Governor of the Central Bank on the Keywords in dialogue with the (long)
Governor of the Central Bank on the Keywords in dialogue with the (long)
29/03/2015 (21:01 pm)
Interviewed by Ghazanfar Laibi
Iraq will be placed under the “black list” unless acknowledges Money Laundering Act
the existence of Article 50 in the budget may expose Iraq’s assets abroad into custody
We made an appeal on the materials that affect the independence of the Bank’s work
The first part
Governor of the Central Bank on the Keywords warned that Article 50 in the budget law has been Iraq’s assets and reserves abroad to risk booking, and while pointing out that capping sell the currency means that the government robbed the bank tool exercised through which monetary policy, confirmed that the bulk of money laundering operations in Iraq due to tax evasion.
and below the full text of the first part of the interview conducted by the “long”, with the relationship ..
Observers believe that the auction is not the currency of the central bank’s responsibilities and cause many problems for the bank, you will continue to auctions, and are there alternative options on the table in front of the bank to be delivered to the government or switch mechanisms work?
– “The central bank is responsible for the coverage of imports and the necessary requirements and other foreign currency, and here we are talking about the dollar, and through this process as well, and by determining the exchange rate, the central bank to achieve a goal of his goals and is price stability, because the oscillations that occur in its exchange rate implications for inflation, employment and other things states that have foreign currency source mainly a specific one source, as is happening in Iraq, where the source of the dollar for Iraq is oil sales and received by Iraq against these sales of the dollar, the Ministry of Finance in the process of selling it to the Central Bank against the dinar Iraqi, and we can say that the central bank has a ratio greatest and biggest of the dollar, so the central bank to the process of selling the dollar in the market, in order to take the interview of the dinar, which buys it from the Ministry of Finance dollar, nor inevitable and unavoidable that the central bank to provide foreign and sell currency In the market, there are countries that have a variety of sources for the dollar and the market is limited by the supply quantities and demand and the central bank does not have to engage in selling or buying, but if you find there are significant changes in the price of the currency so it may the process of buying or selling in order to create a kind of balance “.
after the oil crisis and low prices, we learned that the choices faced by the Central Bank determines the sales ceiling (which is what has been going to him by the parliament and the government, through Article 50 in the budget, which set sales by $ 75 million a day) and the abandonment of cheap and thinking Dollar float to raise its price in front of the dinar gradually, the question, do you see the Central Bank had been compromised by Article 50 the independence of the Central Bank? Do this daily sales in the ceiling, or is it overtaken? Is it a correct decision in your opinion?
– “The determination of the central bank sales of the dollar was surprising for the central bank and the government, that placed more than material concerning the substance of the work of the central bank and its functions and this affects reportedly Constitution of the independence of the Bank and touches the central bank, which did not allow the intervention of any party law or any other party the activities of the bank and its decisions, so we agree with the government on the appeal of this material, and there is a risk not pay attention to him when you put this article in the law, because the presence of such material in the General Budget Law for 2015 shows assets of Iraq and reserves abroad to risk booking because Iraq was able to to defend its assets abroad by emphasizing the independence of the Central Bank even prevents any type of booking or any legal action last, and when the materials are placed in the budget related to the Central Bank Act, the budget is a government bill was approved by the Parliament therefore read externally that the government has become intervene in the work of the central bank or that he associated one way or another, or subject to its effects, and this may be an excuse to creditors or other exposure to our assets abroad parties, so we have agreed with the government to appeal to those substances, were presented to appeal a fundamentalist to the Federal Court. ”
Is there an intention to go to the bank to raise the price of the dollar, rather than determine the quantity?
“Can not the Central Bank identifies the quantities contained in the budget law, and can not work developed specific to sell the currency ceiling because the subject touches the essence of monetary policy, which constantly changing, and may change daily, in the light of the existing variable was forced to sell larger quantities at a time certain or less quantities in the last time, and by currency movement, exchange rates and, according to the country’s need, for example, when the government asks for decades or equipment specific amounts which obligations exist in the budget law, the central bank, can not be determined such requests to the presence of a certain ceiling, as this would affect the obligations Streptococcus central bank, so when specifies roof to sell the currency, it means that you robbed the bank a tool of the most important his tools, which can be exercised through which monetary policy, exchange rates and currency, and on the other hand, recognize the reality of placing the material within the budget law, and intended not to alienate reserve foreign currency and attempt to control it a way that preserves the desired level of these reserves, understand this trend and are working on it, but without prejudice to the policy of a fixed roof and the nature of the work of the central bank mode, and also prejudice the issue of supply and demand of foreign currency. ”
hl there is coordination between the central bank with the government and parliament? How is this coordination? What are the mechanisms of action? It is said that personal attributes and relationships party could play an important role in that?
