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Governor of the Central Bank: speculation and political interference behind the exchange rate crisis
6/1/15
Saw the seminar held by the "Institute for the progress of the development policies" to discuss the difficulties and the cash position of the central bank towards them, the presence of Dr. Ali Keywords Governor of the Central Bank of Iraq, controversy and heated discussions on the real reasons behind the significant decline in the value of the dinar in recent weeks.
BAGHDAD - Rahim al-Shammari
Participants at the symposium concluded that speculation and interference in the bank's policy of the main reasons that led to the crisis mentioned stressing the need to distance the bank from the interventions and the elimination of speculation as well as create a state of compatibility between monetary and fiscal policy, warning of the possibility of inclusion of Iraq in international black list in the event does not take the required reforms of the banking sector.
He praised the MP Dr Mehdi al-Hafez, "head of the Institute of progress of the policies of development" during a speech at the opening of the symposium the swift action taken by the Bank, which contributed to tackle the crisis and the return of well-being of the Iraqi dinar, indicating that the central bank exposure in recent years to pressure and distortions different, but the steps recently taken by that put him in a new and important site for monetary policy desired and its contribution to the development process in the country.
He Hafiz to that of the first initiatives of the bank is refusing to whether the hidden government or parliamentary exposed to external interventions was inconsistent with the law, noting that the timeframe for the sale of the dollar's status by 75 million dollars a day was an example of blatant interference in the Bank's policy.
He said Hafiz that one of the important initiatives taken by the bank which is carrying out national development project with the support of $ 1 trillion dinars form of loans for the establishment of small and medium enterprises contribute to the national development process and provide job opportunities for the preparation of La Paz by young people and to reduce the estimated results (30) percent of unemployment. He Hafiz expressed hope that the central bank will continue its initiatives constructive to include all areas and sectors of development, particularly support industrial initiative, which is long overdue.
After that the Iraqi Central Bank Governor Dr. Ali Keywords occur reviewing the circumstances and events that the Iraqi market experienced over the past weeks, which resulted in a decline in the value of the dinar Iraqi, explaining the reasons behind this crisis, and the desired results and the solutions for it.
and he said: "When we talk about the sale of foreign currency in the framework of the so-called sell the dollar and here must clarify concepts so we deal with it about right," explaining that the so-it "sell the currency window" in Central Bank of Iraq and by which the sale of the US dollar, not a secondary window or marginal, it is a big operation with a direct most important functions of the Central Bank of achieving exchange rate stability and to maintain the general level of prices and curb inflation, and the nature of the Reclining Iraqi economy on oil resources prejudice and therefore revenue dollar makes the relationship between fiscal policy
and monetary interactive relationship including necessitated by the nature of the revenue and expenditure of the monetization of the dollar.
He says Keywords The central bank exercised important roles in this process, including "Touil current expenditures of the general budget of the state, where to buy central bank dollar from the Ministry of Finance to cover needs in Iraqi dinars, according to allocations required in the general budget, "as well as" financing imports of the commercial sector, as well as other foreign remittances, and to cover travelers and students, treatment and transfers of residents needs, "adding that" the dollar selling process means other hand pull the dinar from the market, and this process help the central bank to curb money supply and reduce the resort to printing
more currency, which will help in reducing inflation and stabilizing the general level of prices. "
Keywords and explains that "the monopolistic role of the process of dollar selling exercised by the central bank provides him the opportunity to control exchange rates and quantities sold and thus provide him with an important tool of monetary policy tools in maintaining price stability, "explaining that" sales formula - in terms of the central bank take it - is followed in countries where monopoly Governments exports and thus foreign currency as is happening in the oil-producing countries. " He continued that "other options such as floating exchange rate policy - or dollar sale directly by the Ministry of Finance, they Options ascertains - especially in Iraq - stability and control of the exchange rate for reasons related to the nature of the circumstances, institutional, regulatory, market and regulatory environment and other ".
Interference in the work of the Central Bank
says Keywords "Although the central bank is generally well-respected and independence by the legislative and executive powers, but there is pressure by the legislative and executive authorities, including interference in determining the daily dollar sales ceiling, as stated in Article 50 of the General Budget Law, which is Tkpala Central Bank in the exercise of its monetary policy that require permanent flexibility, "adding that" this article shall affect the essence of the independence of the Central Bank and the graduation until about the role of responsibility and accountability when Aeetmkn to achieve in charge of the task in maintaining the stability of exchange rates ".
