Increase the capital of the Central Bank to one trillion dinars

Increase the capital of the Central Bank to one trillion dinars

24/7/2017 12:00 AM

Central Bank of IraqBaghdad / Farah Al-Khafaf As
part of the state’s efforts to keep abreast of global economic development, the Council of Ministers and MPs are working on amendments to the Central Bank of Iraq law.
This comes at a time when an economist praised the new amendments, which he pointed out that it will be radical and important and will develop the Iraqi money market.
According to a copy of the draft law, “Al-Sabah” obtained a copy of it, the new law aims to “increase the capital of the Central Bank of Iraq and to keep pace with global economic development and grant powers to the bank and increase the number of members of the Board of Directors of the bank from outside the bank and the formation of a committee to audit and issue commemorative coins and impose interest on Loans granted by the bank to commercial banks and the preservation of its funds from bookings issued by judicial decisions. ”
The law stipulates that “the capital of the Central Bank of Iraq shall be one trillion dinars fully owned by the State.” Reserve management allows the new law that ” the Central Bank of Iraq will hold deals on foreign assets and manages the official foreign exchange reserves of the state according to international best practices and the objectives of monetary policy, as the Board may invest such a reserve in gold located in the Iraqi Central Bank coffers cash, currencies Foreign currency and cash equivalents that are normally used in the performance of international accounts held by the CBI or for its account, credit balances payable on demand or payable after a short period in foreign exchange normally It is used to perform international accounts maintained by the CBI in its accounts or those that invest through repurchase and repurchase agreements and fixed deposits for multiple periods Full confidence in addition to SDRs available for the Iraq account at the International Monetary Fund, The International Monetary Fund, as well as any negotiable or fully trustable securities issued by foreign governments, central banks, international financial institutions, and foreign local authorities and agencies paid in foreign currencies T – usually used in the performance of international accounts maintained by the Central Bank of Iraq or for his account. ” Investment portfolio also allows the bill to the bank , ” the use of financial derivatives in investment portfolios as a tool to hedge, and the issuance of coins commemorative non-negotiable, and that the Central Bank of Iraq chooses the approval of the Minister of Finance , an international company based external audit and financial audit for a period of five (5) years, shall not be Its frequency shall be repeated for consecutive periods of more than 10 years. ” Development work and sees economic expert Rahim Shammari told the “morning” that ” the legislation of these amendments will contribute to the development of the Bank ‘s work, allowing greater freedom of the money after the capital increase.” He pointed out that “these amendments are the second after the issuance of the law of the Bank issued by Order No. (56) for 2004 on the Coalition Provisional Authority (dissolved),” noting that “the Iraqi Central Bank succeeded during the past period in maintaining the exchange rate of the Iraqi dinar, A good thing about Iraq’s financial stock. ” New products Shammari expressed “optimism about the next phase, especially with the intention of the bank to develop its work by adopting new products.” The governor of the Central Bank Ali al-Alaq had confirmed that Iraq has passed the difficult stage Ā«pessimisticĀ» that has passed during the past two years and accompanied by statements are not based on facts that raised terror in the Iraqi street. The exchange rate of the bank, which is a “safety valve” for the economy and monetary policy of the country, that the rate of inflation did not exceed 2 percent, while the dinar maintained a stable exchange rate at acceptable limits despite the challenges, in addition to the index raised the interest of global institutions supporting, The Central Bank has raised the IMF’s expectations by 10 billion dollars despite the exceptional circumstances that the country is undergoing.

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