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6/5/2014 0:00
After touching up the 80 billion dollars and 90 tonnes of gold
Baghdad, Hussein al-Tamimi Tgb
Monetary policy is the most important episodes of economic stability through the stabilization of the exchange rate of the national economy that increase the strength and effectiveness to face all the challenges facing the development process (depending on economic affairs specialist).
Samir Nasiri said that the central bank several years ago succeeded in achieving a large and growing reserves of foreign exchange reserves stood at 80 billion dollars and 90 tonnes of gold according to the latest data issued by him.
He added in an interview with "morning" that fixing the exchange rate of the Iraqi dinar against the main currency in (the dollar) is considered to be necessary and appropriate, and had a foreign currency auctions held by the Central Bank of Iraq played an important role in maintaining the appropriate level of the exchange rate and install it.
Required reserve
He pointed out that for pressure on the exchange rates, pay Bantrza to tighten its monetary policy and narrowed, including raising interest rates on deposits in Iraqi dinars, and to allow greater flexibility in the management of monetary policy, pointing out that he adopted several measures to expand the list of tools available to them, and to cover up required to include government deposits, and the granting of facilities on deposits that mature in a short period in order to allow banks to manage their liquidity situation in a way more effective, and to reduce liquidity risk
Balance of Payments
He pointed out that among the goals of monetary policy, the other to achieve economic growth and reduce unemployment, and the stability of prices of goods and services, and the stability of exchange rates, as well as improving the balance of payments, indicating that the achievement of these goals is through a monetary policy instruments of direct and indirect, which are issued by the Bank Central regulations and regulatory instructions and guidance over the past years and finally what has been emphasized in the year 2014.
Rate of exchange
He Alnasiri saying that the current structure for the stability of exchange rates has been granted an opportunity for the Iraqi economy to rebuild and grow, despite the fact that prices have not stabilized completely, due in part to the nature of the security and political conditions and market conditions experienced by the country in spite of the evolution is clear in fiscal and monetary policy and the banking industry, where the Bulletin of the IMF delegation during their visit to Iraq recently and within this context has succeeded Central is also in the collection of reserves at a high level of foreign exchange, so it is fixing the exchange rate of Iraqi dinar against the U.S. dollar would be appropriate and desirable at the present stage.
Scaling Dollarization
Nasiri said that to support this structure to be the Iraqi Central Bank to raise the required amounts of foreign exchange on the basis of maximum rate in daily auctions and allow greater flexibility in the management of monetary policy, it has taken the CBI a number of steps to expand the list of available tools of monetary policy, which identified whereby perceptions about demand growth in money supply and currency in circulation and that expectations about economic growth and inflation.
He said the tight monetary policy adopted by the central part of Strutijeth efforts to achieve the goal of stability, has shown that the financial system Almdolr taking a drive towards a gradual decrease, and the phenomenon of partial dollarization and roots are now less than the former, because of the launch of freedom of foreign exchange and monetary policy works to promote the external value of the Iraqi dinar, which rose during the last five years.
He explained that the moderate policy established a framework effectively lead to the lifting of confidence in Iraqi dinars, as it helps the confidence in the local currency to create the conditions for strong and deep in the stability of the financial system, and the strength to address the dollarization, is a measure of the effectiveness of monetary policy in the provision of reference moving to make the local currency more attractive which is usually reflected the stability of the demand for cash or low-speed handling and stability of any money due to the influence of my reference exchange and interest.
Capital Market
He concluded Alnasiri his speech by saying that the measures and means the current adopted by the monetary policy to influence the phenomenon inflationary come to play an important role in reining in inflation caused by factors of aggregate demand, which continues to the central adoption of its current policy aimed at reducing inflation, which reached 3.1 percent at the end of 2013 to address the trends and causes and manner provides a stable cash wider and Tjeela in rates of economic growth and ensure sustained through two signals two basic adopted by the current monetary policy, namely to strengthen the real interest rate and the exchange rate of the Iraqi dinar in a precipitate of balance and stability of the financial market and the overall stability in the country.
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