[You must be registered and logged in to see this image.]
[ltr]Governor of the Central Bank: Fallacies about monetary policy from Mordan and stakeholders[/ltr]
BAGHDAD / Obelisk: The governor of the Iraqi Central Bank, on the Keywords, do some of the non-professionals, has launched remarks on monetary policy and the work of the Central Bank of Iraq, has been characterized by the majority of those statements fallacies and pessimism and Althbit, either because of the absence of an accurate understanding, intent is the objective, which stems from the different motives linked to the political reality, and harassment and interests.
He considered Keywords in a statement, reported to the 'Obelisk', the central bank's policy-established is the distance away from the controversies and reactions to the statements, but the size of the inaccuracies and confusion reached a level detrimental to public stability and the stability of the market and damaging the reputation of Iraq externally and the consequent serious implications Iraq on financial and monetary and banking transactions, which invites us to clarify some things and as follows:
1. The central bank is working on the application of parallel policy to maintain the overall stability of prices and curb inflation as an objective basis and the task of President under the law of this bank, and at the same time working to maintain reserves prevailing dinar and high coverage in spite of the prevailing and known to everybody economic conditions , which is maintained and thus the whole preserves the purchasing power of the Iraqi dinar.
The dispel concerns about the value of the dinar and international reserves refer to the following facts:
(A) that with the decline of dollar resources, due to lower oil prices, still reserves enough level, but much higher and according to international criteria, namely: the standard of the local currency to cover its equivalent in foreign currency, and the reserve capacity to cover imports for a period of 6 months .
(B) International Monetary Fund forecast at the beginning of 2015 and the arrival of the reserve to $ 40 billion at the end of the year, we have explained at the time that the reserve will be up to $ 60 billion at the end of that year and months after the beginning of the year amended the Fund had expected.
He estimated reserve of 50 billion dollars, and still we had expected, according to the data and the actual indicators we have the reserve - as we expected - it will be up to the 60 billion.
(C) was the difference between our purchases of the dollar (from the Ministry of Finance) and sales of the dollar for the period from 01/01/2015 up to 09/30/2015, the difference amounted to about $ 600 million a month, and the central bank to cover this difference to achieve a balance in the balance payments and maintain the exchange rate and therefore the general level of prices, and it is clear that even with the continued decline in oil prices and hence lower revenues from the dollar, the reserve can hold enough coverage and adequate presence of about $ 60 billion of reserves.
(D) What is happening from the low and high in reserves is frequent occurrence in countries that rely on exports of oil, has happened in the year of 2009, when oil prices fell, then it stood at the bank sales rate of the dollar to its purchases of dollar 148% and then returned to accumulate reserves After that the new prices had returned to their rates higher.
- One of the common mistakes connect low or high reserve of the Central Bank, as this reserve is governed by the nature of the composition and the nature of the use of outside control or control and the central bank is in:
1. The set of the dollar is doomed to exports of crude oil: the quantity and price, and other sources virtually non-existent (remittances from abroad, whether from living abroad or foreign investment, or non-oil exports).
2. The state budget expenses represent the main source of aggregate demand on goods and services, which are mostly imported, due to the absence of local production base.
3. The migration of funds from Iraq is a clear phenomenon because of the situation of the country.
4. continuing shortfall in the state budget and covered loans, bonds, money orders, and this means an increase in money supply which is not offset by revenue dollarised, this creates additional demand for goods and services imported more than it received by the Central Bank of the dollar, which exchanged usually the Ministry of Finance in Iraqi dinars through the bank.
Thus The factors governing the formation of the reserve control is outside the central bank's control, and that the reserves under what passed consists of the difference between the dollar sales through the bank window and purchases of Bank of the dollar from the Ministry of Finance if sales were less than it receives it rises up and if sales more reserves decline.
Here arises a question about the possibility of central bank control the amount of sales through the restrictions put on the sale and conversion processes, we say that restrict the sale of dollar operations lead to results and phenomena of the following:
First, contrary to the guidelines of the International Monetary Fund approved and committed to by the Member States (including Iraq) .
