Reserve Iraq cash reassuring and budget deficit in 2015 funding sources available
** savings compulsory staff will turn to liquidity and investment will benefit them
** 500 billion dinars and $ 80 million Central losses in disaster Mosul ** We have completed a draft anti-money laundering law and the financing of terrorism Interview: d. Abdul Amir al-Faisal is one of the oldest financial institutions in the history of the Iraqi state .. not named hesitated a lot before 2003, then jumped and strongly to the fore when the Iraqis found that the only guarantor of the dollar exchange rate in the local market and what this means stability in various areas of their lives swing depending on the dollar exchange rate .. he CBI .. giant financial institution by which we can know that the financial policy of our government moving us to safety or vice versa where .. today is the corner based on economic, financial and monetary policy of the country and the budget in 2015 with all surrounded by details of Atkhvy one made from the central touchstone that give an advisory opinion on the features of the budget deficit did not know the previous budgets, as well as the clamor of many raised here and there about the savings compulsory for employees and why moving the state to him, and how much is the bank's losses from the disaster, the fall of Mosul that hit all aspects of the state, without exception, and many other questions developed by the "Baghdad news" on the table Governor of the Central Bank on the Keywords who knew about the media that a few meetings and Aihbz talk to one .. this was a dialogue conducted editor with Mr. relationship that surpassed line candor usual and put points absent on ABC equation complicated situation in which Iraq is facing serious challenges. receive special reception was Mr. Ali Keywords for "Baghdad news" distinctive What made the atmosphere of dialogue positive all Mathmlh this sense of the word, and before he starts his questions initiated by saying the central bank is the cornerstone pillars of fiscal and monetary economic policy of the country, because through the central bank realized the things that represent the main base of the economy when we talk about the exchange and inflation rate and control of the banking sector in general, we are talking about a fundamental aspect of the economy, which is the foundation of everything in the country needs a broad development and advancement fast.budget and effective treatment deficit • There is much talk about the budget deficit and talk numbers superstitious what cash reserves of the Central Bank Will Ttmn citizen for cash reserve? The reserves of foreign currencies for what is owned by the central bank is still in excellent border with international standards and central banks in the world, Usually seen as a reserve through the money supply of the local currency traded in the market if the extent of the local currency traded in the market is considered a good thing, and some states put 70% of the currency in circulation, and for Iraq, the one and three-quarters of the reserve ratio to the currency in circulation and this percentage reassuring, therefore The Iraqi dinar remained strong, and more recently because Ankhvaz oil resources and the fact that the dollar source in the country When Ankhvaz oil sales at least contained the dollar and this affects the reserve if the drag-and-sales dollar operations continued at the same level and so we're watching this issue very accurately and on so as not to disrupted our equation and even balance between incoming and sold, and the state can not benefit from the reserve because it is governed by the law of the central bank, which does not permit the disposition of reserves and the government did not apply to the Bank of reserves, but has consulted with the parties to the government and we are going to deepen this practice as the aim that the central bank is a financial adviser to the government and there is coordination between fiscal and monetary policy, and if each one of them has separately they will affect the economic situation and today we are trying to create some kind of consultation and coordination, therefore, the government took our opinion on the subject of the deficit and we have given a certain part of them ideas for pressing the expenses and I am personally involved in prepare structural budget through pressure some expenses and at the same time as can be covered from the deficit by issuing treasury bonds or in bonds and these bonds are not from the central bank, but that the central bank helps to promote and coordinate with the banks and we are in Iraq need to create a bond market and this is exists and this time we tried to expand the bond department in order to be known and culture in the stock market, and we had our touches directly in the preparation of the budget and we attended the Council of Ministers in which the budget passed to clarify some things a meeting, and I think that the budget is designed for the first time its proximity to the deficit, but at the same time set how to eliminate it, unlike previous years when it was issued the budget deficit and leaves the deficit to surplus and the issuance of a subsequent bond coverage and this time a specific disability and how specific coverage as well, and the deficit up to 23 trillion but reassuring to the presence of sources of funding and a portion of these sources is the availability of rounded balance of the Ministry of Finance. Employees Provident Why? • Why the state is heading for savings compulsory for employees? was our proposal on the subject of savings that do not reduce employees' salaries and then turn it into operational expenses shall be pressed on the employee and not on the expenditure was taken on the proposal, the Council of Ministers and that this amount is not used in the financing of the budget, and so was agreement, and when you read the budget will not be clear where, there are savings compulsory certain rates will be taken of the provisions and not of the salary so it will exceed the limited income groups. • Are the ministries covered by savings compulsory? did not specify any ministry but identified the income levels of allowances, We suggested that this amount is not used to finance the budget, so it is not part of the deficit, but will provide liquidity, and we have proposed to invest and returns will