Skinner explains the reasons for the approval of the Council of Ministers on the committee studying the dinar exchange rate fluctuations
Haider Ali Jawad - 10/17/2012 - 11:34 AM |

Said government spokesman Ali al-Dabbagh reasons approval of the Council of Ministers at its forty-fifth regular Tuesday on the committee studying the fluctuating exchange rate of the dinar. said in a statement today, "The approval of the recommendations of the Commission study fluctuation Iraqi dinar exchange rate comes sake of the Iraqi government to deal with the repercussions fluctuating dinar exchange rate, which came as a result of the absence of regulation import process and ill benefit from buying the currency and not tighten the Iraqi Central Bank to monitor the activity of auctions currency and sell the dollar for the private sector and cash flows out of Iraq as well as the international sanctions imposed on Syria and Iran, especially procedures for Province central banks Syrian and Iranian, which has led to the devaluation of Ammelthma local and dramatically. ". "The Committee for Economic Affairs in the Council of Ministers had requested on September 12 last cabinet display recommendations of the Commission study fluctuation Iraqi dinar exchange rate on the Council of Ministers for approval came these recommendations After a series of meetings of the Committee during which discuss the matter thoroughly as the topic has already introduced at the fifteenth regular and held on 10 April 2012 and it issued directing the Cabinet formed a committee headed by Deputy Prime Minister for Economic Affairs and membership Deputy Prime Minister for Energy and Finance Ministers, oil and planning Trade and Industry and Minerals and the Secretary General of the Council of Ministers and the Governor of the Iraqi Central Bank and Chairman of the National Investment Advisor to the Prime Minister for Legal Affairs and Economic Advisor in the Office of the Prime Minister and Associate Secretary General of the Council of Ministers for Administrative and Financial Affairs and financial expert and economist and director general TBI This committee studying fluctuating dinar exchange rate Iraqi and higher prices of some food items and other goods with daily consumption. Dabbagh said, "The fluctuating exchange rate in the recent period has triggered controversy in political circles and economic what plays an important role in economic activities external and internal, whether commercial activities or investment where Baader Central Bank Iraqi adoption Activity auction of foreign currency as a means of controlling the exchange rate and routing destination sound monetary to adjust the levels of inflation, reaching sales of the bank in 2008 from foreign currency limits (26) billion dollars, which led to the low exchange rate of the Iraqi dinar against the U.S. dollar and the price Auction (1467) dinars, compared at market price (1475) dinars, and the rate of the exchange rate in 2009 up to (1170) dinars, compared at the market price prevailing (1182) JD has risen exchange rate recently in the market between (1270-1290) dinars to the dollar and this exceeded selling price dollar from the bank's (1189) dinars to the dollar, which led to the orientation section of the merchants and remittance companies and banking to trading and speculative currency for difference (100) pips. ". between Dabbagh "The recommendations may include coordination, consultation and exchange of information between the bank CBI and the Council of Ministers on fiscal and monetary policies in accordance with the Constitution with the Bank is examining methods currently in receipt of foreign currency to the domestic market and a greater role for banks and better organization of the process stages all interest other mechanisms possible to regulate the exchange rate so as to prevent the use of funds for purposes other than the declared and building management complete and integrated office-money laundering and combating the financing of terrorism (the Money Laundering) and the emphasis on the bill its own with interest in the development unit of money laundering at the bank and take suggestions Bank into consideration on the formation of the money laundering. ". pointed to "The recommendations have also included the formation of a committee The audit and review processes sell the currency for the purpose of locating bugs if any and the strengths and weaknesses and how to take advantage of the amounts sold and fits in with the quantity of goods and services within and propose actions to reduce leakage rates for non this purpose and this committee will be chaired by a representative of the Office of Financial Supervision and the membership of representatives of the Ministries of Interior and Finance and Trade and the Central Bank of Iraq and the General Secretariat of the Council of Ministers and the formation of another committee shall exchange information on the movement of currency sold by the CBI and the database configuration for use in the control of the currency movement. " Ali al-Dabbagh, "This Committee will be chaired by a representative of the Iraqi Central Bank and the membership of representatives the ministries of interior, finance and trade, will the CBI to submit a quarterly report on its supervision on the banking companies authorized transfer outside with an emphasis on the oversight role of the BSA in check transactions sell the currency to customers and goods entering result. " and "that the central bank will provide a study on the authorize government and private banks validity of the opening credits for the purposes of trade import coverage of the private sector to the Economic Affairs Committee. . " Al-Dabbagh, "The CBI will submit a report on the development of banks to do their part appropriate and consistent with the financial volume of the Iraqi economy with the necessity of regulating trade and followed up by the government agencies which will reflect the request of the foreign currency and the reference to the general situation, particularly the political and economic and investment and stability and that makes the outcome of Iraq a magnet for foreign currency and thus improves the Iraqi dinar exchange rate in a sustainable manner and will be urged the Iraqi Central Bank to examine its law and constitutional according to the data, which came after the issuance of the law in force towards enhancing its potential and development work. ".