Controls to reduce the money being mishandled currency auction

Controls to reduce the money being mishandled currency auction




18/05/2013 12:00 AM
Emphasizes the importance of follow-up expert financial transfer

BAGHDAD - Hussein ثغب of Tamimi

He stressed the economic expert Mohsen al-Zaidi on the importance of promoting monetary policy and the adoption of more accurate measures in various financial operations adopted by the central bank and stand at the activities of the banking sector and organized civil local Alaguetsd service, benefiting from the experiences of the world in this field.

He said Zaidi: The duties of central banks in the world information because it involved and responsible for the management of monetary policy and maintain the relative stability of foreign exchange rates and interest rates prevailing on them, and here can benefit from international experiences in the country and employ them for the development of the financial sector locally.

He added in an interview (morning) that global central banks use several means to achieve its goals and to prevent rapid fluctuations in the financial market and of Brphi banking market in foreign currency by local banks some time the need arises and under controls commensurate with the financial market conditions as well as the sale of foreign currency rate less than the market price for the purposes of tourism, medical treatment and other humanitarian needs and cover school fees and the amounts of credits and foreign remittances and prices commissions less than Saralsouk the, as well as strengthening the assets of local banks.

He said al-Zaidi to the exceptional circumstances experienced by Iraq requires there to be treated exceptionally monetary policy, and so they can be to adopt measures that would contain the financial problems and are heading towards activating economic sectors, pointing out that it requires from the central bank and the competent departments to determine what exceptional circumstances for the purpose of develop solutions to them, indicating that the reality of the financial sector needs to stand up when a lot of important things and with a direct impact upon the most important follow-up mechanisms for foreign exchange where money is transferred by entrepreneurs and professional organizations so for multiple purposes and follow-up mechanisms for the signing of contracts carried out, whether structural or import in the public and private sectors and the resulting need to transfer money abroad.

And the high demand for the dollar, said Zaidi: that demand will continue to be, and if Matuagaf central bank, even for a short period for supplying the market in foreign currency will lead to a significant rise in the price of the dollar against the Iraqi dinar, and was on the central bank controls to fund what is allowed and drying what is otherwise So, pointing to the importance of the existence of mechanisms that prevent the misuse of funds sold auction currency, and that is monitored companies and offices who engage in acts of conversion and banking, which accounts for the money through the purchase of citizens at a higher price than the official price. pointed to the negative effects of social to sell the dollar to the citizens in terms of the quest to get a monthly income varies from one family to another and by the number of passports that they have and without that there will be work product against this income as well as creating a state of rushing big the citizen and his sense of hurt in front of the doors of banks that sell the dollar and push a lot of staff and employees in both the public and private sectors and craftsmen to leave their jobs and standing in long queues to get a share of the monthly dollar, as well as opening a new door for financial corruption through the exploitation of some financial players to passport holders who can not get a dollar a meeting to participate in the price difference or acquisition it fully, as the The price difference in the five thousand dollars amounted to (450) thousand dinars, an amount equal to the monthly income of some workers, leading to the creation of a state of contempt action and transform the citizen, whether a factor or not to seize the opportunities, especially in light of the absence of any controls to the process of buying and selling of foreign currency .

He pointed out that the CBI select Permissions granted credits various controls domestic and foreign investment is in the mildly controls and mechanisms, we can say it it's more than good, but requires the central bank to implement its monetary policy carefully in this area, for example, has allowed the central bank to banks بتسليف and the granting of loans in various forms and by up to eight times the bank's capital and under the publications urged banks to achieve this rate or any rate close to them, but it did not take into consideration that the banks when granting credits are calculated several things before lifting the proportion of grants, including the amount of yield or interest earned for these credits and the amount of expenses left behind by the central bank's monetary policy

He said if what has been awarded five thousand dollars as a loan or an advance or other, they will achieve an annual return up to (589) thousand dinars If we consider that the interest rate 10 percent annually, while the same amount if invested in the purchase and sale of U.S. dollar cash it will achieve an annual revenue up two million, six hundred thousand dinars, ie as if the bank has invested five thousand dollars interest rate up to 45 percent per year, so the motivation or incentive to the granting of loans and advances and banking services will become no avail, as it will push the bank to bear the expenses of credit and the risk of non-payment and follow-up and the opening and marketing branches and affordability, While he can achieve four to five times the same yield earned from loans and advances in addition to the invested capital guaranteed 100 percent and there is no risk could face the bank If added to him Auction remittances van derived from the return will pay the bank to be indispensable Tam and the reluctance of full exercise of any credit or investment policy, the central bank calls her.


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