4-12-2015 *American Contractor

[Vixen]

4-12-2015 *American Contractor ~The Central Bank of Iraq (CBI) realizes that they have a major problem with the exchange rate of the Iraqi Dinar. The CBI has filed a lawsuit against the Parliament Economic Committee to lift the currency auctions restrictions of only $75 million per auction day. There has been no published date scheduled for the hearing in the Iraqi court system. Meanwhile, the Central Bank has limited the dollar currency auctions to two times per month, trying to limit the US dollars in circulation. The current market rate for one US Dollar is 1340 Iraqi dinar. The market rate for the Iraqi Dinar has not been this high in several years. The Central Bank will be increasing the number of exchange companies inside Iraq and will be utilizing both state banks to assist in distributing the hard currency US dollars to Iraqi citizens. The State banks Rafidain and Rasheed will be distributing the hard currency to other banking facilities and currency exchange centers. The new procedure is going to be the workaround for the CBI restriction of the $75 million dollars. Instead of the Central Bank conducting the auctions it will allow other banking facilities and currency exchange centers to distribute the US dollar at a pre-arranged rate. The CBI is trying its best to control the value of the Iraqi dinar and increase the value. Limiting the US dollars in the market have had a negative impact on the value of the Iraqi dinar. The Central Bank is increasing the amount of banks and currency exchange centers inside Iraq. I would look for additional printing of higher value banknotes like the 50k and 100k in the future.