He adds that "a cap for sale means to determine the amount that covers the need going forward so the ceiling which is not possible, for example, if what has been taking the ceiling set out in the general budget and the specific sale of 75 million dollars a day, it means that the central bank sells the equivalent of about 23 trillion dinars per year, while the operating budget expenses (JD) about 70 trillion dinars Assuming the existence of imports in dinars up to 10 trillion dinars remains the need to around 37 trillion dinars (trillion dinars 37 = 23 - 10-70), it is where you will get this amount of (37 trillion), "noting that" the requirements of maintaining the money supply and meet the Ministry of Finance requirements, require the sale of the dollar in the market to pull Maakablha of the Iraqi dinar. "
and goes "Maybe someone says can the central bank should not sell those quantities, provides coverage for financial need Additional versions of the dinar, any print additional quantities of $ 37 trillion, "explaining that" this means increasing the money supply or the so-called excessive monetary terms of this amount will be as much of what remains is currently exporting currency, meaning it will double its size in circulation which creates a big inflationary pressure, as it will turn into extra demand for the dollar. "
continues Keywords modern, saying that "determining sales ceiling means that monetary policy has been identified external decisions, to Atanthec independence only, but will lose their tools in the exercise of its policy, as it would throw them out of the circle of responsibility and accountability in the achievement of its mission in maintaining price stability, "adding that" monetary policy require ongoing flexibility, which is not financial such as policy governed determinants and AMAD bound by them according to the law of the general budget of the medium- and long-term plans, which does not apply to monetary policy, which requires decisions and directives and amendments to the circumstances and requirements of the market. "
He continues, "The identification of sales ceiling, will lead to the creation of expectations and forecasts in the market, and this Maitnaqd with the requirements and the nature of monetary policy action, and therefore, under our environment conditions unstable, will exploit these selections and turn into serious speculation claiming the exchange rate and create markets where parallel gray paid for Citizen result. "
Keywords believes that "This determination requires restrictions and conditions on sales, which - as is the case in other sectors - leading to processes of corruption and fraud and forgery, and turn those controls and restrictions to the exploitation and extortion by the rings, which holds that," noting that "the current circumstances and environment that suffer from significant problems and cracked institutionalized in all joints should lead to follow policies and procedures are clear and simple so that there is not room for exploitation and manipulation."
Keywords and believes that "a lot of media statements, which often Matntaleg of deficiencies in the understanding and the surround concepts related to monetary policy, confuse the work of the Central Bank, and creates psychological pressure of the impact on the Bank's management and its employees. "
For example, look at the foreign currency reserves just absolute in the analysis and evaluation of monetary policy as a number, leading to conclusions and attitudes of false and confusing statements, according to governor Central Bank, which says that the reserve as a number abstract for Aaahr to the safety and strength of the reserve without attributed to the local currency exported (Dinar) so it must be seen from this standard, usually Maaattabr Reserve sound and sufficient if it covers the local currency, (ie 1: 1 ratio), Therefore, the decline in reserves as a result of buying and selling of the dollar, which means that the local currency in circulation also declined and thus keep the ratio the province at their level, and here, some central banks in other countries turned to the Public Treasury (Ministry of Finance) are flooding the ratio mentioned because this increase is a surplus of the need for the bank.
He adds, "another example of the misconceptions is to look to sell the dollar operations as the money laundering smuggling operations," adding that "the existence of such a potential operations, as is the case in all countries of the world, but can not be regarded as those operations in general are illegal operations. " He continued that "the assumptions that runs from the other describes the bulk of sales in the suspicious framework and in amounts up to billions of dollars an assumption leads to the wrong analysis where Aastakim logic with this assumption because the money laundering have money derived from crimes such as corruption and tax evasion, kidnapping, human trafficking and other , and can not be that those offenses are sized up to 30 billion dollars a year and the rest (30 or more) is the money is illegal, which is far from reality assumption both in the estimation of the trade volume, or the size of other operations, where a large proportion of income and profits and gains are transfer abroad because of the situation, in addition to the passengers, treatment and study wages and salaries of pensioners and remittances from non-residents and other expenses. "
Dollarization
continues Keywords talk, saying, "Despite scored from the installation of the exchange rate and the strength of the Iraqi dinar, a significant proportion of transactions in the Iraqi market is done by the dollar instead of the dinar, especially in the Kurdistan region," adding that "accompanying the case of inherited fear of the conditions of the country in the former regime and the blockade paid a lot of hedge what can be exposed dinar, as happened in the nineties. This phenomenon receive an additional burden on the central bank to increase demand for the dollar. "
Liberalization of currency
and says Keywords that the requirements of the nature of the economic system - the political and chosen Iraq to follow the market economy, economic freedom, and the commitments made by Iraq internationally to abandon restrictions on the sale of foreign currency, and what is the reality of an environment of opportunities for exploitation and the search for quick gains easy, all call that the best option is to edit the currency sale restrictions to stabilize prices and filling corruption, exploitation and banditry outlets in front of mafias angling opportunities limited and restricted to achieve obscene gains, an option that we put forward in our meeting in the Finance Committee in the House of Representatives in 14/06/2015 from between other options, the Commission agreed with us to pursue this option.
