Conflict between the legislative and executive control of the Iraqi Central Bank

On: Friday 06/04/2012 17:45

Baghdad / citizen 
at the time warned the Iraqi Council of Ministers of the Central Bank of Iraq of the consequences of the adoption of any tasks related to monetary policy without his consent, return of the Iraqi parliament these claims violations that can not be tolerated, especially since the Constitution gave the central independent authority under the supervision and control of the legislature without other.(citizen) got the official letter issued by the General Secretariat of the Iraqi Council of Ministers with the number s / 02/01/26 at 15/3, which is directed to the Iraqi Central Bank which stated,… “Based on what stated in Article (110 / III) of section IV of the Constitution of the Republic of Iraq, which pointed out that the terms of reference of the federal authorities exclusive formulating monetary policy and the establishment of the Central Bank and its management, please provide the monetary policy of the Central Bank to the Council of Ministers for perusal and approval, the failure to adopt policies without approval by the Cabinet in the future. ” first clashes are between the Central Bank of Iraq and the government occurred in 2011 when he refused to bank lending to the government from the balance of the cover of foreign currency, which currently exceeds more than 64 billion dollars deposited in U.S. banks, European, he promised the bank that amount that belongs to the people and the magnitude of the JD can not be manipulated. According to the law of the Iraqi Central Bank No. 56 of 2004, is an independent entity and it is not binding in the implementation of government policies at the expense of sacrificing the goals of stability and macroeconomic equilibrium, in the words of Deputy Governor, the appearance of Mohammed Saleh, who stressed, “that the financing of public expenditure is outside the functions of the monetary authority and closely tasks and objectives of the state budget. The Central Bank of Iraq who is 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 within and outside Iraq, and sale of oil revenues from the dollar in the official auction to finance the government budget. Member of the Knesset Finance, Faleh valid Djiashi, between “that the Constitution is clear in defining the functions and powers of the executive branch and also the powers of other authorities, and here kept the Constitution on the policies of the Central Bank in managing monetary policy within the law of the bank himself, and gave Parliament the power to control these policies.” He Djiashi that since 2004 and so far all actions of the central bank independent and professional was not affected by the jurisprudence of personal government officials and wills of political and partisan, and officials of the bank for them to attend local and international actors. ” The Djiashi he knows very well that the government warnings to the bank last came by long precedent when he refused to bank lending to the government of a cover currency $ 5 billion, and we Astgrbena the request of the Government how to resort to the withdrawal amount is to cover for its currency. He stressed that his committee will call the governor of the Central Bank to find out what these interventions, and how to exercise pressure on him by the government, especially that control the bank the validity of Parliament exclusively. As if the reason the government called for the bank to provide its policy for approval is the decision of the Trusteeship last issued by the Bank rightly Warka Bank NCB, especially since the government started two years ago, the implementation strategy to support the private sector to enable it to manage the Iraqi economy in the future, said Djiashi that this topic will be discussed with Shabibi as well as to determine if it was day conduct of correct and in accordance with the law or the impact of outsourcing and this is what left out. ” The Central Bank issued a recent decision to impose custody of one of the largest private banks, a Warka Bank Ahly, triggering a series of criticisms between the banking community and the parliament and experts economy, 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. official source in the Union of Iraqi banks, which preferred not to be named among the “he did not doubt that the central bank and monetary policy adhering to them since 2003 Even 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 of other intervention in this policy, it is right to do so because it varies in its place. Deputy Governor, the appearance of favor “He is, according to the Constitution, it is right to question the central bank Imam of the House of Representatives, and is not the government, with respect to its policy, objectives and this is a welcome being an independent body should be there on the other hand to help him to move monetary policy. ” He said the benefit we are ready to appear before the Parliament and to answer any question within the framework of monetary policy. ” With regard to the description of Parliament Book of the Council of Ministers of trying to interfere in the affairs of the bank said the appearance of “the newborn for the bank, according to law is the owner of an independent authority and the right of Parliament to monitor does not relieve him from the obligations of the limits of a particular toward the executive branch, the fact that the bank is a member of the Supreme Economic Council’s Cabinet and our mission of coordination and consultation with the Government Being the State Bank to keep the public money, we the financial advisor to the government and an integral part of the structure of the state. “