Monetary policy between Dr. Shabibi and Mr. Ali Keywords (second episode)

by **Rocky** Mon 04 Apr 2016, 10:54 am

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Monetary policy between Dr. Shabibi and Mr. Ali Keywords (second episode)

by Rocky Mon 04 Apr 2016, 10:54 am

[size=28]Monetary policy between Dr. Shabibi and Mr. Ali Keywords (second episode)

Monetary policy between Dr. Shabibi and Mr. Ali Keywords (second episode)

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Mohammed Tawfiq Allawi / (CONTINUED replying to a message on the Keywords Mr. Governor of the Central Bank - the second episode)

Sadun this topic quite frankly, and I will to Anjazatkma both of you and Akhvaqatkma without courtesy, so I ask again from both of you handle a spirit of sportsmanship with what I will say in order to reach the correct foundations for planning policy of economic sound to avoid the negative effects of what will face the country's difficult economic conditions due to lack of resources and the large number of obligations at this difficult stage for the advancement of the country and save the citizens of the great suffering seemed to highlight her features, but policies that can revive the lives of citizens and make them live in Raghad live, happiness and prosperity mode, and make the country heading towards progress, development and prosperity, and that not so long ago, nations of the region, such as Jordan, Lebanon and Turkey highlight the progress and development milestones and prosperity with the knowledge that these countries do not have their governments tenth of what Iraq possessed of natural resources such as Turkey, for example, but less than one percent of the natural resources to Iraq possessed for what is owned by Jordan and Lebanon, all of that is due to the situation economic and monetary policies of the right of a country without waste or corruption or wasteful, and even though he found some corruption can be compared to what is happening in Iraq is not.

(Monetary policy to Dr. Shabibi)

Great credit is due to the many aspects of the development of the Iraqi banking system and monetary policy in the current day to Dr. Shabibi with failures must be addressed and taken up below.

The biggest accomplishment of Dr. Shabibi is to create a sophisticated banking system, I can say from scratch for the economic system is free with the field open to a group of private banks and currency exchange freely and freedom of conversion and the opening credits, clearing the electronic part of an open market compared to the regime banking Central Socialist past, I've consisted of monetary policy developed by Dr. Shabibi six axes task will be described below, namely:

1. to maintain the fixed price of the currency compared to the previous stage, which was the currency in which deteriorate its value day after day without the presence of selectors, has proved to currency rate by asymptotic for 1500 dinars to the dollar a year (2003) after it was nearly 3,000 dinars per dollar and remained that price steady until the year (2006), where he was raising the price of the dinar gradually until the dollar stood at less than 1200, it has been to this boarding second Iraqi dinar negative effects on the industry and agriculture in Iraq, hauling agricultural and industrial products to neighboring countries cheaper than their counterparts in Iraq, I spoke with Dr. Shabibi this regard he answered me that he is responsible for monetary policy, and the consequences of the advancement of the industrial and agricultural sector kits is located within the economic policy of the country and not in the monetary policy, and economic policy of the country should be placed by the government, not there is the presence in Iraq of the concept of economic policy of the country during the previous period, particularly the eight years of the rule of al-Maliki, and even now, even raise the value of the dinar was under the guidance of the government to the Central Bank without studying or planning or estimate of the results, you may accept this justification in part, but also it is known that monetary policy coherent economic and financial policy, and the negative impact on the agricultural and industrial monetary and economic policies axioms sector, and this point is calculated on the government, which took the action, and I was part of the government objected at the time to this procedure, but (not the opinion of those who not obeyed) where I was the minister of communications and does not take my opinion on the side of monetary policy, but with this succeeds Dr. Shabibi in maintaining the price of the Iraqi dinar, and increased local and international confidence in Iraqi dinars, and these are all positive aspects of not conducting revaluation of the exchange rate of the dinar in 2006-2007 which the government bears the greatest responsibility for this procedure as well as the responsibility of Dr. Shabibi, but to a lesser degree.

