CBI To Fix Iraqi Dinar Exchange Rate In Ramadan
Since Iraq is a Muslim country with more than 70% of the population observing the Islam belief, there is no doubt that the country will observe the holy month of Ramadan. However, how can this holy month affect the fluctuating exchange rate of the Iraqi Dinar? Does religion have to do with the Central Bank of Iraq?
Ramadan or commonly known as the month of fasting for the Muslims comes from the Arabic root “ramida” which means dryness or heat. During this month, Islam believers who are 7 years old and above are expected to refrain from eating, drinking, vices and sexual relations from dawn until sunset (most probably from 4AM to 6PM). In short, there is a great chance that the exchange rate of the Iraqi Dinar against the US dollar will likely stabilize because food prices and other commodities will go lower in prices compared to the previous months.
This can even be stressed when Al Sabah news in Baghdad released a statement that, “The central bank exchange rate of the dinar against the dollar will stabilize during the holy month of Ramadan because of the tendencies of food prices in the world to lower, not higher.”
Even the Deputy Governor of the Central Bank of Iraq, in the person of Mohammed Saleh, said last June 30, 2012, “The central bank monitors the rate policies foreign exchange to local currency, which indicates that the exchange rate of foreign currency before the local will stabilize in the month of Ramadan, because the food in all countries in science refers to the decline in prices. He added that »the month of Ramadan in the summer differs from winter to the availability of agricultural products and fruit in Iraq, leading to a lack of high food prices substantially.”
Mohammed Saleh then asked the Finance Committee in the House of Representative in Iraq to lower the Iraqi Dinar exchange rate against the US dollar. This was asked with the intention to reduce the rising prices of goods and other commodities in the holy month of Ramadan.
Moreover, on the same day of June 30, 2012 in Baghdad news JD, Cameron Kerry, (the US Department of Commerce Chairman of the US of the Committee on Business Dialogue in Iraq) said, “His government’s desire to start a new page of economic relations through increased trade to the level required and seek to attract investors to Iraq, the cooperation of the private sector for both the two countries to reach a positive outcome of the dialogue.”
What was Cameron trying to tell? He was telling that the U.S. Commerce seeks to bring private investors to Iraq – a great solution that might contribute to the promoting of foreign relations and the country’s eager registration to the World Trade Organization. However, there was still a little concern from the Minister of Commerce, Khairallah Hassan Babiker with regards to Kerry’s statement.
Babiker said, “Iraq has a lot of opportunities that can be exploited by U.S. companies to support the Iraq reconstruction effort and to encourage the private sector to contribute to the development of trade and economic cooperation to be considered the main player and the main engine for the development of trade between the two countries.”
Iraqi government and even some other foreign countries are joining hands to help the once great Babylon to recover. Indeed, CBI gives respect to the Islam faith and the people who might have been observing the month of fasting. Maybe, this could also help assess the Iraqis that in the midst of fluctuation and unstable economic condition, they still have the courage to proclaim to the world that they are still a nation that respects Allah as much as they could implicit.
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