Advisor to CBI: Iran’s deteriorating currency will be reflected on the Iraqi currency

Posted: January 26, 2012 in Iraqi Dinar/Politics, Top Headlines
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On: Wed, 25/01/2012 20:49

counting economists and banking experts, the flow of thousands of Iranians in the border areas between the two countries to buy and sell the U.S. currency within Iran that depletion of foreign currency inside Iraq indirectly.

With rejects Iraqi merchants in Najaf and Karbala to do business Baltoman after low value against the Iraqi dinar. collapse Altoman Iranian adviser said the Iraqi Central Bank Mazhar Mohammad Saleh’s (Citizen) that the Iranian currency deteriorate amid international sanctions imposed on Iran, causing inflation, the fact that the sources of the dollar is weak in Iranian banks. He stressed that Iranians flocked to the border areas with Iraq to buy the dollar, gold is an individual behavior or border trade. Saleh continued, but if what has been considered as a request to the phenomenon as the effects of foreign currency that will be reflected heavily on the dollar of what exists in the Iraqi market. Indicating that the demand for the dollar at auction the central bank over $ 300 million.

Indicating that the phenomenon for a longer period Sistnzv foreign currency in Iraq indirectly because Iraq depends on oil exports only as a source for the provision of the dollar and other currencies. golden opportunity for Iraq, it is possible for Iraq if the variety of economic resources to be a player economically significant in the region and could plays an important role exploiting the opportunity to sanctions imposed on Iran and the situation in Syria to revive its economic situation and increase its exchanges of trade, as Jordan was dealing with Iraq during the nineties of the last century in the years of the siege to revive its economy.

For its part, said an economic expert peace Sumaisem that the demand for switch Altoman dollar leads to increased demand and increased demand for any currency raises the price. Sumaisem She’s (citizen) that the high price of the dollar will affect negatively on the Iraqi dinar because the monetary policy pursued by the central bank was able to install the dollar and the strengthening of the dinar. Smeisim, however: so the high price of the dollar from one party would affect adversely the value of the dinar and therefore would strike at the central bank’s efforts to improve the exchange rate of the local currency.

The Sumaisem that Iraqi traders in the provinces of Najaf and Karbala, refuse to do business in Iranian now under siege on the Central Bank of Iran which led to the vibration market Altoman Iran and the weakness of his situation and after landing a sudden and unprecedented for the price of Iranian rial against foreign currencies, especially the dollar, in order to obtain the achievement profit on the black market, which has become the first reference for the pricing of Iranian rial against foreign currency. high demand purchase of the dollar was quoted Arab Net what the site is bright Iranian Iraqi sources that many of the Iranians flocked to the border of Iraq – Iran to buy the dollar, which has taken to appreciate against the Iranian currency in the last few weeks.

The Web site of Iran that the offices of exchange in the city of Kut in southeastern Iraq and faced in the past few days the high demand for dollar in the areas of Zorbatiyah and Shalamjah and Mundhiriyah which are crossings trade and tourism between the two neighboring countries. On the other hand spoke of some of the sites that the Iraqi traders Iraqis are now dollar purchase of the Iraqi Central Bank to be smuggled to Syria and Iran, which are subject to international economic embargo. During the last few days tried the Iranian government to maintain the riyal’s exchange rate, through the arrest of some of the trading in foreign currency on the black market, as well as raising the exchange rate in the formal banks, but a number of exchange offices refusing to buy or sell dollars at the price specified and continued bankers deal in the black market despite police surveillance of their work.

In the same context, the price of gold coins in the Iranian market to unprecedented amounts as reported that the price of one piece reached to 11 million rials, while the price in the last few weeks ranging up to 6 million Iranian rials. and lost currency Iranian Altoman, more than 20 percent of their value within 3 days, after it was stopped banks sudden acceptance against foreign currencies panic in the exchange market. and came to stop the sale of foreign currency for individuals after narrowing last on the transfer of currency outside the country, and after the decision prior to cap the top of the currency transferred abroad five thousand dollars. aggravation of the crisis , according to data reported by «Financial Times», the dollar exchange rate in Tehran jumped in one week than 10,500 Toman to 13000 Toman, in the biggest collapse of the currency of Iran for years.

These data are confirmed by Currency traders in Iran. Last Wednesday alone jumped dollar exchange rate from 10,500 to 11500 Toman, and the next record leaps similar, given the panic that prevailed in the market. seen long lines of waiting in front of a small number of institutions which continued to sell small amounts not to exceed $ 500 per person one, provided that highlights the buyer to prove that he had traveled, such as passport and plane ticket. and explained some of the money changers the speed of the worsening crisis in recent weeks in part by stopping the bank transfers to Dubai as a result of sanctions, has committed to UAE banks, which are the most important economic partner of Iran, international sanctions and stopped most of the its dealings with Tehran.

This led to the collapse of the trade-offs between the two countries by 50 percent, according to estimates of the Iranian Business Council in Dubai at the beginning of September. The collapse of Altoman faster than expected, because the expectations were indicating that Tehran has foreign reserves of between 60 and 80 billion dollars .

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