He adds that this option requires two basic, first "verification of the money that is dollar-buying by the source, in terms of legitimacy and cleanliness, and they do not represent the proceeds of crimes or corruption in order to be washed, a second" Check from the destination that transforms them in such amounts out of Iraq, and get the analytical data and statements that appear last two beneficiaries of the amounts transferred. "
Two options for the exchange rate
is believed Keywords that the dollar exchange rate can be determined with two options are linked to the financing of the general budget are "to be the exchange rate Mnkhvza while maximizing public budget resources through customs duties direct and indirect taxes" or "to be the exchange rate, up a certain percentage in return for scrapping or customs duties and indirect taxes reduction, "adding that" the second option is best suited in Iraq to secure revenues and avoid cases of corruption and manipulation of the broad in customs and tax services, an option is available, but should be studied carefully and identify potential risks and ways to control them. "
Capital account
of his part, Economic Adviser to the Prime Minister Dr. made the appearance of Mohammed Saleh to comment on what is stated in an interview with the Keywords, indicating that the bank has a problem regarding freedom of movement of funds, Iraq is committed to the Convention on the International Monetary Fund since 1945 amended and indicate Article 8 of this Convention to liberalization of the current account of the balance of payments means freedom exports and revenues and conversion returns to work and capital .. The left Article 14 of the Convention for the countries of freedom of liberalization of capital or not to edit the condition Media Fund to do so.
He called on Saleh to clarify the picture with regard to the calculation of capital from the balance of payments Iraqi Will is or is editor, and on the Iraqi legal establishment investigate this important issue and give a clear picture of this and save the Central Bank from this dilemma.
The industrial expert on behalf of Jamil Anton threw down a number of questions, indicating that the central bank functions of protection of the citizen who is dealing with banks, many citizens complain about the deal some banks with them by giving them their money deposited in dinars instead of dollars as deposited by Bjajh that this is the central bank directives.
He also Antoine that the tax be levied on goods entering the country, how they are met without entry any goods of the country? Adding that the proportion of the 5 percent fee Kmarkip deducted after the entry of the goods into the country at the border crossing.
Director General of the Trade Bank of Iraq Hamdiya dry pointed to three factors affecting about largely on the performance of the Iraqi banking sector, perhaps the first of intervention legislative powers in determining central bank sales ceiling of the dollar and this will impact negatively on the exchange companies and banks through lower stakes daily by about a large, calling for this authority to the bank and bank account on the basis of the results.
Dry and showed that the control applied by the central bank may sometimes be inaccurate and sometimes for flimsy reasons is this deprivation Company or that the bank of the auction.
For his part, the President of the Iraqi businessmen Union Reza Ragheb Blibl demanded that the central bank's developmental role in supporting the private sector, especially investment projects that provide jobs and support the national economy.
He praised Blibl on the central bank initiative to allocate 5 trillion dinars banks three specialized (agricultural - industrial - commercial), expressing regret that the industrial initiative can not perform its provisions to the lack of allocations within the budget of 2015 and maybe even in the next year.
banking expert Ali al-Husseini (Assyria) Bank called for the involvement of retired guarantors process to secure loans Because the state departments may not deal positively with the issue of guarantor guarantor and thus the involvement of retired ease of this issue.
