Experts warn exploit the assets of the Central Bank as a cover for JD

Experts warn exploit the assets of the Central Bank as a cover for JD



02/16/2013 (23:00 pm)
 Baghdad / term

Warned parliamentarians and experts in regard financial consequences of the exploitation of part of the funds in the central bank in the project development and investment, describing it as "Red Line" as is cover for the local currency, while member suggested the Economic Committee in the House of Representatives Hussein Salman Mura'bi, invest part of the reserves located at the central bank for investment projects in the country. The Central Bank reserves of hard currency U.S. $ 67 billion, is the largest in the history of Iraq.

A member of the Finance Committee in the House of Representatives Ahmed electrodes in a statement to the extent of: "The reserve is located in the central bank may not extend the hand being the cover of the Iraqi dinar, pointing out that the exploitation of the investment projects is risky because they display a loss.

For his part, the financial expert Farouk Ramadan that the reserve at the central bank would enhance the prestige of the local currency for Iraq in the international exchange. Said Ramadan in an interview over: The reserve is located in the central bank may not be used, except when economic disasters experienced by the country, pointing out that these funds are the balance of international Iraq. He added that "in accordance with international regulations can not be exploited reserves in projects that may be vulnerable to profit and loss because it balances fixed, restricting by the International Monetary Fund as a strengthening currency. Meanwhile economist said as Abdul Hadi for over:" This Thread is covered legally because the current central bank law prohibits government borrowing from the balances held by the Central Bank as a cover for the currency.
"The government should move away from the funds in the central bank only if the central bank decided to participate in these projects.
He suggested a member of the Committee on the economy and investment MP / National Alliance / Hussain Salman Mura'bi, invest part of the foreign reserves in the Central Bank of the country's investment projects to increase the size of the country's financial balance.
Said Mura'bi Agency news: The foreign reserves of more than (68) billion dollars, it is the equivalent of balancing three countries, indicating that it will enable the central bank to address any defect both in monetary or economic policy in the country.

He added: spare the national economy of the seriousness of the impact of the global economic crisis for (10) years.
He continued: We must not remain such a large cash reserve frozen without investment, but is supposed to invest part of it in internal and external projects for the purpose of increasing the amount, noting if there is no investment of these funds, what interest to keep it?

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