According to the Dinar Deal’s Alert, there will be a rate change in the value of ID in the coming couple of days. The news has been floated on yesterday on behalf of the Central Bank of Iraq. CBI has uploaded its M2 data on Arabic side. The figures are available up to Jan 2013. So there is a loop of 2 months in the current data. The statistics tell the story that the total quantity for hard cash of ID has reduced by 1.5%. It looks very small, but in dinars it is a good amount to consider.The decline in the value of ID has been observed over the last 2 weeks. The financial experts have given their analysis and blamed the Iraq Minister of Finance for their inefficiency in handling the challenges regarding currency counterfeits, smuggling and speculations. At the same time, the CBI has introduced new sanctions, regulations, protocols and policies to counter these financial issues.
The current rate floating in the open market is IQD 1231=$1, whereas CBI and some other sites are quoting IQD 1156=$1. The good news is that the liquidity of hard cash has been controlled a bit which will lead to control the inflation to some extent.
The total reserves of CBI are $61 billion which clearly indicates that The Central Bank can apply some sanctions on the other domestic banks to control the liquidity of ID. So the good signs for Iraq economy are there. UNO is also giving its input in all the financial matters of Iraq.