Iraqi civil banks: central bank does not provide only one-third of the needs of the market and the d

Iraqi civil banks: central bank does not provide only one-third of the needs of the market and the dollar succumb to political pressure and media



04/07/2013 13:13
Long-Presse / Baghdad
Accused the General Authority for the North Bank for Finance and Investment, on Sunday, the CBI not to meet the needs of the Iraqi market of hard currency over the past five months and the transfer of that rests with the private banks, while confirming that Iraq needs to pump nearly 300 million dollars in the market daily to meet the needs of the currency in the currency when he criticized the central bank promised to these statements as an attack upon and "stems from ignorance and lack of knowledge of monetary policy."
The head of the board of directors of the North Bank and the Investment and Finance Nawzad Daoud dry in an interview to the (long-Presse), "The Central Bank of Iraq has failed to meet the needs of the Iraqi market of hard currency for more than five months," noting that "more than optimum needs met by local banks as great upheaval happening between merchants and banks. "
Between dry and that "a large part of politicians and central bank officials contend that the needs of Iraq's hard currency ranging from 85 to 90 million dollars per day, but in fact the market need to more than 250 and up to 300 million dollars a day."
The dry that "these words did not come without documents or evidence," explaining that "most citizens of the Iraqi dinar currency replacing the dollar and signs of this one need to market the dollar."
The President of the Board of Directors of Bank of the North, which is one of the largest Iraqi private banks to "shorten the central bank to provide hard currency and lack of commitment by the government policy of free market happen confusion in the market," but he added, "but we are a source of merit in terms of saving money for our resources, high of deposits and financial strength in this field. "
The Department of the North Bank announced at a conference held by Snoop on Saturday that its profits in 2012 amounted to 68.813 billion Iraqi dinars, which is the highest in recent years among the general Iraqi private banks, which have increased in number to 35 banks, and confirmed that the deposits amounted to 1.604 trillion Iraqi dinars.
Promised dry that "the actions the central bank was probably coming after a wave of political pressure and media," stressing that "private banks are not in need of financial support from the government but they need moral support and to maintain its integrity banking and open the doors to them to deal with foreign banks better."
The deputies, politicians and economists accused the Central Bank of Iraq over the past months to burn "an average of four billion dollars a month in an auction of hard currency for the benefit of ten banks, most of them with capital Gulf, buy a day most of the claims of the central bank's hard currency and make a profit on the overcharge up to 6% including them control of the Iraqi economy. "
For his part, said a member of the inspection department at the Directorate General for banking and credit control in the Central Bank of Ali Mahmoud said in an interview to the (long-Presse) that "the opinion of the North Bank policy of the central bank serves as a launching an attack on the bank," noting that "the reasons for this campaign is the lack of understanding monetary policy and what is known about monetary policy. "
Mahmoud added that "in recent years after 2003 were given to private banks complete freedom after the lifting of the benefits and the emancipation of commissions and these things are positive things for these banks."
He said Mahmoud, "but that some shareholders bankers ignorant just looking for a profit without the knowledge of the rest of the things," and accused them of being "think profit pure without thinking about the risks to banks," noting that "the role of the central bank is to reduce these risks and to follow the monetary policy and its path forward or retreat. "
And Iraq's cabinet decided on (16 October 2012), assigned to head the Office of Financial Supervision Abdul Basit Turki functions of the central bank governor and the agency rather than the former Fed governor Sinan al-Shabibi on charges of issues of financial and administrative corruption in the bank, especially in operations Auction dollars, but the something that did not occur to the work of the bank and currency auction whereas the Iraqi dinar exchange rate against the dollar, a big drop since jumped from 1170 dinars to the dollar in the fall of 2012 to 1270 dinars to the dollar in April 2013.
The Fund said in a report issued in (21/03/2013) Following the end of the consultations held in Amman between a delegation from the Fund and the Iraqi delegation headed by VMware Planning Ali Shukri, and seen (long-Presse) it "an improvement in the financial sector", but stressed that what still "need greater efforts by the central bank to revise monetary policy tools and strengthen banking supervision, and to accelerate the restructuring of the banking system."
He called on the International Monetary Fund Central Bank of Iraq to "take measures towards a gradual liberalization of foreign exchange offer through auctions held by the Bank so as not to repeat disorders suffered by the financial market in the past year."
UNFPA emphasized that "the establishment of a banking system nationalist requires the abandonment of the current model, which is controlled by the weak banks owned by the state, which enjoys preferential treatment distinguish them from private banks," calling on Iraq to do to strengthen its institutions of public finances to ensure efficiency and transparency in the use of oil revenues. "

[You must be registered and logged in to see this link.]