[ltr]Experts called on the government to take the advice of the Federal Reserve and are demanding monitors currency auction [/ltr]
BAGHDAD / Ibrahim Ibrahim
[ltr] He called on the Iraqi government economists to take the advice of the US Federal Bank to curb the smuggling of currency operations and control the flow of money, demanding to find alternatives to currency auction without affecting the stability of domestic prices to the market.
The economist said Maytham coffee in an interview (range), that "the US Federal Bank's position on the Central Bank, is the practice of two main functions, the first is the support and assistance and to express an opinion and advice, the second is an observation in terms of financial and drag-and-flow processes to the government, and also control and money coming into Iraq Fund as a result of the sale of oil. "
"The Fed is watching the money that could be smuggling operations occur in the Iraqi Central Bank usually offers advice to the Iraqi side the need to address the exchange rate towards liberalization and subjected to the forces of supply and demand than in keep it under the control of the Bank and determined by the currency auction." He said that "at the same time advised to cash in general and economic stability in order to prevent the economy suffered significant shocks, as advised to maintain foreign reserves and not depleted."
He continued, "The currency auction and the proposed suspension by the central bank, the bank could provide on the move, because of their effect on the breach of economic stability and the fear of rising dollar exchange rate and the decline of the dinar value, especially with the inability of the economy to generate production and its dependence on import, and the existence of a group dealers and traders will speculate operations that could lead to a sharp rise in the dollar exchange rate. "
He noted that "the central bank looking for alternative solutions to the auction currency, so as to ensure the achievement of the equation is not easy to include the preservation of foreign reserves and prevent drained quickly, with the continuation of the monetary and economic stability, the equation is far from easy, and that with such a situation in which the return economy the exchange rate is supported by the bank over the long years. "
Allowal Street Journal revealed that the Federal Central Bank and the US Treasury cut off the flow of American cash to the Iraqi Central Bank account this summer, because of fears of Iranian money in banks or in the hands of Daash. To resume transfers only after the approval of Iraqi officials to impose strict controls on the dollar coin distribution. For his part, economist Mustafa Mohamed Habib said in an interview (range), "The way the Central Bank's work in recent years has raised a lot of questions about the amount of money smuggled out of the country by the daily currency auction."
"The doubts and the information provided to the US Federal Bank, led to the direct warnings to the administration to the central bank on the effectiveness of local laws towards big waste of foreign currency."
The beloved "said the Iraqi economy is not in isolation from the world economic movement, and there is a global movement for the dollar supervisory institutions in different directions can determine the direction of money and different ways of being washed."
He said the "work of the US federal bank regulatory and only has the ability to provide advice to some of the international institutions for the development of internal work, including the Central Bank of Iraq."
He pointed to "the need to take the advice provided by the government and build on the work to rid the bank of the phenomena of rampant corruption within the local financial market and a private auction sale of foreign currencies, which drives the local market according to data to be mostly different from the laws and regulations currently in."
The Central Bank of Iraq denied, earlier reports that indicated to stop pumping money to him from his accounts in US Federal.
The bank said in a statement received "long" a copy of "the news reported by some newspapers and news sites about pumping money from his accounts to him by the US Federal unfounded stop."
The bank said that "the US Federal continuously conducting all events of accounts being the only one responsible for it."