Dr. Ali high-former Dean of the Faculty of Law at Baghdad University, said the central bank went to the Federal Court on an item your budget a ceiling sales of the dollar b (75) million dollars a day and is the right step, but the problem is that the bank violated the law also by continuing to sell higher amounts than Rord in the budget without waiting for the court's decision, adding that the cancellation rate of 8 per cent was not successful as a longer one finance the budget sources and that the cancellation also confirms the absence of harmony between fiscal and monetary policies.
banking expert Samir Nasiri said that the central bank Aithml and severity of the problem that occurred recently, a decline in the value of the dinar, there are other views should bear the responsibility regarding a partner in it, indicating that among these actors Ministry Trade, which bear the responsibility of not controlling the Astiradtha and curricula import governmental and private, and the Finance Ministry, which is responsible for lack of pressure on public spending and the introduction of the central bank in the responsibility of collection of taxes and fees of customs and it is not his duty and banks, and the Ministry of Planning, which did not provide transparent data on foreign trade, the Ministry of Interior did not turn in controlling economic crime, major disaster is the media is economic.
economic expert contrary goldsmith talked about fiscal and monetary policies must be consistent, pointing out that 70 per cent of oil revenues go to the consumer spending issues, wondering about who bears responsibility Central Bank or fiscal policy? Goldsmith notes that the lack of compatibility between the financial and economic two policies resulted in failure and clear in the completion of the investment projects he could supply the general budget financial resources, calling for giving this matter exceptional attention to achieving harmony required between the two policies and compatibility.
financial expert, Dr. Abdul Razak Dawood al-Saadi explained that the increase in funds of private banks, which amounted to $ 250 billion capital did not help to achieve an increase in profits but the percentage of profit increase is so small that were not non-existent, and the meaning of this to be a book of excess money was withdrawn from the market.
economic expert, Dr. Abdullah al-Bandar pointed out that the crisis the last that I got is not pointing the real causes Is it economic, political or social .. pointing to the economy constants must for Anhad them. If the tax imposed is the reason for the high price of the dollar, this is a dangerous means that our reading of the Iraqi economy by about true .. time and the truth is that the magnitude of imports requires us to find a regulating them because most of them Trevi and markets filled with demand Valastirad open unreasonably under difficult economic conditions faced by Iraq, a situation deflationary rate of growth to exceed the 1 per cent
and this invites us to search for new sources for the harmonization of fiscal and monetary policies in order to to Anuge blame to point specific .. calling to study the real factors behind the occurrence of such crises and the media and civil society organizations to take real role in the erosion of those T-behind this crisis,
businessman David Abdul Zayer Head of Business Iraqi Council between the Ministry of Finance an obligation to put policy Finance Central Bank of Iraq to stop its funding from the sale of the dollar Paljbaah, warning that if it continues the case on the basis of selling the dollar to finance the budget without levying We will continue around in circles and we'll wasting future generations fortunes, he said, adding that the central bank has during the past two years to transfer $ 21 billion to import non-economic cost of goods imported 3 billion and the cost of production of one billion.
Two prices for the disbursement of the dollar
banking expert Adnan Chalabi (Ashur Bank) said there were two prices for the first exchange in Baghdad and one in Erbil, what exists in Arbil over Baghdad about 20 points and the reasons that led to the increase in price of the dollar, adding that the head of the re-money requires a scientific study To find out how to restore migratory capital and provide appropriate for the return of this money conditions.
industrial expert, Dr. Samir Lillo between the central bank initiative to provide trillion dinars to support small and medium enterprises, and they represent a positive step task, but it does not represent 1 percent of the size of the need, calling on the Bank Central to create an advisory body to define the mechanisms of exchange of such amounts to make them useful in stimulating and reviving the economy.
Ali Tariq, executive director of the Association of the bank between the financing of small and medium enterprises project will be observers by the Central Bank and the private banks will be lending of their funds and then be compensated later So from the central bank, this system will be strictly controlled. And the private banks to be eager to give correct loans.
Dr. Abdul Hussain His financial adviser and the economy at the International Development Bank noted sagging government spending, indicating that the domestic production in the past decades was covering the local need of oils, dairy, leather and other was not Iraq imports of these goods, but now These projects are paid very huge stopped and was run by 2,000 workers, and today employs 6000 workers and represent their salary burden on the budget and this requires a public address, calling for the development of domestic production to substitute for imported and ease the burden on the budget.
businessman d. Ahmed Ibrahim said the retrenchment is not always true in the present time may cause a recession and kills imports.
Banking expert Adel Nouri expressed concern about the inclusion of the Iraq Central Bank in the blacklist stressing the need to take urgent action to avoid it.
