not close window selling currency in Central & will print currency, as did old regime
Relationship: not close window selling the currency in Central and will print the currency, as did the old regime NOVEMBER 28, 2015
The Governor of the Central Bank of Iraq on a relationship that is not ready to close the sale of the currency in which the window is raised around a lot of controversy after Central Bank interface mismanagement charges as a result of the adoption of this mechanism in the exchange of currency.
It also accused the private banks that they exploited for smuggling and money laundering.
Allaq said while attending a colloquium seminar on central policy and impartiality to attend personally political and economic "that surprised by the statements objected to the sale of foreign currency for citizens through the window the fact Central Bank Iraq dollar revenues and expenditures of the State in local currency which requires the Central Bank to sell the dollar to get local currency to meet the expenses of the State and that the dollar could be described as a product which needs the citizen and obtained from legitimate outlets simply as the laws of the Central Bank.
He stressed that "many actions taken by the Central Bank to control the movement of funds and control its movements and its sources and addressing past wrongs."
And between relations that only 20% of the State fee in dollars, are foreign debt expenses and imports the rest ministries in local currency, Central Bank Governor revealed that this year the hypocrisy of State to 54 trillion dinars, non-oil imports were three trillion in local currency and the rest in dollars, oil imports were sold in local markets for local currency.
He also explained the relationship because of his refusal to close a window selling the currency requirements of reality as he said that "the Central Bank has no dominance to sell but realities, and sales volume depends on the size of the State of the local currency, and that the mechanism for the implementation of monetary policy of the Central Bank which provides curb inflation and control the exchange rate. Regarding trimming cash reserves at the Central Bank and media excitement that haunt this Alaq, rejected this rule and said that this was caused by a lack of expertise and knowledge of central policy and funds of the central reserve but is not the balance of foreign currency local currency it block flexible cash drop when demand for dollars rises when demand decreases.
He said that a study released by the International Monetary Fund predicted that the rising stock of hard currency by 2020 to 91 billion dollars, the fact that Iraq imports will rise in the next phase.
In answer to a question about the relationship point bound ceiling to close window selling the currency of dollars the Central Bank responded that "when there are other ports to provide local market such as dollar remittances from abroad or export goods or investments to cover the market need of hard currency, we will close the sales window.
And preparations for the Central Bank to avert a financial crisis caused by low oil prices in the event of continued decline if Juppe's central currency printing also served in 1990s days international sanctions on Iraq and the deposed regime to print currency? This Alaq refused categorically procedure and said that the Central Bank laws deprive currency printing in this format.