Keywords: challenge the federal budget to determine currency auction sales supports the independence of the Central Bank

Keywords: challenge the federal budget to determine currency auction sales supports the independence of the Central Bank

07/07/2015 09:15 GMT

Keywords - challenge the federal budget to determine currency auction sales supports the independence of the Central BankFollow-up – and babysit – counting the Governor of the Central Bank of Iraq and the Agency on the Keywords, the Federal Court to accept the appeal in private financial budget law materials Bank as “supports the independence of the Bank and deported to influence its policies and decisions.”
Keywords and said in a press release, “The foreign currency sales (the dollar) is not an option and are not the business process or coverage of the activities of a commercial, but is in the Iraqi situation, as is the case in countries which controls the export of foreign currency and a monopoly by virtue of the nature of its oil resources such as States, the process of replacing the existing Iraqi dinar to the dollar in trading in order to provide the Ministry of Finance dinar against the dollar, which is received by oil sales, which do not need even need the Iraqi dinar to finance the general budget. ”

Keywords and added that “determining the dollar sales ceiling means the result determine the amount of the taxpayer dinar general budget,” explaining that “in the case of specifically taking, as stated in the General Budget Law, it means a shortage and a large decrease in the amount required to cover the budget expenditures of the dinar.”

And that “if the central bank sold $ 75 million a day as set out in the budget law, it means that the central bank will sell annually the equivalent of almost 22 trillion dinars, while operating expenses (JD) about 70 trillion dinars.”

He explained Keywords, that “this fact is clear to many who call invitations determine the dollar sales ceiling, as well as a lack of understanding the role of the central bank and its mission to stabilize the exchange rate and public prices, which require high and persistent in the quantities sold by the bank flexibility.”

He pointed out that “there is a big difference in the exchange rate between the official rate and the parallel market price is paid by the citizen and the economy, investment and hurt huge profits in the pockets of greedy and malicious, and can not curb all this only to control the quantities beyond a shadow of those dangerous phenomena.”

Keywords He continued that “the Federal Supreme Court’s decision to accept the appeal submitted by the Central Bank in the materials, which included limitations and orders to the bank, came accordance with the Constitution and the law of the central bank,” saying the court’s decision “constitutes a great importance because of its impact in promoting and supporting the independence of the Central Bank and the dimensions to influence policies and decisions, and this independence is not a matter of form but is the basis of the requirement to enable the central bank to achieve its tasks, particularly in monetary policy by the diversity of nature on the tools and flexibility orientations. ”

The Governor of the Central Bank that “the general budget law governing fiscal policy in spending and annual revenues, something they have to be specific to the items contained in it by virtue of the nature of the resource and expenditure management,” adding that “monetary policy is totally different from fiscal policy as a nature movement and flexibility and to deal with the changes in the economic situation and market conditions. ”

He pointed out that he “did not happen in countries that follow the market system to have the budget law is checked and directed and constrained by the policy of the central bank, or even in the other because it loses its central bank role and took away his tools used to create a balance and get to achieve the goals that move the market movement and the economic situation and cases inflation, recession and other “.

Keywords and stressed that “these movements occur on an ongoing basis and sometimes on a daily basis, and the law of the budget law applies for the year, making it a real limitations and restrictions tied monetary policy and this reverse their role and nature.”

The Federal Supreme Court, announced today the unconstitutionality of a number of financial budget law for 2015, including Article 50 materials, and the judge to “compel the Central Bank establishes its sales of foreign currency (dollar) in its daily auction ceiling does not exceed $ 75 million a day.”

It is said that the central bank opposed this selection was made by an appeal to the Federal Court from being tied “financial movement and secure liquidity in the financial markets.”