Economist: increase the number of banking companies may constitute a burden

Economist: increase the number of banking companies may constitute a burden

June 11, 2013 10:51




Said academic in the Iraqi Institute for Economic Reform, Dr. Ahmed al-Husseini's call the Central Bank to establish companies to mediate in the sale and purchase of foreign currency represents the healthy state of the economy when there is a suitable ground to them.
central bank had been called in earlier to promote requests for establishment of companies to mediate in the buying and selling currencies foreign to be precedence to those who carried them to deposit the amount of capital at the Directorate General of accounts in the Central Bank.
wondered Husseini told (morning): that under this call you will be followed by the Central Bank of flexible policies towards these companies or bothered her on the subject of currency auction and limited ports and strict control it? He wondered about the usefulness of open field in front of registration banking companies and display the hard currency is limited in the auction, which is managed by the central bank in the status quo., And pointed out that the large number of companies competent in brokering the sale of the currency in light of monetary policy in Iraq may cause a burden on monetary variables other for example, may cause burden on banks in general by calculating the interest rate and draws customers for banks.
should be said that these companies are well-known and distinguished whether local or foreign Is it solid and companies with a trade name known in the world. Stressing that all these things must be taken into consideration but if companies were unusual and unknown, it will be a burden. Pointing out that prepared the large increase of the proportion of demand while the supply is limited, causing a gap request because the money supply today is managed by the Central Bank is managed and therefore The monetary policy of Iraq did not unleash the market to take its course, because the amount of money supply controlled by the central bank and demand unspecified and open because of the increased registration banking companies which affects the stability of the currency through the creation of a gap request for viewing a limited currency causing an economic problem for the country .
description of the other side financial expert Samir النصيري, the, rising U.S. dollar crisis in Iraq as 'temporary' and will be remedied soon. He said النصيري in a press statement that the crisis caused by the high exchange rate of the dollar against the dinar is the crisis of a temporary, evidence that what was announced by the Central Bank of the reserves rose to $ 74 billion, noting that this reserve represents a cover important for the dollar.
attributed النصيري reasons for the high dollar recently to speculators dollar in the Iraqi market, and this temporary situation can be controlled, stressing that Iraq over the situation very difficult concerning the rise and fall of the exchange rate of the dinar and the dollar, however, saying that monetary policy if they deal with the mechanisms of sound and correct can control the financial market and this are not taken, but in cooperation with banks own by consulting with them on economic policy cash that are virtually non-existent with the present.
continued: is buying dollars for domestic banks and government during daily sessions for the sale and purchase of foreign currency held by the Iraqi Central Bank, which is supposed to fund the traders from the private sector or for tourism The study outside the country, but this is not what happens when those banks Maysgel the clear violation calculated on the instructions of the Central Bank.

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