The role of the foreign currency auction in stabilizing the value of the Iraqi dinar for the period (2003-2011) | ||
| Journal of Administration and Economics | ||
| Article 1, Volume 0, Issue 101, September 2018, Pages 62-76 | ||
| Authors | ||
| Omar Mahmoud Akawi; Zuhair Hamid Salman | ||
| Abstract | ||
| The Iraqi economy had experienced and faced a hard economical circumstances because of the high downfall for the spending price of Iraqi dinar during nineties and eighties to the past century . this case caused the rising of inflation rates and the emergence of dealing with dollar as well as the trade with estates end foreign currencies especially during nineties after the downfall of Iraqi currency and the fluctuation of Iraqi currency in favor of foreign currencies. But after the year of the 2003 and the independence of the Iraq central bank in using his own tools in addition with the issuance of the law no.56 at the year of 2004 which helped a lot in using new tools in the monetary policy and raised with stability for the value of Iraqi dinar in the market. From these new tools is the foreign currency which the Iraqi central bank succeeded through it raise the value of Iraqi dinar in ratio of 38% than it was at the year 2003 and made the stability against the dollar as a result the people increased the request to keep and save the Iraqi dinar, then the Iraqi bank used the exchange rate sign as a tool to fix and limit the expectations of people about inflation and exchange rate. In another words, the stability in the value of Iraqi dinar came as a result of the controlling by the central bank over the exchange rate in the foreign exchange market which is represented by the foreign currency auction, this auction became the leading central exchange market for the rates of exchange rate in Iraq. At last the central bank was able to pass the exchange rate sign through the auction to the parallel market, this stability in the dinar exchange rate is suitable for the investment in the different real economic sectors and this will achieve the balance between he total demand and the total supply instead of using instead of speculation in foreign currencies and real estates. | ||
|
Statistics Article View: 178 PDF Download: 105 |
||