The decision maker of the parliamentary economy and investment Commission predicted the decline in exchange rate of the Iraqi dinar will continue against the US dollar.
The value of the Iraqi dinar declined gradually over the past weeks as the price of per dollar reached to about 1129 dinars after it had been stable to 1120, the highest rate up to the exchange rate during the past two years.
"The confusion that occurs in the low exchange rate of the Iraqi dinar against the dollar has a close relationship to the policy of the central bank of Iraq and the position of its governor," The decision maker, Mahma Khalil told "Shafaq News".
The parliamentary Finance Committee revealed, early last month that the Central Bank of Iraq started to take urgent action to preserve the stability of the exchange rate of the Iraqi dinar against the dollar by increasing the exchange facilities selling hard currency, but the value of the currency has continued to decline.
It seems that confidence in Iraqi currency destabilized after a government decision to dismiss the former Central Bank Governor, Sinan al-Shabibi and the tense security situation in an unprecedented manner during the past few weeks.
"The sovereign budget reached 74 billion$, while the state's money supply must not increase than about 33 trillion dinars".
"The Iraqi citizen has the right to replace the dinar to the dollar, but the central bank's policy is unsuccessful policy, and today there are exchange facilities and all of these financial currency goes into the pockets of others, as public money and the Iraqi citizens lose on daily bases more than 40 million dollars as a result of this policy".
"The official exchange rate for the dollar at the central bank of Iraq is 1166 as there are 13 dinars as a commission to the bank, so the figure becomes 1179 dinars per dollar, while in the Iraqi local market exceeded 1300 and this is not permissible, and all these figures and the differences in the exchange rate go into the pockets of brokers, clients and the Giants in the local market of money -changers and influential politicians," he added.
© Shafaq News 2013
