Central Bank: window sell the currency and the way to ensure exchange stability
Central Bank: window sell the currency and the way to ensure the stability of the exchange rate and apply for loans electronically
Views 44 Date 30/08/2016 - 18:44
BAGHDAD / Economy News ...
Counting the Iraqi Central Bank, to sell foreign currency window "and a way to ensure stability," the dinar exchange rate, and as he emphasized "a greater role for" government to buy and sell the dollar to banks, the Central Bank has decided to limit to apply for loans, which he made on a website, declaring to stop the Ministry of Planning pay Contractors dues provinces temporarily.
The central bank said that, commenting to the chest of opinions about the work of selling foreign currency window of the Iraqi Central Bank wishes to state that, sell the currency window is a way to ensure the stability of the dinar exchange rate over the meeting of the Iraqi economy requirements through foreign currency provision to cover the imports of the private sector goods and services, in addition to the needs of citizens for the purposes of travel, medical treatment, and study outside Iraq, "stressing" the lack of any allocations in the budget since 2003 and so far for this purpose. "
He added the central bank, that "work on the development of its procedures in this regard by encouraging banks to adopt opening letters of credit mechanism for import rather than remittances style," noting that "the proportion of sales in a manner credits amounted to more than 70% of foreign currency sales."
He said the Iraqi Central Bank, that "the development of a fundamental criterion for the implementation of dollar selling operations to banks include the extent of its commitment to the rules to combat money laundering and financing of terrorism," referring to "the adoption of the preparation and application of standards for the electronic system for window sale and purchase of foreign currency (money orders), and a greater role for government banks for buying and selling the dollar and the development and verification sources of funds used for the purposes of buying the dollar from the sale of foreign currency window. "
The governor of the central bank on the Keywords announced on the third of March 2015 that the new guidelines set by the bank is that the auction is no longer a daily window for operations for the sale of currency auctions, "he said, adding that the new mechanisms developed to sell this currency, especially that of its functions to provide currency for foreign trade. with regard to the granting of loans of the Central Bank of Iraq has decided to limit to apply for loans through a website launched a special, while preventing direct provision through government and private banks.
The document, to the central bank drew approved by the government and private banks put Website (https://tamwil.iq) at the disposal of wishing to apply for the central bank initiative loans and $ 6 trillion dinars allocated to large, medium and small enterprises through the introduction of the domestic banks and banking sector (agricultural, real estate, industrial) and housing fund. "
The document stated that "the central bank confirmed not to accept any submission directly through those banks and rely on the website of the provision exclusively, which shows all the details and stages of surrender".
The cell, the governmental crisis, headed by Prime Minister Haider al-Abadi acknowledged, in August 2015, the lending program, which is funded by the Iraqi Central Bank amounting to five trillion dinars, distributed by 33% to agricultural and industrial banks and 17% for each of the Land Bank and housing fund, as well as financing bank Central banks own an amount trillion dinars for the implementation of small and medium enterprises.
The Central Bank of Iraq, announced (23 June 2015), the launch of the loan amounts medium and small enterprises by the Iraqi private banks beginning in July 2015, while between the loan amounts of up to 50 million dinars, he stressed that banks benefit will not exceed 5.5 percent.
It revealed the central bank, the Ministry of Planning and told him to stop payments to contractors provinces temporarily.
He said the central bank, said that "the Ministry of Planning told the bank's board and the provinces to stop the financial dues bonds for contractors Exchange temporarily."
The bank said that "to complete all of the specific requirements of national bonds granted to the contractors and continues to be distributed on behalf of the Ministry of Finance."
In turn, economist Mohammed Abdul Latif Al-Ani, said that the control of the foreign currency market need for steps are realistic and practical on the ground without resorting to temporary decisions can not be applied in light of rampant corruption in the country's financial institutions. "
He added that "rationing sell the dollar and reduce the quantities sold during the process of the daily auction, relatively good steps but does not lead to tangible results to make a real balance in the domestic market, which based its work on a dollar coin."
Ani said that "the delay in the granting of loans to citizens led operations in the domestic market and the private sector to complete paralysis in addition to the lack of citizen trust in the state as a result of the repeated declarations by firing loans without positive results, remember."
He said the "most important obstacles that the government should get rid of them to launch the lending process are summarized in the abbreviation Alrutinh actions that permeate the process of granting loans in addition to the fight against financial and administrative corruption."
The Council of Ministers, approved in the (14 June 2016), the launch of dues contractors by 50% of the total dues down first, and to report the implementation of the first chapter of the general budget for 2016 to the House of Representatives.
The Council of Ministers decided (19 April 2016) the formation of a committee headed by Minister of Planning and the membership of the governor of the Iraqi Central Bank and economic advisor to the Prime Minister and Financial Advisor to the Prime Minister and the Undersecretary of the Ministry of Finance, Undersecretary of Technical Planning, holds the structure and controls the completion of the distribution of Contractors benefits the process of setting through government bonds, and submit its recommendations to the Prime Minister for approval within a week.
It is said that the central bank said in September 2015 that the granting of small, medium and large enterprise loans will develop the national economy and assured banks that they will bring back citizens' confidence and trust, and while calling an expert to facilitate the task of borrowers through the mechanisms of "modern and flexible" far from "the quota system and the mafias of corruption", criticized Last divided being "did not take into account" the country's needs and priorities of citizens.