[ltr]2023.07.24 - 16:56[/ltr]
Baghdad - Nas
The Finance Committee, headed by Atwan Al-Atwani and in the presence of its members, hosted, on Monday, the Governor of the Central Bank, Ali Al-Alaq, regarding the discussion of the banking sector, the high exchange rates of the dinar against the dollar, and the reasons for the sanctions imposed on a number of Iraqi banks.
According to a statement by the media department, which "NAS" received a copy of (July 24, 2023), "the chairman of the committee welcomed during the hosting, which was attended by a number of deputies of other committees, the governor of the Central Bank," stressing that "there is optimism in the process of reforming the economic reality and money management, and the path of controlling the exchange rate, adding: We hope to achieve economic stability and improve performance," pointing out that "there is a problem related to the existence of sanctions imposed on some banks, which leads to challenges that must be confronted, and the need to find measures to control the labor market and the exchange rate."
For his part, Ali Al-Alaq reviewed "a number of issues related to the work of the central bank and monetary policy, indicating that the central bank's mission is to achieve monetary stability and control prices, and he explained that there must be a balance between supply and demand for foreign currency, and control the cash entering and leaving through the outlets and confirming its entry in a legal manner, adding that the general principle of monetary stability is the exchange rate's link to cash, realizing that the problem lies in increasing the demand for currency, while the bank provides currency through the platform, stressing its willingness to cooperate in a way out of the crisis."
And the members of the committee asked a number of "questions regarding the reasons for the rise in exchange rates, the penalties imposed on some banks, and what are the procedures that the Central Bank follows to find out the details, with the importance of developing radical solutions to that crisis."
The observations focused on "the need to follow a monetary policy concerned with achieving economic packages that meet the requirements of the labor market, determining the number of banks approved by the central bank, and finding clear plans to address the financial situation, since the most affected is the Iraqi citizen and the poor groups, as well as how to protect the Iraqi dinar, and monitor exchange companies, in addition to procedures for dealing with banks, stressing the importance of concerted efforts in order to support the financial institution and avoid the results of the stage."
At the end of the meeting, the Finance Committee emphasized "supporting the decisions taken by the government so that they are in the public interest of the country and building an advanced financial and economic system."
[You must be registered and logged in to see this link.]