Second: the restriction intersects with the Central Bank Law, which stipulates in Article 28 thereof on (buying or selling simple unconditional 'cash or futures' Foreign Exchange).
Third: the creation of a large deviation between the official rate and the market price of obscene and achieve gains for speculators, brokers, and lead to a general rise in prices and harm the purchasing power of the Iraqi dinar.
Fourth: the practice of cheating, forgery and fraud and corruption in order to get the amounts of the dollar.
From the point of the Central Bank of view, if I want to maintain the reserve required by, processors structural and structural macroeconomic and financial policies (revenues, expenses, taxes ...) including :
• stimulate national production and diversify the local production base to reduce the demand for imports and thus on the dollar. The central bank initiative to allocate loans of $ 6 trillion dinars initiative pour into this trend.
• Reduce the budget deficit to less extent possible, to prevent the cash that is not offset by the dollar resources for expansion, thus increasing the demand for goods and services that are mostly imported.
• providing political, economic and security stability factors to curb the flow of funds from abroad, and an increase in savings and investments inside Iraq.
• Apply deactivated to protect local product laws (Customs Tariff Act, the Consumer Protection Act, Product Protection Act, the anti-dumping law).
• the performance of state institutions related to Balastairadat roles, in the granting of licenses in the supervision and control and obtaining fees and charges and the provision of national databases.
- The role of the Central Bank in accordance with the law and the law against money-laundering is forcing banks and financial institutions to apply the principle of 'know your customer' to verify the sources of funds that enter the process of buying the dollar, and in this regard, the bank has taken a number of actions and important steps (preventive and deterrent), and will be posted on Central Bank site where there is no room here to explain the details.
2. Some of the statements contained in the invitation to the Central Bank of the expertise and advice of specialized international institutions, and here we refer to the following:
(A) that the bank founding member of the International Monetary Fund and the World Bank, as well as Arab, regional and international financial organizations, and the World Bank in communication and consultation and understanding with those organizations, but that the rules work in the joints of the base currency control are the principles, rules and recommendations and agreements issued by these organizations, For example, the foreign currency sale in the central bank window, and management of international reserves are governed by the guidelines of the International Monetary Fund, and applied by the Member States agreed upon, including Iraq, and so in the rest of respects exercised by the Bank in accordance with the best international standards and practices.
The Central Bank has consulting contracts with the best Arab and international consultancy firms and institutions of international auditing and review, continuous and the World Bank to expand counseling channels, in addition to the support received by the Bank from international organizations and Arab and Islamic central banks and take advantage of its services free by virtue of Iraq's membership in or by virtue of bilateral relations and memorandums of understanding.
As the systems and electronic programs have become a framework and a way for the organization of work and practices, and through them can attract the best practices reached by the developed world, the central bank developed and developing information technology with the help of global companies with the latest software and techniques, and can be found on the infrastructure her c Currently in this bank, and say proudly as the best among all state institutions, and models of those systems, the payments system and the clearing and settlement, which is currently applied by the bank and is one of the most systems developed in the region and the world, and which also today provides the basis for the application and development of payment systems electronic in all its forms through the National divider, which came into work now, and the bank in the process of starting a comprehensive banking system Core Banking System, the largest program in the world of electronic banking, which represents a historic shift in the Bank's work.
(D) The human resources at the central bank - unlike other state institutions - representing the stable resources of this institution did not leave despite what Iraq has passed through the conditions, and therefore resources has accumulated experience and tender, and enjoy these resources special support from organizations and banks, international and regional financial institutions and Arab, and perhaps the number of workshops, training courses being considered by the Bank staff are the highest among the state institutions.
As we have strengthened cadre Bank has appointed top universities and graduates of Graduate Studies, as well as the appointment of graduates from outside Iraq (educational initiative) the terms of reference regarding the work of the bank.
This, as well as the Centre for Banking Studies (one of the formations of this bank) of courses and training programs throughout the year.
3. The Bank will soon launch its strategy for the years 2016-2020, was built on the latest global developments in the banking and financial sector, the latest trends and tasks arising from developments in financial and monetary crisis, which was born and developed from the functions and roles of central banks, the first strategy in the history of the central bank in the way In building its content and direction, and on the basis of overall quality and standards in the setting, with the introduction of a special form shall follow-up and evaluation.
