Parliamentary Finance: will be called the central bank governor to discuss the issue of monetary policy
01/04/2012 13:14:39

BAGHDAD (Iba) / report / - A member of the Finance Committee, the parliamentary Faleh valid Djiashi that monetary policy is linked to the Central Bank and the Central Bank is linked to the legislative power with the presence of the paragraphs related to the executive branch, praising the role of the central bank at the international, local, file management, debt and other .

He Djiashi told the independent press (Iba) What distinguishes the current period is the lack of a clear vision for the management of monetary policy, financial, stressing that this week will call the governor of the Central Bank of the Finance Committee to discuss monetary policy and some of the interventions and interactions in the powers between the executive bodies .

With regard to the impact of some decisions on the private sector, said Djiashi we know the other details relating to these decisions while the call to determine if it was conducted in conformity with the laws or resolutions of the mood or the payment and the impact of competitors, but I left out some of the effects .

As requested the General Secretariat of the Council of Ministers Governor of Central Bank of Iraq in an official letter, not to adopt any monetary policies without his consent, and according to the provisions of the Constitution of Iraq, said a member of the Knesset Finance that his committee in connection with hosting the central bank governor to inquire of it on some variables, the last of the depreciation of the dinar against the the dollar and the decision to impose a trusteeship on the private banks.

According to the text book, published by the General Secretariat of the Council of Ministers No. S / 01/02/26 at 15/3, which is directed to the Central Bank of Iraq on the basis of what stated in Article (110 / III) of Part IV of the Constitution of the Republic of Iraq which indicated that terms of reference of the federal authorities exclusive formulating monetary policy and the establishment of the Central Bank and its management, please provide the monetary policy of the Central Bank to the Council of Ministers for perusal and approval, the failure to adopt policies without approval by the Cabinet in the future.

The Central Bank of Iraq who is responsible for formulating and implementing monetary policy in Iraq and on the management of the money supply and issued, and supervising the work of government and private banks and follow the movement of capital and the proceeds of sale of oil from the dollar in the official auction to finance the government budget.

The Central Bank issued a recent decision to impose custody of one of the largest private banks, a Warka Bank Ahly, triggering a series of criticisms between the banking community and the parliament, economists, given that such decisions would weaken the power of the private sector and send messages of intimidation of foreign investors who wish to work in Iraq.

An official source in the Union of Iraqi banks, and who preferred anonymity between he does not doubt that the central bank and monetary policy adhering to them since 2003 and now, with no development and the development and keep pace with market developments and performance, added a kind of inertia on the performance of the latter, and this allowed the authorities of the other to intervene in this policy, it is right to do so because it varies in its place.

And on the central bank's decision last to impose trusteeship on the Warka Bank and then returned to show that Warka is one of the banks strong and has assets over liabilities and is capable of recover, the source said that this position the last positive but came late and he can cure it without the imposition of trusteeship n because the central bank is a bank of banks and banking, it manages not to abandon the banks that are supervised and monitored its performance because the monthly statement discloses everything and on a monthly basis, which is familiar with the full details.

With regard to other developments in trusteeship source confirmed that this issue has reached into the solution, and the central bank seemed to be convinced to resolve issue through action is upon himself Comerkza, and focus on providing financial support through the mechanism of lending, is now facing customers the bank and it solve problem, and provide financial support not surprising because they do not intersect and the mechanism of the laws or to influence the other hand, being a loan is refundable.

The assets and the Warka Bank than the 700 billion dinars, and what is required to EN 450 billion of its assets and liabilities of this double positive for the bank and the evidence of his power.

Deputy Governor of the Central Bank of the appearance of Mohammed, said in other remarks that Warka Bank is able to recover again, especially that he has guarantees of real estate Akiemha up to (250) billion dinars, and multiple branches in the country, pointing out that the trusteeship was to keep the funds of depositors and the stability financial in the country.

Saleh said on Saturday: The Central Bank has commissioned the auditor, and to prepare a special report from Warka Bank to show what the bank's ability to resume activities by granting financial assistance loan.

The central bank announced on the status of the Warka Bank under the trusteeship system after the failure of his talks with Standard Chartered Bank of England, which began in April 2011 to buy a stake in Warka.