Keywords: financial precautions high despite challenges

6/12/2015 0:00

BAGHDAD Shokran Fatlawi
said the Iraqi Central Bank Governor d. Ali Mohsen Keywords that the cash reserves of the Central Bank is still good, according despite all appearances and challenges that surround the economic, financial and monetary reality in the country with international standards, it came in a speech at the seminar organized by the progress of the development policies of the Institute.

He said that the general economic indicators identified by the International Monetary Fund to refer to the appropriateness or that optimization size of foreign reserves held by the State b «coverage ratio of reserves to imports by six months, accompanied by a coverage ratio of reserve money supply will be 1: 1, as well as the coverage ratio of reserves to religion external equal to one any debt maturing within one year ».

The central bank governor of Iraq promised according to the criteria mentioned high state reserve, stressing that some of the studies, including the Arab Monetary Fund studies are Iraq from Arab countries, which exaggerates the size of the reserve for imports and coverage ratio of reserve money supply which are estimated at 170 percent, not to mention the high reserve coverage ratio of external debt the short term.

He said the central bank in the framework of control over the sale of the dollar foreign remittance operations stems from the understanding of the nature and objectives of foreign currency reserves, pointing out that the Bank's role is preventive censorship in the first place in order to prevent the use of sales operations for money laundering or terrorist financing accompanying deterrent control through action on violators in accordance with the laws of the central and instructions.

And the relationships that the effectiveness of banking supervision and in accordance with the experiences of countries and organizations concerned depends on the conditions, including sound macroeconomic policies and sustainable and the existence of a national plan aimed at financial stability, as well as a legal and regulatory structure include business rules, advanced rules of accounting, auditing, effective and safe systems for clearing and settlement of payments and data and statistics economic and financial independent and effective judiciary.

Keywords concluded on preventive control and deterrence by saying that the central has given priority to these two Alrkabtin to curb the abuses and irregularities relating to the sale and purchase of foreign currency through the activation of the role of the reporting of money laundering in the Central Bank office, activating the role of the National Committee to combat money laundering and terrorist financing, in addition to intensifying efforts with relevant international organizations in order to build an Iraqi capabilities and support expertise and information.