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6/1/15
Saw the seminar held by the "Institute for the progress of the development policies" to discuss the difficulties and the cash position of the central bank towards them, the presence of Dr. Ali Keywords Governor of the Central Bank of Iraq, controversy and heated discussions on the real reasons behind the significant decline in the value of the dinar in recent weeks.
BAGHDAD - Rahim al-Shammari
Participants at the symposium concluded that speculation and interference in the bank's policy of the main reasons that led to the crisis mentioned stressing the need to distance the bank from the interventions and the elimination of speculation as well as create a state of compatibility between monetary and fiscal policy, warning of the possibility of inclusion of Iraq in international black list in the event does not take the required reforms of the banking sector.
He praised the MP Dr Mehdi al-Hafez, "head of the Institute of progress of the policies of development" during a speech at the opening of the symposium the swift action taken by the Bank, which contributed to tackle the crisis and the return of well-being of the Iraqi dinar, indicating that the central bank exposure in recent years to pressure and distortions different, but the steps recently taken by that put him in a new and important site for monetary policy desired and its contribution to the development process in the country.
He Hafiz to that of the first initiatives of the bank is refusing to whether the hidden government or parliamentary exposed to external interventions was inconsistent with the law, noting that the timeframe for the sale of the dollar's status by 75 million dollars a day was an example of blatant interference in the Bank's policy.
He said Hafiz that one of the important initiatives taken by the bank which is carrying out national development project with the support of $ 1 trillion dinars form of loans for the establishment of small and medium enterprises contribute to the national development process and provide job opportunities for the preparation of La Paz by young people and to reduce the estimated results (30) percent of unemployment. He Hafiz expressed hope that the central bank will continue its initiatives constructive to include all areas and sectors of development, particularly support industrial initiative, which is long overdue.
After that the Iraqi Central Bank Governor Dr. Ali Keywords occur reviewing the circumstances and events that the Iraqi market experienced over the past weeks, which resulted in a decline in the value of the dinar Iraqi, explaining the reasons behind this crisis, and the desired results and the solutions for it.
and he said: "When we talk about the sale of foreign currency in the framework of the so-called sell the dollar and here must clarify concepts so we deal with it about right," explaining that the so-it "sell the currency window" in Central Bank of Iraq and by which the sale of the US dollar, not a secondary window or marginal, it is a big operation with a direct most important functions of the Central Bank of achieving exchange rate stability and to maintain the general level of prices and curb inflation, and the nature of the Reclining Iraqi economy on oil resources prejudice and therefore revenue dollar makes the relationship between fiscal policy
and monetary interactive relationship including necessitated by the nature of the revenue and expenditure of the monetization of the dollar.
He says Keywords The central bank exercised important roles in this process, including "Touil current expenditures of the general budget of the state, where to buy central bank dollar from the Ministry of Finance to cover needs in Iraqi dinars, according to allocations required in the general budget, "as well as" financing imports of the commercial sector, as well as other foreign remittances, and to cover travelers and students, treatment and transfers of residents needs, "adding that" the dollar selling process means other hand pull the dinar from the market, and this process help the central bank to curb money supply and reduce the resort to printing
more currency, which will help in reducing inflation and stabilizing the general level of prices. "
Keywords and explains that "the monopolistic role of the process of dollar selling exercised by the central bank provides him the opportunity to control exchange rates and quantities sold and thus provide him with an important tool of monetary policy tools in maintaining price stability, "explaining that" sales formula - in terms of the central bank take it - is followed in countries where monopoly Governments exports and thus foreign currency as is happening in the oil-producing countries. " He continued that "other options such as floating exchange rate policy - or dollar sale directly by the Ministry of Finance, they Options ascertains - especially in Iraq - stability and control of the exchange rate for reasons related to the nature of the circumstances, institutional, regulatory, market and regulatory environment and other ".
Interference in the work of the Central Bank
says Keywords "Although the central bank is generally well-respected and independence by the legislative and executive powers, but there is pressure by the legislative and executive authorities, including interference in determining the daily dollar sales ceiling, as stated in Article 50 of the General Budget Law, which is Tkpala Central Bank in the exercise of its monetary policy that require permanent flexibility, "adding that" this article shall affect the essence of the independence of the Central Bank and the graduation until about the role of responsibility and accountability when Aeetmkn to achieve in charge of the task in maintaining the stability of exchange rates ".
