Central Bank Governor: Near give Iraq $ 15 billion over two years 5-11-16
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    Central Bank Governor: Near give Iraq $ 15 billion over two years 5-11-16

    Central Bank Governor: Near give Iraq $ 15 billion over two years

    5/11/2016 0:00

    Confirmed for the morning {} that the financial reserve reassuring international recognition
    Baghdad , Tariq al - Araji
    The central bank revealed near granted Iraq $ 15 billion paid over two years from the International Monetary Fund, the seven industrialized nations and the World Bank to help Iraq to overcome the financial crisis. And as he emphasized that the bank reserves of hard currency reassuring recognition of international organizations, he stressed not to raise the price of the dollar against the dinar because it would adversely affect the low-income people. The governor of the central bank on the Keywords in the interview with the «morning» dialogue: that Iraq is facing two major challenges in the economic and financial system and the two border crossings, customs, and the sale of foreign currency to the associated funds.

    The following is the text of the interview

    What is your appreciation of the currency market selling daily?

    - The subject of selling the currency requires a lot of clarification, especially as the sales process itself is not a negative exercise , a process carried out by the markets , and central banks in the world in order to maintain the stability of the general price through the stabilization of the exchange rate and inflation targeting , and this is provided for in the Central Bank Law Ban sells foreign currency and as reported by providing simple unconditional sales in the sense should shoot and selling process launched in line with the market economy , according to the Constitution and to meet the market need both for imports or for other purposes legitimate transfers, as well as Iraq in front of the international Monetary Fund 's commitment to the agreement signed in 2008 that states do not place restrictions before the sale of foreign currency process any sales launch process without restrictions to achieve control over the exchange rate and control of speculative dollar operation and when to meet whatever its size when the area does not remain to exploitation or monopoly demand or speculative dollar with the necessity of having effective control over the safety of those operations.

    Currency market

    * Who controls on the sale of currency and exchange rate?

    - The dollar source in Iraq 's oil, meaning that the source of the general budget revenues to more than 90 percent is from the oil dollar and expenditures are Denar including accounted for 80 percent or more , so the Ministry of Finance the process of selling the dollar to the market to get the dinar Central Bank and the intermediary in the process , the dollar is transferred to dinars by selling it in the market and the granting of the dinar to the Ministry of Finance any that recent theory can is that in the process of selling the dollar directly to the market to feed its budget but because of the competence of the central bank 's monetary policy and control over the exchange rate is the body that are more control and jurisdiction over the subject.

    Currency auction

    * There are those who demand to cancel the auction of the currency, what do you think?

    - Some forms that why there is an auction at the Central Bank of foreign currency in spite of the absence of such thing as an auction and the auction was in 2004 and entered Iraq as part of a fixed exchange rate set by the central bank rate and if the bank deliberately to the sales increase in the exchange rate means reduced purchasing power of citizens because Iraq importing country , even if an exporter at that devaluation will help increase exports , while in the case of Iraq when the lower value of the dinar and you are importer will be negatively reflected in the lives of citizens with limited income , therefore those who claim the central bank to reduce the value of the dinar we have told them Can you in parliament or The government Tkhvadwa staff salaries even though it was five or ten percent ones find difficult to do, and it how you want from the central bank to cut the value of real salaries by up to 30 percent in order to be rewarding in the sense that inflation will reach 50 percent , the sense of targeting low - income class and secondly the export of oil now does not come with more than a billion and a quarter Alumblyaraly and a half billion a month , and even if it has been reduced dinar was awarded the Ministry of Finance the largest amount versus the dollar amount will not create a big difference because the little amount , while that hit the purchasing power of citizens Valmrdod happen would be simple to the Ministry of Finance.

