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Experts and specialists are calling for the development of monetary policy in Iraq
May 17th, 2015
In a seminar held by «Institute for the progress of development policies«
Baghdad - New Morning:
In the framework of the permanent quest to develop solutions and treatments for Mchaclat development in Iraq .. contract «Institute of progress for policies development« expanded seminar the morning of Saturday, 05.16.2015 and allocated to discuss «the current needs of the current monetary policy« with a select group of experts and specialists financial and banking affairs and businessmen.
The main speaker was Dr. appearance of Mohammed Saleh Economic Adviser to the Prime Minister.
At the beginning of the seminar, Dr. Mehdi al-Hafez member of the House of Representatives and the President of «Institute of the progress of the policies of development« the reality of monetary policy in the country occur and describing it as one of the main problems in the economic field which requires an objective treatment in the light of the needs of the country and the development of the national economy and international monetary standards.
As Hafiz said he had since 2003, began working to change the system and the policy of the central bank, issued the new law of the Central Bank No. 56 of 2004 and could have had a radical overhaul of the monetary policy point of no subsequent applications that were marred by a lot of defects and Almchaclat.
He said Hafiz said the central bank in principle constitutes a ring core in the country's monetary policy as well as being an important tool to repair a lot of economic Almchaclat and is sometimes called the banks Bank is directed basic public banks and a companion of the Ministry of Finance in the monetary and financial field.
He stressed Hafiz several points task including:
1 - has to be recalled that the issue of national development is essentially important guide to determine the right monetary policy that any monetary policy and national development should be will complement and this is still so far below the required level. And we are keen always to achieve this task is no excuse that the economic and social problems such as unemployment, poverty, poor infrastructure is that contributes to the Central Bank of addressing them effectively to continue.
2 - that the observed inflation in foreign exchange reserves is a positive phenomenon if it was utilized by about serving real development, but the This large volume of cash is still semi-frozen and given strong arguments for not using it. The current law may be a number (56) obstacle because of its emphasis on the independence of the Central Bank so requires it to revise this law are fit current economic needs.
3 - There is an urgent need to correct the relationship with the private banks which number about 50, a figure that exceeds the capacity of the economy Iraqi Nam such as the economy, therefore, call for a merger between banks it is legitimate, provided that serious guarantees for the success of this phenomenon are available. In the last period, the central bank asked the capital of these banks increase (250 billion dinars) for this purpose in particular and this is a problem new to the relationship with private banks.
After that, Dr. occur appearance of Mohammed Saleh Economic Adviser to the Prime Minister about some important aspects of monetary policy, he said, even though the Thread thorny and complex Monetary policy is briefly means and measures taken by the government in order to achieve the goals set is price stability and raise the level of use of sustaining economic growth and stressed d. Saleh, said that the current situation in Iraq is in contraction or recession in addition to high unemployment indicators in Kurdistan 30% and in the hot areas seized by Daash are wide either at rest areas approximately 24%.
He went on Dr. Saleh to say that indicators of economic growth in the gross domestic product (GDP) in 2014 is 3.2%. The other important point is that the index of prices Fimaasmy inflation is 1.6 basis that there is no economic recession or contraction.
Between d. Saleh hierarchy differed completely between 2003 and 2013 as the monetary policy after 2004 engaged inflation but today hierarchy intensified.
He d. Saleh, said that the situation in Iraq has changed today the existence of corruption and recession and inflation and that the Central Bank of Iraq has become a refuge for borrowing because most bank deposits at the central bank because of capital flight in 2006 and 2007, stressing that the central bank's policy at the present time dealt with inflation only, but no unemployment and no deterioration in economic growth.
He d. Saleh that the central bank has provided support for the Iraqi economy in multiple directions, including 5 trillion to specialized banks (agricultural, industrial and housing fund) and 6 trillion statutory reserve interest rate of 10%, which is Khoznah remittances. He noted the benefit of the Iraqi Central Bank reserves come from oil and amounted to the central bank's balance sheet 67% of the foreign and 3% of the local currency currency, where the reserve stood at $ 78 billion in 2013.
Added Dr. Saleh that the monetary policy of the Central Bank currently is one of the best policies are balanced and rational, with the timing correct policy as Ataatsra reducing the value of the Iraqi dinar.
As for the central bank's relationship banks, stressed Dr. Saleh it is still tense relationship and the central bank monitors the liquidity of private banks note that these banks are suffering from a liquidity crisis with that of private banks constituted 32 banks out of 45 banks or more.
