Thread: What is central in the Economic Vision concerning the Daily Auction

Thanks seaview

This has been put out by the Central Bank of Iraq.

This is what I gathered from elsewhere.

This Dr Smeisim is an Economist who has put out an article critizing the CBI's monetary policy. The article has been published in various newspapers and the CBI is responding.

The CBI's Board and economic council disagree with Dr Smeisim's accusations and considers there is no basis for his comments that the CIB is harming the country's economic policy.

The CBI worked with the IMF to help extinguish debt and did not take orders from the IMF as is suggested by Dr Smeisim. Some changes were made to the economic policy in Iraq under advice from the IMF.

The CBI regrets that Dr Smeisim does not have the intellectual capability to understand what is going on with the Economy, is contracdictory and lacks even basic prinicples of economics.

The CBI confirms that it's role is to create and maintain stability while Iraq goes through a change to the market economy.

CBI explains the Auction is a tool to control inflation, the CBI's goal is to maintain the stability of the dinar and control it's liquidity and buy back excess dinar.

As far as what happens to the dinar (where it goes). The CBI would like to clarify the following.

It went for Normal economic activity. A stable internal free market financial system and promoted Iraq's international standing in the financial markets. These flows should increase as the economy increases. These flows are lawful so far. and they haven't detected illegal activity/money laundering/terrorism funding, or tax evasion.

Some MP's want restrictions on these flows but the CBI is commited to international conventions that allows freedom of wealth for it's citizens without restrictions so long as it is legal.

To limit the flow of dinar would create a black market and it would be difficult to control the monetary policy and limiting to this is against the Foreign Investment law.

References South East Asia where Politicians interferred with monetary policy and investors pulled there money out of the market.

Concerns over capital leaving the Country (speculation) are unjustified. Other things may cause shocks to the economy. They are increasing there reserves, so the impact would be limited. Therefore the CBI does not support restricting cash flow as long as it is legal.

The CBI will sue anyone who lies about there intentions on monetary policy and tries to bring them into disrepute.