Dr SinanAl-Shabibi

Shabibi ousted from CBI, IQD drops; Dinar at lowest level in two years!

Observers: dip, Shabibi dinar missed and we fear the continued decline

THURSDAY, 16 MAY 2013 17: 07

Twilight news/Iraqi dinar is currently experiencing a decline in its value against the US dollar since the Government sacked the former head of the Central Bank, Sinan Al-Shabibi is raising concern among money and economy in particular.

And the value of the Iraqi dinar fell gradually during the past few weeks, bringing the price of the dollar to about 1,300 dinars after was stable from 1120, the highest rate of exchange-rate mechanism for the last two years.

And observers believe that the decline rate of the Iraqi dinar has since Prime Minister Nuri al-Maliki decided suddenly to exempt former Central Bank Governor Sinan Al-Shabibi, head of the Office of financial supervision Abdel Basset Turki.

They also believed according to radio free Iraq obtained by “twilight news this procedure and accusations with former Central Bank Administration left its impact on the Bank’s reputation and the reputation of Iraq in world markets.

He expressed this view financial expert Majid mock who explained also other internal and external factors that may have contributed to the degradation of the value of the Iraqi dinar, including the regional situation, especially in Syria and Iran and then the consumer orientation of the Iraqi Government and instability in Iraq, prompting funds to flee abroad.

Mock noted that the Central Bank sold large amounts of US dollar vary by between 50 and 100 million dollars a day.

The mock said that solutions emerge from the crisis requires joint effort at all levels in addition to the other solution is to float the currency but the main solution in his view is to revive the neglected by many development because it does not come with such a direct profit trading and import. The import volume reached 64 billion dollars in 2011 while the former does not exceed $ 9 billion.

And Economist Salim Al-jibouri tried to explain the effects of the deterioration of the value of the Iraqi dinar to the simple citizen and on the internal market and the most important effects appear in the prices of goods available in the Iraqi market and imported goods depends on the dollar if the dollar rises with increased prices of all goods and commodities.

However, Al-jubouri said the two central bank balance and currently exceeds $ 70 billion, is what makes the Government unable to intervene and support the value of the Iraqi currency.

He is a member of the Finance Committee in the House of representatives Secretary Hadi Abbas that the deterioration of the local currency occurs in all countries and in every place.

And the lack of any kind of threat to the large reserves at the Central Bank and is able to cover all the defects, according to a Deputy who accused some banking authorities of being behind the dollar trading inventory for special purposes.

Sources: Currency Newshound (  http://bit.ly/18NZv0k  ) and Bluewaters2u Research Team and http://www.shafaaq.com/en/

Shabibi ousted from CBI, IQD drops; Dinar at lowest level in two years!

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