Cabinet calls for the central bank not to adopt any policy without his consent

Sunday, April 1, 2012 08:25

BAGHDAD / Baghdadiya News / .. as demanded by the Secretariat of the Council of Ministers Governor of Central Bank of Iraq official letter, not to adopt any monetary policies¬†Without his consent, according to the provisions of the Iraqi Constitution, the Finance Committee, member of the parliamentary committee that the process of hosting the Governor of the Central Bank to query him about some of the variables on the recent depreciation of the dinar against the dollar and… the decision to impose custody on one of the private banks.

¬†According to the text book, published by the Secretariat of the Council of Ministers, and addressed to the Central Bank of Iraq and got / Baghdadiya News / to Mschh it “on the basis of what stated in Article (110 / III) of Part IV of the Constitution of the Republic of Iraq which indicated that the terms of reference of the authorities Federal exclusive formulating monetary policy and the establishment of the Central Bank and its management, “We hope to provide the monetary policy of the Central Bank to the Cabinet for information and approval, the failure to adopt policies without approval by the Cabinet in the future.”

The Central Bank of Iraq who was responsible for formulating and implementing monetary policy in Iraq and on the management of the money supply and issued, and supervising the work of government and private banks and follow the movement of capital and the proceeds of sale of oil from the dollar in the official auction to finance the government budget.

The Central Bank issued a recent decision to impose custody of one of the largest private banks, a Warka Bank Al Ahli, giving rise to a series of criticisms between the banking community and the parliament, economists, given that such decisions would weaken the power of the private sector and send messages of intimidation of foreign investors who wish to work in Iraq.

An official source in the Union of Iraqi banks, which preferred not to be named among the “there’s no doubt that the central bank and monetary policy adhering to them since 2003 and now, with no development and the development and keep pace with market developments and performance, added a kind of inertia on the performance of the latter, and this allowed the authorities other intervention in this policy, it is right to do so because it varies in its place.

And on the central bank’s decision last to impose trusteeship on the Warka Bank and then returned to show that Warka is one of the banks strong and has assets over liabilities and is capable of recover, the source said that this position the last positive but came late and he can cure it without the imposition of trusteeship n because the central bank is a bank of banks and banking, it manages not to abandon the banks that are supervised and monitored its performance because the monthly statements disclose everything and on a monthly basis, which is familiar with the full details. “

With regard to other developments in trusteeship source confirmed that this issue has reached into the solution, and the central bank seemed to be convinced to resolve issue through action is upon himself Comerkza, and focus on providing financial support through the mechanism of lending, is now facing customers the bank and it solve problem, and provide financial support not surprising because it is the mechanism and laws do not intersect or impact on the other hand, being a loan is refundable.

And that Warka Bank’s assets exceed the 700 billion dinars and 450 billion is required that any of its assets and liabilities of this weak positive in favor of the bank and the evidence of his power.

Member of the Knesset Finance Faleh valid Djiashi that “monetary policy linked to the Central Bank and the Central Bank is linked to the legislative authority with the presence of specific paragraphs of the executive branch, and I personally commend the role of the central bank at the international, local, File Manager and other debt.”

He said, “What distinguishes the current period is the lack of a clear vision for managing monetary and fiscal policy, stressing that this week will call the governor of the Central Bank of the Finance Committee to discuss monetary policy and some of the interventions and interactions in the powers between the executive bodies.”

With regard to the impact of some decisions on the private sector, Djiashi said, “We know other details relating to these decisions while the call to determine if it was conducted in conformity with the laws or resolutions of the mood or the payment and the impact of competitors, but I left out some of the effects.”

Deputy Governor of the Central Bank of the appearance of Mohammed, said in other remarks that “the Warka Bank is able to recover again, especially that he has guarantees of real estate Akiemha up to (250) billion dinars, and multiple branches in the country, pointing out that the trusteeship was to maintain depositors’ money and financial stability in the country. “

Saleh said on Saturday that “the central bank has commissioned the auditor, and to prepare a special report from Warka Bank to show what the bank’s ability to resume activities by granting financial assistance as a loan.”

The central bank announced on the status of the Warka Bank under the trusteeship system after the failure of his talks with Standard Chartered Bank of England, which began in April 2011 to buy a stake in Warka. / Finished / 27 / a. P