Tuesday, May 22, 2012
   
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Economist: Decline in the Iraqi dinar against the dollar is not connected with the U.S. withdrawal

Shafaq News /The economist Abbas Ghalibi said to "Shafaq  News" that "The slight decline of the dinar exchange rate against the U.S. dollar is a sign of Iraq economic recovery."The owners of companies and economic institutions, said earlier, that the price of the Iraqi dinar has fallen from 1117 dinars to the dollar to 1245 with the central bank reduction of the sales of the dollar to less than ten million after it exceeded this figure in the rate of daily sales of the U.S. currency by about ten times or more.However, the Deputy Governor of the Central Bank of Iraq Mudhhir Mohammed Salih said, earlier, the bank continued to pump foreign currencies through currency auction at the rate of 150-180 million dollars a day and nearly 200 billion dinars for the purpose of withdrawing liquidity and the preservation of Iraqi dinar exchange rate and trade financing the private sector .The economist  confirmed the absence of connection between  the dinar decline and the U.S. troop withdrawal, stating "I do not think there is a link between the decline in the dinar and the withdrawal of U.S. troops, because the Iraqi economy linked to the international economy through investments, as well as through the banking and financial operations."

 

Some of the activists in the Iraqi market link between the U.S. withdrawal and the escalation of divisions in the country, and the depreciation of the dinar, as well as the country's vulnerability to a wave of external demands may affect the Iraqi cash reserve in case the U.S. lift out its protection for the money of Iraq's Fund, which was estimated at about fifty billion dollars.