Finally, what dictum is some which invites us all to pride in this important institution, and the responsibility of us all to look at them a professional look objective to serve the interest both locally and internationally, and that this bank is fully prepared to inform the interested ordered the bank, inform them of the field and documentaries, the policies, procedures and plans , and our doors are open for this purpose.
[You must be registered and logged in to see this link.]
[ltr]Governor of the Central Bank: Fallacies about monetary policy from Mordan and stakeholders[/ltr]
BAGHDAD / Obelisk: The governor of the Iraqi Central Bank, on the Keywords, do some of the non-professionals, has launched remarks on monetary policy and the work of the Central Bank of Iraq, has been characterized by the majority of those statements fallacies and pessimism and Althbit, either because of the absence of an accurate understanding, intent is the objective, which stems from the different motives linked to the political reality, and harassment and interests.
He considered Keywords in a statement, reported to the 'Obelisk', the central bank's policy-established is the distance away from the controversies and reactions to the statements, but the size of the inaccuracies and confusion reached a level detrimental to public stability and the stability of the market and damaging the reputation of Iraq externally and the consequent serious implications Iraq on financial and monetary and banking transactions, which invites us to clarify some things and as follows:
1. The central bank is working on the application of parallel policy to maintain the overall stability of prices and curb inflation as an objective basis and the task of President under the law of this bank, and at the same time working to maintain reserves prevailing dinar and high coverage in spite of the prevailing and known to everybody economic conditions , which is maintained and thus the whole preserves the purchasing power of the Iraqi dinar.
The dispel concerns about the value of the dinar and international reserves refer to the following facts:
(A) that with the decline of dollar resources, due to lower oil prices, still reserves enough level, but much higher and according to international criteria, namely: the standard of the local currency to cover its equivalent in foreign currency, and the reserve capacity to cover imports for a period of 6 months .
(B) International Monetary Fund forecast at the beginning of 2015 and the arrival of the reserve to $ 40 billion at the end of the year, we have explained at the time that the reserve will be up to $ 60 billion at the end of that year and months after the beginning of the year amended the Fund had expected.
He estimated reserve of 50 billion dollars, and still we had expected, according to the data and the actual indicators we have the reserve - as we expected - it will be up to the 60 billion.
(C) was the difference between our purchases of the dollar (from the Ministry of Finance) and sales of the dollar for the period from 01/01/2015 up to 09/30/2015, the difference amounted to about $ 600 million a month, and the central bank to cover this difference to achieve a balance in the balance payments and maintain the exchange rate and therefore the general level of prices, and it is clear that even with the continued decline in oil prices and hence lower revenues from the dollar, the reserve can hold enough coverage and adequate presence of about $ 60 billion of reserves.
(D) What is happening from the low and high in reserves is frequent occurrence in countries that rely on exports of oil, has happened in the year of 2009, when oil prices fell, then it stood at the bank sales rate of the dollar to its purchases of dollar 148% and then returned to accumulate reserves After that the new prices had returned to their rates higher.
- One of the common mistakes connect low or high reserve of the Central Bank, as this reserve is governed by the nature of the composition and the nature of the use of outside control or control and the central bank is in:
1. The set of the dollar is doomed to exports of crude oil: the quantity and price, and other sources virtually non-existent (remittances from abroad, whether from living abroad or foreign investment, or non-oil exports).
2. The state budget expenses represent the main source of aggregate demand on goods and services, which are mostly imported, due to the absence of local production base.
3. The migration of funds from Iraq is a clear phenomenon because of the situation of the country.
4. continuing shortfall in the state budget and covered loans, bonds, money orders, and this means an increase in money supply which is not offset by revenue dollarised, this creates additional demand for goods and services imported more than it received by the Central Bank of the dollar, which exchanged usually the Ministry of Finance in Iraqi dinars through the bank.
Thus The factors governing the formation of the reserve control is outside the central bank's control, and that the reserves under what passed consists of the difference between the dollar sales through the bank window and purchases of Bank of the dollar from the Ministry of Finance if sales were less than it receives it rises up and if sales more reserves decline.