After that confirmed d. Mehdi al-Hafez said the Iraqi Central Bank Law and developed by the Coalition Provisional Authority and stressed the independence of the Central Bank of Iraq and asked Hafiz Alaimkn central bank law amendment to the presence of considerable debate about the independence of the Central Bank of Iraq.
Interventions
Professor Reza Ragheb Blibl Chairman Businessmen Union stressed on several observations established by the Central Bank of Iraq, the presence of new restrictions on the Iraqi economy and must be on the central bank to facilitate the task of lending and added that the money supply in the market is not private and assured the sector on the existence of paralysis in the Iraqi economy and the imbalance is not only contraction is the near-collapse of the lack of liquidity and stressed Blibl that the private sector is deprived of that is given entitlements to pump money into the market and held the government responsible for inflation to occur through several measures taken by the government.
Professor Abdul Aziz Hassoun banking expert stressed that the Central Bank of Iraq The law of 2004 focused on the subject of inflation and to control the exchange rate to the presence of an organic relationship between the objectives and the central bank subject to the authority of fiscal policy so that is no longer free. He said Hassoun that the Central Bank of Iraq identified these two goals and leave the most important duties which banks monitor and neglected almost clear.
He said Hassoun that there are more than 10 banks and deposits of less than their capital but profit rates of up to 50% as the Central Bank of Iraq to Ayeckra and Aitapa the work of banks and measures The central bank now should be based on monitoring the movement of the Iraqi dinar and quantities in the market. So how banks can best ways to operate and is working in this atmosphere?
economic expert, Dr. Abdullah al-Bandar asked about the liquidity crunch for banks Is it a crisis or liquidity crisis resources? What the central bank does if there had been high liquidity? He questioned the absence of a coin. He added that the proportion of deposits by 2014 gross domestic product of 12%, but now deposit growth in GDP is 2% which means that the credit process is weak and interest rates rise.
economist Behnam Peter stressed that the Central Bank of Iraq and the two basic functions are the stability of the exchange rate and increase guarantee use and which helped to make the stability in prices to some extent. Added Peter the compensation of employees in value-added was 35% but now 82%.
Sayeda Zeinab al-Janabi, confirmed that Iraq is passing through a difficult phase but why there are no temporary solutions or pots.
economic expert on behalf of Antoine said for his part that the operating budget is 70% and the central bank The oldest to suppress the development of the private sector and high interest rate so that it was not fair and that inflation began to increase fuel prices, and the industrial sector is suffering from a high interest rate to 20% and this is a violation of the constitution. Antoine and he added to the dominance of a particular class or mindlessly fool the Central Bank and the entry of people who are strangers to banks and banks mocked for their service. He asked for treatment and who bears responsibility?
banking expert d. Majid picture confirmed the existence of an important issue the topic of monetary and fiscal policy that the Central Bank of Iraq is a catalyst in the subject of development and Aiga all the blame upon the main Alcespb is the government's policies with the presence of factors such as the current political situation and some of the pressure from corrupt.
d. Ahmed Ibrahim stressed that the central bank policy and the policy of the Ministry of Finance were not under one roof to provide an economic vision for the country and wondered whether the state to interfere in the development management and whether the state this inferior level Albrooqrati can work to revive development?
banking expert high-Nasser stressed that the Bank CBI through control of banks in terms of capital stock of the weaker value of the Bank and the capital increase did not achieve integration.
industrial expert Fadhil Abbas Shamara said Maimer by the country's sad because most of the wise men did not take their role in building the economy and became the results were negative. He questioned the reluctance of the Iraqi Central Bank to work on the deletion of zeros from the currency?
industrial expert d. Samir Lillo wondered about the interest rate determined by the banks around the world that rate Can the Central Bank of Iraq that works to reduce interest rates to revive the national economy?
d. Ghalib al-Ansari wondered why not to distribute the amount of money to the provinces by the census?
For his part, d. Mehdi al-Hafez on the census for the third time performed by the Ministry of Planning and sent to the Council of Ministers but postpone consideration or work done.
Meanwhile, a professor Behnam Peter that «the absence of the role of investment spending required Balotair which was the reason for the survival of inflation low levels was not any role of the policies of the central bank, especially as private consumption expenditure Atamol of compensation of employees, which now stands at 82% of the value added is the opposite of the familiar in other words that the central bank takes the oil revenues and financed by current spending, but not of course ».
