Latest Dinar News – Ministers And CBI To Discuss Fluctuation
Fluc-tu.a-tion (n.) – to rise and fall like that in waves, as the dictionary said, so is the current state of Iraqi Dinar. We’ll take a closer look at the notes we have been holding in our hands for quite some time now.
Why IQD Fluctuates?
Sinan al-Shabibi, Governor of the Central Bank of Iraq, released his words on a conference saying that fluctuations of Iraq’s currency were due to political instability and the difficult situations of its neighboring countries, Iran and Syria. However, some economists and members of the ministerial committee are not convinced with CBI’s reason. The opposing party said that fluctuation is caused by CBI’s inability to control the exchange rate with the rising demand of dinar from foreign investors.
What could really be the reason behind the fluctuation? Is it valid to say that this is because of the unstable political condition of the Iraqi government? How about the uncontrollable prices of the domestic currency?
Last April 30, 2012, Alstqama received an electronic copy of the released statement from the Office of Shaways. The electronic copy stated that the Office of Shaways released a statement telling that there was a presentation made by the advisers of the Prime Minister to show the main causes of the fluctuating Iraqi Dinar trade rate exchange against other currencies. However, this raised an extensive debate between parties – CBI and Ministers.
What does Iraq have to say?
CBI and Ministry of Finance are relentlessly expressing their thoughts to stabilize the exchange rate of dinar. As a matter of fact, on the same day (April 30, 2012), Iraqi Council of Representatives announced that the country’s most prominent banking institutions and Iraqi officials will be summoned to discuss about the implemented procedures to stabilize the currency. Moreover, according to Amin al-Hadi, a committee member, the committee requested new data about the procedures. Let’s just hope that these procedures (whatever they may be) will bring a positive change to our notes stored at home.
The meeting was attended by prominent ministers of finance, commerce and Agriculture, CBI Governor, Secretary General of the Council of Ministers with his assistant. The advisers to Prime Minister for Legal Affairs also took part of the discussion with the head of the National Investment Commission.
Iraq is really upholding its goal which is to stabilize its dear currency, isn’t it? Dinar information these days seems to be confusing at a certain point.
“We will get informed about the adoption of the bank and the Ministry of Finance for proper solutions in keeping the exchange rate and foreign currency selling procedures in daily auction.” Amin continued.
What do you say?
Although the concerned parties had their meeting, the value of dinar went to a decrease last month at an exchange rate of 1190 against the dollar. What does this change imply to your current notes?
However, the Central Bank of Iraq assured that it will not stop to manage the reserves of foreign currency. According to CBI, it will continue to regulate the banking sector as a measure to protect the economy and it will continue to implement monetary policy that includes exchange rate policies. After the discussion between Ministers and CBI, they have agreed to have a second meeting to get to the recommendations for dinar stability.
It seems that the country is taking its turn for a great change. They have started to focus on stabilizing the currency but, when will this take place? Will the fluctuation really be stopped? How about a positive fluctuation that will drive the trade rate to a higher value?
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