Auction currency in Central Bank of Iraq
On: Sun 20/05/2012 6:07
increased rumors and talk about fluctuating policies of the Iraqi Central Bank in recent times and particularly with regard to the work (Commission auction currency) The keenness of the Bank and the governor for the safety of this committee during certain procedures such as changing the composition of the Committee and the dimensions of his staff on the activity and the competence of this committee because of what was attributed them of improper procedures.
The bank is by trying to remove suspicions about the activity of the Commission complained of refuge to issue instructions is studied in adequate and comprehensive, which led to modify the instructions of sequential suffix and not integrated as well, which causes the instability of the market of foreign currency and confusion in his dealings and daily spreading concern among citizens.
that the solution problematic market foreign currency and restore stability to a radical solution and permanently can not be achieved only by making its imports diversified required by the Iraqi markets different, by letters of credit banking by banks licensed and operating in Iraq according to the contexts and applications of global and as it was being worked in Iraq since the forties of the last century.
of incomprehensible and convincing that the Commission auction currency allowing the transfer of huge sums out of Iraq by banking offices approved or companies money transfer to finance the importation of large mounts and varies talk about it now from different sources with sufficiently aware of or information scarce, unreliable, and might lie behind it politically motivated or self-interest illegal, as is popular these days in more than one affair. The first sound and the Secretary is to rely on banks approved operating in Iraq, has exceeded the number thirty, in the financing of foreign trade by opening letters of credit bank for the benefit of exporters of goods to Iraq, and these banks have correspondents in the countries of the world can be by them the implementation of credit for imports from that diagonals. Might be raised against this method of financing foreign trade arguments like saying that the different Iraqi importers do not know how to deal in banking to open letters of credit because of the absence of this practice since a long time, or claim that exporters insist on cash Akiem handed over the goods to importers Ejehzunha Iraqis. That the response to these arguments is that the open letter of credit is the prerogative of the banks are experienced in this banking activity which does not require the importer of Iraq but to deal with a bank and apply for credit and pay no more than 25% of the value of the goods to the bank instead of the converted in advance 100% of the value of the goods from non-bank guaranteed way. To say that the exporter requests recognizes the value of his goods in advance response must be the source usually receive their dues fully under the letter of credit open for him once submitted documents shipped the goods to a correspondent bank of the Bank of Iraq, who took to open the credit, he does not deserve its value before.
On the other hand could be strengthened by this import method in that the request from the Department of Customs to provide the Income Tax Department with a copy of Altsrihh customs, importers accounting for profits tax.
have reported recently that the government decided to subject to import licenses issued by the prior and the Ministry of Commerce, as was the case previously. That this resolution would provide ample opportunity and a new and valuable to corruption as it will control some of the staff who will grant import license to the enrichment of some importers to meet the benefits to them and deprive others do not like the behavior of method of purchase of receivables for the satisfaction of some of the staff. I have over the Iraq experience of time for such illegal practices that led to the enrichment of some importers are quick and great was the venue spacious for corruption, will come back to your past?!
Not only that, as would return to the method of import licenses development of a new cycle for this purpose and this implies Alasthaddat of large financial burden and unjustifiable, and will recognize her from the heavy bureaucratic and loop additional complex raises growl and curse the Board of this department who will have the time to appeasement of their hands it by illegal means.
after the 2003 laws were passed and the resolutions and instructions, Iraq has become under which countries of the free economy that its citizens be able to enjoy the advantages of this economy just like the corresponding country-has become the financial markets as markets of Beirut and Amman and the Gulf States, if not, such as the European markets, the Department has canceled the infamous foreign exchange that is unmatched in the countries of free economy. The features of this economy is that the Iraqi citizen is free to transfer funds to where he wants, provided that the source of those funds are legal as well as the purpose of converting it to avoid money laundering or terrorist financing as stated in the agreements and regulations of international, including the Basel various stages it is the duty of banks that are being conversion which to ensure the legitimacy of the source of money to be transferred and the safety and legitimacy of the purpose of that. However, he notes that the central bank put restrictive conditions of this freedom to dispose of money the citizen with the availability of legitimacy necessary, and instructed sequence to regulate the conversion processes, and perhaps Selhgaha another in their own way.
bottom line is that the reform of the situation calls for, among other things the abolition work of the currency auction and the organization of the import process from abroad through banks licensed in Iraq after providing foreign currency to it by the Central Bank and allow the transfer of funds as long as the source of a project and the purpose of conversion as well as not flawless, the application of the provisions of the Money Laundering Act and regulations issued thereunder.
Al-Mansour Bank for Investment