Central: sell bonds worth 7 trillion dinars .. and we have allowed banks to use 50% of their reserves


Baghdad / Ibrahim Ibrahim, long-Presse
The Governor of the Central Bank on the Keywords, on Monday, the launch of the strategy the years 2016 - 2020, as revealed allow the bank to Iraqi banks using 50% of the reserves to be used in the purchase of "remittances treasury," economists called on the government to cancel the auction of the currency drained state resources Finance.
The governor of the Central Bank and the Agency on the Keywords, during a speech on the sidelines of a ceremony launching the strategy of the Central Bank for the years 2016-2020 was held at the Central Bank building in central Baghdad, and attended (range Press), "The launch of the strategy the central bank from 2016 until 2020, has according to a clear vision and guaranteed within the direct efforts and global visions, "noting that" the strategy to adopt and follow-up monitoring real financial situation of Iraq. "
Keywords and added, "The central bank's first interest to maintain the financial situation and sustainable development in Iraq," pointing out that "the Bank has granted a number of licenses for banking offices and banks during 2016, according to the central bank system."
He revealed the central bank governor, for "the intention of the bank to sell bonds to the public $ 7 trillion dinars during this year," asserting that "the circumstance that has occurred in Iraq is carried at oil prices and terrorist operations and import random, prevented the growth of economic sectors in Iraq, in spite of the provision of central bank the strength of the Iraqi dinar against the dollar. "
He explained the Keywords, that "the Bank focused after 2003 to achieve price stability and reduce inflation, and achieved successes to curb inflation from 40-2%, in addition to banks control to maintain the financial value and the fight against money laundering and the extent of its commitment to the instructions of the bank."
Keywords and continued, "The bank took the initiative to establish a trust office and the establishment of the Financial Stability Unit and Finance to promote sustainable development, which was translated by approving five trillion dinars to banks and one trillion for small businesses."
Keywords and added that "the central bank is keen to support the Iraqi banking sector, where the banks were allowed to use 50% of the mandatory reserves in the Central to be used for the purchase of treasury remittances which reached values ​​of more than 4 trillion dinars."
He pointed out that "the Central also issued other decisions, including the authorization of private banks, using 50% of their funds in the central bank to buy Treasury remittances by four trillion dinars, and the bank will issue treasury remittances worth 5 trillion dinars and put it to the public."
Keywords and pointed out that "the central bank action helped the government in the financial crisis during the current year, and achieved stability in the financial situation of the state, and without it the government would have found great difficulties during the current year budget in 2016".
For his part, economist Mustafa Mohamed Habib said in an interview for the "long", "The steps the central bank is very slow to find quick solutions to the liquidity crisis Altkadih which ones suffering of the Iraqi state."
He said. "Do not take advantage of the large fiscal inventories among government banks over the past few years, shares in money stored in fixed deposits without investing in major economic projects."
He explained that the beloved "continuation of the daily sale of foreign currency auction represents a drain on financial resources from the sale of crude oil, causing the loss of billions of dollars as a result of the insistence of the Central Bank on the application of the direct sales force policy."
He said the "first step in financial reform, which the central bank must be activated summed up in foreign currencies directly pricing and work to prevent the circulation dramatically and daily by individuals, companies and replace them with trading banking by opening accounts for the funds have transferred under the government's view on according to strict laws." .
"The lack of seriousness of the financial and banking administration in the treatment of previous failures, the central bank put in the face of repeated insistence on the application of economic policies that the charges have exacerbated the financial crisis."
The Iraqi Central Bank announced on Monday (February 1, 2016), that the government is able to overcome their expenditures for the current year, adding that part of the coverage of these expenditures will be through the issuance of national bonds.