He adds that "a cap for sale means to determine the amount that covers the need going forward so the ceiling which is not possible, for example, if what has been taking the ceiling set out in the general budget and the specific sale of 75 million dollars a day, it means that the central bank sells the equivalent of about 23 trillion dinars per year, while the operating budget expenses (JD) about 70 trillion dinars Assuming the existence of imports in dinars up to 10 trillion dinars remains the need to around 37 trillion dinars (trillion dinars 37 = 23 - 10-70), it is where you will get this amount of (37 trillion), "noting that" the requirements of maintaining the money supply and meet the Ministry of Finance requirements, require the sale of the dollar in the market to pull Maakablha of the Iraqi dinar. "
and goes "Maybe someone says can the central bank should not sell those quantities, provides coverage for financial need Additional versions of the dinar, any print additional quantities of $ 37 trillion, "explaining that" this means increasing the money supply or the so-called excessive monetary terms of this amount will be as much of what remains is currently exporting currency, meaning it will double its size in circulation which creates a big inflationary pressure, as it will turn into extra demand for the dollar. "
continues Keywords modern, saying that "determining sales ceiling means that monetary policy has been identified external decisions, to Atanthec independence only, but will lose their tools in the exercise of its policy, as it would throw them out of the circle of responsibility and accountability in the achievement of its mission in maintaining price stability, "adding that" monetary policy require ongoing flexibility, which is not financial such as policy governed determinants and AMAD bound by them according to the law of the general budget of the medium- and long-term plans, which does not apply to monetary policy, which requires decisions and directives and amendments to the circumstances and requirements of the market. "
He continues, "The identification of sales ceiling, will lead to the creation of expectations and forecasts in the market, and this Maitnaqd with the requirements and the nature of monetary policy action, and therefore, under our environment conditions unstable, will exploit these selections and turn into serious speculation claiming the exchange rate and create markets where parallel gray paid for Citizen result. "
Keywords believes that "This determination requires restrictions and conditions on sales, which - as is the case in other sectors - leading to processes of corruption and fraud and forgery, and turn those controls and restrictions to the exploitation and extortion by the rings, which holds that," noting that "the current circumstances and environment that suffer from significant problems and cracked institutionalized in all joints should lead to follow policies and procedures are clear and simple so that there is not room for exploitation and manipulation."
Keywords and believes that "a lot of media statements, which often Matntaleg of deficiencies in the understanding and the surround concepts related to monetary policy, confuse the work of the Central Bank, and creates psychological pressure of the impact on the Bank's management and its employees. "
For example, look at the foreign currency reserves just absolute in the analysis and evaluation of monetary policy as a number, leading to conclusions and attitudes of false and confusing statements, according to governor Central Bank, which says that the reserve as a number abstract for Aaahr to the safety and strength of the reserve without attributed to the local currency exported (Dinar) so it must be seen from this standard, usually Maaattabr Reserve sound and sufficient if it covers the local currency, (ie 1: 1 ratio), Therefore, the decline in reserves as a result of buying and selling of the dollar, which means that the local currency in circulation also declined and thus keep the ratio the province at their level, and here, some central banks in other countries turned to the Public Treasury (Ministry of Finance) are flooding the ratio mentioned because this increase is a surplus of the need for the bank.
He adds, "another example of the misconceptions is to look to sell the dollar operations as the money laundering smuggling operations," adding that "the existence of such a potential operations, as is the case in all countries of the world, but can not be regarded as those operations in general are illegal operations. " He continued that "the assumptions that runs from the other describes the bulk of sales in the suspicious framework and in amounts up to billions of dollars an assumption leads to the wrong analysis where Aastakim logic with this assumption because the money laundering have money derived from crimes such as corruption and tax evasion, kidnapping, human trafficking and other , and can not be that those offenses are sized up to 30 billion dollars a year and the rest (30 or more) is the money is illegal, which is far from reality assumption both in the estimation of the trade volume, or the size of other operations, where a large proportion of income and profits and gains are transfer abroad because of the situation, in addition to the passengers, treatment and study wages and salaries of pensioners and remittances from non-residents and other expenses. "
Dollarization
continues Keywords talk, saying, "Despite scored from the installation of the exchange rate and the strength of the Iraqi dinar, a significant proportion of transactions in the Iraqi market is done by the dollar instead of the dinar, especially in the Kurdistan region," adding that "accompanying the case of inherited fear of the conditions of the country in the former regime and the blockade paid a lot of hedge what can be exposed dinar, as happened in the nineties. This phenomenon receive an additional burden on the central bank to increase demand for the dollar. "
Liberalization of currency
and says Keywords that the requirements of the nature of the economic system - the political and chosen Iraq to follow the market economy, economic freedom, and the commitments made by Iraq internationally to abandon restrictions on the sale of foreign currency, and what is the reality of an environment of opportunities for exploitation and the search for quick gains easy, all call that the best option is to edit the currency sale restrictions to stabilize prices and filling corruption, exploitation and banditry outlets in front of mafias angling opportunities limited and restricted to achieve obscene gains, an option that we put forward in our meeting in the Finance Committee in the House of Representatives in 14/06/2015 from between other options, the Commission agreed with us to pursue this option.