“The independence of the central bank so far respected by everyone, and the only case that I got and we are going to address them, are crammed central bank in the budget law, which reflects the fiscal policy issue, not interject its monetary policy, which is a variable policy, not fixed, and either the subject of independence, There is an important and fundamental point, because independence is not a slogan, or just a recipe given to this side or that, the real translation of the independence of any institution is the law, and to what extent the law that the administrative independence, financial or technical, so it may be a mistake to rule on the issue of independence or evaluated by classifying institutions independent of it or not independent, and we must go further than that, and we see the law of that party, what gives them the translation of this independence, perhaps an independent body in the title be, but law Akplha many restrictions and subjects them to the regulations and instructions and other “.
There is a law on the Central Bank, is being applied correctly? The immunity granted to employees?
– “The Iraqi Central Bank Law of distinct laws compared to central banks in the world, broad and much enjoyed by the independence and immunity and non-interference in its affairs and the independence of its decisions, and is the central bank law, ahead of many of the world’s central banks that do not have so much autonomy and the other part is to respect this independence by the executive authorities or legislative, and so far we have not seen significant violations or encroachment on the authority and independence of the Central Bank, and any dispute in this regard resolved through the Federal Court if there was a difference in interpretation, and did not face violations or interventions “.
Is the central bank faced political interference in the previous government period?
There was no interference in central bank decisions, because the decisions are protected by law, and can not interfere with one hand in decision-making, and in the event of an intervention by the central Van could defend and does not respond to these interventions, because the central bank law gives him such a force, and got maybe in previous periods differences in views in the way of the Central Bank or the issue of currency auction or other things that the government in coordination with the Central want a high degree, which is located under the law, and there were a desire that the bank takes the economic and developmental role, as happened in the previous period, while confined Bank and effort and activity concentration in the process of currency sale through auction, which consumed a great effort and enter the relationship between the central bank and the banking sector the framework for complex problems and differences and others, we are now not forgive the process of selling the currency, but others sell mechanisms to another way to be more control over these operations and more transparent and more distant from the problems that were taking place between the central bank and the banks. ”
Have you identified a group of banks to sell the currency and what is the mechanism?
Each Registered Bank and metaphor and all conversion company can buy the currency in addition to the banking companies that buy through banks, taking place under the supervision and approval of the governor by providing daily disclosure requests and agree with it with full transparency. ”
It is well known that one of the central bank departments responsible for money laundering, what the nature of the work of this department? Is able to get their hands on money laundering cases? What number? What is the size of money?
“Laundering activities money to gain international attention, and not at the local level to carry the risk of it be a cover to pass criminal operations and corruption and even terrorism and other operations, so the increased interest in this aspect because of the dangers that threaten the world extensively crime because of terrorism, Iraq has entered the years to before Financial Action Task Force organization dealing with this subject, and the Central Bank of the functions of the reduction of these phenomena, and the Central Bank Law and the Law on Money Laundering, Bank is obliged to give strength and power and autonomy special unit responsible for this work, the office reported money laundering, and was a management point of view Previous see that the money laundering case is not the core of the work and the attention of the central bank, so I did not give this issue enough attention, and this was the subject of criticism of international organizations, and we have had previous conversations with the Central Bank of The administration believes that this work is possible to play on the other hand, we were We emphasize that the central bank law and the law of money laundering, put this task on the central responsibility, and the law has not changed, can not be the central bank is trying to say this task, so I did not witness this activity or this configuration attention or focus during the last period, we started since that cost us this task by giving this issue a priority and great importance, and we have to strengthen the composition of the administrative, financial and technical potential, and its curve autonomy within the Central Bank has a special budget and an angel and independent place, so that independence which emphasizes the international agreements are available to him, and many of the observations are installed on Iraq is currently the subject of money laundering depends on the existence of the law covers all things related to these aspects, since we took the job we have given considerable attention to the completion of a draft law suit and in conformity with international standards and requirements and the Organization of Financial Action Task Force, and accomplished this project and has been reviewed by international organizations and is now in the Council of State and will end soon and referred to the Council Ministers and the House of Representatives, and is Iraq within rating organization in the gray area, and if they do not accomplish this law, if approved did not appear within the next three months, Iraq has been placed on the black list, so we have a very large keen on the completion of this project, which will end soon Council State Shura, and we met with Mr. Speaker of the House and Pena him the importance of the bill and promised to do better. ”
kev are the most prominent of money laundering operations in Iraq?
Longer term or activity of money laundering recently in Iraq by virtue of circumstances and changes that have occurred in the country, and there is a description of the process of money laundering numerous and extensive activities, and through our work and through the banking sector correlation Central Bank in terms of supervision, we found that the bulk of the money laundering operations resulting from tax evasion, eg import materials, foreign trade and be large sizes and billions per year, but we see the tax receipts are not commensurate with the size of these imports at all, and the materials required to be covered by the Central Bank of the dollar, and in the real permits customs that are as yet see that the percentage of materials recorded is worth only a very small percentage of unauthorized advance when you buy the dollar, and this type of tax evasion. ”