Borrowing from the World Bank has negative effects on the economy of Iraq
Osama Chalabi, former deputy governor of the Central Bank of (time) borrowing from the World Bank has negative effects on the economy of Iraq
The interview was conducted by: Saad Al-Sayegh Chalabi said Osama – Deputy Governor of the Central Bank of Iraq until 2003 that monetary prejudice Balaanaat It represents the last gasp of the Iraqi financial situation , and that this should never happen.
And he added, in a short interview with Time in its international edition, that borrowing from the World Bank has conditions Humiliating and future effects, and pointed out that the currency auction has special conditions that have been discussed with The World Bank delegation.
In the text of the interview follows :
Iraq is suffering from severe financial crisis due decline global oil prices and inability to secure salaries for employees and retirees Is Central Bank maintains Bkhozan reserves of hard currency ( dollar and gold ) to secure salaries?
The current monetary crisis was expected even before the emergence of the Krone Virus crisis and what we are in now, and in fact it is The Central Bank of Iraq still maintains a deposit of cash reserves in US dollars, as is well known to me Competent circles and it ranges from sixty to sixty two billion US dollars. A large proportion of this figure is a legacy prior to the occupation. The monetary reserve of states has special sanctity with the nations and a guarantee of the economic and monetary situation of the country and the prestige of the state. Precaution is difficult and not desirable and it represents the last breath.
As for gold, the central banks usually reserve a percentage of their cash capabilities with gold and deposit it with Swiss banks Deposit interest but low rates. Before the occupation, the Central Bank of Iraq had types of gold balances that were kept in its fortified safes Al-Majdat, who sold the siege period, bought from the world market, and another went special. I do not have accurate figures on the amount of its current balances, as it is one of the central bank’s characteristics.
Returning to the monetary situation, there are alternative methods other than compromising the cash reserve, which is borrowing from the World Bank This option is one of the traditional methods, but it is the largest in terms of negotiating difficulty and its conditions will be insulting in the future Until the price of oil returns to nearly its price before the current crisis. However, the crisis is inevitably coming, according to the schedule of oil revenues for the coming months, according to what Mr. Issam presented Chalabi in his important tweets a few days ago, as the nation will face a difficult time.
Another important issue is happening now, where a new government will be formed and headed by a capable prime minister who knows how to recover Even if a percentage of the money stolen to pay for breath, the nation is now in danger and the danger includes everyone and will record history Here guys did.
The continuation of the currency auction in the central bank, despite the stoppage of oil revenues and the accompanying smuggling of currency It has a significant impact on the rise in the price of the dollar against the value of the Iraqi dinar.
Currency auction The International Monetary Fund previously dispatched a representative three or four years ago to discuss an issue with me Currency auction. I remember that these meetings took place in the halls of the Intercontinental Hotel in Amman, where I briefed them on a formula The work of the auction, which raised the excitement of everyone about the bad process, because the subject of the auction must be dealt with wisely and in style sober.
Recently been put for printing Iraq meet staff and salaries retired currency Is this true procedure So what has been done?
The idea of printing a currency is, I think, far and difficult because it will get a wave of higher prices for goods and services, as happened previously in the internal circulation and it is difficult to combine the two currencies , and we will go back to before twenty years ” original Swiss ” .
And that this proposal is not useful under the current circumstances and has major economic repercussions that Iraq suffered from in A lot of the time, and this happened during a period when the necessities for the action were necessary, as the country was saved from dire results. It also does not give any support to external trading.
As a result of the end, the Central Bank of Iraq and since the year two thousand and three bear full responsibility for the outcome of monetary policy . The talk is many and many, but the result is what we are today and God is kind to worshipers. Thank you.