He adds that this option requires two basic, first "verification of the money that is dollar-buying by the source, in terms of legitimacy and cleanliness, and they do not represent the proceeds of crimes or corruption in order to be washed, a second" Check from the destination that transforms them in such amounts out of Iraq, and get the analytical data and statements that appear last two beneficiaries of the amounts transferred. "
Two options for the exchange rate
is believed Keywords that the dollar exchange rate can be determined with two options are linked to the financing of the general budget are "to be the exchange rate Mnkhvza while maximizing public budget resources through customs duties direct and indirect taxes" or "to be the exchange rate, up a certain percentage in return for scrapping or customs duties and indirect taxes reduction, "adding that" the second option is best suited in Iraq to secure revenues and avoid cases of corruption and manipulation of the broad in customs and tax services, an option is available, but should be studied carefully and identify potential risks and ways to control them. "
Capital account
of his part, Economic Adviser to the Prime Minister Dr. made the appearance of Mohammed Saleh to comment on what is stated in an interview with the Keywords, indicating that the bank has a problem regarding freedom of movement of funds, Iraq is committed to the Convention on the International Monetary Fund since 1945 amended and indicate Article 8 of this Convention to liberalization of the current account of the balance of payments means freedom exports and revenues and conversion returns to work and capital .. The left Article 14 of the Convention for the countries of freedom of liberalization of capital or not to edit the condition Media Fund to do so.
He called on Saleh to clarify the picture with regard to the calculation of capital from the balance of payments Iraqi Will is or is editor, and on the Iraqi legal establishment investigate this important issue and give a clear picture of this and save the Central Bank from this dilemma.
The industrial expert on behalf of Jamil Anton threw down a number of questions, indicating that the central bank functions of protection of the citizen who is dealing with banks, many citizens complain about the deal some banks with them by giving them their money deposited in dinars instead of dollars as deposited by Bjajh that this is the central bank directives.
He also Antoine that the tax be levied on goods entering the country, how they are met without entry any goods of the country? Adding that the proportion of the 5 percent fee Kmarkip deducted after the entry of the goods into the country at the border crossing.
Director General of the Trade Bank of Iraq Hamdiya dry pointed to three factors affecting about largely on the performance of the Iraqi banking sector, perhaps the first of intervention legislative powers in determining central bank sales ceiling of the dollar and this will impact negatively on the exchange companies and banks through lower stakes daily by about a large, calling for this authority to the bank and bank account on the basis of the results.
Dry and showed that the control applied by the central bank may sometimes be inaccurate and sometimes for flimsy reasons is this deprivation Company or that the bank of the auction.
For his part, the President of the Iraqi businessmen Union Reza Ragheb Blibl demanded that the central bank's developmental role in supporting the private sector, especially investment projects that provide jobs and support the national economy.
He praised Blibl on the central bank initiative to allocate 5 trillion dinars banks three specialized (agricultural - industrial - commercial), expressing regret that the industrial initiative can not perform its provisions to the lack of allocations within the budget of 2015 and maybe even in the next year.
banking expert Ali al-Husseini (Assyria) Bank called for the involvement of retired guarantors process to secure loans Because the state departments may not deal positively with the issue of guarantor guarantor and thus the involvement of retired ease of this issue.