2. take a policy to find and secure the central bank reserve cover of Iraqi currency from foreign gold coins and maintain it, Dr. Shabibi have been able to provide the amount of eighty exceeded billion dollars as a reserve cover of the Iraqi dinar during the nine years of his central bank management, and this is one of the most important achievements of Dr. Sinan Shabibi at all, it was unfortunately wasted nearly half that amount because of ill-conceived policies during the previous two years.

3. take the necessary measures for the establishment of an Iraqi civil banking system, where the Iraqi banking sector is dominated by State-owned banks in the absence of domestic banks only on a narrow and limited level, the problem in Iraq is not their lack of expertise in this area, but the lack of capital Iraqi sufficient for the establishment of community banks, it was a political Dr. Sinan lack of demand, starting with a large capital for the establishment of the bank, and the Central bank with the help of private banks to advance and make a profit by raising bank interest rate and created dozens of new private banks, but do not take these steps because it is possible the emergence of Iraqi banks ownership Iraqi, but it was natural that the branches in Iraq to banks, non-Iraqi arise, and thanks to Dr. Shabibi, Moreover, the policy has led to the generation of the confidence of the Iraqi banks and the civil people began deposit their money where the benefits of a high and they are confident of them during his reign.

4. maintaining a uniform discharge between the official rate of discharge of the Central Bank and the rate of discharge parallel currency market outside of the central bank with a simple commission teams calculated naturally to the bank rate as in the various countries of the world, Dr. Sinan've managed to keep this fact since he took responsibility in 2003 until mid-2011 as demand increased abnormally on the dollar because of the blockade imposed on Iran because of the bloody events in Syria, it has been required from the central bank's management that the dollar offer by market need, lest utilized speculators and those who have the power of politicians and pay high bribes to get a greater proportion of dollars to be discharged into the parallel price outside the central bank big profits, and these profits are calculated on the expense of the citizen, he bought the corrupt politicians and is calculated on them dollars at a few of the central bank, then sell it a high price in the parallel currency market, and traders are buying at a high price , credited the difference on various imported materials, Vistvid politicians is going on in Vllekem at the expense of the citizen, he told me Dr. Sinan there are recommendations by some decision-makers working in a bank that does not increase the offer but asked me not to mention their names, and I am committed to his application does not remind them , but Dr. Sinan had wanted to cancel this difference Viouhd price again, but grew up within a few months enriched category tremendously because of this difference, they sought to overthrow Dr. Sinan and take it out of the bank, and it was al-Maliki wants him out because he did not respond to him on the loan requested from the reserve the central bank, Vajtmat the desire of the two teams and fabricated false charges against Dr. Shabibi was acquitted later, the absence of two prices to the dollar, at least during the period of eight years and is considered a major feature distinct achievement of the policy of Dr. Shabibi.

5. control inflation (Inflation), where inflation has reached more than 33% in 2006, and managed by Dr. Sinan his policy wise decline of inflation to less than 3% in 2010.

6. The role of follow-up and implementation of the decisions of the Paris Club, the Paris Club has achieved the greatest economic and financial achievement for Iraq during its modern history, where Iraq was under a great burden of debt amounted to about 140 billion dollars, triple've managed to Dr. Iyad Allawi as prime minister, and Adel Abdul Mahdi as finance minister, and Dr. Shabibi as governor of the Central Bank interact with many of the countries that they have expensive debt against Iraq to the waiver by about 80% of that debt, which they were able to provide the amount of more than 100 billion dollars, unfortunately remember now grand theft, but are not the major achievements which are equivalent to thefts in importance addressed, but perversely, it is true that the role of Dr. Shabibi was not politically where the political role of the biggest act in the drop this amount of large debts of Iraq, represented by Dr. Iyad Allawi, primarily Dr. Adel Abdul-Mahdi class The second and then Dr. Shabibi follower and CEO of these decisions, should the Iraqi people do not forget what we achieved this trio of very great service to the country and citizens, which is the opposite of what politicians Subsequent steal money from this underdog people.

(We will discuss in the next episode of monetary policy to Mr. Ali Keywords current governor of the Central Bank)

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