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Keywords: central bank independence is a prerequisite to enable it to achieve its monetary policy
Tuesday 07 July 2015
Court's decision is of great importance because of its impact in promoting and supporting the independence of the Central Bank and its dimensions to influence policies and decisions
This independence is not a matter of form but is the basis of the requirement to enable the central bank to achieve its tasks, particularly in monetary policy by the diversity of nature on the tools and flexibility orientations
Qurtas News / Baghdad
Between the Governor of the Central Bank on the Keywords, Tuesday, that the Federal Supreme Court's decision to accept the appeal submitted by the Central Bank in the materials, which included limitations and orders to the bank, came accordance with the Constitution and the law of the bank.
Keywords and said in a statement to "Qurtas News" that "the court's decision is a great importance because of its impact in promoting and supporting the independence of the Central Bank and its dimensions to influence policies and decisions, this independence is not a matter of form but is the basis of the requirement to enable the central bank to achieve its tasks, particularly in the monetary policy based on the diversity of nature, tools and flexibility orientations ".
He added that "the general budget law governing fiscal policy in spending and annual revenue which is necessary to be specific to the items contained in it by virtue of the nature of the resource and expenditure management, while monetary policy is totally different from fiscal policy, where the nature of movement, flexibility, dealing with changes in the situation economic and market conditions and did not get in the countries where the market tracking system to be budget specific, directed and constrained by the policy of the central bank law, or even in the other because it loses the central bank's role and took away his tools used to create balance and access to achieve the goals that move the market movement and the economic situation and cases of inflation The recession, etc., and these movements occur on an ongoing basis and sometimes daily, and the law applies the law of the budget for the year, making it a real limitations and restrictions tied monetary policy and this reverse their role and nature.
He continued that "foreign currency sales (the dollar) is not an option of choice, and it is not a commercial operation or coverage of the activities of trade, it is in the Iraqi situation and as it is in countries that control the export and the monopoly of foreign currency by the nature of their resources, oil such as States, is the process of replacing the dinar Iraqi existing trading in the dollar, in order to provide the Ministry of Finance dinar against the dollar, which is received by oil sales, which do not need, but you need to the Iraqi dinar to finance the general budget. "
He explained that "determining the dollar means sales ceiling of result determine the amount of the taxpayer dinar general budget, in the case specifically taking, as stated in the General Budget Law, means a shortage and a large decrease in the amount required to cover the budget expenditures of the dinar, if the central bank sold $ 75 million a day, as contained in the budget law, it means that the central bank will sell annually the equivalent of 22 trillion dinars, almost, while operating expenses (JD) about 70 trillion dinars, this fact is clear to many who call invitations determine the dollar sales ceiling, as well as for lack of awareness of the role of the central bank and its mission to stabilize the exchange rate and public prices, which require high and continuous flexibility in the quantities sold by the bank, because there is a big difference in the exchange rate between the official rate and the parallel market price is paid by the citizen and the economy, investment and hurt huge profits in the pockets of greedy and malicious, and it can not curb all this only to control the quantities beyond a shadow of those dangerous phenomena. "
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Tuesday 07 July 2015
Court's decision is of great importance because of its impact in promoting and supporting the independence of the Central Bank and its dimensions to influence policies and decisions
This independence is not a matter of form but is the basis of the requirement to enable the central bank to achieve its tasks, particularly in monetary policy by the diversity of nature on the tools and flexibility orientations
Qurtas News / Baghdad
Between the Governor of the Central Bank on the Keywords, Tuesday, that the Federal Supreme Court's decision to accept the appeal submitted by the Central Bank in the materials, which included limitations and orders to the bank, came accordance with the Constitution and the law of the bank.
Keywords and said in a statement to "Qurtas News" that "the court's decision is a great importance because of its impact in promoting and supporting the independence of the Central Bank and its dimensions to influence policies and decisions, this independence is not a matter of form but is the basis of the requirement to enable the central bank to achieve its tasks, particularly in the monetary policy based on the diversity of nature, tools and flexibility orientations ".
He added that "the general budget law governing fiscal policy in spending and annual revenue which is necessary to be specific to the items contained in it by virtue of the nature of the resource and expenditure management, while monetary policy is totally different from fiscal policy, where the nature of movement, flexibility, dealing with changes in the situation economic and market conditions and did not get in the countries where the market tracking system to be budget specific, directed and constrained by the policy of the central bank law, or even in the other because it loses the central bank's role and took away his tools used to create balance and access to achieve the goals that move the market movement and the economic situation and cases of inflation The recession, etc., and these movements occur on an ongoing basis and sometimes daily, and the law applies the law of the budget for the year, making it a real limitations and restrictions tied monetary policy and this reverse their role and nature.
He continued that "foreign currency sales (the dollar) is not an option of choice, and it is not a commercial operation or coverage of the activities of trade, it is in the Iraqi situation and as it is in countries that control the export and the monopoly of foreign currency by the nature of their resources, oil such as States, is the process of replacing the dinar Iraqi existing trading in the dollar, in order to provide the Ministry of Finance dinar against the dollar, which is received by oil sales, which do not need, but you need to the Iraqi dinar to finance the general budget. "
He explained that "determining the dollar means sales ceiling of result determine the amount of the taxpayer dinar general budget, in the case specifically taking, as stated in the General Budget Law, means a shortage and a large decrease in the amount required to cover the budget expenditures of the dinar, if the central bank sold $ 75 million a day, as contained in the budget law, it means that the central bank will sell annually the equivalent of 22 trillion dinars, almost, while operating expenses (JD) about 70 trillion dinars, this fact is clear to many who call invitations determine the dollar sales ceiling, as well as for lack of awareness of the role of the central bank and its mission to stabilize the exchange rate and public prices, which require high and continuous flexibility in the quantities sold by the bank, because there is a big difference in the exchange rate between the official rate and the parallel market price is paid by the citizen and the economy, investment and hurt huge profits in the pockets of greedy and malicious, and it can not curb all this only to control the quantities beyond a shadow of those dangerous phenomena. "
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