Dr. Ali high-former Dean of the Faculty of Law at Baghdad University, said the central bank went to the Federal Court on an item your budget a ceiling sales of the dollar b (75) million dollars a day and is the right step, but the problem is that the bank violated the law also by continuing to sell higher amounts than Rord in the budget without waiting for the court's decision, adding that the cancellation rate of 8 per cent was not successful as a longer one finance the budget sources and that the cancellation also confirms the absence of harmony between fiscal and monetary policies.
banking expert Samir Nasiri said that the central bank Aithml and severity of the problem that occurred recently, a decline in the value of the dinar, there are other views should bear the responsibility regarding a partner in it, indicating that among these actors Ministry Trade, which bear the responsibility of not controlling the Astiradtha and curricula import governmental and private, and the Finance Ministry, which is responsible for lack of pressure on public spending and the introduction of the central bank in the responsibility of collection of taxes and fees of customs and it is not his duty and banks, and the Ministry of Planning, which did not provide transparent data on foreign trade, the Ministry of Interior did not turn in controlling economic crime, major disaster is the media is economic.
economic expert contrary goldsmith talked about fiscal and monetary policies must be consistent, pointing out that 70 per cent of oil revenues go to the consumer spending issues, wondering about who bears responsibility Central Bank or fiscal policy? Goldsmith notes that the lack of compatibility between the financial and economic two policies resulted in failure and clear in the completion of the investment projects he could supply the general budget financial resources, calling for giving this matter exceptional attention to achieving harmony required between the two policies and compatibility.
financial expert, Dr. Abdul Razak Dawood al-Saadi explained that the increase in funds of private banks, which amounted to $ 250 billion capital did not help to achieve an increase in profits but the percentage of profit increase is so small that were not non-existent, and the meaning of this to be a book of excess money was withdrawn from the market.
economic expert, Dr. Abdullah al-Bandar pointed out that the crisis the last that I got is not pointing the real causes Is it economic, political or social .. pointing to the economy constants must for Anhad them. If the tax imposed is the reason for the high price of the dollar, this is a dangerous means that our reading of the Iraqi economy by about true .. time and the truth is that the magnitude of imports requires us to find a regulating them because most of them Trevi and markets filled with demand Valastirad open unreasonably under difficult economic conditions faced by Iraq, a situation deflationary rate of growth to exceed the 1 per cent
and this invites us to search for new sources for the harmonization of fiscal and monetary policies in order to to Anuge blame to point specific .. calling to study the real factors behind the occurrence of such crises and the media and civil society organizations to take real role in the erosion of those T-behind this crisis,
businessman David Abdul Zayer Head of Business Iraqi Council between the Ministry of Finance an obligation to put policy Finance Central Bank of Iraq to stop its funding from the sale of the dollar Paljbaah, warning that if it continues the case on the basis of selling the dollar to finance the budget without levying We will continue around in circles and we'll wasting future generations fortunes, he said, adding that the central bank has during the past two years to transfer $ 21 billion to import non-economic cost of goods imported 3 billion and the cost of production of one billion.
Two prices for the disbursement of the dollar
banking expert Adnan Chalabi (Ashur Bank) said there were two prices for the first exchange in Baghdad and one in Erbil, what exists in Arbil over Baghdad about 20 points and the reasons that led to the increase in price of the dollar, adding that the head of the re-money requires a scientific study To find out how to restore migratory capital and provide appropriate for the return of this money conditions.
industrial expert, Dr. Samir Lillo between the central bank initiative to provide trillion dinars to support small and medium enterprises, and they represent a positive step task, but it does not represent 1 percent of the size of the need, calling on the Bank Central to create an advisory body to define the mechanisms of exchange of such amounts to make them useful in stimulating and reviving the economy.
Ali Tariq, executive director of the Association of the bank between the financing of small and medium enterprises project will be observers by the Central Bank and the private banks will be lending of their funds and then be compensated later So from the central bank, this system will be strictly controlled. And the private banks to be eager to give correct loans.
Dr. Abdul Hussain His financial adviser and the economy at the International Development Bank noted sagging government spending, indicating that the domestic production in the past decades was covering the local need of oils, dairy, leather and other was not Iraq imports of these goods, but now These projects are paid very huge stopped and was run by 2,000 workers, and today employs 6000 workers and represent their salary burden on the budget and this requires a public address, calling for the development of domestic production to substitute for imported and ease the burden on the budget.
businessman d. Ahmed Ibrahim said the retrenchment is not always true in the present time may cause a recession and kills imports.
Banking expert Adel Nouri expressed concern about the inclusion of the Iraq Central Bank in the blacklist stressing the need to take urgent action to avoid it.
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