Banks is capable of: the central bank does not provide only one third of the market need of dollar
Banks is capable of: the central bank does not provide only one third of the market need of dollar
04/08/2013 (23:01 pm)
Baghdad / term Press
Accused the Public Authority for the North Bank for Finance and Investment Sunday CBI not to meet the needs of the Iraqi market of hard currency for the past five months and refer to the responsibility of the private banks, while confirming that Iraq needs to pump nearly $ 300 million in the market every day to fill its need of currency . While criticized these statements Central Bank promised they attack it stems from ignorance and lack of knowledge of monetary policy.
The head of the Board of Directors of the North Bank, investment and finance Nawzad David Dry in an interview to the extent Press, The Central Bank of Iraq did not meet the needs of the Iraqi market of hard currency for more than five months, noting that more than Thelta needs met by local banks, what happens confusion great what between merchants and banks.
And Dry: Much of the politicians and central bank officials contend that Iraq needs the hard currency ranging from 85 to 90 million dollars per day, but in fact the need to market more than 250 and up to $ 300 million. Daily. Dry confirmed: that this speech did not come without documents or evidence, pointing out that most citizens are replacing the Iraqi dinar currency dollar, and this is one of the signs of a market need to the dollar.
The head of the Board of Directors of Bank of the North, which is one of the largest banks Iraqi Special shorten the central bank to provide hard currency and not the government’s commitment policy free market happen confusion in the market, but, he added, saying: but we source deserved in terms of saving money, and our resources high of deposits and significant financial strength in this area.
The Department of the North Bank announced in an annual conference held last Saturday: that profits in 2012 amounted to 68.813 billion Iraqi dinars, the highest in recent years among the general Iraqi private banks, which have increased in number to 35 banks, and stressed that its deposits amounted to 1.604 trillion Iraqi dinars. Promised dry that the actions of the central bank was probably coming after a wave of political pressure and media, stressing that the private banks do not need financial support from the government, but they need moral support and maintain its integrity banking and open the doors to them to deal with foreign banks better.
The deputies, politicians and economists have accused the Iraqi Central Bank over the past months to burn an average of four billion dollars a month in an auction of hard currency for the benefit of ten banks, mostly with capital Gulf, buy a day most of the claims of the Central Bank of hard currency and profitable obscene up to 6% including makes the control of the Iraqi economy.
For his part, said a member of the inspection department at the Directorate General to monitor the banking and credit at the central bank Ali Mahmoud said in an interview to the extent Press: The opinion North Bank policy of the Central Bank as a launching an attack on the bank, noting that the causes of this campaign is the lack of understanding of monetary policy and what is known for monetary policy.
Mahmoud said: In recent years after 2003 were given to private banks full freedom after the lifting of the interest and the emancipation commission, and these things are positive things for these banks. He Mahmoud: But some shareholders bankers ignorant just looking for profit without the knowledge of the rest of the things, and accused them of being thinking profit pure without thinking risks to banks, indicating that the Central Bank’s role is to reduce these risks and follow-up of monetary policy and مسيرها forward or abating. And Iraq’s cabinet decided on 16 October 2012, the prime BSA Abdul Basit Turki tasks central bank governor and agency a substitute for former Fed governor Sinan Shabibi on charges of issues financial and administrative corruption in the bank, especially in the operations of the auction on the dollar, but nothing occur to the work of the Bank and currency auction, whereas the exchange rate of the Iraqi dinar significant decline against the dollar, jumped from 1170 dinars to the dollar in the fall of 2012 to 1270 dinars to the dollar in April 2013.
The Fund had said in a report issued in 21/03/2013 after the consultations held in Amman between a delegation of the Fund and the Iraqi delegation headed by Planning Minister Ali Shukri and seen long-Presse it an improvement in the financial sector, but stressed that it still needs to greater efforts by the central bank to revise the monetary policy tools and strengthen banking supervision, and accelerating the restructuring of the banking system.
And called on the International Monetary Fund Central Bank of Iraq to take progressive measures towards liberalizing foreign exchange through auctions held by the Bank so as not to repeat disorders suffered by the financial market in the past year.
Fund stressed that the establishment of a national banking system requires abandoning the current model, which is controlled where weak banks by state-owned receive preferential treatment apart from private banks, calling on Iraq to do to strengthen its public financial institutions to ensure efficiency and transparency in the use of oil revenues.
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