Midnight Think Tank

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Central bank Iraq adviser: Iraqi Dinar will rise against the US dollar in the coming period

http://www.edinarfinancial.net/news/?quer=&nm=&ny=&nn=622

December 07, 2010

The Chancellor and the economic expert for the appearance of Mohammed’s (morning): The budget deficit is similar to the deficit in the economic structure in general, what calls for attention to processes such as how things can reflect negatively on the economic process in Iraq completely,


The Cabinet has recently approved the general budget for Iraq for next year 2011, amounting to $ 83 billion, depending on the value of export of oil amounting to 2.25 million barrels per day and at a price of $ 73 per barrel, but the experts and specialists in the economic forecast to suffer the next budget a deficit of $ 18 billion, which commented upon in favor by saying: not a question of negative to suffer the budget financial deficit, but to see the budget at the end of each year a financial surplus due to non-completion of many plans and projects, and also said: Every time you start the budget deficit , and ending with a surplus …


In return, expect the benefit to see the Iraqi dinar remarkable rise against other currencies especially the dollar, explaining that the size of financial returns to the oil, which rose dramatically during the past period compared to past years, as well as the situation called for Palmtdeda [compared] to the dollar in world markets, which can be to contribute according to the Chancellor to raise the value of the Iraqi dinar against the dollar ..


The central bank’s long been the deletion of three zeros from Iraqi dinar, in a move designed, according to those concerned to reduce the value of inflation in Iraq, to equality dinar to the dollar, as well as reducing the cluster enormous cash from the Iraqi currency to its lowest limit, however, observers have criticized the move by Galo it is not effective at this time, indicating that the deletion of three zeros from Iraqi dinar will not work to reduce prices or improve quality of life, but it is a switch of the currency only, can not see prices drop because of it as far as saying ..


Saleh said the CBI has a lot of policies drawn through auctions currency held by the continuously at the moment, adding that the auction and a means of indirect monetary policy and seeks to achieve three important objectives is to control the levels of liquidity to the Iraqi dinar and also is a means to control the dinar exchange rate against the dollar, as well as being an incubator is important for the financing of private traders who rely on the support of their projects financially through these auctions .. and Abizaid valid reference to that post the most prominent of the currency auction is to achieve economic stability, particularly the reduction of inflation rates, indicating that in addition to for exchange rate stability achieved by the exchange auctions, it is an important means able to achieve substantial financial reserves of Iraq amounted to $ 50 billion.(Source) Currency News