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

What is central in the Economic Vision concerning the Daily Auction

And our response from the Central Bank of Iraq we have published an article on the economic researcher Dr..Smeisim peace, pursuant to freedom of opinion, according to the letter carried by the (term) as a cultural media operate without the determinants of professional writers to curb service for the public good is to publish the response as:

Mr. Editor, the long-respected response to a newspaper article under the heading: economic vision in the central bank auction
Nahdikm best greetings .. We would like to refer to the article on page X in the Al-range in number from 1452 to 10/3/2009 under the title mentioned above.

Regardless of the motives behind the writing of such articles and personal symbols, which I found important in the Central Bank of Iraq, unfortunately, very touched and talk to anyone who is among the noted the presence of conflict within the Central Bank of wills in the formulation of a mechanism of action, we would like to point out that no basis for such Altcolat which intended to harm the country's economic policy, especially monetary policy, which is entrusted with many of the trends for addressing some of the ignorance and good intentions, however, assuring that the decisions taken by the Central Bank is issued by the board, the Council, which owns the intellectual and professional identity, unlike that of what the writer in her article.

The central bank did not receive orders from an international fund was established according to the International Monetary as stated in the article, but that the Iraqi government was in a whole program of corrective action with the International Monetary Fund in order to extinguish the agreement between Iraq's foreign debt that exceeded 120 billion dollars and the current government was able to cancel more than 80% of these debts and burdens, which are remnants of the former regime in wars and conflicts for three decades. The agreement with the International Monetary Fund to make some minor adjustments in economic policy was based on the UN Security Council resolution No. 1483 in May 2003 which linked the reduction of external debt with the IMF program of corrective mentioned.

Regrets the Central Bank of Iraq to those of the writers lost the declining intellectual identity and awareness of what is going on and in the throes of contradictions Faqraly verbal knowledge and the basics of the simplest principles of economics.

In spite of this, we would like to make it clear that the Central Bank of Iraq strategy in building stability in the course of this period of transition and difficult over the Iraq, which seeks to provide a stable environment for growth began to attract Baktall cash becomes today a strong and solid at every fair-minded people of our people, stressing the the following:

First: the foreign currency auction is a means of indirect monetary policy affecting the cash basis in order to control the country's total demand and inflationary pressures. Where the three targets that the auction is

1 - an intervention to achieve stability in the value of the Iraqi dinar by defending the exchange rate Gyroscopic reflected positively on the overall level of prices, especially of imported final goods and production inputs and strengthen the export base.

2 - as a means for the application of indirect instruments of monetary policy in the management of liquidity and control over the economy Mnasebha, is a case of the application of open market operations required continuously for the balance of the money market and strengthen the opportunities for financial stability.

3 - a key source of financing in the private sector to trade in goods and services needed by the Iraqi market and funded essential.

Second: as far as the liberalization of current account of balance of payments of Iraq, we would like to clarify the following:

1 - The Central Bank of Iraq and to the extent that it is watching the movement of capital flows into and out of the country, it finds its natural economic phenomena that help to maintain the stable financial system based on competition in the market and generate at the same time into desirable in the international financial market and open wide in banking with the world. In spite of this, that and the money flows that should deepen Atafee surveillance and detection of the movements of the money is legitimate and does not contravene the law of the legal fight against money laundering and funding crime and terrorism, or even to evade other forms of obligations to the government authorities Kolajhzp tax, financial, or contravention of instructions and regulations control of the Central Bank of Iraq, which is also determined, for example, amounts to Astosmaralmassarv of foreign assets, which represent another form of the flow of domestic capital out of the country.

2 - but the cases were directed to restrict the conversion of external Aotguenin the flow of money out of citizens, is the tendency to Ainsjm and the freedom of foreign transfers and Iraq's commitment to international conventions and, in particular, the financial application of the provisions of Article VIII of the Convention on the International Monetary Fund, which obliges member states Batmad the freedom of foreign transfers and lift restrictions on the movement of funds of citizens without restrictions, except regarding the legal consequences of breaches of money laundering and, as mentioned previously.

So any of that prevent or restrict outflows not only helps to generate a parallel exchange market and encourages illegal at the same time, the phenomenon of capital flight abroad, but through legal channels and other vague, non-banking channels. Which is all the way in reducing the ability direct control over at the same time, the cost of operations and the burden of indirect control. as well as to generate negative financial environment weakens the foreign investment climate in Iraq does not encourage the inflow of foreign capital inflows and Vialaql intersect with the principles enshrined in the Investment Law No. 13 of 2006.

