Abadi economic adviser warns of collisions with the interests of America
Abadi economic adviser warns of collisions with the interests of America: the wounds of the siege of the nineties has not yet healed
Baghdad today _ follow-up
The economic adviser to the prime minister, the appearance of Mohammed Saleh, in an article published on Sunday, 19 August 2018, collide with America’s economic interests, as revealed how to protect Iraq’s reserves of hard currency.
“Protecting and stabilizing Iraq’s foreign reserves, diversifying them and ensuring their liquidity is one of the main objectives of managing the risks of central bank governors within the criteria of reserve adequacy,” Saleh said in an article published by Baghdad today. “The low returns and the high liquidity of assets or assets To be converted into cash immediately without loss as short-term treasury bonds, and other instruments of sovereign financial investment rather than investing in high-yield assets with low liquidity and high risk, “noting that” this to ensure the effectiveness of monetary policy in addressing the risks of liquidity of the economy and died Stability of the national currency against volatile balance of payments and sudden external shocks “.
“One of the reasons for the Southeast Asian crisis of the 1990s was that Asian central banks were investing in US-style financial options and derivatives in futures markets, which made foreign currency liquidity more difficult to meet the risks of current account volatility for their balance of payments at the time, .
“While its governor has shown the availability of efficient and liquid assets (in terms of formality only), but in fact the assets of its portfolios were low liquefaction due to high risk in the pursuit of return and significant risks in their liquidity,” noting that “the IMF adopted the approach of investment evidence Prudent and safe way to guide the central banks in managing their reserves of foreign currency easily and efficiently high and avoid liquidity risks.
Saleh added that “part of the reserves of the Central Bank of Iraq dollars and part of the tributaries of the general budget of oil revenues are invested safely under the revised investment guide and agreed on its principles with the International Monetary Fund more than twelve years ago within the policy of diversification of the portfolio to obtain appropriate returns, US sovereign bonds with a high AAA credit rating. ”
He pointed out that “as far as the financial history of Iraq is concerned since 2003, it should be noted that Security Council resolution 1438 in March 2003 obliged Iraq to open an account of oil receipts called OPRA at the Reserve Bank or the US Federal Reserve in New York, a central mechanism to deduct compensation for the war in Kuwait, Which is still in place today. The United Nations Chapter VII of the Charter of the United Nations continues to be very regrettably against Iraq, even if it is shy or non-visible until the full war of Kuwait is extinguished, of which only $ 4.5 billion remains. ”
“This is an unprecedented arbitrariness against the interests of the wounded Iraqi people. As for the reserves of the Central Bank of Iraq deposited or invested in the Federal Bank and the subject of its protection from judicial arrest or freezing procedures, it is useful to mention but one of the judicial facts, The federal court in New York State has rejected a lawsuit against the Argentine central bank years ago because it is non-commercial and performs the function of stability and belongs to a central bank whose law refers to independence, “pointing out that” the same case is supposed to apply in the application together Legal Rh on the funds of the Central Bank of Iraq as long as the funds deposited in the country’s banking institution exercising the function of the Central Bank and also with the objectives of the same stability. ”
“In spite of this, we must not lose sight of political risks with the host nation,” he said. “The risk of collisions in the United States (from my own point of view) bears a bitter historical experience in Iraq’s financial history. Specifically, the Central Bank of Iraq accounts (including Iraqi government deposits open in its name implicitly) and for a decade grant immunity under an executive order issued annually based on US emergency laws. ”
He pointed out that “However, everything is permissible to avoid the risk of legal under the application of the alternative self-alter ego and expose the reserves of the Central Bank risks of freezing on behalf of the Republic,” noting that “Iraq had been subjected to such harmful legal practices during the nineties Adopted by the courts in areas of Jurisdiction Jurisdiction European and other, where it was very harmful to the Iraqi people. ”
He concluded by saying: “So I find the wisdom and reason to avoid conflict or to enter the risk of collision with the interests of the United States as a large country occupied Iraq and the former regime and is able to do something harmful and then it is easy to put the problems on the shoulders of the Iraqi people and its poor masses, The siege of the 1990s has yet to heal, accompanied by four consecutive decades of lost economic and social development. ”