be for the benefit of the employee, and thus we have achieved two goals: first, we used a money in the economic stimulus because if we pressed citizens and personnel expenses is widely , we Snather negatively on the economic cycle and therefore it would negatively affect the budget in terms of revenue on the other hand such as taxes and other so including that 40 trillion salaries of the 2 trillion, which will be taken in savings they will invest and be cost-effective for the benefit of the employee, and there are areas for investment does not carry a high risk and we are in Iraq We have a significant investment opportunities and if narrowed us every opportunity it can be used as bills and trading in the market, and that the proportion of 23 trillion sections of it will be rounded to the Ministry of Finance up to 3 trillion and the Department is parcels of banks tpi who owns a surplus estimated 3 trillion and the Department of bonds in agreement with the Rafidain and Rasheed, who possess liquidity and there are also foreign bonds seek because we are active in this aspect Some foreign banks operating in Iraq is ready to help us access to this aspect and bring buyers of these bonds. • Is it possible to be a savings compulsory interest on the employee? was our proposal in the Council of Ministers to return savings compulsory interest The employee has been approved by the Council of Ministers and then will be consulted about the means by which yield the best return for the employee after a meeting between the government and the central bank. Numbers scary disaster Daash • How the central bank lost money when entering Daash to Mosul? - lost approximately 500 billion dinars and 80 million dollars in addition to banks, Rafidain and private banks and that there are no reported statistics min. for those who follow the central bank? • Does the central bank continued to the government or parliament? Central Bank is a government but it is an independent body but within the Constitution and the Law on the Central Bank has to be that there is coordination between monetary policy Monetary and Finance and the Central Bank, and the government is seeking to implement the largest and disbursement of what can be, as there was no brake because the government can go spending without accounts of the economic impact this probably creates traces inflationary central bank when it is falling in problematic curb this inflation. • Do who are under to pressure politicians? through My presence in the Central Bank did not touch any pressure from politicians, but there is pressure to be through the media and communications across from politicians, so I can not find any intervention at the present time and I am trying to overthrow the equation always government interfere with operation of the Central Bank and today trying to reverse the equation. link judiciary money is important • Can I connect the judiciary and money to create a strategy for the state under this circumstance? no doubt that the state can not live Kjzr scattered all authorities they must meet to serve the state so it can not be that policies are far apart from each other because distancing itself affect each other and the central bank that did not coordinate with the judiciary can not exercise activities for example Activity money laundering and who care about him some states, if not the modalities with the judiciary in this matter, how governs issues to respond to him through us and if not effectively eliminate this activity I need to competent judge of money laundering and leave it for another judge does not know what are the issue of money laundering being a case involving financial need aspects to the knowledge of the background, so the authorities must be integrated with each other and the central bank in some countries called the monetary authority to be an essential authority operate independently in determining policy relating to each country, and I came today's decision what I may change my economic, political and security the whole situation. anti-money laundering • What Ajraouatkm on the phenomenon of money laundering? Unfortunately in previous years was to manage the bank's particular point of view about taking responsibility for the fight against money laundering and was not see that this activity be through the central bank and I personally disagree with the central bank on this issue because it is in accordance with the law of the bank and the Office of the reporting of money laundering is linked to the central bank therefore see the previous administration to this subject led to the failure of Activity anti-money laundering because it enabled to law-money laundering in the central bank did not happen There was an effort to convert it to other destinations in the time I have been discussing the administration that the law provides for anti-money laundering, and today we are working to correct the deficiencies in the existing resolutions, and we are a member of the Financial Action Task Force organization concerned mainly money laundering office and this year chaired the organization and painful gaps A few report and assessment by the World Bank to follow up the organization in which many of the observations so since Mbacherta in the central bank you activate money laundering, and gave him office type of autonomy in its budget, management and activation of existing staff capabilities which we have completed today a draft anti-money laundering law and the funding of terrorism and this was the demand of organizations and concerned in this regard, and I was given this topic a priority, and today, the draft was sent to the State Council and will be an important law at the national level and even though we are late in the preparation of this project, but now we have prepared within the last developments in this field developments. banks financed terrorism • What is the central bank action against funded banks of terrorism? The truth is that this potential things get not only in Iraq, but also in some neighboring countries, therefore we practice today supervisory role may be troublesome for banks and companies conversion but this happens as a result of the seriousness of what could happen in the banking system and the corporate conversion at the present time and there is a great monitor for movement remittances, deposits and other There are no specific figures, but