The central bank clarifies regarding the possibility of printing an Iraqi currency

The central bank describes the proposal as a routine measure that enhances the bank's treasury

Expert (Time): Currency printing encourages spoilers to pump massive amounts of cash

Baghdad - Time

The idea of ​​printing the paper currency put forward by a government official sparked widespread controversy and strong rejection from economic and political circles and described the move as a destructive warning that certain entities will print unlimited quantities of currency while the Iraqi Central Bank said that the process of printing the currency is a technical and routine procedure and stressed that no party can Withdrawing banknotes from the central bank unless there are balances in their accounts that cover the amount to be withdrawn.

The head of the follow-up cell in the office of Prime Minister Mustafa Jabbar Sanad had talked about the possibility of resorting to printing currency to secure salaries. He said that (the government will be able to distribute the salaries of the current month of March, while it will resort to some solutions to ensure the provision of salaries next month, including selling bonds on banks or borrowing from external or internal banks). He continued that (among the solutions that the government may turn to is to print the currency, and this is not possible without a cover of gold and hard currency). The Vice President of the Iraqi Press Association, Ahmed Mohamed Nima, rejected the idea of ​​printing the paper currency, saying that it is an economic crime that brings to mind the country’s situation during the previous regime. Stressing that this process will encourage the outlaws to print unlimited amounts of currency in light of the widespread corruption and insecurity. In a statement to Al-Zaman yesterday, he suggested that the government take alternative measures to avoid the collapse of the dinar due to printing and the possibility of fraud. He referred to (an alternative is to distribute salaries in dollars instead of selling them in currency auctions, which take place daily within the central bank). To that, a member of the Victory Coalition Ali al-Sunaid saw that (what the head of the Follow-up Cell revealed in the Prime Minister’s Office, options to confront the financial crisis are catastrophic options for the state’s financial, economic and social security), calling on Parliament to “hold the current government accountable for its reckless spending policies and abuse of authority in managing interests Al-Sunaid indicated in a statement received (Al-Zaman) yesterday that (this government inherited a cash surplus from the Abadi government that fought wars of liberation and unity with the lowest financial budgets, yet managed and rational management of wealth to deliver $ 14 billion to the government of Abdul-Mahdi, in addition to the 201 budget 9 However, it was wasted, and today we are on the threshold of a stifling financial crisis due to the deterioration of oil prices (he said, adding that) (what the head of the Follow-up Cell mentioned is dangerous and puts the government before legal and political accountability, so he said: "The state of the state will be affected starting from next month - including the salaries of the employees - which may push Iraq to print the currency as a last option" which threatens the state of the whole country, and it should not be covered politically and in favor by the beneficiaries at the expense of the country and the citizen) and Sunaid indicated that (Victory Coalition, as long as it warns against the policies of waste, corruption and plundering of wealth, the last of which is its warning on 10 March last), calling for (a quick recovery of the crisis and the development of valid and decisive solutions to ensure the financial and economic security of the state) In contrast, an authorized source in the Central Bank of Iraq said in a statement received (time) Yesterday, commenting on some of the statements being circulated T to some of those responsible for the ability to print an Iraqi currency to avoid economic problems and so on (that printing Iraqi banknotes is a routine technical procedure practiced by the central bank in accordance with the requirements of cash circulation, and that printing the banknotes is a completely separate process from the cash issuance process) adding that (any party cannot withdraw Bank notes The central bank, unless there are balances in its accounts that cover the amount to be withdrawn. Therefore, to say the dinar does not mean any meaning other than to strengthen the central bank’s treasury in accordance with the monetary policy, and not for any other purpose or purpose, as the central bank’s law and monetary policy do not allow the issuance of cash in favor of an account without balance). The statement clarified that (when the Ministry of Finance wishes to finance spending on different spending units and salaries, it requests the Central Bank to strengthen its account in Iraqi dinars in exchange for withdrawing from its account in dollars), pointing out that (no money is deposited into the dinar account in dinars unless there is a corresponding withdrawal from its dollar account) .

 To that, the Central Bank issued instructions yesterday to banks on withdrawing the dollar cash. The instructions that were seen by (time) yesterday included that (the withdrawal of the dollar to the customer if it is a transfer rate of 75 percent in dollars and 25 percent in dinars and is calculated at a price of 1200 dollars per dollar. And that the withdrawal The dollar for the customer if the deposit is one hundred percent dollars without any change.