3 - The economic problems were severe external to the group of countries of South-East Asia during the years 1997-1999 (for example), has mainly resulted from the phenomenon of the flight of foreign capital which had been endemic on a large scale in those countries, which was then concentrated investments foreign direct, particularly in the investment portfolios of financial bonds and deposits, and various debt instruments with high liquidity, the weakness of international reserves available to the monetary authorities in those countries which offer the balance of payments deficit to an unprecedented result of the sudden flight of foreign capital, short-term, as reflected in the collapse of exchange rates of Asian currencies.

In spite of this, however, such concerns are still a limited impact on the level of Iraq, in order to double the flow of foreign capital to the moment. However, seeking monetary policy of the Central Bank of Iraq to the formation of sufficient foreign currency reserves, concentrated mainly based on the likelihood of facing any emergency may be exposed to the external balance of the national economy because of the potential for currency speculation and capital flight abroad, suddenly, as well as the sensitivity of any other surprises that may be harmful to the national economy caused by the strong shocks due to adverse external financial movements.

4 - therefore does not support monetary policy to the Iraqi Central Bank to restrict the movement of cash flows to and from outside the country as long as does not intersect with the controls, regulations and instructions in force and did not conflict with the terms of conversion, especially outer Act No. 93 of 2004 on combating money laundering and funding crime and terrorism.

Finally: Please see the response and the deployment on the front pages of your newspaper, and the Central Bank of Iraq and the board reserves the right to file a lawsuit that the article had touched Chkhosa and intellectual figures and was responsible for national monetary policy of the country. With appreciation.
On behalf of an authorized
Central Bank of Iraq

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i read it but i don't quite understand it Seaview..can you put in laymen's terms what they are saying??....lol...Pat

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.

A few articles recently from the CBI quite annoyed by all accounts with Economists and Politicians.

Right of reply: In response to what the central..needs to restructure Iraqi economy & correct

This appears to be a response to the above article put out by the Central Bank of Iraq. I'm assuming it's by/from Dr Smeisim.

Mobility of economic and political rise pace at all levels to begin a new phase in the history of the Iraqi economy after a failure that led to the deterioration of Iraqi infrastructure, which means starting from scratch in building .. It is through investment offers great exposure to the investment companies in local, Arab and international, especially in the areas of energy to discover the different kinds of desire that a list of where vast oil wealth and gas fields, which burns with little benefit in most areas ..

I did not Nscheri My purpose in the article in which he modestly on a scientific view of monetary policy to raise a storm of anger of people I did not mean absolutely insulting.

Dr. Alshabibi was and still is a teacher and I know that perfectly well, since if it's economy is outstanding in the public forums of the United Nations and UNCTAD in particular, I was whole, and his comments and views adopted Bhothei sources in my articles and, as I was one of the enthusiasts of his post Governor of the Central Bank and even from seeking to collect the votes in favor of the Governing Council at These events, and it is good to know that he knows what I have already had. and the appearance of Dr. Mohammad Saleh, as well as my teacher, who Derseni article of monetary theory in my PhD in economics and Zadenei honor that he was a member of the Committee for discussion of my thesis study for a doctorate (II) on the economic balance. Thus, I did not mean this Bmqalte any excavation or personal prejudice, especially those who I have respect and appreciation, and who has the right to professorship in all that it means the right of the details. I did not think that to deal with the international institutions which have the international and legal legitimacy is an affront or a reduction, and in particular the needs of the Iraqi economy, restructuring, or a correction of the tracks and is confronted with a fateful transition in the transition towards a market economy, and not the impact of Aodri anger anger .

He was my «scientific attempt» Ttelmzt and I, who at the hands of those who distinguished Asatzti I have every respect and cordiality, the article is an attempt to clarify the economic vision - as is evident from its title - not only. And then did not mean to defame or appeal to this side or that, but the view is likely to correct the error and a whole regardless of the views.

At the end of these lines I do not like to confirm any accusation or challenge any of the leaders of the World, especially those of them with proud Derseni others who said I'm not accusing them so that I know, but is a call for a review of the Bank's policies and the view, as already indicated.

In conclusion, I thank the newspaper pages and the extent to which the glue to attach significance to be a platform for freedom of speech and expression, and that the example of Iraq's post-9-4 / 2003 and its new constitution, which guarantees every citizen the right to express opinion and expression as to ensure dignity and freedom of intellectual This is the best photo of democracy.

A final word I am an Iraqi citizen and I was not a normal day, and rarely stays down Akatebp pay.

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