CBI: Selling dollars to the banks intended to withdraw liquidity from the market
Dated: 08/15/2012 09:57:06 Wednesday
Baghdad (news) .. The Central Bank of Iraq, to sell dollars to the banks intended to withdraw liquidity from the market as is the case in which in the majority of world’s central banks.
A statement by the Bank received the Agency (news) a copy of it on Wednesday: The most markets where the price of an official and the price of a parallel, the World Bank seeks to reduce the difference between the two rates through the inspection teams, to comply with the instructions of the Central Bank, which sells the dollar to all government and private banks and branches of foreign banks and not to the banks of civil only.
He explained: that the policy followed by the Bank since 2004 and so far is one of the successful policies, as it led to a reduction in inflation from 50% to 5.8% and falling prices and the stability of the result of the tools that were in place, which was to invest the night and deposits for the duration (7, 14 and 30) days of the dinar, as well as investment and night deposits for the term (7 and / 30 and / 90) days of the dollar. He added that the bank canceled the tools mentioned except for deposits of order seven days of the Iraqi dinar only to encourage banks to grant credit for industrial projects, agricultural, residential, and pointed out that this monetary policy was welcomed by the IMF.