and concern among many of those who fear the loss in the future if Aqtnoa the local currency.

 

Ahmed Kadhim and works in the banking business wandering in the streets, like a lot of young people who sleep on the ground in the crowded shopping malls is holding in their hands (intensities) banknotes. Because of the buying and selling direct, are so many of the owners of the profession to theft and fraud, as you pass through this way a lot of counterfeit currency into the market.

 

The support notes Ahmed, who works in a market in Baghdad as a beautiful (coin bank), the number of counterfeit currency encountered every day, it was back to where the experience taught him caution and precision caused him after classes counterfeit losses last year.

 

Said Abu Ayman Kubaisi of Shorja market in Baghdad, said Iraqi traders and owners of stores would prefer the dollar to dinar for technical reasons and also for security. It strengthens the dollar in Iraq, the sources of goods in favor of the dollar, especially sources outside Iraq.

 

According to the Secretary of the Economic researcher Luqman, the prevalence of the dollar between the business community and industry contributes to the erosion of the value of Iraqi dinar, which has seen a recovery in value since 2003. But Lukman, the dinar is expected to rise significantly if the dust of the security situation in addition to significantly increase the production and export of oil.

 

The number of shops licensed banking in 1998 in all parts of the capital Baghdad, 360 offices, but now spreading in the hundreds in every city and province. And prefers to engineer Lamya Hussain convert part of her salary, which is equivalent to about one thousand five hundred dollars, to the hard currency as deposited in a bank.

 

According to Lamia, many Iraqi officials have begun to walk with it and prefer the dollar as a secretary of the savings for them. According to social researcher Laith al-Samarrai, the luster of the dollar is unmatched by any glitter in Iraq.

 

Samurai that due to the economic blockade, which passed in Iraq, where the dollar is of great importance and is difficult to obtain by the citizens because of the low currency to a large extent.

 

At the same time, many of the unemployed found in banking in the street provides a way of livelihood for them for a living.

 

For his part, continues to Abu Ahmad Najafi of Shorja commercial center of the capital Baghdad, is confident of dealing with the Iraqi dinar due to changes in value on an ongoing basis and the fear of the economic and political volatility that can occur suddenly.

 

But Serafi morning Farhood (Khrih Business School) believes that the legislation of laws governing the work of banking offices is very necessary, an effective way to combat the phenomena of money laundering and fraud. But that will not be enough - according to Farhood - to raise the value of Iraqi dinar.

 

Farhood and calls to the influential role of the state in reducing the dominance of the dollar, which make the Iraqi dinar value ranges on for years despite rising oil prices. According to delete the zeros Farhood will contribute to the promotion of dealing in dinars.

 

The Central Bank of Iraq announced that the U.S. dollar accounts for almost 40 percent of local trading.




Iraqi dinar casualty of Iran, Syria sanctions

By Mohamad Ali Harissi

BAGHDAD, Apr 12, 2012 (AFP) - Iraq has seen its currency fall against the dollar despite taking in billions per month in oil revenues, at least in part due to the demand for dollars of its sanctions-hit neighbours Iran and Syria.

After being stable at around 1,160 per US dollar for years, the Iraqi dinar was exchanging hands at a rate of 1,230 last week and 1,320 on Tuesday, before settling at 1,270 against the greenback on Wednesday.

Syria has been sanctioned over its deadly 13-month crackdown on dissent, while Iran has been hit with punitive measures over its suspect nuclear programme, leaving both countries in need of foreign currency, especially dollars.

From the beginning of 2012, "there was a currency attack," with an increase of between 40 and 50 percent in demand for dollars, Iraqi central bank governor Sinan al-Shabibi told AFP.

"The somewhat unstable political situation in Iraq and in the surrounding region led to a large demand for dollars, which is causing a higher exchange rate lately," Shabibi said.

Within Iraq, there have been disputes between political blocs and also between the central government and the country's autonomous Kurdistan region.

Asked whether sanctions against Syria and Iran were one of the main causes of the increase in demand for dollars, Shabibi said: "This is one of the reasons, but the region surrounding us in general is not stable."

Shabibi said that "financing neighbouring countries with dollars is not something we do on purpose, because Iraq depends on large amounts of imports," for which the central bank's sales of dollars are needed.

However, he noted the demand for dollars seems to exceed what is necessary for imports.

"Iraq is the only country among its closest neighbours (Syria and Iran) which has huge revenues in dollars from oil," Iraqi economist Hilal Tahan told AFP.

Baghdad takes in upwards of $7 billion in oil revenues per month.

"The increase of financial transfers of dollars to outside Iraq and the unstable political situation (in Iraq) are increasing the demand for foreign currency and the exchange rate for dollars," Tahan said.

"Dollars have lately been smuggled outside Iraq, and that is why the auctions (by the Iraqi central bank) should stop for a certain period," he said.

Deputy central bank governor Mudher Mohammed Saleh said on February 4 that the bank had enacted measures to identify those who buy dollars at its auctions amid concern that some traders were buying on behalf of others.

Asked if Iranian and Syrian traders were trying to buy dollars, Saleh said at the time that "this increase in demand for dollars, while the region has serious problems, led us to put the new procedures in place."

