Financial: unprepared to exercise its role of currency auction

2016/06/16 10:13

Baghdad/Obelisk said the CBI, on Tuesday, he was responsible for conducting the auction currency among the Ministry of finance not to exercise this role.

The Bank Governor said the relationship in an interview with local media, followed "the Obelisk", "the Central Bank is responsible for conducting the auction currency under the law which it considers responsible for the stability of the exchange rate", stating that "in theory possible that the Finance Ministry is conducting an auction process but in practice not possible."

The relationship, he said, "the Finance Ministry is not concerned with the achievement of the objectives of monetary policy as the stability of Exchange and are interested in obtaining the largest possible amount of dinar sold for dollars without paying attention to the overall stability of price or exchange rate stability", adding that "this type of risk and Finance Ministry could not afford".

He continued, "the Finance Ministry historically unfamiliar with such a process so that a balance between sales of the dollar and the stability of the exchange rate," the Central Bank has the mechanisms and tools, and operation and his ability to dominate the process. "

The CBI was founded as an independent bank by law issued on 6th of March 2004, as an independent body, is responsible for maintaining price stability, monetary policy implementation, including exchange rate policies and daily meetings are for buying and selling currencies.