Here arises a question about the possibility of central bank control the amount of sales through the restrictions put on the sale and conversion processes, we say that restrict the sale of dollar operations lead to results and phenomena of the following:
First, contrary to the guidelines of the International Monetary Fund approved and committed to by the Member States (including Iraq) .
Second: the restriction intersects with the Central Bank Law, which stipulates in Article 28 thereof on (buying or selling simple unconditional 'cash or futures' Foreign Exchange).
Third: the creation of a large deviation between the official rate and the market price of obscene and achieve gains for speculators, brokers, and lead to a general rise in prices and harm the purchasing power of the Iraqi dinar.
Fourth: the practice of cheating, forgery and fraud and corruption in order to get the amounts of the dollar.
From the point of the Central Bank of view, if I want to maintain the reserve required by, processors structural and structural macroeconomic and financial policies (revenues, expenses, taxes ...) including :
• stimulate national production and diversify the local production base to reduce the demand for imports and thus on the dollar. The central bank initiative to allocate loans of $ 6 trillion dinars initiative pour into this trend.
• Reduce the budget deficit to less extent possible, to prevent the cash that is not offset by the dollar resources for expansion, thus increasing the demand for goods and services that are mostly imported.
• providing political, economic and security stability factors to curb the flow of funds from abroad, and an increase in savings and investments inside Iraq.
• Apply deactivated to protect local product laws (Customs Tariff Act, the Consumer Protection Act, Product Protection Act, the anti-dumping law).
• the performance of state institutions related to Balastairadat roles, in the granting of licenses in the supervision and control and obtaining fees and charges and the provision of national databases.
- The role of the Central Bank in accordance with the law and the law against money-laundering is forcing banks and financial institutions to apply the principle of 'know your customer' to verify the sources of funds that enter the process of buying the dollar, and in this regard, the bank has taken a number of actions and important steps (preventive and deterrent), and will be posted on Central Bank site where there is no room here to explain the details.
2. Some of the statements contained in the invitation to the Central Bank of the expertise and advice of specialized international institutions, and here we refer to the following:
(A) that the bank founding member of the International Monetary Fund and the World Bank, as well as Arab, regional and international financial organizations, and the World Bank in communication and consultation and understanding with those organizations, but that the rules work in the joints of the base currency control are the principles, rules and recommendations and agreements issued by these organizations, For example, the foreign currency sale in the central bank window, and management of international reserves are governed by the guidelines of the International Monetary Fund, and applied by the Member States agreed upon, including Iraq, and so in the rest of respects exercised by the Bank in accordance with the best international standards and practices.
The Central Bank has consulting contracts with the best Arab and international consultancy firms and institutions of international auditing and review, continuous and the World Bank to expand counseling channels, in addition to the support received by the Bank from international organizations and Arab and Islamic central banks and take advantage of its services free by virtue of Iraq's membership in or by virtue of bilateral relations and memorandums of understanding.
As the systems and electronic programs have become a framework and a way for the organization of work and practices, and through them can attract the best practices reached by the developed world, the central bank developed and developing information technology with the help of global companies with the latest software and techniques, and can be found on the infrastructure her c Currently in this bank, and say proudly as the best among all state institutions, and models of those systems, the payments system and the clearing and settlement, which is currently applied by the bank and is one of the most systems developed in the region and the world, and which also today provides the basis for the application and development of payment systems electronic in all its forms through the National divider, which came into work now, and the bank in the process of starting a comprehensive banking system Core Banking System, the largest program in the world of electronic banking, which represents a historic shift in the Bank's work.
(D) The human resources at the central bank - unlike other state institutions - representing the stable resources of this institution did not leave despite what Iraq has passed through the conditions, and therefore resources has accumulated experience and tender, and enjoy these resources special support from organizations and banks, international and regional financial institutions and Arab, and perhaps the number of workshops, training courses being considered by the Bank staff are the highest among the state institutions.
As we have strengthened cadre Bank has appointed top universities and graduates of Graduate Studies, as well as the appointment of graduates from outside Iraq (educational initiative) the terms of reference regarding the work of the bank.