Mohammed al-Omari, 40, who owns a money exchange shop in Karrada in central Baghdad, said that "the price of the dollar... was stable from 2008 until the start of this year," when it became increasingly volatile "because of the central bank's procedures."

"The street needs dollars, and when the auction is not pumping out dollars, it is forcing us to go to the black market, which leads to an instability in the prices, and losses" for Iraqi businesses, he said.

Hadi Alwan said his Karrada exchange bureau had stopped dealing in dollars this week.

"I used to exchange between 50,000 and 150,000 dollars per day, but I stopped doing that since the prices became volatile and I began to lose money," the 37-year-old said.

Despite the volatility, the central bank chief sought to play down concerns about the foreign exchange market.

"Iraq is not currently considering stopping the (dollar) auctions, which are part of a financial policy," Shabibi said, adding that "everything is under control."

In a large electronics store in central Baghdad, however, sales manager Bassem al-Shammari said he was worried the shifting exchange rate is hurting sales.

"Iraqi society is afraid to buy things when the exchange rates are... not stable," Shammari said. "The process of decreases and increases is killing the market."

"The instability started a week ago, and this matter did not affect the price of the goods, because we buy in dollars, and we sell in dollars."

But the quantity of goods sold has been affected, the 40-year-old said, noting that "our sales have decreased by 50 percent."

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http://www.zawya.com/story/Iraqi_dinar_casualty-ANA20120412T094040ZPYQ27/lok094047120412/?&zawyaemailmarketing


The Squeeze on Iraq's Kurds

April 4, 2012, 7:30 a.m. CDT
The Washington Post News Service with Bloomberg News

(c) 2012, The Washington Post.

Massoud Barzani, the president of Iraqi Kurdistan, knows trouble: His movement has endured multiple wars, diplomatic betrayals and even chemical attacks on its civilian population in its struggle to survive in the tough territory between Baghdad, Damascus, Tehran and Ankara.

Maybe that's why Barzani is unsparing in his description of what the region looks like from his capital in Irbil, 14 months into the misnamed "Arab Spring." "The more you look at it, the more you see the situation going toward conflict and chaos," he said Tuesday.

To the south, in Baghdad, Barzani sees Iraqi Prime Minister Nouri al-Maliki "concentrating power," having driven the leader of Iraq's Sunni population to seek de facto asylum in Kurdistan. "This is not the Iraq we struggled for: We are seeing the consolidation of power under one party and one ruler," he told me and The Post's Jim Hoagland.

Meanwhile, Syria appears to be spiraling into a civil war that imperils a Kurdish minority population of 3 million — while compounding the tensions between the Sunni and Shiite camps in Iraq. "I don't see much room for understanding between the opposition and the regime," Barzani said. "It is going to go on for some time." The Kurds have turned against President Bashar Assad's regime but are reluctant to embrace the Sunni-dominated opposition until it offers more guarantees of minority rights.

"The Syrian situation has a very direct and negative effect on the situation in Iraq," Barzani said. Maliki, he added, "has his fears" about what the fall of Assad would mean for the Sunni-Shiite competition in Iraq. At the same time, Barzani said, "this Syrian regime was responsible for 80 percent of the bloodshed in Iraq because of terrorism. Maliki has to be responsive to the Iraqis who have not forgotten all of that blood" — most of whom are Sunnis.

Barzani hopes for a more active U.S. policy. "The American position has to be very public and very clear, so that the Iraqi people can see that the United States will not allow and will not support another dictatorship in Iraq."

In Syria, Barzani said, "the United States should support the aspirations of the Syrian people." But he added: "It doesn't look like the United States and Europe have the will to intervene like they have done in Libya."

Barzani, who is being hosted by Vice President Joe Biden, noted that his movement has gained much in the past decade. The challenge will be trying to preserve that space between conflicts in Iraq and Syria that may well get worse before they get better.

Diehl is deputy editorial page editor for The Washington Post

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Expert: deterioration of the currencies of neighboring countries would harm the national currency

05-04-2012 | (Voice of Iraq) - Add a comment - Baghdad (news)

Financial expert, warned Abdul Hussein al-Radi, the vulnerability of Iraqi dinar exchange rate against the dollar because of the deterioration of the currencies of neighboring countries, by increasing the demand on the dollar and withdrawn from local markets, ruling out the continuation of the phenomenon of depletion of the hard currency of the country, the fact that the central bank in control of all Iraqi banks.
Radi said (of the Agency news) on Thursday: The Central Bank of Iraq is dominated by just the phenomenon of withdrawal of the U.S. dollar through its monetary policy the current support of the Iraqi dinar and based on a solid base of the cash reserves of hard currency, which amounted to more than (60) billion dollars, warning the vulnerability of the local currency deterioration in the neighboring countries currencies against the dollar by increasing the demand for U.S. dollar of the Iraqi market.
He added that the variables that occur in the exchange rates of currencies of neighboring countries to the U.S. dollar will affect the Iraqi trade because they rely on imports from those countries, due to lack of local production, indicating that Iraq has nothing issued abroad, except oil, which led to the influence of any economic change occurs to the neighboring countries or the world.
It is noteworthy that local currency to Iran and Syria is suffering a significant deterioration of its value against the dollar as a result of the conditions of political and economic threats of international passes to them.


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