CBI’s Saleh: Dropping zeros from currency represents progress, freedom, and propserity

Central: Open the windows of the Rafidain and Rasheed reduce the exchange rate of the dinar against the dollar to 4% 23/05/2012 PM

Reduced the open windows of selling the dollar in the Rafidain and Rasheed of the low exchange rate of the dinar against the dollar to 4 percent, compared to the exchange rate difference of about two weeks ago.

He was a senior official at the Central Bank in the hope that the difference up to 2 percent on the price of the auction.

The two banks will sell each citizen Aovernmaan 10 thousand dollars up to a maximum.

The central bank announced yesterday, the largest direct banks in Iraq to sell one U.S. dollar for the citizens at 1189 dinars.

In an extensive interview with the “world” on Tuesday, said the appearance of Mohammed Saleh, deputy central bank governor, said that “our procedures last to authorize a bank Rafidain and Rasheed to sell the dollar, the impact of a positive lower price. And the dinar fell about 7 percent in the previous days, and today (yesterday) arrived decline to 4 percent. ” He expressed the hope that “up the difference between the auction and the market to 2 percent, a figure that is acceptable globally and natural differences in price.”

According to Saleh, “the central bank is looking forward in the coming months, to be equal to the 1000 dinars, one dollar, and we are coming to raise the dinar exchange rate in proportion to its strength.”

He explained that “the two banks of government Sasudan every citizen wants hard currency with 10 thousand dollars only, and this is one of the instructions and monitoring agency funds, which obliges the citizen not to carry cash of foreign currency more than 10 thousand dollars, and this is the case in all the world, as well as in airports , and for that to be increased by transfer or credit card. “

Saleh said that “windows will sell and not in cash transfers, because transfers carried out by the auction.” He pointed out that “the central bank provides about 50 per week with 250 thousand dollars for each bank, and 40 money transfer company with 75 thousand dollars each week, and 300 foreign exchange company with 75 thousand dollars a week as well.” “We assume these to sell at auction to the citizens, a 1179 commission plus 10 dinars.”

Saleh expressed his deep regret about the “transformation of banks and remittance companies and banking from brokers to buyers end-of the auction, sellers end-to the customer, and they started to impose price monopoly, which represents the prices of the parallel market which have a role in, and remained the bubble price continues for the benefit of monopoly.”

He attributed the benefit of open windows to sell the dollar bankers in government to “create a market monopoly competition against our law is forbidden.” He continued, “we have introduced the Rafidain and Rasheed, two of the largest banks in Iraq and Isthoman to 86 percent of the banking activity in Iraq, and their branches constitute 50 percent of bank branches in Iraq Adkhalnahma in the sale of foreign currency at the official rate of the Central Bank plus the commission is simple, for the benefit of the Iraqi citizen.”

Salih stressed, “We get the foreign currency more than we sell, and cash reserves at the central bank between $ 62 and $ 63 billion, the highest in the history of Iraq, monetary and financial.”

And on the developments of the project to delete the zeros of the Iraqi currency, Saleh said, “I suggested that healed with a decision of the Committee of the House of Representatives and the government and the central bank and decides to delete the zeros start date.”

He expressed the belief that “scientific and economic project, and all those concerned in the government support him, and who speaks against him question the Toukatadth, and the extent of its potential, and whether we are capable of it.” However, “these questions objectively.”

He noted the benefit “if the Commission met at any time and any decision to proceed has decided to delete the zeros of work, we are ready to begin.”

He stressed that “the deletion of zeros as a project and infrastructure and create the foundations of incomplete and concepts, which is different from issuing a new class of currency, with the consequent deletion of three ranks of calculation from the accounts of the Republic of Iraq starting from the family budget and ending the public budget of the State”.

He cautioned that “such a project needs to be concerted efforts of both the central bank, parliament, government, and the approval of the last two on the project is important for its success.”

And returned in favor of the project’s importance also to “reduce the computational reproduction, which has become a troublesome and tired, so there are operational risks because of the large numbers that are the product of an earlier stage.”

He believed that the “zeros currency of the three added 3 decades of economic decline in Iraq, and each contract is zero, holding Iran-Iraq war has a zero, and the holding of the blockade has zero, and the events of 2003 have zero, and these three zeroes represent the pain of the Iraqi people, and delete it represents the hopes of the Iraqi people in progress, freedom and prosperity. “

And the controversy that has occurred between the government and parliament on the central bank said the benefit that “there is a leap of faith from the government and parliament, the independence of the central bank, but there is a lack of understanding or a blur in the partnership.”

He stressed “I do not value the independence of the Central Bank unless a partner of the government, because the government is large in Iraq, and we are custodians of public funds.” “What is the level of partnership?”. And “We understand the partnership as our membership of the Committee on Economic Affairs, and it seems that the framework of the partnership is not enough.”

And showed his belief that “the partnership must take another framework, and the level of partnership with the government should grow up, does not mean government intervention in the Central Bank, because they do not want to interfere, but the government wants to know about the central bank a lot of things, and it seems to me that there is poor organization , and we need to continue to ring with the government or a point of understanding because we miss this. “

He emphasized the benefit, “as we meet with the Economic Committee in Parliament, it must meet with the government on the part of a broader, and this strengthens us not weaken our independence is not an infringement of the government to the central bank, and there must be an atmosphere of mutual understanding in the public interest.”

On the high Altdhm in the country, Saleh said, “The inflation today, according to the month of April is 7.6 percent.

This basis adopted by the Central Bank”. “It is true there is inflation up to 8 percent, but it deleted some of the variables of emergency is not worrying.” He explained that “there are two main factors behind inflation are the fluctuations that have occurred in the Iraqi dinar exchange rate against the dollar, and the housing sector.” He added that “Housing is running almost 31 percent of the money in circulation, and this is a problem in Iraq, and that the high rents and electricity prices also impact on inflation.”

Salih stressed that “the main objective and the basis in the law of the central bank cut rates, and response of inflation, and one of the policies to address inflation, raising the dinar exchange rate to match the balance of payments surplus of Iraq, particularly in the current account.”