Alsumaria News published details of "corruption volatile instruments" 5/19
Alsumaria News published details of "corruption volatile instruments"
Thursday , 19 May 2016 14:56
Alsumaria News / Baghdad
Serious mafias financial emerged after 2004 to obtain funds millions of dollars from the central bank auction through what is known instruments volatile, these mafias consisted of people do not have the money to get the "illegal" dividends may only be obtained only for a few hours with the complicity of banks to enter the currency auction via the central illusion of the existence of commercial imports.
Ft banking system in Iraq behind the emergence of these mafias
He says a member of the Finance Committee in the House of Representatives Masood Haider in an interview with Alsumaria News that "there are some people, they are in collusion with some of the banks have deposited their instruments with these banks, which does not have any balance in order to participate in the auction currency, to buy the dollar and sell it in a few hours, taking advantage of a difference price between the central bank and the market in order to profit millions of dollars, "noting that" after the central bank within 48 hours, notify the bank to convert the instrument amounts to is that person rerun before this period without being detected as if the legal process. "
Haider adds that "the issue of volatile instruments exist only in Iraq because the banking system in which Old," pointing out that "there are officials in the government and private banks were complicit with these people to get a quick and illegal profit through currency auction."
Haider notes that "a lot of people took advantage of the gap in the banking system in Iraq and won millions and have become wealthy," he said. "These people themselves are involved auctions and profits, and therefore, what they get out of the money is haram."
Haider and stresses that the "parliament tighten more on bank auction and the central bank and fill the door to corrupt banks," pointing out that "the Central Bank was able to fill this gap two years ago."
Flyer instruments affect the stability of the currency
Confirms former economist at the central bank on behalf of Abd al-Hadi in an interview with Alsumaria News that "the daily speculation carried out by traders across volatile instruments affect the stability of the currency rate and the size of the cash reserves of foreign currency, because the bank will cover the needs of Iraq from foreign trade, but these speculators are using these reserves for the purpose of profit. "
Shows Abdul Hadi said "flying instruments often used by merchants or banks to buy foreign currency through deposit amounts for a limited period in the account and then is pulled and sometimes used a day to get a percentage of the purchase of foreign currency through the central bank auction, and therefore, this process does not indicate the efficiency Finance for the customer, but they get foreign currency for profit daily and are usually speculators Estphadon of the price difference between the bank and the market, "pointing out that" sometimes Agaan to tricks and deception and fraud in their documents by changing their names or the mother names in order to engage in a central bank auction ".
He adds Abdul Hadi that "the salvation of the volatile instruments is to rely on letters of credit for foreign trade and therefore the bank does not give dollar traders, but pays the value of the goods through the account opened on the bank, and therefore who has a trade it the bank pay him through this documentary credit."
Abdul Hadi and confirms that "the central bank Environ himself from the corruption of these operations that get by some weak people, but some officials are pressing for earning money through it."
Electronic clearing is the solution
Electronic clearing is the best solution to eliminate the phenomenon of volatile instruments, where he says economic expert on behalf of Jamil Antoine in an interview with Alsumaria News that "the best solution to eliminate volatile instruments is through the electronic clearing by the central bank can claim the funds own instrument within seconds and minutes."
And refers Antoine that "volatile instruments are a type of circumvention of the law that gives the instrument does not possess the balance of which are often in collusion between the person and the bank to postpone the clearing process of the central bank for the purpose of buying the dollar and take advantage of it to sell it again for the purpose of profit."
Attention Antoine "This operation is a kind of fraud the law and be held accountable under the law as it previously delivered such a process instruments do not have a balance punishable by imprisonment for a term of three years and fined person is three times the amount, but the breakdown of the system and the laws of the country led to it and reflect Iraqi economic reality and indiscriminate and imbalance that exists among the banks, "noting that" administrative routine political and partisan interference and corruption led to prevent the application of sanctions against violators. "
This will Alsumaria News publish the names of those involved operations on the corrupt volatile instruments soon.