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The repercussions of the Iraqi Central Bank auction .. The US Treasury Department cut off the flow of dollars to Iraq for security concerns
Wednesday, November 4, 2015 14:38
Baghdad / follow-up Baghdadiya News / .. Allowal Street Journal revealed yesterday, Tuesday, that the Federal Central Bank and the US Treasury cut off the flow of American cash to the Iraqi Central Bank this summer account, because of fears of money in Iranian banks or in the hands of Daash , that is the resumption of transfers only after the approval of Iraqi officials to impose strict controls on the dollar coin distribution.
The case represents a crucial point in the US government's efforts to avert the occurrence of dollars in the hands of their opponents, while sheds light on the way in which countries get the US criticism.
Said Jonothin Hanzer, a former official in the Treasury Department and a member of protecting democracies Center in Washington, in the "televised" dialogue that account history dating back to 2003. "The United States is committed to the need to preserve Iraq's financial liquidity, and the account was used for the transfer of US aid and loans to Baghdad as Iraq used when you want to sell oil, as the dollar is the currency used for international transactions."
He Hanzer. "This is not surprising, there are a lot of countries that retain the account with the US Federal capable of transferring large amounts of dollars when needed. When those dollars up to the Iraqi Central Bank is" selling "or lending -abbar auction Aoma- Iraqi financial institutions, such as Banks, which in turn lend or transfer of companies and people. In this way the distribution and circulation of dollars into the Iraqi economy. "
He added that the problem in the incidence of cash in the hands of Iranian banks or Daash back to December last year. US officials have expressed concern that the increase in the amounts of funds transferred to Iraq, without a clear reason to do so. Then he called on the Federal Treasury and the Ministry of Iraqi officials to a secret meeting in Istanbul to discuss the case.
Valfdrala about more than thirteen billion dollars from the Iraq account to the Central Bank in Baghdad in 2014, compared with slightly less than $ 4 billion in 2012, as quoted Allowal Street Journal.
US concerns focus first on about two thousand Exchange Centre related with Daash. This summer, Americans discovered -abbar Iraqi officials-that three Iranian banks under sanctions list - is the Islamic Cooperation Bank and Bank Melli and Bank Persian - got millions of dollars through the daily auction also.
Said Hanzer "The difference in the amount - between last year and between 2012 - is no longer the whole disturbing reasons" buy the dollar is a move towards safety, in periods of anxiety wanted persons and companies to maintain their financial liquidity, and confidence focus in the currency of the dollar. "
He added that US federal law prohibits sending any money in the bank doubted that it would be used to finance terrorism or go to destinations impose sanctions. Valdolarat are reliable global currency and the United States want to keep them as well, the importance of the dollar also means that financial transactions become another weapon in the arsenal of the United States against terrorism or in the fight against unfriendly governments. The use of dollars is a feature, not a right. "
Hanzer confirmed that after months interrupted transfers where the Fed finally send $ 500 million to the Central Bank in Baghdad in August, but only after the situation worsened and after the central bank said that the reserves of dollars declined to a large degree.
The financing of terrorism official in the Ministry of the Treasury Daniel Glaser told the Allowal Street Journal "in terms of the fight against terrorism, it is not in the interest of the United States that Iraq is suffering from the result of a shortage of dollar coin economic crisis." "The US officials believe that the cooperation between Baghdad and Washington have improved and that the case is a thin line Tltzmh the Treasury Department and the Federal Reserve, between the fight against terrorism on the one hand, and between providing the necessary funds to run the economy on the other.
For his part, Hanzer said that the effect is not as great as observers say. "This remains Iranian banks and Daash still can handle riyal or dinar, especially with regard to internal transactions." But the effect will be in the ability of these companies and institutions on foreign trade. The move also deprives them of access to dollars, which is considered a safe currency, especially in a period of wars and crises and periods of lack of confidence in local currencies. End
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Wednesday, November 4, 2015 14:38
Baghdad / follow-up Baghdadiya News / .. Allowal Street Journal revealed yesterday, Tuesday, that the Federal Central Bank and the US Treasury cut off the flow of American cash to the Iraqi Central Bank this summer account, because of fears of money in Iranian banks or in the hands of Daash , that is the resumption of transfers only after the approval of Iraqi officials to impose strict controls on the dollar coin distribution.
The case represents a crucial point in the US government's efforts to avert the occurrence of dollars in the hands of their opponents, while sheds light on the way in which countries get the US criticism.
Said Jonothin Hanzer, a former official in the Treasury Department and a member of protecting democracies Center in Washington, in the "televised" dialogue that account history dating back to 2003. "The United States is committed to the need to preserve Iraq's financial liquidity, and the account was used for the transfer of US aid and loans to Baghdad as Iraq used when you want to sell oil, as the dollar is the currency used for international transactions."
He Hanzer. "This is not surprising, there are a lot of countries that retain the account with the US Federal capable of transferring large amounts of dollars when needed. When those dollars up to the Iraqi Central Bank is" selling "or lending -abbar auction Aoma- Iraqi financial institutions, such as Banks, which in turn lend or transfer of companies and people. In this way the distribution and circulation of dollars into the Iraqi economy. "
He added that the problem in the incidence of cash in the hands of Iranian banks or Daash back to December last year. US officials have expressed concern that the increase in the amounts of funds transferred to Iraq, without a clear reason to do so. Then he called on the Federal Treasury and the Ministry of Iraqi officials to a secret meeting in Istanbul to discuss the case.
Valfdrala about more than thirteen billion dollars from the Iraq account to the Central Bank in Baghdad in 2014, compared with slightly less than $ 4 billion in 2012, as quoted Allowal Street Journal.
US concerns focus first on about two thousand Exchange Centre related with Daash. This summer, Americans discovered -abbar Iraqi officials-that three Iranian banks under sanctions list - is the Islamic Cooperation Bank and Bank Melli and Bank Persian - got millions of dollars through the daily auction also.
Said Hanzer "The difference in the amount - between last year and between 2012 - is no longer the whole disturbing reasons" buy the dollar is a move towards safety, in periods of anxiety wanted persons and companies to maintain their financial liquidity, and confidence focus in the currency of the dollar. "
He added that US federal law prohibits sending any money in the bank doubted that it would be used to finance terrorism or go to destinations impose sanctions. Valdolarat are reliable global currency and the United States want to keep them as well, the importance of the dollar also means that financial transactions become another weapon in the arsenal of the United States against terrorism or in the fight against unfriendly governments. The use of dollars is a feature, not a right. "
Hanzer confirmed that after months interrupted transfers where the Fed finally send $ 500 million to the Central Bank in Baghdad in August, but only after the situation worsened and after the central bank said that the reserves of dollars declined to a large degree.
The financing of terrorism official in the Ministry of the Treasury Daniel Glaser told the Allowal Street Journal "in terms of the fight against terrorism, it is not in the interest of the United States that Iraq is suffering from the result of a shortage of dollar coin economic crisis." "The US officials believe that the cooperation between Baghdad and Washington have improved and that the case is a thin line Tltzmh the Treasury Department and the Federal Reserve, between the fight against terrorism on the one hand, and between providing the necessary funds to run the economy on the other.
For his part, Hanzer said that the effect is not as great as observers say. "This remains Iranian banks and Daash still can handle riyal or dinar, especially with regard to internal transactions." But the effect will be in the ability of these companies and institutions on foreign trade. The move also deprives them of access to dollars, which is considered a safe currency, especially in a period of wars and crises and periods of lack of confidence in local currencies. End
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