this topic the focus of our attention and keep it the bulk of our focus. • Have you been lifting roofs claims of banking offices? We put a lot of controls and restrictions and committees inspection continuing on a daily basis and requirements conducted against conversion companies obviously heavy but they are required as not only have control option In fact, the actions we have taken in the past few days to reconsider sales cash dollar because all the cash Shi be the subject of suspicion and that the phenomenon of using the "Cache" in Iraq phenomenon not fit with what is happening in the rest of the world because there are no day aircraft movement amounts from New York to Rasheed Street in order to sell the dollar for the citizens and the issue has become controversial of States and international organizations, and we want to enter everything within the banking system, a system for traffic control and direction, and I know where he went amount to any activity used as well as the other countries are complementary you turn to it also monitors The criteria used agreed in most countries surely will complement the roles and today, the principle of know your customer any know Mayaml and where his money sources, therefore we revealed last attempt that occurred in the Rafidain Bank, and when you see the eye-catching amount must know the customer where it came the amount and when received instruments large amounts of people newly accounts at the bank, it has also drawn attention directly were contacted Although the fundamentalist treatment and complicity by the employee and when approaching responsible and knowledge to pass the number of billionaires we network detection and constipation Boukaotha, and today we are seeking to move away from cash trading and this culture we seek to consolidate the central bank recently occurred a slight increase in the dollar, because we reduced the cash sales and left the transfers of cash to traders and importers, because that is our responsibility to cover foreign trade activities, but when someone comes and asks to withdraw a large amount of the dollar, it is difficult and is striking because the dollar is used by travelers and rates low. • Do private banks to control? subject all banks are controlled and monitored violations and impose fines and when we spotted the bankruptcy of a bank job by Bonashh and imposing guardianship but some understood it wrongly, but the right thing is to restore and rehabilitate the bank, refreshed from bankruptcy in order not to damage the depositors, for example, we manage the Bank of the economy and the processes that make up the resources of the bank Kmzad currency and buy the dollar, we managed, as well as loans granted by entering debts to the bank, and last us the option is to allow a bank bankruptcy. • What proportion of civil deposits with banks ? proportion of very Mnkhvzh I mentioned in the cabinet, we give the salaries of up to 40 trillion and 90% of staff to interfere in the banking system, and I proposed to put the machine in each department and the Ministry through which the payment of salaries to employees in order to avoid cases of theft and congestion that could happen to banks and thus it provides financial liquidity. reset currency Where? • Are reset currency process stopped? The project is still in place and such steps need to organize the process and stability in order not to create any violations and to ensure success of the process and what we think now replace the paper method and this is the risk of the violations occur and need complex management and we are in the current situation we fear the occurrence of violations and therefore our plan is the introduction of the new currency without withdrawing the old currency and when Maroina stabilize the situation, we will implement the project, after the order of the issue with all stakeholders, in order to avoid the problems that may occur in the records and figures and others, We'll educational measures on the subject before you start it, which is an ongoing project and will be implemented, but a regulatory framework, and we'll zoom in currency as we finished the issuance of the 50-coin thousand and this currency will not increase inflation. • What is your relationship with the World Bank? our close relationship with the World Bank on several levels As Iraq is part of the international organizations and shareholders therefore take advantage of the facilities and expertise provided by the World Bank in many areas that are developing existing staff through the World Bank, as well as studies and recommendations offered by us, and many of the recommendations imposed by the World Bank, but the current our condition is not allowed to apply, and sometimes find interest them, as the World Bank confirms the restructuring of the banking sector, especially in the Rafidain and Rasheed was the World Bank's significant role in the recommendations and advise. region can benefit from the central • How do you deal with the fiscal policy in the region? Central Bank has two branches in Arbil and Sulaimaniya but matter of fact we do not have direct management in them; they operate independently of the central bank and this thing does not serve the region, because the central bank is the third party between the banks and the public and the government, which regulates the rhythms to avoid risks in the work of banks and I think that there is disagreement in the process of overseeing the province and the result was a government region are overseeing it, and we did not agree on it, and now there is a change in attitude and this may see the region that the banks there must be managed by the central bank because this relationship will benefit the region of the existence of an independent party is able to regulate the process in general, because the absence of bank Central got problems appeared floating on the surface of reality, and I expect changes. • Are you satisfied with the government program to Dr. Abadi? I'm satisfied with his work if he continues to apply the vision and the program within the schedule. • How the process damaged the currency switch? run that a lot of people standing queues to switch Damaged currency with a new one and we have our work in the switch and canceled wages that were imposed on citizens who have changed their damaged new.
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