The Economic Committee in the Iraqi Parliament Warns of Exclusion Dozens of Private Banks From Currency Auction
|February 15, 2014||Filled under Iraqi Parliament news|
She said the decision Central Bank of Iraq led to a rise in the dollar exchange rate suspiciously
Baghdad: Middle East
Warned the Economic Committee in the Iraqi parliament of the seriousness of the actions taken by the Central Bank of Iraq and finally to the exclusion of about 12 group of 32 banks waged currency auction at the CBI. A member of the Economic Committee in the Iraqi parliament, Aziz Mayahi, we have already warned of the seriousness of the central bank’s decision to compel banks to deposit all their money in the Central Bank as a condition for entry into the auction to buy the currency, where it began the outcome of this decision is reflected clearly on the rise The dollar suspiciously.
He Mayahi, that the central bank did not provide any justification logical for this decision parallels the damage experienced by the Iraqi dinar against the dollar and this is reflected heavily on the local market, traders and banks work alike and will impact in the event of continuing this policy in the near term profiteers citizen. The member of the Economic Commission that the central bank’s decision either it was not deliberate or intended to hit the local currency market to serve the parties benefiting we do not know, all this whole enter the door of the destruction of the economy, stressing at the same time, that insist on this approach destructive force us certainly to the wire every legal means to put an end to it, including a request for the presidency of the parliament in order to call the governor of the central bank to provide Dfoath and justifications of what is happening.
The Iraqi Central Bank has decided to exclude 12 banks waged from entering the auction currency (cash sales, credits and remittances) to the failure of those banks to increase their capital to 250 billion dinars. Also prevent banks from opening branches excluded or any expansion of the banks want to do to complete while the increase, as well as grant the four months to complete the procedures for the increase.
For his part, the Director of the Department of Banking, Ministry of Finance Dr. Hilal Al-Taan, that the bank’s target of exclusion was intended to limit the sale and trading of foreign currency to banks is limited to control the movement of funds and the elimination of black market traders. He Taan said in a statement, said that this procedure will not affect significantly the exchange rate of the currency because there are large reserves in the central bank amounted to 80 billion dollars and more than 30 tons of gold, so the bank has succeeded in controlling and maintaining a low exchange rate compared to the periods Previous.
He pointed out that brokerage firms will not take advantage of the vacuum, which happened in the auction currency of the exclusion of certain banks because the central bank is able to control the levels of the market from currency, adding that the price difference, which might get a rise tiger or Nmrtin will not affect the movement of the market because it is a matter of course in a country like Iraq passed through difficult circumstances over the last three decades.
Unlike the opinion of the parliamentary Economic Committee that questioned the motives of the decision or that he is thoughtful confirmed crescent that the bank’s decision was issued on the basis of the study of experts and specialists have a long history in the auction currency, calling on banks disposed to reconsider their betterment and strive to increase its capital and the duties of the monetary policy that check the increase, and it was imposed on those banks that take advantage of the time to increase the amount of their capital.
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