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 The Central Bank selling dollars to banks aimed at withdrawing liquidity from the market

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Join date : 2011-12-16

PostSubject: The Central Bank selling dollars to banks aimed at withdrawing liquidity from the market   Sat Aug 25, 2012 2:31 am


Baghdad-the citizen
The Central Bank of Iraq, confirmed that banks selling dollars aimed at withdrawing liquidity from the market exists in most of central banks.
The Bank said in a statement Wednesday that most markets in the official price of a parallel rate, the Bank seeks to reduce the difference between the two prices through the inspection teams, to comply with the instructions of the Central Bank, which buy the dollar to all Government and private banks and branches of foreign banks and not civil only to banks. The policy pursued by the Bank since 2004 to date are successful policies, has led to a reduction of inflation from 50% to 5.8%, falling prices and stability as a result of the tools that were in force, namely invest night and term limits (7, 14, 30) days of the dinar, as well as night and deposits for investment deadlines (7/30/90) days for the dollar. The Bank canceled the tools mentioned with the exception of deposits to term of seven days for Iraqi dinar only to encourage banks to grant credit for projects of industrial, agricultural and residential, and drew that monetary policy has been welcomed by the International Monetary Fund.
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The Central Bank selling dollars to banks aimed at withdrawing liquidity from the market
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