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Central Bank praises the decision of the three civil banks to sell dollars at a lower price advertiser
editor: RS 17.6.2013 19:43
Range Press / Baghdad
Central Bank of Iraq, on Monday, received a formal letter from the Association of Banks confirms its commitment to the initiative of three banks as a first stage to sell the dollar at a rate lower than the price the advertiser, as pointed out that this initiative represents a "natural behavior", which show him Iraqi banks, confirmed it complies with its monetary policy to support the Iraqi economy.
He said the Iraqi Central Bank in a statement received (range Press), a copy of "central bank governor received a formal letter from the Association of Banks includes a commitment solemnly announced earlier initiative by three banks as a first stage to sell the dollar to the public at a lower price from the price advertised."
The statement said that "the Association of Banks decided to cut dollar cash sale price of 1183 dinars instead of 1189 dinars to the dollar, and 1178 dinars to the dollar instead of 1184 dinars to the dollar for Documentary Credits."
Central Bank promised Bankers Association's decision as "comes continue with the policy of the Central Bank of Iraq in support of the Iraqi dinar exchange rate and to provide foreign exchange facilitator to the public and in the framework of cooperation between the Central Bank and Iraqi banks."
And the price of the bank's central bank this initiative, it felt "represent the normal behavior that show most of our banks to stand with good monetary policy trends which are moving and the keenness of the central bank and the banks to support the Iraqi economy and raising the efficiency of fiscal and monetary tools used."
The Central Bank of Iraq announced, earlier, the cancellation of banking companies is registered has regardless of obtaining clearance from the Ministry of Commerce or not, and stressed that the banking companies registered and certified before 2003 were 300 companies only, as pointed out that companies exceeded Thousand It a mixture of companies that operate in accordance with the conditions and regulations of the bank and the other got the approval from the Ministry of Trade, while other companies operate without getting any vacation.
Referred to as the central bank announced, earlier this year, 2013, it closed 190 banking offices in Baghdad and the provinces for violating the legal requirements imposed by the Bank.
The fact-finding committee in matches Development Fund of Iraq revealed, April 8, 2013, that the central bank sold during the past six years in the auctions process conducted by about 207 billion dollars, equivalent to 56% of the revenues of Iraq's oil in those years, and while confirming that these sales were more doubles than you need the local market, they revealed that more than half of those sales went to the banks specific poured their purchases from the bank in the Gulf and Jordan. accused deputies, politicians and economists Central Bank of Iraq over the past months, burn "an average of four billion dollars a month in an auction hard currency for the benefit of ten banks, mostly with Gulf capital, buy a day most of the claims of the Central Bank of hard currency and overcharge make a profit of up to 6% as it controls the Iraqi economy. "
Accused the General Authority for the North Bank for Finance and Investment, on the seventh of April 2013, the CBI not to meet the needs of the Iraqi market of hard currency over the past five months and refer it the responsibility of the private banks, while confirming that Iraq needs to pump nearly $ 300 million in the market daily to meet needs of the currency in the currency the central bank when he criticized the remarks they promised to attack him and "stems from ignorance and lack of knowledge of monetary policy."
The Cabinet decided to Iraqi (16 October 2012), the prime BSA Abdul Basit Turki functions of the central bank governor and the agency rather than the Governor of the Bank Previous Shabibi on charges of issues of financial and administrative corruption in the bank, especially in operations Auction dollars, but the something that did not occur to the work of the Bank and currency auction whereas the exchange rate of the Iraqi dinar a significant decline against the dollar jumped from 1170 dinars to the dollar in the fall of 2012 to 1270 dinars to the dollar in April 2013.
The International Monetary Fund said in a report issued in (03.21.2013), following the end of the consultations held in Amman between a delegation from the Fund and an Iraqi delegation headed by VMware Planning Ali Shukri, and seen (long-Presse) it "an improvement in the financial sector," but confirmed that it is still "need to be greater efforts by the central bank in the revision of monetary policy tools and strengthen banking supervision, and to accelerate the restructuring of the banking system."
The International Monetary Fund (IMF) called the CBI to "take measures to gradually towards the liberalization of foreign exchange through auctions held by the Bank so as not to repeat disorders suffered by the financial market in the past year."
The Fund stressed that the establishment of a national banking system requires the abandonment of the current model, which is controlled in which weak banks by state-owned receive preferential treatment apart from private banks, "calling on Iraq to do to strengthen public financial institutions to ensure efficiency and transparency in the use of oil revenues.
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