Abadi's office calls for the central bank to review its policy on currency smuggling

Economic Page
January 29, 2016 16:05
Readers Number: 41

He called on the Office of the Prime Minister Haider al-Abadi, the Iraqi Central Bank to review its policy on "the smuggling of foreign currency."

A spokesman for the Office Saad al-Sabri, said that "the Central Bank's policies as an independent government can not be a party to work details and management of fiscal and monetary policy, they are within the jurisdiction of the central bank, such as selling foreign outlets currency," adding that it "policy by the Bank as an independent body." .

However, "but all the cases, the economic situation through which the country is difficult, and requires conduct reviews of all policies on financial management level, and monitoring and transmission of funds, and money laundering and smuggling of foreign currency out of Iraq under the investment cap," stressing that "this is very important." .

He pointed out that "the real currency sale process and a way to import as it is through trade through the purchase of the bank's currency to import goods, and at the same time the central bank today takes this process accurately and announce it to the media."

Newborn and pointed out that "the Iraqi currency by which to provide and pay a large part of it by auction Central Bank, on the grounds that the source of the money supply and liquidity of financial savings probably a big part of citizens and non-existent in the economic cycle."

And that "this greatly affects the central bank's capabilities, which sometimes forced to sell high amounts of currency for cash, through which provide important basic amounts to provide the salaries of staff cover, the process overlapping and difficult, but the result enters this in a political central bank framework."

The official document of the Finance Committee in Parliament revealed that the central bank sold the amount of the US dollar in the past year 2015, more than Iraq's imports of foreign currency obtained from the sale of crude oil in the same year.

The document showed that the country's oil revenues for the year 2015 amounted to $ 38 billion, while sales of the bank in the same year was more than $ 44 billion, a difference of more than five billion dollars, that is what sold Iraq of foreign currency more than its imports from them.

Iraq is facing a financial crisis due to the sharp decline of oil, in terms of financial budget for this year with a total expenditure of more than 105 trillion deficit accounted for 22.8%, reaching a total revenue of the 81 trillion and 700 billion dinars, the oil revenues, of which 69 trillion and 773 billion dinars The increase of 85.1% from total revenues, while non-oil revenues amounted to more than 11 trillion and 927 billion dinars The increase of 13.6% of total revenues