This, as well as the Centre for Banking Studies (one of the formations of this bank) of courses and training programs throughout the year.
3. The Bank will soon launch its strategy for the years 2016-2020, was built on the latest global developments in the banking and financial sector, the latest trends and tasks arising from developments in financial and monetary crisis, which was born and developed from the functions and roles of central banks, the first strategy in the history of the central bank in the way In building its content and direction, and on the basis of overall quality and standards in the setting, with the introduction of a special form shall follow-up and evaluation.
Finally, what dictum is some which invites us all to pride in this important institution, and the responsibility of us all to look at them a professional look objective to serve the interest both locally and internationally, and that this bank is fully prepared to inform the interested ordered the bank, inform them of the field and documentaries, the policies, procedures and plans , and our doors are open for this purpose.
[You must be registered and logged in to see this link.]
» utube 7/2/24 MM&C IQD Update Part 2 - Iraqi Dinar - Automation for Revenues - Singapore Agreement
» utube 7/2/24 MM&C part 1 Iraqi DinarPart 1 - IQD Update - Progession of Intergr
» MM&C 7/2/24 The dollar in the parallel market.. Al-Sudani’s advisor presents a different vision and
» Al-Sudani: Iraq's growth rate is the highest in the region and we have made significant progress in
» What terrified Barzani and prompted him to visit Baghdad?
» Barzani to ambassadors of 8 countries: Taking into consideration the interest of Iraq and the region
» Trade participates in the preparatory meeting of the Iraqi-Jordanian Committee
» The most prominent of which is the decision of the Central Bank.. Three reasons behind the rise of t
» Baghdad buildings.. apartments rising quickly and prices soaring even higher
» Al-Sudani stresses the importance of the public sector's role in implementing government priorities
» Today.. Central Bank sales record more than 280 million dollars
» Parliamentary movement to cancel decisions of the dissolved Revolutionary Command Council
» Sudanese advisor reveals the reason for the rise in the dollar price
» The Slums Law is in the Government’s Halls and Parliament is Waiting for Its Arrival.. MP Speaks to
» Oil confirms achieving advanced rates in gas investment
» Economist: Increased demand for electricity prompts us to look for “urgent solutions” to generate po
» When will you leave the country? ... Iraq demands and America procrastinates
» Demand for Al-Sudani to reveal the results of the investigations into the assassination of Al-Nasr l
» Parliamentary Committee: The Ministry of Education’s budget is small and does not live up to the lev
» Iraq announces drilling and reclaiming 105 oil wells during the first half of the year
» For the fourth day.. Dollar prices continue to rise in Baghdad and Erbil
» In the presence of Massoud Barzani .. Sunni forces hold a "decisive" meeting to resolve the crisis o
» "Short-term".. Al-Sudani's advisor explains the reasons for the continued rise in the exchange rate
» During 2024.. Petroleum Products Counts Gas Fuel Consumption Quantities for Cars
» Iran, Turkmenistan officially sign gas swap agreement to supply to Iraq
» Parliamentary Committee Identifies a “Fundamental Problem” Facing the Oil and Gas Law.. How Can It B
» "We have not chosen the company to implement the project yet." Baghdad Municipality reveals the late
» Iraq is the third country in which Türkiye has implemented the most projects in half a century
» Iraq decides to introduce artificial intelligence in this field
» Plan to convert oil refineries to environmentally friendly
» Baghdad Airport Expansion to 9 Million Passengers Annually
» Basra pursues land contract fraud
» Government policy to control the state's public finances
» Advisor: Iraq aspires to lead the Fourth Industrial Revolution
» Baghdad Council threatens to confiscate illegal generators
» Iraqi Creatives Museums and Cultural Centers
» Oil: Gas investment reached 62%
» Barzani in Baghdad
» World Bank: Iraq is among the middle-income countries
» Experts praise agricultural policies and call for supporting farmers
» The Ministry of Interior issues ID cards to owners of "positive content"
» Minister of Labor: Anbar's share of police contracts is 2,377 beneficiaries
» The Minister of Labor holds social researchers morally responsible and assigns them two basic tasks
» Kurdistan Finance announces the start of distributing salaries for these categories next Sunday
» Judge Zidane visits the Supreme and Constitutional Courts of Azerbaijan
» Coordination Framework: The coming days will witness the "birth" of the Diyala local government
» An economist explains the reasons for the dollar’s rise and sets a condition for its decline - Urg
» Investment Authority announces the processing of 249 stalled projects
» Final statement of the meeting of the General Secretariat of the Union, June 29-30, 2024.. Baghdad S
» Chief Justice describes President Barzani’s visit to Baghdad as “important and historic”
» Masrour Barzani welcomes the Federal Court’s decision: It will strengthen confidence in the relation
» Kurdistan Council of Ministers discusses equalizing the salaries of retirees in the region with thei
» President Barzani after meeting with Al-Sudani: We had a constructive dialogue and will continue coo
» Al-Sudani's financial advisor reveals the reason for the continued rise of the dollar and confirms:
» Barzani reveals the goals of his visit to Baghdad: There is an intention to resolve the differences
» The Turkish army penetrates into Iraqi territory with Baghdad's approval!