    Address the imbalance

    Strengthen oversight

    And Osaf Products: Also , the bank in the event of his failure to sell the dollar will reach more than 5000 dinars scarcity of the dollar in the market, and here fear the sale is not a case of selling because he is the right of the merchant and the citizen who wishes to switch on according to the Constitution and the law , that this his property has the right to behave turning it from one currency to another , but there must be control over the money that bought the dollar and turn to outside sources is the escape of money derived from corruption Aogeraim or money laundering or terrorist financing or other and this was the fundamental weaknesses and requirements and the rules of the fight against money laundering in all the world points escalated over the past years and very large risks, so since I've been secretary general of the Council of Ministers asked for activating the role of anti - money laundering in the Central Bank office but did not do , and now has been activated along with an emphasis on bank's compliance with anti - money laundering and the application of the principle of know your customer applied by all banks in the world must know his client where you have the money and the need to make sure is realized that the money that was legitimate and has direct this project, but needs time to apply it to the side to follow a lot of procedures and rules for banks to work and commitment through precise control and emphasis on this Thread dramatically , but now has become a requirement basis in the dollar sale of any bank or company is to make sure of the extent of his commitment to anti - money laundering rules.

    The reality of the economy

    * The extent of coordination between the central bank and the relevant institutions to improve Iraq 's economic reality?

    - Adjust the border crossing points and the application of customs duties properly does not make the bank thinks reducing the value of the dinar as an option to increase the funding of the budget, but the option would be the proceeds from the tariffs and this is where the advantages of more than a devaluation, because the tariffs sorted by luxury and necessities of goods , therefore the citizen when consumed merchandise normal and essential will not be harmed and tariffs also would protect domestic production and indirectly will provide foreign currency instead of going abroad to import goods will be the goods at home and this will help the productive base of the development in the country to run the citizens and creates incomes real is dependent on oil revenue , and there are other advantages in ports in quality, health, environment control and that we pay the price dramatically.

    Currency Exchange Target bank

    * Why it is aimed at the central bank by some politicians and the media?

    - Targeting central bank in part a lack of understanding and partly because of the steadfast and proven institutions for financial and economic situation and the World Bank last year , so far supportive of the liquidity of cash through the purchase of treasury transfers but not to Iraq has seen a collapse in the financial situation.
    The economic situation of the country experiencing fear and the central bank is part of the system, but by working with existing institutions in the United States and international organizations as a fund cash and the World Bank do not point to a fear of the collapse of the central bank and the IMF still believes that the central bank plays an important role in maintaining the exchange rate stability and to maintain reserves and the latest report released a month from the international Monetary Fund before confirmed that the reserve is located in the central bank more than the Fund 's expectations so the IMF and the World Bank do not have concerns about the bank and believe that the role played by helped to stabilize the financial situation and has had a the foundation role in stabilizing the financial situation and not to the government is not able to cover expenses and even salaries.

    International Support

    * What is the amount of support provided by the specialized international organizations for Iraq?

    - We got to the final stages to get the support from the International Monetary Fund and World Bank industrialized nations seven of the next two years up to $ 15 billion, the central bank and the Ministry of Finance and play the foundation role in holding talks and arrangements for this support and intervention under different titles, some of which facilities and loans and grants to override the financial crisis and this is right for Iraq because it pays annual subscription since the founding of these organizations and IMF conditions correspond to the conditions and terms of Iraq reformist because Iraq wanted to raise revenue and reduce consumer expenditure and wants to improve the standard of living , and this corresponds with the Fund wants among the conditions , but affect all issues social nature or the health, educational and unwound considered a breach.
    The big challenge in front of the bank is to maintain the value of the dinar in spite of lower oil prices and the central bank has stood in defense of the exchange rate and the purchasing power and maintain a reasonable level of foreign currency reserves price, we are fighting a major challenge and are making an extraordinary effort for the sake of it, in the past years was the dollar derived from the export of oil in Iraq , up to 8 or $ 9 billion a month, and has now fallen dramatically , putting a big challenge in front of the central bank with the continuation of government spending high, that the most dangerous thing that the central bank is facing when it issued the budget deficit and the means do not cover them by the Ministry of Finance dinars Vtguetrd through treasury transfers means that the dinar becomes a demand for the dollar has no dollars interview.

    * Wayne arrived the project to delete the zeros?

    - The project to delete the zeros still exists in the Central Bank, but can not do this job unless stability is achieved in the country, organizational stability and administrative and financial , to ensure that breaches or problems in the implementation of the project.


    Read More :http://www.dinarupdates.com/showthre...-10-2016/page3
    Last edited by rcookie; 05-13-2016 at 06:47 PM.

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