CBI sell bonds worth 7 trillion dinars. Allowed banks to use 50% of their reserves
Central: sell bonds worth 7 trillion dinars. And we have allowed banks to use 50% of their reserves 2016/06/16 (00:23 pm) - hits: 317 - number (3575)
Central Bank Governor Ali al-allaq, on Monday, the launch of the strategy of the years 2016-2020, with revealing the Bank allow Iraqi banks to use 50% of their reserves for use in buying Treasury remittances, the Government economists called to cancel an auction sale of State financial resources drained.
The Central Bank Governor said the agency relationship, during a speech on the sidelines of a ceremony launching a Central Bank strategy for the years 2016-2020, held in the Central Bank building in downtown Baghdad, attended by (range), "strategy of the Central Bank from 2016 to 2020, according to a clear vision and guaranteed within direct efforts and global visions", stating that "strategic embrace monitor real financial situation."
The relationship, he said, "the Central Bank paid attention to preserving the financial situation and sustainable development in Iraq," Noting that "the Bank grants a number of holidays for exchange offices and banks through 2016, according to the Central Bank system.
Central Bank Governor revealed,"the Bank's intention to sell public bonds worth 7 trillion dinars this year", adding that "the circumstance in Iraq as falling oil prices and terrorist operations and import, prevented the growth of economic sectors in Iraq, despite the Central Bank saving power of the Iraqi dinar against the dollar.
Allaq said,"the World Bank after 2003 focused on price stability and reducing inflation, and achieved successes in curbing inflation of 40-2%, in addition to banks to maintain financial value and anti-money laundering and compliance with instructions of the Bank".
He continued the relationship, the "World Bank for the establishment of the Office of the credit and the establishment of a financial stability and financial affairs to promote sustainable development, which is translated through the adoption of 5 trillion dinars to banks and SME one trillion".
The relationship, he said, "the Central Bank is keen to the Iraqi banking sector, allowing banks to use 50% of the mandatory reserves located in Central for use in buying Treasury remittances which reached values of more than 4 trillion dinars".
The Central also issued other decisions, including authorizing private banks using 50% of their funds at the Central Bank to buy safe transfers by 4 trillion dinars, and the Bank will issue Treasury remittances worth 5 trillion dinars for the public. "
He noted the relationship that"Central Bank assisted the Government in the financial crisis during the current year, and achieved stability in the financial situation of the State, and without it for the Government found great difficulties during the balance of the year 2016.
The Economist said Mustafa Mohamed Habib said in an interview for "the range","the Central Bank very slow steps toward quick solutions liquidity crunch altkodih afflicting Iraqi State."
"Not taking advantage of the large bank Treasury financial Government over the past years contributed to store money fixed deposits without investment in major economic projects".
Habib said that "continuation of auction sale daily foreign currency represents a drain of financial resources derived from the sale of crude oil, causing the loss of billions of dollars as a result of the Central Bank's insistence on the policy of direct selling window".
The "first steps for financial reform, which the Central Bank must be activated in the pricing of foreign exchange directly and work to prevent circulation and daily by individuals, companies and replaced bank trading by opening accounts to transfer funds under the Government's strict laws.
"No serious financial and banking management in addressing past failures, putting the Central Bank in the face of recurring charges for his insistence on the application of economic policies that contributed to the financial crisis."
The CBI was announced, Monday (1 February 2016), that the Government is able to bypass this year's expenditures, saying that part of these expenses will be covered by issuing bonds.