Economic expert: 50 trillion dinars outside the banking belt .. And the Central Bank must take advantage of "balanced performance" to control the monetary supply

Monday 24, May 2021 11:16
 
Baghdad / NINA / Economic expert Raad Twaij welcomed the launch of the Balanced Performance project by the Central Bank of Iraq, describing it as: "It is an important step in the Iraqi banking sector."

Twig said in a statement to the Iraqi National News Agency ( NINA ) that "launching the Balanced Performance Project or Quantitative Scale, which summarizes environmental, social and institutional governance standards based on a previous strategy that extended from the year 2016_2020 applied to commercial and Islamic banks, is an important step in the banking sector that will contribute to achieving Big economic goals. "

Twig called the Iraqi Central Bank to take advantage of this practice to achieve several goals, the first is to increase its control and control over cash issuance, as the cash levels indicate the presence of 50 trillion dinars outside the banking belt, and therefore it does not enter the economic cycle and it is within the framework of the hoarded monetary mass, which causes a rise in the level General prices, which witnessed an increase this month by 0.3%, and accordingly, this card will give the Central Bank more control and oversight over banking policies. ”

The second goal, Touaj’s words, is“ to follow the financial inclusion approach as part of the digital economy and to reach the middle classes. And the poor in society, making bank accounts for them and entering the banking circle from deposits and loans, which will limit the phenomenon of hoarding and shift to alternatives in savings and investment as economic dynamics, diversification and improvement of banking products to attract and attract deposits.

He continued, "The third goal is to protect the consumer in securing his deposits from bankruptcy and banking manipulation."

On Sunday, the Central Bank of Iraq announced the completion of the Scorecard project for environmental, social and governance standards, in cooperation with the International Finance Corporation (IFC) affiliated with the World Bank Group to address regulatory issues in the banking sector.

It should be mentioned that work on this project was started at the end of 2019, as pilot tests for the scorecard were conducted during the period (2020-2021) with the participation of all commercial and Islamic banks operating in the Iraqi banking sector. / End 8

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