» The Regional Council of Ministers discusses unifying the salaries of its retirees with the center
» Two countries sign a contract on gas supplied to Iraq
» Communications: Cable contracts will improve internet service in Iraq
» Interior Ministry reveals two “strategies” regarding social media
» Will social security guarantee the rights of workers and earners? An economist answers
» Al-Sudani receives a group of sheikhs and dignitaries of the Zubaa tribe in Baghdad
» Discussing the file of the international coalition and the presidency of parliament.. Details of the
» Experts: Coordination between the center and the region is necessary to find a solution to the Turki
» Problems still exist.. Government expects camps to close a month after the scheduled date
» The dollar soars in Baghdad markets, exceeding the 149 barrier
» Iraqi graduation research included in international databases
» Compliance or arrest.. Baghdad Council issues final warning to private generator owners
» With water scarcity, desertification is growing in Iraq!
» With the increasing demand for it.. Petroleum Products opens 3 new outlets for LPG
» Generator owners in Baghdad violate government decisions and raise prices!
» Barzani and Mandalawi discuss the issue of electing the Speaker of Parliament
» Despite the rise in the dollar, Saleh: The parallel market today is not important
» Securities Commission: The government has successfully completed the sale of financial bonds
» Ankara: We are working with Iraq to develop a plan to deal with the water file and eliminate all cha
» Minister of Communications: Cable contracts will improve internet service in Iraq
» Iraq reinforces its borders with Syria with 13 additional military regiments
» Kurdistan responds to a letter from the Federal Court about localizing its employees’ salaries
» Parliamentary Finance: The remaining months are not enough to disburse budget funds
» Investment Authority announces the processing of 249 stalled projects
» Today.. The Central Bank sells only about 15 million dollars domestically
» Rafidain Bank announces completion of 3288 loan transactions for projects and real estate during the
» Israel fabricates justifications for attacks on Iraq
» Tribal Conflicts: When Laws Are Silent and Guns Speak
» Obelisk Hour: Will the Kurdistan Region Turn into “Southern Türkiye” Instead of “Northern Iraq”?
» Al-Sudani to Barzani: We have made significant progress in building trust between the central and re
» National Security at Stake: $670 Million Defense Contract with Corrupt Thales
» Barzani discusses in Baghdad common files with the State Administration Alliance
» Al-Halbousi's ambition to be the "Barzani of Anbar" clashes with the rejection of the people of his
» More than $260 million in foreign transfers to the Central Bank of Iraq in today's auction
» Al-Sudani's advisor explains: Has the government adopted a new approach to activate the private sect
» Al-Sudani: We have overcome the inherited problems with the Kurdistan Region
» Parliamentary Culture confirms its determination to legislate the Right to Access Information Law in
» The President of the Supreme Judicial Council receives the President of the Bar Association to discu
» Parliamentary confirmation to encourage Finnish companies to work in Iraq
» Ministry of Planning: A government delegation is holding negotiations in Berlin with the German side
» Babylon Council elects new chairman for provincial investment commission
» World Bank: Iraq maintained its status within the upper middle-income category