Saturday January 23, 2016 - 09:11
Baghdad (where) - accused the Counselor for Economic Affairs in the Prime Minister, the central bank following the policy of "distorted, and inconsistent," the shadow of the financial crisis in the country.
He said Abdul Hussein Al-Anbuge, told all of Iraq [where], "Carry the CBI great responsibility the adoption of the policy of distorted cash and inconsistent the current time, it is an incentive policy, when the Central Bank lent banks up to 6.5 trillion dinars to support investment in important productive sectors to confront the slide toward the massive contraction that may ahead of us, which is true conduct and support, "noting that" this recession Snnzlq him probably caused by a decline in Iraq's foreign exchange earnings.
"" At the same time depends [the central bank] deflationary policy On the other hand, when it insists on maintaining the exchange inordinate price of much of the Iraqi dinar, and so the stimulus that creates the right hand Eekpha the left hand.
"He pointed out that the bank" is long overdue to make the exchange rate adjusts to the deficit in the public budget size, the budget deficit great rates exceeding 30% of GDP was "explaining" if he insisted [the central bank] on to maintain the high rate of the dinar against the dollar for fear of prejudice in Iraqi dinars, the Iraqi economy as a whole will be threatened, we will put the economy at the top of the sweeping crisis rather than put it in less dangerous angle.
"He pointed Anbuge to that" all countries of the world have sought to ease their exchange rate to keep the economy , China, for example, lowered repeatedly and even important oil-producing countries has reduced the price of their currencies repeatedly, but Iraq, it has exhausted the foreign exchange reserves in order to keep the exchange rate of the Iraqi dinar, otherwise it is possible now with the delays that happened that we could gradual reduction of the price of the dinar exchange management After months Perhaps we will lose this option and we could not therefore have been forced to leave the dinar prone to float and happens to us a mess.
"He continued," I Osail CBI How do you ask of real investors feasibility precise calculations made for the borrowing of funds allocated by, and you are at the same time suppressing their competitiveness at a price Exchange inordinate dinar.
"felt Counselor for Economic Affairs in the Prime Minister said," This means that we encourage the whales of businessmen to borrow and leak money one way or another back into the trade sector, without having to create a record and the generation of the entry and the face of the recession.
"He stressed that" to retain the official exchange high dinars with the decline in the amount of foreign exchange in the economy, the price will create a black market for currency inevitably, will grow large speculators layer subsist on it, as it escapes part of the demand for the dollar, a large part of the display to the specific categories of white market toward the black market. "He continued Anbuge "again mortgaging this market mafia of speculators", stressing "We must move quickly to reduce the dinar exchange rate as we move the application of customs tariffs and rates higher than found in the customs tariff law to create a profitable opportunity for genuine investors in the productive sectors, and to block the road in front of crises traders" . He pointed out, "so we can face the next crisis that we are now on the edge, and we can confront the procedures correctly create added values and produces entry and generate entry and absorb a lot of unemployment, which will get the Iraqi economy." The Anbuge, revealed earlier this month, all submitted proposals to resolve the financial crisis in Iraq because of the decline in oil imports to decline in global crude prices, Among his proposals "conversion dinar exchange rate against the dollar to 1300 dinars, and instead of selling the dollar to 1116 dinars to sell the central bank B1300 and this will save nine trillion dinars, or about $ 8 billion and therefore can plug in the budget without borrowing, "afterthought" but doubled the existing budget and accounting department in the Ministry of Finance and they do not possess the ability prevented turn these proposals into reality and diversify its sources of imports of the state. "The Commission on oil and energy parliamentary member Jamal Panthers, said to [where] that" the country on the brink of bankruptcy as a result of the financial crisis and low oil prices. "It is noteworthy that, oil prices witnessed over the past week, a collapse remarkable which recorded the lowest level over the past 12 years since I arrived on the fifth of this month to $ 25 a barrel for a basket of crudes OPEC and less than 30 dollars for Brent. and Iraq faces a financial crisis due to the sharp decline of oil, in terms of financial budget for this year with a total expenditure of more than 105 trillion deficit accounted for 22.8%, reaching a total revenue of the 81 trillion and 700 billion dinars, the oil revenues, of which 69 trillion and 773 billion dinars and form increase of 85.1% of total revenues, while non-oil revenues amounted to more than 11 trillion and 927 billion dinars The increase of 13.6% of total revenues.
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