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You will only find it in Iraq .. a hard currency that is wasted through the auction at a difficult t

rocky
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You will only find it in Iraq .. a hard currency that is wasted through the auction at a difficult t Empty You will only find it in Iraq .. a hard currency that is wasted through the auction at a difficult t

Post by rocky on Sat 16 May 2020, 6:43 am

[size=35][size=35]You will only find it in Iraq .. a hard currency that is wasted through the auction at a difficult time[/size]
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Alsumaria special

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16-16-2020 05:25
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[size=18]It seems that the continuation of the central bank by its daily auction to finance imports described as miserable and fictitious through banks, some of which have never practiced credit work ... will sooner or later lead to the depletion of hard currency, especially with low oil prices, which is the main financier of the bank's reserves of this currency, which appears to be It dissipates in a difficult time, according to the specialists.


Banks, to say the least, were established to live on the currency auction and to be more like offices for financial transfer. Most of their doors are closed to citizens and they carry banners for the names of banks, but they do not practice their banking activities.
 





The auction is a drain for hard currency
 
Financial expert Mohamed Al-Khuzai said in an interview with Alsumaria News that "the average of what the Central Bank sells annually to finance private sector imports exceeds $ 40 billion, which is a large amount compared to what Iraq imports, which does not exceed $ 30 billion annually," noting that "the drop in oil prices significantly It will inevitably lead to a depletion of hard currency. "

 
Al-Khuza’i added that “the auction has become a place for profit for banks and out of the hard currency for imports, some of which are fictitious, by providing some banks with forged documentary credits on the pretext of covering commercial deals.”

 
Al-Khuza’i pointed out that “some banks obtained a license to practice the profession without checking the eligibility of these banks, which completely refrained from practicing their credit work, while their only work was limited to participating in the currency auction.”
 
Expert: The contribution of banks to development is less than 13%
 
Economist Dhargham Muhammad Ali said in an interview with Alsumaria News that "the contribution of the banking sector in Iraq is still 13% less by indicators of financial inclusion that place the local banking sector in the tail of the sector in the Arab world and in a late world ranking according to World Bank indicators and despite raising the percentage of financial inclusion after Localization of salaries, but it is still much less than expected. "
 
He adds that "private banks in Iraq do not have real development, but are a consumer sector similar to the rest of the sectors in Iraq, where they moved away from the credit development role and went to trade in currency and give limited loans with high benefits."
 
And Ali points out that "the large increase in the number of private banks without real economic feasibility is offered in a way that cannot be doubted that their establishment came against the background of auction profits and not the practice of regular banking activity," noting that "until now the percentage of private banking system participation does not exceed 15% Of the total volume of deposits in the Iraqi banking system. "
 
"Miserable" goods import
 
For his part, the economic expert, Adel Mohamed Saeed, considered in an interview with Alsumaria News that "millions of dollars are released daily through the auction conducted by the Central Bank to import goods and goods that are not useful and described them as" miserable ", noting that" these goods flooded the market and harmed local production. " .
 
Saeed adds that "a lot of private banks in Iraq have moved away from credit work because of the low return from it, and therefore have gone to get their share from the Central Bank of Iraq auction, which keeps them away from their banking competence and makes them closer to the banking offices."
 
Saeed calls for "the central bank to re-check the licenses of these banks and seriously stand on the ability of these banks to operate banking and finance imports of goods and goods for the benefit of the citizen."
 
The Central Bank of Iraq sells the dollar to private banks and money transfer companies through the auction that it conducts daily at an amount of 150 million dollars, which increases these numbers or decreases according to demand by these banks, which affects in one way or another the reserves of the Central Bank of Iraq, which was affected significantly in recent times As a result of the lack of symmetry between what he gets from the dollar and the auction sale process.
 
A large number of financial policy professionals opposed the currency auction, which they considered to be a waste of public money in this circumstance if it was not organized and used properly to serve the public and economic interests and led to the conversion of hard currency out of the country.
 
It is noteworthy that the frequency of accusations escalated regarding the currency smuggling operations that cast a shadow over the selling prices of the dollar in local markets and led to an increase in its exchange rate a few months ago, while deputies called for the government to stop selling the currency at auctions of the central bank, others confirmed that Iraq was losing Significant money from being smuggled daily out of the border.


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