Dr. Ali Mirza: observations on the national development plan 2013-2017, issued by the Ministry of pl

Dr. Ali Mirza: observations on the national development plan 2013-2017, issued by the Ministry of planning

Posted on 23/05/2013


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( 1 - 6 Monetary policy)

(1) y 48 stated evidence to advocate for continuing the auction of foreign currency at the Central Bank in foreign currency. I believe that the auction should be changed towards a better mechanism to meet the request of individuals, the private sector and the State foreign currency through the banking system. This command will gain added importance when exit restrictions of Iraq Chapter VII United Nations sanctions which includes (no exit) deposit of Iraq oil export revenues at the Central Bank instead of the Iraq Development Fund DFI. The auction cycle time of composition and basis is an appropriate level of the exchange rate in 2004 and 2005 after many years of instability and imbalance in the exchange market. Now the cycle has finished and there is a need for a new mechanism.

(2) use the term smuggling plan (p. 48-49) which is characteristic of the banking system and presumably restricted editor in Iraq now. The use of this term is inappropriate, especially since it recognized in the plan and is different from money laundering. Perhaps the term capital flight. However, unlike the term smuggling currency, capital flight is not illegal. Are economically undesirable but addressed not only banking tools as presented in the plan, but the improvement in the investment climate and reduce uncertainty and improve the security situation. This only if skip escape a threatening the balance of foreign exchange reserves. In this case, the restrictions on the movement of capital and other banking procedures.

(3) on p. 52 recommended edit interest rate and exchange rate liberalization of restrictions on the movement of capital. These recommendations with recommendations on next pages about the need to reduce the interest rate (and the granting of a preferential rate on p. 53) exchange rate stability and combat the smuggling of currency (which include restricting the movement of foreign exchange).

(4) in the same direction to determine the import plan "to keep the exchange rate" (p. 48). The select import as in the old testament led to the emergence of a parallel market has led to a severe deterioration in the exchange rate of the dinar.

(5) the plan calls for the Central Bank to lend banks (p. 47) while complaining about the liquidity problem of banks.



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