Central bank: the reserves of foreign currency than the local currency Exporting

Central bank: the reserves of foreign currency than the local currency Exporting

December 13, 2015

Central bank - the reserves of foreign currency than the local currency ExportingForm the subject of foreign currency reserves at the Central Bank of Iraq the focus of a panel discussion organized by the “Institute of progress” of development policies, which expressed concern over the worsening of the problems taking place in the economy and the financial and productive sectors experts.

The Governor of the Central Bank of Iraq on the Keywords during the seminar that “the reserve of foreign currency than the local currency issued by comfortable,” pointing out that “the global standard for calculating as an indicator of adequacy.”

And he declared that “the bank adds a day more than $ 500 million refers to the lack of concern in this aspect,” explaining that “the IMF said in a study two weeks ago that this reserve will rise again in 2016 to reach $ 91 billion by 2020″

He stressed Keywords that “the source of this reserve is not the central bank, as the decline does not mean there is a problem, since the reserve is the dollar, which comes from the Ministry of Finance and the decline in revenue resulting from the oil dollar sub-par this reserve with the central bank,” saying it was “a matter of natural “.

He stated that “the role of this reserve is to achieve a balance in the balance of payments, that is, between the need for the dollar and contained him by pumping quantities that kept the exchange rate, if the role of reservists to fill the need to keep a balance exists, and otherwise will increase the exchange rate and created the parallel market and the black”, so He stressed that the central bank “does not control Balaanaat for not originally responsibility for revenue, and you must understand this problem at the national level.”

Keywords and said that “demand for the dollar analysis reveals the lack of a production base,” pointing to “the existence of monetary policy, the dollar is pumped constantly puts pressure on the dinar required to provide to cover the expenses of fiscal policy.”

“The ideal situation in any country is that the local revenues and operating expenses cover to make the required balance, but this can not be achieved.”

He explained that “the Ministry of Finance spent about 54 trillion dinars in the first ten months of the year, while non-oil revenues amounted to 4 trillion, while the other does not exceed the real revenues include taxes and other trillion dinars.”

He revealed the Iraqi central bank governor during the seminar that “80 percent of banks experiencing problems and are unable to provide financial liquidity required”, declaring that “the Central decided fined for violating the instructions, and was a big fines built on as profits from these operations to exceed 400 billion dinars.”

It did not lose sight of the reference to “the existence of suspicions in some banking transactions related to money laundering,” stressing that “This case dealt with according to the law.”

He explained that “Iraq today is suffering from the problem of vibration global banks, which is now dealing with caution and with a limited number of Iraqi banks confidence”, stressing that “what is needed is to maintain international confidence.”

Keywords He said that “restrictions on the sale of currency means parallel events and market speculation and fraud and blackmail, so you should not do so on the central”.

He announced “activate the work of anti-money laundering and banking supervision office and give them financial and administrative independence,” pointing to “make great efforts to prepare a law to combat money laundering, which was approved, which is in line with international frameworks and the Organization of FATF, as Iraq was about to enter the blacklist if it did not approve “.

He described the former Planning Minister Mehdi al-Hafez economic situation in Iraq as “very difficult”, as a result of falling oil prices. He believed that this “is reflected in the central bank as a basis part of the economic system.”