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May 17th, 2015
In a seminar held by «Institute for the progress of development policies«
Baghdad - New Morning:
In the framework of the permanent quest to develop solutions and treatments for Mchaclat development in Iraq .. contract «Institute of progress for policies development« expanded seminar the morning of Saturday, 05.16.2015 and allocated to discuss «the current needs of the current monetary policy« with a select group of experts and specialists financial and banking affairs and businessmen.
The main speaker was Dr. appearance of Mohammed Saleh Economic Adviser to the Prime Minister.
At the beginning of the seminar, Dr. Mehdi al-Hafez member of the House of Representatives and the President of «Institute of the progress of the policies of development« the reality of monetary policy in the country occur and describing it as one of the main problems in the economic field which requires an objective treatment in the light of the needs of the country and the development of the national economy and international monetary standards.
As Hafiz said he had since 2003, began working to change the system and the policy of the central bank, issued the new law of the Central Bank No. 56 of 2004 and could have had a radical overhaul of the monetary policy point of no subsequent applications that were marred by a lot of defects and Almchaclat.
He said Hafiz said the central bank in principle constitutes a ring core in the country's monetary policy as well as being an important tool to repair a lot of economic Almchaclat and is sometimes called the banks Bank is directed basic public banks and a companion of the Ministry of Finance in the monetary and financial field.
He stressed Hafiz several points task including:
1 - has to be recalled that the issue of national development is essentially important guide to determine the right monetary policy that any monetary policy and national development should be will complement and this is still so far below the required level. And we are keen always to achieve this task is no excuse that the economic and social problems such as unemployment, poverty, poor infrastructure is that contributes to the Central Bank of addressing them effectively to continue.
2 - that the observed inflation in foreign exchange reserves is a positive phenomenon if it was utilized by about serving real development, but the This large volume of cash is still semi-frozen and given strong arguments for not using it. The current law may be a number (56) obstacle because of its emphasis on the independence of the Central Bank so requires it to revise this law are fit current economic needs.
3 - There is an urgent need to correct the relationship with the private banks which number about 50, a figure that exceeds the capacity of the economy Iraqi Nam such as the economy, therefore, call for a merger between banks it is legitimate, provided that serious guarantees for the success of this phenomenon are available. In the last period, the central bank asked the capital of these banks increase (250 billion dinars) for this purpose in particular and this is a problem new to the relationship with private banks.
After that, Dr. occur appearance of Mohammed Saleh Economic Adviser to the Prime Minister about some important aspects of monetary policy, he said, even though the Thread thorny and complex Monetary policy is briefly means and measures taken by the government in order to achieve the goals set is price stability and raise the level of use of sustaining economic growth and stressed d. Saleh, said that the current situation in Iraq is in contraction or recession in addition to high unemployment indicators in Kurdistan 30% and in the hot areas seized by Daash are wide either at rest areas approximately 24%.
He went on Dr. Saleh to say that indicators of economic growth in the gross domestic product (GDP) in 2014 is 3.2%. The other important point is that the index of prices Fimaasmy inflation is 1.6 basis that there is no economic recession or contraction.
Between d. Saleh hierarchy differed completely between 2003 and 2013 as the monetary policy after 2004 engaged inflation but today hierarchy intensified.
He d. Saleh, said that the situation in Iraq has changed today the existence of corruption and recession and inflation and that the Central Bank of Iraq has become a refuge for borrowing because most bank deposits at the central bank because of capital flight in 2006 and 2007, stressing that the central bank's policy at the present time dealt with inflation only, but no unemployment and no deterioration in economic growth.
He d. Saleh that the central bank has provided support for the Iraqi economy in multiple directions, including 5 trillion to specialized banks (agricultural, industrial and housing fund) and 6 trillion statutory reserve interest rate of 10%, which is Khoznah remittances. He noted the benefit of the Iraqi Central Bank reserves come from oil and amounted to the central bank's balance sheet 67% of the foreign and 3% of the local currency currency, where the reserve stood at $ 78 billion in 2013.
Added Dr. Saleh that the monetary policy of the Central Bank currently is one of the best policies are balanced and rational, with the timing correct policy as Ataatsra reducing the value of the Iraqi dinar.
As for the central bank's relationship banks, stressed Dr. Saleh it is still tense relationship and the central bank monitors the liquidity of private banks note that these banks are suffering from a liquidity crisis with that of private banks constituted 32 banks out of 45 banks or more.
