{Central}: proposes to diversify revenue to attract hard currency

{Central}: proposes to diversify revenue to attract hard currency

1/26/2017 0:00

BAGHDAD / morning specialists in economic affairs seeking through the discussions in the forums to get to the results that can be applied after the search mechanisms make it work in order to promote general economic and financial reality of the country. And the holding of the Iraqi Center for Development and Media recently the national monthly meeting in which the central bank governor , Dr. Ali Keywords guest with a group of academics, journalists, researchers and feet Keywords through an explanation of the financial policy of the Central and how to deal with the crises suffered by the Iraqi economy, as well as interventions for the professionals affairs economic. He Keywords that financial reserves are bond group , which belong to the country and covered in foreign currencies and is internationally accepted indicator of the financial strength of the country.

He said there is a certain extent of reserves represents satisfaction and acceptance globally but there are guiding standards set by the International Monetary Fund to financial reserve would be acceptable, adding that each country vary over his need for financial reserves commensurate with the internal and external economic conditions and the extent of stability.
He Keywords that reserves are the money the state can invest and employ them when in crisis or special financial conditions, stressing that this is completely different from the Iraqi Central Bank reserves.
He said the Ministry of Finance receives 95 percent of revenues in dollars and 5 percent in local currency while expenses are about 85 percent in local currency and the rest in foreign currency to the Central van based foreign currencies discharge rhythmically while keeping foreign debt payments in dollars, adding that the Central is not controlled by a financial reserve , but based on what enters the country of the dollar over the
oil revenues, which are exposed to constant fluctuations.
He suggested Keywords address this issue by diversifying government that bring hard currency to the country ‘s revenues, confirming the presence of an important relationship between the general budget and the reserve which is an inverse relationship If approved budget of the country with a deficit , it means a direct decrease reserves as of the bridging the shortfall in the budget, explaining that the state takes the dinar from the central bank without the parallel dollar cover him and this is what happened in 2016.
He stressed that the central accurate audits with the International Monetary Fund ‘s financial position as all accounts confirm that Iraq will not face up to the problem in 2021 on the subject of the reserve.
And he stressed the importance of activating the private banks sector , saying: “There is a reluctance to pay borrowers accounted for up to 30 percent , and this number is very large compared with the payment of a global loan which does not exceed 2 percent.
For his part , called on the Minister of Transport , former Amir Abdul – Jabbar to lift the dollar It rose very slightly to benefit from the financial difference , especially because it will save the state money can utilize them in several areas, but the Keywords replied that any rise in the dollar, albeit
slight, will push some traders to take advantage of this situation and will be its impact on the
middle and lower classes than others.
MP Mehdi al – Hafez central demanded clarification of the procedures and mechanisms for buying and selling the dollar and the reason for the identification of specific banks for transfers and buying and selling, noting the need to perform his Iraq all the demands of the international Monetary Fund. Keywords responded that the central regions by all banks and through deals with each bank according Ranked with a control minutes on all banks and banks and constant scrutiny of the financial accounts, and on Iraq ‘s deal with the international Monetary Fund, this deal set by the House of Representatives after pleading deal with the Convention and we are working within the context of this Convention.
financial advisor to the prime minister the appearance of Mohammed Saleh, said for his part that the controversy that happened with our partnership with the international Monetary Fund was about reducing the rate of the dinar , which means that the state will gain new money they will sell the dollar at a higher price, but this will hurt the citizens directly higher prices directly, although the IMF demanded implemented by naming him as a (silent taxes) is what made us in front of two options the first move toward improving the financial performance of the country or use (silent taxes) so we preferred to keep the damage from the citizens and not to use those taxes.
The adviser to Prime Minister Dr. Kazem al – Hassani touched on the financial reform and the steps sought by the government to diversify its revenue and earning hard currency through the revitalization of some sectors and not to rely entirely on oil imports , and this is what will be implemented starting this year 2017 to overcome what happened in the last year.
In turn , he demanded that Dr. Akram Al – Aqil put a wise and well thought out scientific plans by specialists plan to start diversity of imports and participate by various experiences, stressing the importance of expatriate attract capital and develop simple mechanisms for fed back into the country to encourage investment.

alsabaah.iq