The Central Bank clarifies its vision for reforming the banking sector
The Central Bank clarifies its vision for reforming the banking sector
10/15/2020 08:32:01
(Baghdad: Al Furat News) A few days ago, the Central Bank of Iraq presented a vision to reform the reality of the banking sector in the country to strengthen the financial stability system based on competition.
The Governor of the Bank, Mustafa Ghaleb Makhaif, stated in a press statement that “the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals it seeks to achieve and specified under its amended Law No. 56 of 2004, the most important of which are (ensuring the stability of local prices and strengthening the system A stable financial system based on competition), to continue achieving the strategic objectives set out in the 2016-2020 plan.
“To this end, the bank recently presented the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it, the banking sector will be supported to advance its current reality. Of the specific criteria adopted by the bank, and on the basis of which the operating banks were classified.
He pointed out that “this classification will be reviewed at the end of this year, and continue to do so for the following seasons.”
He said, “This step comes within the framework of enhancing confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.” Once again, “the previous central bank confirmed in the request to banks that are lagging more than once to work” to correct their situation and pay dues. customers “, stressing that” this category will be an opportunity for those banks to prove its seriousness in achieving reform requirements and the payment of depositors and shareholders dues owed by those banks. ”
alforatnews.com
Economie
2020-10-16 | 05:03
Deputy explaining the reasons for the high price of the dollar against the dinar
On Friday, a member of the Parliamentary Finance Committee, Naji Al-Saeedi, revealed the reasons behind the high exchange rate of the dollar against the dinar in the local market.
Al-Saeedi said in an interview with Alsumaria News, “Any country that is exposed to a crisis in financial policy, its monetary policy will be affected in turn,” indicating that “Iraq Today, it operates according to a fixed exchange rate system, and it is very exaggerated and supports the external product, not the local. ”
Al-Saeedi added, “The shift from the fixed exchange rate to the creeping exchange rate, especially in periods of financial instability, will have a very negative impact on the expectations side, as if the price is raised to a point or two, it may affect four or five points in the market, and this is for him.” Negative effects on low-income people and the simple citizen, “stressing that” the use of inflationary financing or the new monetary issuance as the government borrowed treasury bonds from the central bank, the latter did not use the existing hard currency reserves, but rather used the new cash issue. ”
He pointed out that “this measure of the central bank raised the monetary mass in IraqFrom 56 trillion dinars to approximately 80 or less trillion dinars and this increase leads to monetary inflation and continuing with it leads to an increase in the exchange rate of the dollar towards the Iraqi dinar and this is a very natural thing in monetary policy, as the new monetary issue leads to the exchange rate of the dollar, given that The government did not use real resources to finance the deficit, rather it used inflationary resources.
”Al-Saeidy emphasized,“ This procedure is similar to what the previous regime used to do, and it is contrary to Central Bank Law No. 56 of 2004 in its Articles 32 and 28. ”