After that confirmed d. Mehdi al-Hafez said the Iraqi Central Bank Law and developed by the Coalition Provisional Authority and stressed the independence of the Central Bank of Iraq and asked Hafiz Alaimkn central bank law amendment to the presence of considerable debate about the independence of the Central Bank of Iraq.
Interventions
Professor Reza Ragheb Blibl Chairman Businessmen Union stressed on several observations established by the Central Bank of Iraq, the presence of new restrictions on the Iraqi economy and must be on the central bank to facilitate the task of lending and added that the money supply in the market is not private and assured the sector on the existence of paralysis in the Iraqi economy and the imbalance is not only contraction is the near-collapse of the lack of liquidity and stressed Blibl that the private sector is deprived of that is given entitlements to pump money into the market and held the government responsible for inflation to occur through several measures taken by the government.
Professor Abdul Aziz Hassoun banking expert stressed that the Central Bank of Iraq The law of 2004 focused on the subject of inflation and to control the exchange rate to the presence of an organic relationship between the objectives and the central bank subject to the authority of fiscal policy so that is no longer free. He said Hassoun that the Central Bank of Iraq identified these two goals and leave the most important duties which banks monitor and neglected almost clear.
He said Hassoun that there are more than 10 banks and deposits of less than their capital but profit rates of up to 50% as the Central Bank of Iraq to Ayeckra and Aitapa the work of banks and measures The central bank now should be based on monitoring the movement of the Iraqi dinar and quantities in the market. So how banks can best ways to operate and is working in this atmosphere?
economic expert, Dr. Abdullah al-Bandar asked about the liquidity crunch for banks Is it a crisis or liquidity crisis resources? What the central bank does if there had been high liquidity? He questioned the absence of a coin. He added that the proportion of deposits by 2014 gross domestic product of 12%, but now deposit growth in GDP is 2% which means that the credit process is weak and interest rates rise.
economist Behnam Peter stressed that the Central Bank of Iraq and the two basic functions are the stability of the exchange rate and increase guarantee use and which helped to make the stability in prices to some extent. Added Peter the compensation of employees in value-added was 35% but now 82%.
Sayeda Zeinab al-Janabi, confirmed that Iraq is passing through a difficult phase but why there are no temporary solutions or pots.
economic expert on behalf of Antoine said for his part that the operating budget is 70% and the central bank The oldest to suppress the development of the private sector and high interest rate so that it was not fair and that inflation began to increase fuel prices, and the industrial sector is suffering from a high interest rate to 20% and this is a violation of the constitution. Antoine and he added to the dominance of a particular class or mindlessly fool the Central Bank and the entry of people who are strangers to banks and banks mocked for their service. He asked for treatment and who bears responsibility?
banking expert d. Majid picture confirmed the existence of an important issue the topic of monetary and fiscal policy that the Central Bank of Iraq is a catalyst in the subject of development and Aiga all the blame upon the main Alcespb is the government's policies with the presence of factors such as the current political situation and some of the pressure from corrupt.
d. Ahmed Ibrahim stressed that the central bank policy and the policy of the Ministry of Finance were not under one roof to provide an economic vision for the country and wondered whether the state to interfere in the development management and whether the state this inferior level Albrooqrati can work to revive development?
banking expert high-Nasser stressed that the Bank CBI through control of banks in terms of capital stock of the weaker value of the Bank and the capital increase did not achieve integration.
industrial expert Fadhil Abbas Shamara said Maimer by the country's sad because most of the wise men did not take their role in building the economy and became the results were negative. He questioned the reluctance of the Iraqi Central Bank to work on the deletion of zeros from the currency?
industrial expert d. Samir Lillo wondered about the interest rate determined by the banks around the world that rate Can the Central Bank of Iraq that works to reduce interest rates to revive the national economy?
d. Ghalib al-Ansari wondered why not to distribute the amount of money to the provinces by the census?
For his part, d. Mehdi al-Hafez on the census for the third time performed by the Ministry of Planning and sent to the Council of Ministers but postpone consideration or work done.
Meanwhile, a professor Behnam Peter that «the absence of the role of investment spending required Balotair which was the reason for the survival of inflation low levels was not any role of the policies of the central bank, especially as private consumption expenditure Atamol of compensation of employees, which now stands at 82% of the value added is the opposite of the familiar in other words that the central bank takes the oil revenues and financed by current spending, but not of course ».
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