Thread: Central Bank: The foreign exchange abroad "project" and seek to erase the zeros from the dinar

Central Bank: The foreign exchange abroad "project" and seek to erase the zeros from the dinar

Take the CBI, on Wednesday, transfers of foreign currency out of Iraq "a legitimate act," while seeking to cancel confirmed zeros from the Iraqi dinar.

The adviser said the central bank governor and general manager of statistics for the appearance of Mohammed in an interview with "Alsumaria News" that "the process of foreign-exchange foreign currencies came in accordance with the transition from totalitarian regime to a free economic system", stating that "This is one of the economic rights of citizens that guaranteed them by law."

Saleh pointed out that "the CBI committees involved in combating money laundering and proceeds of crime and terrorist financing, and otherwise is an act of legitimate," he said. The law against money laundering Iraqi development of procedures in 2004 due to regulatory institutions, especially banking ones.

Saleh added that "the transfer of funds, by citizens abroad, through the remittances is to finance the trade of Iraqi private sector, not for reserves in foreign banks, the lack of interest granted by the Iraqi banks compared to foreign banks."

He said Advisor to the Governor the Central Bank that "the Central Bank of Iraq is only in Iraq, which is conducting the financing of the Iraqi private sector and traders in foreign currency, through auction conducted by the daily."

Salih stressed that "The auction was able to maintain the Iraqi dinar exchange rate, for a period of four years of non-volatility, as well as the auction has to absorb excess liquidity, which is reflected positively on the price stability," indicating n "of the Iraqi dinar has become very strong, The strength of rising foreign exchange reserves, would be reflected on the positive performance to cope with any crisis that may occur in the future ", he said.

Regulated by the central bank auction sessions a day, except Fridays and official holidays, and the participation of Iraqi banks, and within which buying and selling foreign currencies, the central bank sold currency conversion process to the outside, for some companies and citizens for a certain commission.

For his part, the economic expert Falah Hassan Alwan said "get out the currency remittance through the auction has a positive side and a negative."

The Alwan said in an interview for "Alsumaria News", that "the positive side is to move the Iraqi economy, by encouraging the private sector and entrepreneurship, while the downside is the fact that some companies out of money laundering."

Alwan called on the Iraqi Central Bank to "pass a law forcing banks, with which to determine the amount of money, which turned out, for the employment of funds, and transfers to be made under the control and supervision of the Central Bank of Iraq."

In another context, "said Advisor to the Governor Central Bank of Iraq that" the proposal to cancel some of the zeros of the Iraqi dinar, is one of the priorities of the Central Bank of Iraq, to reform the currency and organizing it. "

Saleh pointed out that "past wars fought by Iraq, has caused the rise and inflation in the money supply of 25 billion dinars in 1980 to 23 trillion dinars now," asserting that "the Central Bank of Iraq moving in the direction of literacy zeros currency quietly, to avoid problems for the future".

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Economist: Iraq on right path to revamp economy - more lop talk

The Iraqi economic expert Magid Sowari said that the Iraqi economy is progressing as a result of the economic policy adopted by the Iraqi government which is represented by improving and enhancing the performance of banks and opening the bank loans to give more chances for actual work. Sowari talked in an interview done by the correspondent of the Independent National news Agency of Kurdistan (AKnews) in Baghdad "Shawkat Al Bayyati" about the Iraqi banks association and its needs to activate its role:

Shawkat Al Bayyati: Is there any approval on the Iraqi stock committee law and what are the implications on the Iraqi economy?
Magid Sowari: In general the law of Iraqi stock committee was approved by the body itself and was discussed with various parties and submitted to the State Consultative Council and till now there are no news whether it was approved or not and it had addressed very important issues for the interest of the Iraqi financial market and for organizing the body and regulating the market of Iraqi Stock Exchange.In general it is a good law and I think that it can join the Iraqi commission market which can not develop if the Iraqi economy didn't develop and increase the number of companies participating in the Iraqi market and activate the private economy thus activating the role of the Iraqi stock committee.

S.B: Do you have a certain vision for setting up the Iraqi bank asssociation?
M.S: the Iraqi banks association is found and it includes 23 private banks and its role in the banking arena is good, but it needs to activate more the role of the Banks Association and it is a basic issue organizing the banks operation, but the main problem is not in the banks themselves but in the uncertain economic situation in Iraq.The Banks association organized the works of the banks, but the most important problem that the banks association and the Iraqi banks faced is to open accounts for governmental departments and private funded departements in private banks and the Association succeeded in this battle in order to reach a solution that all self-financing departments have the potentials to open accounts in private banks

S.B: What is the future of the economic of the State?
M.S: I think that there is no economic policy in Iraq and this is the main problem where there is no centralized economic planning and no clear view for the Iraqi economy and for its needs to get in the current phase better economic,social and humanitarian developement. Unfortunately a lot of money fhave been spent since 2005 and so far that are estimated of 300 billion dollars where 32 billion $ were spent from 2005 to 2009, but the main problem is 230 billion $ but what are the results that have been achieved? 64 came up as grants for reconstruction and about 64 and 46 billion as investment allocations from 2005 to 2009 and $ 110 billion were spent on reconstructing Iraq. In fact, we are talking about the need for 200 billion dollars and what are results that have been reached in this field, in addition to that there is no identification for the Iraqi reconstruction process. What does reconstructing Iraq mean?There must be determination for what is found in order to reach the desired goals.

S.B: What would you do to attract the investors especially that the country needs this role to develop the Iraqi construction?
M.S: The basic problem is in the subject of investment. Iraq succeeded in attracting investments in the oil field but there was no investment environment,neither from the role of investment nor from the investing policy in Iraq, so I wonder why do we talk about the internal or external investment while there is no specific plan, and 700 projects were shown for the investment conference in Washington, but what is the size of the projects that arrived to Iraq? The National Commission for Investment is a transitional phase and so far there is no good preparation for it.

S.B: Some European banks promote that it will provide loans for (5000) housing units in Karbala province,is this true?
M.S: The credibility of these banks will be in their implementing and thus the Iraqi side will have to allocate lands, and the problem is not in signing the contract but in implementing it, or at least to get rid of the bureaucratic procedures.

S.B: How do you look at the American-Iraqi convention and its relationship to the future of the Iraqi economy?
M.S:The convention between Baghdad and Washington aims to support the Iraqi economy represented by protecting the Iraqi funds held abroad, and there is great support from Washington for this issue but we must work with Washington, then who opposes the help of the largest country to Iraq?

S.B: What are the priorities that the Iraqi government should do to get out from the economic crisis?
M.S: There is no clear methodology to attract investment in the Iraqi economy and so far there are no clear processes for human development where there have been positive and negative decisions, and there are many problems that face Iraq the most important is the lack of clear decisions and no solution for these issues.

S.B: What is your opinion about canceling the zeros from the Iraqi dinar?
M.S: In fact, there are many experiments, including the experience of South America and Turkey where 6 zeros were cancelled from its currency, and most of the savings used the Iraqi dinar, but the process needs time and it is positive if it came true and will certainly gives more trust in the Iraqi dinar and help in shaping a new successful economic policy if we take into account that the Iraqi dinar is not the smallest cash unit.

S.B:Many seminars and conferences discussed the Iraqi economy, but what is the solution?
M.S: The problem is not discussing the problem but to solve it completely. Every one speak about the need of improving the private and public sectors, and the basic problem is diagnosed for the government and the E.xecutive bodies. In fact, we need clarity in vision to solve these problems.

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