No foreign reserves support the Iraqi dinar for years * Zwanah: Issuing a new currency needs economic and financial ground and political support
Iraqi dinars are tearing up in the streets of Mosul and other areas under the mob campaign organized by the American occupation forces in Iraq, while many are wondering about the fate of the Iraqi currency and the future of monetary dealings in Iraq, and some analysts believe that as long as the fate of Iraq and its people is no longer clear, how can one expect what the fate of the dinar will be. ?! Will the current currency remain, or will it be exchanged and which central bank will issue it, and where are the corresponding reserves, or will the American dollar replace it at any price, or will barter operations be within the Iraqi market are the most popular ?! The Iraqi dinar declined inside Iraq and after the fall of Baghdad In the hands of the occupiers, the price of the dollar becomes between 3500 and 4000 Iraqi dinars compared to 2000 dinars at the beginning of the war, while it is still the currency in circulation there and is being dealt with in some markets of neighboring countries, including the Jordanian market, in small quantities and a narrow range.
Mr. Zayan Zawana, an economic and banking marketing expert, believes that the Iraqi currency of all its Swiss and other editions has lost its value in all the correct legal and jurisprudential meanings and concepts of the currency, and that is not now, but for a long time, due to the lack of foreign currency reserves against it, explaining in a statement to the "Constitution" that the issuance of the Iraqi currency For more than ten years, it was a matter of managing the affairs of people inside Iraq, as they were not based on any monetary or financial support and were not matched by reserves that supported the legal currency, especially in light of the restriction imposed on Iraq for a period of 13 years, and the Iraqi government did not control its resources Of the oil exports that were in the hands of the United Nations under the memorandum of understanding.
The expert Zwanah, who was one of the former senior officials in the Central Bank of Jordan, stated that the prices of the Iraqi dinar, in its various canceled and used versions, were the result of dealings and speculation in the markets, stressing that the price difference between the different versions of the Iraqi dinar has no value in relation to the evaluation of the currency. The Iraqi dinar is the Iraqi dinar. . He said that it is difficult to predict what will happen to the future of the Iraqi dinar in light of the chaos and chaos that we see today in Iraq and the absence of an Iraqi administration or authority for monetary affairs, a “central bank,” so forecasting the future cannot take place in this situation He explained that what makes the matter more difficult is that the situation that prevailed before the occupation is the existence of an original Iraqi dinar, but it is officially canceled, but it is dealt with in the northern areas under the control of the Kurdish parties, while there are other editions of the dinar used in all regions of Iraq, and there was a price for each who are they. In response to a question about the possibility of issuing a new Iraqi currency, Mr. Zawana pointed out that any new currency must be based on a monetary, financial and political economic scenario, and this does not exist now, in addition to that Iraq, as it is known, does not now have any foreign reserves that it can rely on to issue a new currency. .
He said that the new monetary issue should have strong political support, and he wondered about the extent of the Americans ’desire to issue a new Iraqi currency for which they would provide support so that stability returns to life in Iraq, including monetary stability, stressing that monetary stability is very important for the continuation of life in a normal manner. He said that no one now is He pays attention to the importance of monetary stability, which is one of the most important and sensitive matters that should concern every Iraqi citizen, as currency is the life of the people, the economy and the nation, indicating that people now occupy themselves by analyzing what happened militarily and politically and do not pay attention to their lives and to the extent of the destruction that befell them and their institutions, including the bank Central and dinar.
Mr. Zwana clarified that the ability and desire of the Iraqi monetary parties, experts and cadres of the Central Bank, and the Ministry of Finance must also be taken into consideration in dealing with the new data after the occupation, and this undoubtedly will place a great responsibility on the Americans in dealing with officials and experts of the Central Bank and Finance if they wish to do so or Bringing experts from abroad, indicating that any new monetary arrangement must take into account coordination between the United States and the International Monetary Fund to set up clear mechanisms and take the matter into all its legal and practical dimensions in light of the current conditions in Iraq.
On the issue of the Iraqi currency that has been canceled since the beginning of the nineties and is being circulated in the north of Iraq, he said that no one can make a change in this matter based on the data that we see now, especially since this matter has political implications. On the other hand, the Americans, the other currency is used among all the Iraqi people in all regions. No one can expect which of the two currencies will be exchanged in the future. On the possibility of substituting the dollar in principle as another or alternative currency, the expert Zwanah said that “dollarization” may be part of the solutions imposed by the nature of the market in light of unstable conditions and the absence of monetary authority until a new currency is issued with economic, monetary and political data.
On the other hand, foreign exchange market sources in Amman indicated yesterday that the trading price in Iraqi dinars remained stable yesterday, as the price of one million Iraqi dinars of the Swiss edition bearing the image of horses ranged between 25,000 Jordanian dinars for purchase and 28,000 dinars for sale. While the price of the print bearing Saddam Hussein's image per million Iraqi dinars ranged from 11 thousand Jordanian dinars for purchase and 14 thousand dinars for sale, and it is noticed the expansion of the margin between the sale and purchase price as a result of the increased risk of carrying the Iraqi currency, and the values of the circulation of the Iraqi dinar in Amman in a narrow range with some money changers.