«Central» Iraqi sold dollars in coordination with the IMF

Said Governor of the Central Bank of Iraq on the Keywords, that the banking sector «derives its strength from the reality of the economy», pointing to the «indicators shown by the relevant studies, stating that Iraq is moving towards strengthening its resources and increase the gross domestic product for the coming years, and with opportunities achieve security and stability of the banking sector will be the beneficiary of the These indicators with the availability of a large market opportunities and wide in front of the banking sector. » It believed that «the private sector and civil society, deal with the proportion of the two banks, or Tsalhma banking services, is very limited compared to the number of the population».


Keywords announced in an interview to «life», the central bank «is working to develop a mechanism to deal with the banking sector because it is the most important in the economic sector and the financial arm part». It did not rule out that «carried the Iraqi banking sector played a pivotal role in the next phase», stressing that the phenomenon of weak governance, especially in private banks, and the lack of a clear separation between the executive departments and boards of directors, makes us in front of the phenomenon of weakening the role of the observer compliance units to combat money laundering in most Supplies ». He stressed that the central bank «being reviewed in accordance with international standards.»


And the role of banks in stimulating the development of the Iraqi economy and its sectors, Keywords that «the nature of the establishment of private banks in Iraq, conditions, led to the founding of banks lack the practices and standards governing the work of banks, which have evolved in remarkable form in the said countries in the world.» He explained that «What we are seeing in most Iraqi banks does not reflect the principle of governance in terms of the separation of administration from the owners and the associated management operations of those banks, transparency and disclosure».


He pointed out «the phenomenon of the dominance of the members of the boards of directors of banks decisions, but they are often on loans to their advantage or to their relatives», stressing that the central bank «later years to establish these banks prepare a comprehensive audit procedures». He disclosed that the global audit office «completed calendar for each process to end the banks to the decisions and directives of the task put in front of banks and responsibilities, and enables the central bank to take appropriate action based on its oversight role and responsibility in strengthening the financial and banking stability and ward off the dangers.»


And the increased activity of Islamic banks, he said that Islamic banking «modern configuration», but «a good performance relative to the composition environment and working conditions». He predicted «the growth of this type of banks», pointing to the «many requests for the establishment of, and the voice of the Chamber of Deputies finally the law».


With regard to the initiative of the Iraqi Central Bank to lend to small and medium enterprises through banks, Keywords explained that this initiative «assume a central goal is to activate the productive sector in Iraq and diversification, and the reduction of unemployment through the support of the private sector». So it was «emphasis on the need to use such loans to achieve these objectives, and is still the subject of our attention, but this goal we put rules and regulations in coordination with the sectoral ministries and professional associations and stakeholders, while the central bank takes control in order to verify the conduct financing operations, according to the objectives and procedures established».


And the foreign currency auction, organized by the Central Bank, debate and controversy about its objectives, he stressed that «no auction for the currency at the central bank, and he gets it for the period after 2003 and then canceled, and shall« Central »is currently selling foreign currency on the basis of a fixed exchange rate with some price flexibility ». He said: «the very nature of financial resources and to cover government spending, the government sells dollars to the Central Bank for the Iraqi dinar to cover general budget expenditures, and the bank sells the dollar to the private sector for the dinar on the one hand, and to finance the import foreign transfers, and to achieve this balance in the money supply does not It leads to inflation through excessive cash, if they went to print currency option ».Although it was announced that «the central review this process constantly and directly coordinate with the International Monetary Fund, the fact that Iraq in the fund member is committed to the guiding principles as the rest of the Member States

 12.01.2015

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