Amendments to the law of the Central Bank grant him the freedom to work on a larger area

Amendments to the Central Bank gives him the freedom to work on a wider area of ​​law

Number of readings: 31 - Issue (4065)

Baghdad / Zahraa Al-Jassem

Given the amendments to the Central Bank Law, which was approved by the House of Representatives and in the recently issued law, the Bank's work to a wider area, particularly with regard to the issuance and sale of securities. It is also allowed to increase the number of members from outside the Bank of experts and specialists in financial management from three to five in order not to stay locked himself in his decisions, according to the Information Office of the Bank. But a financial source critical of this being the bank out of its independence.

And provided the most important amendments to the Central Bank Law No. 56 of 2004 issued by the Coalition Provisional Authority, to: First repealed paragraphs "c" and "d" of Article 11, which indicates that the number of members of the Board of the Central Bank of nine members, they are all of the province and his deputies and three senior managers in it and three other individuals who have the ability and efficiency, to be replaced by the following amendment: that the Council will be composed of Director General of one of the Central Bank, and five members from outside the Central Bank of Iraq with experience and competence in financial matters or banking or legal, with the governor and his deputies.

According to the Information Office of the Central Bank of Iraq Acer Jabbar director in an interview (range), the amendments to the Central Bank Act, a few do not exceed four paragraphs, explained: where the amendment of Article 27 of the law , which says the Central Bank of Iraq will hold deals for foreign assets and manages the official reserves of foreign currency for the country, according to international best practices and precautions of monetary policy, and may the board of the Central Bank to invest this reserve in any of the following or all of the assets , whether in cash gold existing has, or cash currency, as previously this article defines the central bank Bba Z details and some countries, but was amended to give greater space, where he can now work any asset sale "securities" as if the free hand to trade on financial bonds for any foreign bank, but certainly in accordance with the terms and conditions very accurate financial mechanisms and processes.

He continues Jabbar: In paragraph the Board of Directors has been added new members, who are all of one general managers of the Central Bank and five members from outside the central bank of experts and specialists in financial affairs, to become today six members, a new Board of Directors is according to the new amendment, after cabinet approval of the law, after three of the two directors of the bank and three outside, noting: that the goal is to create supportive decisions of the central bank and does not remain a monopoly on continents or locked himself, because who comes from outside the Central is a private sector , and certainly it will have opinions and ideas and a new mission.

Going back to the amendment to the law, it also included the text of Article 27 of the special official reserve cash management law of foreign exchange, to indicate its current form to the Central Bank of Iraq will hold deals on foreign assets that manages the official foreign exchange reserves of the state, according to the best international practices and the objectives of monetary policy and the Council may, and invests such a reserve in any of the following assets or all of , ( a) the golden cash found in the Iraqi Central Bank coffers, ( b ) foreign cash and coins that usually m Used in the performance of international accounts maintained by the Central Bank of Iraq or for the account, c - credit balances payable on demand or payable after the short - term foreign currency , which is usually used in the performance of international accounts maintained by the Central Bank of Iraq in the accounts he or those that invest through the re - purchase and re - purchase the corresponding fixed deposits and multi-term agreements, after they specify some of its practices in this area.

But the beginning of a financial source sees in an interview (range), the central bank good law in the original preamble and not his disability for his work, but he also: Although we are not against these amendments, so we call them minor improvements and a review of no harm to them, because the central bank was not It faces a problem in the law, and even in paragraph 27 for trading securities, Vantrza does not want to sell these bonds at a high level, and we are also in this paragraph do not have a problem, because we just want the financial market development in Iraq, because the financial market is not only the stock market but bank instruments are also market and there is a desire by the Central Bank of many destinations For the development of the financial market, through debt as "remittances and bond papers, and I ask in Who are the agencies that issue these categories are the Ministry of Finance and the Central Bank, so the amendment is merely an attempt to encourage this development, and of course in other countries, the major companies and banks can export debt securities, but so far, the financial market we are the only stock market, so the amendment is the contribution from the central bank to help and develop the financial market in Iraq.

According to the source, who preferred not to be named, with regard to the point that point to add five members from outside the Central Bank of Iraq With expertise and competence in finance or banking or legal board of directors, it is the wrong expression, because the central must be independent and away from the interests, whether private or government, and can not be someone sitting in the board of directors and say I represent the private sector or the government, because this an imbalance in the independence of the central bank, I do not think that this paragraph be present in the new amendment to the law, and can not exist such a formula in the law, because the central bank independent institution is not only the government but also for the financial sector as well, so that it can be neutral in its decisions.

The last amendment to the second Iraqi Central Bank Law, where the First Amendment in 2007 was conducted.