Controls to reduce the money being mishandled currency auction
Controls to reduce the money being mishandled currency auction
18/05/2013 12:00 AM
Expert stresses the importance of follow-up financial transfer
BAGHDAD – Hussein ثغب Tamimi
stressed economic expert Mohsen al-Zaidi on the importance of promoting monetary policy and the adoption of measures more accurate in various financial operations adopted by the central bank and stand at the activities of the banking sector civil and organized to serve Alaguetsd local beneficiaries from the experiences of the world in this field.
said Zaidi: The duties of central banks in the world information because it involved and responsible for the management of monetary policy and maintain the relative stability of foreign exchange rates and interest rates prevailing on them, and here can benefit from international experiences in the country and employ them for the development of the financial sector locally.
said in an interview for (morning) that global central banks use several means to achieve its goals and to prevent rapid fluctuations in the financial market and of Brphi banking market in foreign currency by local banks some time the need arises and under controls commensurate with the conditions of the financial market as well as selling foreign currency at a lower price than the market price For the purposes of tourism, medical treatment and other humanitarian needs and cover the wages of the study and the amounts of credits and foreign remittances and prices and commissions less than Saralsouk, as well as strengthen the assets of local banks.
said Zaidi that exceptional circumstances through which Iraq requires there to be treated exceptionally monetary policy, and so they can be the adoption of measures that would contain the financial problems and are heading towards activating economic sectors, pointing out that it requires from the central bank and the competent departments to determine what exceptional circumstances for the purpose of developing solutions to them, indicating that the reality of the financial sector needs to stand up when a lot of important things and with a direct impact upon the most important follow the mechanics of foreign exchange where money is transferred by entrepreneurs and professional organizations so for multiple purposes and follow-up mechanisms for the signing of contracts carried out, whether structural or import in the public and private sectors and the resulting need to transfer money abroad.
and the high demand for the dollar, said Zaidi : that demand will continue to be, and if Matuagaf central bank, even for a short period for supplying the market in foreign currency will lead to a significant rise in the price of the dollar against the Iraqi dinar, and was on the central bank controls to fund what is allowed and drying what is otherwise, pointing to the importance of the existence of mechanisms that prevent the misuse of funds sold auction currency, and that is monitored companies and offices who practice acts of conversion and banking, which accounts for the money through the purchase of citizens at a higher price than the official price. pointed to the negative effects of social to sell the dollar to the citizens in terms of the quest for a monthly income varies from one family to another and by the number of passports that they have and without that there will be work product against this income as well as creating a state of rushing big the citizen and his sense of hurt in front of the doors of banks that sell the dollar and push a lot of staff and workers in the public and private sectors and craftsmen to leave their jobs and stand in long queues to get a share of the monthly dollar, as well as opening a new door for financial corruption through the exploitation of some financial players to passport holders who can not get a dollar a meeting to participate in the price difference or acquisition it fully, as the price difference in the five thousand dollars reached (450) thousand dinars, an amount equal to the monthly income of some workers, leading to the creation of a state of contempt action and transform the citizen, whether working or not to seize the opportunities, especially in light of the absence of any controls to the process of buying and selling of foreign currency.
, and pointed out that the Central Bank of Iraq Select the Permissions granted credits various controls domestic and foreign investment is in the mildly controls and mechanisms, we can say it it’s more than good, but requires the central bank to implement its monetary policy carefully in this area, for example, has allowed the central bank to banks بتسليف and the granting of loans in various forms and up to eight times the bank’s capital and under the publications urged banks to achieve this rate or any rate close to them, but it did not take into consideration that the banks when granting credits are calculated several things before lifting the proportion of grants, including the amount of yield or interest earned for these credits and the amount of expenses left behind by policy Central Bank monetary
and said if what has been awarded five thousand dollars as a loan or an advance or other they will achieve an annual return up to (589) thousand dinars If we consider that the interest rate 10 percent annually, while the same amount if invested in the purchase and sale of U.S. dollar cash, it would annual return up to two million, six hundred thousand dinars, ie as if the bank has invested five thousand dollars interest rate up to 45 percent annually, so the motivation or incentive to the granting of loans and advances and banking services will become no avail, as it will push the bank to bear the expenses of credit and the risk of non-payment and follow-up and the opening and marketing branches and affordability, while he can achieve four to five times the same yield earned from loans and advances in addition to the invested capital guaranteed 100 percent and there is no risk could face the bank If added to him Auction remittances van derived from the return will pay the bank to be in the full richness and the reluctance of full exercise of any credit or investment policy, the central bank calls her.