Central Bank of civil and banking relationship paint economy

5/28/2016 0:00

Abbas Younis Anzi

released Iraqi Central Bank Law by matching US and European laws which made ​​the bank fully independent institution and it entrusted the responsibility of formulating monetary policy and determine the local currency 's exchange rate. But the basis of the crisis in the economy , including houses and money, is Billabih vision and confusion in the definition of the nature of the economy and its mechanisms, does our economic system belongs to the school of free economy , as stipulated in the Constitution? System or believe in state intervention at all? Or a socialist economic system of the former Soviet - style? .. But it seems the economic landscape selective beyond the border.

However central it has managed over the years to maintain a quasi - exchange rate fixed for the Iraqi Dinar as a result provide significant financial returns resulting from oil exports improved and the steady increase of the price of a barrel of oil, but there were no joint studies fruitful with the state institutions involved in economic affairs since leaving the higher exchange rate of the Iraqi dinar price of a negative impact on sectors of the real economy and strongly contributed to enhancing the content of the rentier economy and the overall adoption and awful on the proceeds of

there is a contradiction serious between the turbulent economic policy after 2003 and between monetary policy adopted by the Central Bank and the nature of the relations that linked the Central civil banks, which was established under law No. 94 issued in 2004, receded those relationships actually limited to a single subject , a currency auction has become the subject is al - Faisal in the central bank 's relationship banks

in the explanation of this fact has reflected the nature of the rentier economy , which is built by the state with all its institutions on the work of the majority of private banks and now are other works unilateral actively represent a maximum of auction by building currency held by central and dispense with the rest of the banking activities of known or employ them for his service, and certainly can not blame entirely on departments of private banks as they exist under conditions very bad work at all levels every activity of any size remains fraught with serious risks as a result of social decline.

The financial market liberated from the restrictions entirely rely on the laws of the market, particularly the subject of supply and demand and consumption is a measure of engine macro - economic operation and these laws are that allow domestic banks to achieve double the profit as a result of handling the goods, and this is present in all world markets , free and not limited on Iraq.

the adoption of Iraq entirely on the import of all he needs makes consumption index at its highest this leads inevitably to a significant rise in the banks ' profits as a result of circulation necessary to process import financial commodities, where we find that the fundamental obstacle that prevents traders from dealing transparent and publicly is the issues of customs and taxes, and certainly there is a big contradiction between the fact that the country 's economy Rieia where the oil resources of the whole go to state and between the presence of tax rates and high customs duties, financing of the entire activities of the state depends on oil revenues and not on the tax and customs, it is fair and necessary to reduce the tax and customs to zero limits to narrow into the possible money laundering to the least we can even prevent it, where traders have in front by a roomy and safe to announce their activities without resorting to methods of fraud and evasion on the other hand will fill a big door for corruption in more than one facility, or traders are forced to pay tax and customs in advance , making them indispensable in the manipulation and game hide as happened imposing ratio known 8 percent.