Managing the money supply and stimulate the development
Managing the money supply and stimulate the development 14/3/2016 12:00 am
More than 77 percent of the exported Iraqi currency trading outside the banking system. This is confirmed by the relevant authorities, meaning that about 31 trillion of the total 40 trillion dinar dinar issued by the Central Bank are distributed between the Iraqi market, between the trading arena and caches the compactness.
And trading indicators in commercial centres and local markets generally do not look massive clear monetary bloc in the market, market is experiencing a recession following a series of variables that affected the earnings of the middle class by reducing monthly salaries and the high service fees and charges in conjunction with the Customs Tariff Act into force which helped somewhat at low relative to rates of spending on non-essential goods as well as the disruption of many construction projects and reconstruction by the large deficit Seen in the general budget as a result of lower oil prices, the likely prospects of hoarding a large proportion of the cash under the pillow and drawers inside houses by anxiety that prevails in the Iraqi Street due to political and economic confusion in the country.
Thus there is an urgent need in this block management program the cash involved in monetary and fiscal policies to stimulate the flow of this block compacta into local markets, the trading of such huge money supply in the domestic market would rebound in the markets and create exchanges contribute to overcome recession and spur development
It appears that the continuing confusion in the political and security situation as well as the media hype which market the concept of bankruptcy in the public Treasury as a synonym for disability, in addition to the weak banking system dominated by the bureaucracy in the Government sector and the desire for quick profit in the private sector invested mistrust among the public and among banks, contributed to the lack of a culture of saving financial institutions make the bulk of the money supply in the possession of the hoarding in Houses.
And if the fear the Central Bank from lifting interest rates caused by fear of the reality of the market recession, at a time when the Government returned on mixed companies or sectors contribution to housing and services for the creation or new cities or any other projects, as the Government is concerned with the whole transition toward economy
It is possible to stimulate the hoarding their money out with tools and other ideas by activating the Central Bank loan, for example, which still hang in the specialized banks for reasons no one knows, can employ these funds to lure funds stashed away by granting loans to establish joint stock company operating in the sectors of housing, agriculture and industry to be the capital of the loan value to encourage founders and magnanimities up to ten years to be public input through the launch of the securities of those companies with at least 20 times the value of the loan against import facilities equipment through the opening credits and ensure that the value of land facilities list, whereas extensibility in this study to include limited companies to ensure that the assets of these companies, banks and Windows, which operates under the mechanisms of participation and guarantee assets murabaha these banks on condition that the use of advertising and publicity activities in the housing sector and the feudalisms of the agricultural, industrial and tourism in addition to the importance of the exit of banks from their slumber and desist her leaning on the auction sell and activate promotional banking tools for creating credit activity commensurate with the size of Financial assets.
On the other hand, the fiscal and monetary policy to find a solution to the situation of lack of seriousness in the State banking sector to shoulder its responsibilities towards the State of stagnation and deflation in the country. It is important to review the undisclosed these banks, which some of them terminally debt collection box for different reasons, Chief among them the security problem, we propose here a change of administrations, branches that have the highest percentages of correctional and increase incentives for staff in debt collection, the emphasis on collection of debts granted from State banks covered by the support from the State Treasury on the budgets of the years 2012-2013-2015 by the importance of the follow-up to the debt in the framework of agricultural initiative that exceeded 3 trillion dinars. With the idea of issuing treasury bonds announced by the Government to finance the projects SOA funds stashed away in interest rates exceeding 10 percent in limbo, apparently!