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Abadi adviser: Central Bank under pressure and some measures to reduce the exchange rate imposed on him
2015/6/27
[Baghdad - where]
Economic Adviser to the Prime Minister said the appearance of Mohammed Saleh, said that "the central bank is facing demand pressures on the currency."
He said Saleh told all of Iraq [where], "One of the primary goals of the bank to maintain the exchange rate stability, as it held accountable in front of the House of Representatives in this issue of stability."
"The restrained sales, will tumble Price and lead to a decline in the dinar, which cause a problem, so the bank in front of puzzled," explaining that "the restriction contained budget law there intercept him and stabbed him in the Federal Court, and was undecided, but there are differing views consideration ".
He pointed out that this is part of the independence of the monetary authority to achieve its goals, as it has drawn borders and know when to intervene because it is an independent authority under the law, as the central bank law granting full independence that the Bank adjusts the works of the monetary sector and monetary market. "
Saleh explained that "Article 50 of the budget, which restricted the Bank, challenged by the bank in the Federal Court, but there is disagreement on the subject with evidence that the central bank sells larger quantities," pointing out that "the Finance Committee in the House of Representatives in touch with the bank." .
With regard to central bank measures to curb the appreciation of the dollar, Saleh said "there are some actions by the Bank, imposed on him, and the other is taken such as imposing 8% against the transport of goods when the conversion, and this is borne by the exchange rate and gave the wrong exchange rate signal".
He said "this is not the monetary authority functions, but rather within the financial functions of the Authority", adding that "the monetary authority interjecting in the functions are not functions and restricted ceilings do not fit in with their work, and there has become several things born of this crisis, the central bank was able to get rid of These restrictions. "
It is said that, the Central Bank of Iraq deliberately to sell large amounts of the dollar, within his efforts at the front of the surge in the dollar over the past days, reaching more than 1,400 dinars to the dollar while the official rate of 1166 dinars but these prices dropped again to 1230 dinars to the dollar.
It is noteworthy that, the central bank sold at auction for the sale of foreign currencies, last Wednesday $ 314 million, contrary to the law of the financial budget for 2015, which defined sales at the auction, including no more than $ 75 million, four times the quantity specified for the bank.
The Governor of the Central Bank and the Agency on the Keywords, suggested during hosted last Sunday in the parliamentary finance committee, the abolition of the private bank's auction sale of foreign currencies including the US dollar to save the exchange rate against the dinar, and prevent the increase of the dollar exchange rate, and the liberalization of price without any limitation and sell it to anyone who wants buy it, because there is a reserve in the bank responds to any request, with instructions to restrict sales and controls, but this is what the Bank can not be done ".anthy
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2015/6/27
[Baghdad - where]
Economic Adviser to the Prime Minister said the appearance of Mohammed Saleh, said that "the central bank is facing demand pressures on the currency."
He said Saleh told all of Iraq [where], "One of the primary goals of the bank to maintain the exchange rate stability, as it held accountable in front of the House of Representatives in this issue of stability."
"The restrained sales, will tumble Price and lead to a decline in the dinar, which cause a problem, so the bank in front of puzzled," explaining that "the restriction contained budget law there intercept him and stabbed him in the Federal Court, and was undecided, but there are differing views consideration ".
He pointed out that this is part of the independence of the monetary authority to achieve its goals, as it has drawn borders and know when to intervene because it is an independent authority under the law, as the central bank law granting full independence that the Bank adjusts the works of the monetary sector and monetary market. "
Saleh explained that "Article 50 of the budget, which restricted the Bank, challenged by the bank in the Federal Court, but there is disagreement on the subject with evidence that the central bank sells larger quantities," pointing out that "the Finance Committee in the House of Representatives in touch with the bank." .
With regard to central bank measures to curb the appreciation of the dollar, Saleh said "there are some actions by the Bank, imposed on him, and the other is taken such as imposing 8% against the transport of goods when the conversion, and this is borne by the exchange rate and gave the wrong exchange rate signal".
He said "this is not the monetary authority functions, but rather within the financial functions of the Authority", adding that "the monetary authority interjecting in the functions are not functions and restricted ceilings do not fit in with their work, and there has become several things born of this crisis, the central bank was able to get rid of These restrictions. "
It is said that, the Central Bank of Iraq deliberately to sell large amounts of the dollar, within his efforts at the front of the surge in the dollar over the past days, reaching more than 1,400 dinars to the dollar while the official rate of 1166 dinars but these prices dropped again to 1230 dinars to the dollar.
It is noteworthy that, the central bank sold at auction for the sale of foreign currencies, last Wednesday $ 314 million, contrary to the law of the financial budget for 2015, which defined sales at the auction, including no more than $ 75 million, four times the quantity specified for the bank.
The Governor of the Central Bank and the Agency on the Keywords, suggested during hosted last Sunday in the parliamentary finance committee, the abolition of the private bank's auction sale of foreign currencies including the US dollar to save the exchange rate against the dinar, and prevent the increase of the dollar exchange rate, and the liberalization of price without any limitation and sell it to anyone who wants buy it, because there is a reserve in the bank responds to any request, with instructions to restrict sales and controls, but this is what the Bank can not be done ".anthy
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