Iraqi civil banks accuse CBI of not meeting the needs of the Iraqi market; Needs nearly $300 million in market every day to fill needs of the currency
Accused the Public Authority for the North Bank for Finance and Investment, on Sunday, the CBI not to meet the needs of the Iraqi market of hard currency over the past five months and refer that the responsibility of private banks, while confirming that Iraq needs to pump nearly $ 300 million in the market every day to fill needs of the currency in the currency when he criticized the central bank remarks promised they attack him and “stems from ignorance and lack of knowledge of monetary policy.”
The head of the Board of Directors of the North Bank and Investment and Finance Nawzad David Dry in an interview to the (long-Presse), “The CBI did not meet the needs of the Iraqi market of hard currency for more than five months,” noting that “more than optimal needs met by local banks as makes a big upheaval between merchants and banks. “
And dry and that “a large part of politicians and central bank officials contend that Iraq needs the hard currency of between 85 to 90 million dollars per day, but in fact the need to market more than 250 and up to 300 million dollars a day.”
Dry stressed that “these words did not come without documents or evidence,” explaining that “the majority of its citizens are replacing the Iraqi dinar currency dollar and this one connotations need to market the dollar.”
The President 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, “But we source deserved in terms of providing money for our resources high of deposits and significant financial strength in this area. “
The North Bank management announced at a Snoop conference on Saturday that its 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 “measures the central bank was probably coming after a wave of political pressure and media,” asserting that “private banks do not need financial support from the government, but it needs to moral support and maintain its integrity banking and open the doors to them to deal with foreign banks are 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% what makes them 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 (long-Presse) that “the opinion of the North Bank policy of the Central Bank as a launching an attack on the bank,” noting that “the reasons for this campaign is a lack of understanding monetary policy and what is known about monetary policy. “
Mahmoud added that “in recent years after 2003 were given to private banks full freedom after the lifting of interest and commission and the emancipation of these things are positive things for these banks.”
He Mahmoud “However, 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,” noting that “the role of the central bank is to reduce these risks and pursue monetary policy and its flight forward or retreat. “
And Iraq’s cabinet decided on (16 October 2012), the prime BSA Abdul Basit Turki tasks central bank governor and agency rather than former Fed governor Sinan Shabibi on charges of issues financial and administrative corruption in the bank, especially in operations Auction dollars, but the something did not occur to the Bank’s work 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 said in a report issued in (21/03/2013) Following the end of consultations in Amman between a delegation of the Fund and the Iraqi delegation headed by VMware Planning Ali Shukri, and seen (long-Presse) it “an improvement in the financial sector”, but stressed that what still “need 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 “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.”
UNFPA emphasized that “the establishment of a banking system nationalist requires abandoning the current model, which is controlled where weak banks state-owned, which has preferential treatment apart from private banks,” calling on Iraq to do to strengthen its financial institutions public to ensure efficiency and transparency in the use of oil revenues. “