Seminar "Institute of the progress of developmental policies."
Governor of the Central Bank reviews the most important challenges in monetary policy
Guest "Institute of the progress of developmental policies," Governor of the Central Bank Mr. Ali is stuck in an extended seminar
Institute held attended by a group of experts, businessmen and representatives of the private sector banks.
Dr. Mehdi al-Hafez MP who ran the seminar, said at the outset that monetary policy was still the issue
Vitality in economic life in the country. They are generally a reflection of the general state of the disease and how serious the aversion
Difficulties and dilemmas emerging inconsistent and make it with the Objectives drawn.
Hafiz said before 2003, the monetary devices are all in the grip of the former regime were not independent never
Was trespassing on her performance was so monetary policy - if any - an extension of the air of self-governors without
Doubt . Hence the need for good root of the Central Bank emerged and passed the new law, which stressed his independence
Articles of Association and install its role in protecting the country's resources.
And between Hafiz that the task now is to confront money laundering and terrorism financing, which attempts to stand in the forefront
The challenges facing the Iraqi Central Bank. Also, ensure the safety of operations and cash through sale
Currency is the other is essential in the performance of the bank and install the principles and rules of handling the project in the sound atmosphere of censorship
And supervision without a doubt.
Hafiz said to maintain the independence of the bank and enable it to perform its task without interference and corruption and make it a Foundation
Effective and guarantor of the interests of society as a whole.
To that, the Governor of the Central Bank Mr. Ali stuck to sell the currency needed to process a deep understanding in light of
Big accusations faced by the bank without the evidence to prove the existence of suspicions of corruption or the laundering of money or process
Smuggling of currency .. surprising from the IPO, which says that the sale of the currency represents a waste of public money, this characterization Alimit
For scientific or economic relevance, and there are a lot of countries practicing this process is one of the main functions
Central banks in the world.
And he gave a detailed explanation of all the pending challenges facing monetary policy, said:
CBI practiced multiple and multidimensional Zaiva the aspect of stability is on the financial
stability financial and management of the national payments system System Payment National and management
Reserves Foreign reserves in foreign currencies and licensing and monitoring Supervision banks and institutions
Finance, is developing preventive controls the Prudential, in addition to other tasks related to the cash Baalsaddar
And dissemination of data and economic indicators and forecasts.
It is with basic tasks carried out by the central bank's monetary policy management Policy Monetary which aim
To control inflation and stimulate the economy, inflation and full employment and the balance of the balance of payments and to achieve
Monetary stability, and this is going to talk about this post) monetary policy (.
To achieve the goals of monetary policy will depend mainly on the independence of the central bank, and here is the independence
In the central bank's ability to control and control of the money supply) as an element in the foundation
Monetary policy (and despite Matns by the central banks in the laws of most countries in the world. However, these independence
Realistically, the process is subject to other influences and challenges, to varying degrees and affecting the autonomy
The financial stability represents a starting point toward economic stability requires that monetary stability is the
The ability of the monetary authority to achieve price stability at targeted levels) through the control of inflation
India's target levels (.
Here facing monetary policy) to control the money supply) many challenges including:
1 -aalguetsad rentier) dependence on petroleum products by 95%)
And that leads to the behavior of a yield, which dissipate resources and tunnel-consumer waste and slack and weak efficiency
And increase spending rentier with the inflexibility of the local machine useful lives and lack diversity is increasing imports, and increasing
Cash basis due to forward foreign currency monetization) converted into dinars in favor of the government by the central bank (,
Which is a vulnerable Tdjima and vulnerable on the balance of payments.
State budget expenses have increased from 31 trillion dinars / year in 2004 to more than 100 trillion
Dinars in recent years, and increased the money supply accordingly from 32 trillion dinars in 2004 to 88 trillion
3 Financing of public budgets deficit:
The deficit in the state budget represents the biggest challenges for monetary policy, which is inversely proportional to independence
While the central bank is financing this deficit by buying Treasury bank remittances, which leads to expansion
The monetary base and thus cash Issue versus those transfers) and not in exchange for foreign currency (.
We have the central bank discount treasury remittances during the period from the end of 2015, and during the year 2016 by about
Add 16 trillion to 4 trillion dinars from banks reserves dinars to him, which led to increased money supply
Without the cover of forward foreign currency and thus lower foreign reserves.
The planned budget deficit for the year 2016 deficit of 24 trillion dinars was supposed to cover mostly
Of bonds and loans indoor and outdoor facilities, but most of them did not materialize forcing the central bank to fill
Disability and without it was not possible to pay even the salaries of staff and the occurrence of a crisis threatening the country's situation.
4 -azahrh dealing with cash:
The money supply in circulation outside the banking sector and its channels represent a large sum up 9.41 trillion dinars
Of the total issued currency amounting to 1.45 trillion dinars) at the end of 2016), and this phenomenon represents
A major challenge for monetary policy, which disrupted Adaute to take control of that block as well as missed opportunities
Financing, operation and credit.
5 -daf government cash management:
The state institutions for assignments allocated to them in public budgets are weak and the loss of funding method
Control, which accumulated large sums of money in various bank accounts totaling more than 40 trillion dinars in
2016 (15 trillion dinars, the central government institutions and 25 trillion dinars for public sector organizations
E on the proposal of the Central Bank (unified open one account to the public treasury rulers
(And being a while ago) us
Control the use of the funds efficiently and effectively.
6 -daf financial depth financial Jacks:
Characterized financial markets) equity markets, bonds, capital markets, money markets (parochialism, which
Miss employment opportunities for local savings and reduce the phenomenon of Aaketnaz and withdraw cash to employ them in the sectors
7 -daf banking system:
The banking system is a cornerstone of the pillars of the economy and an important arm of the central bank to achieve stability
Financial and important factor in helping to manage the money supply through central bank tools carried out through
The banking system through interest rates and mandatory reserves and open market) buying and selling securities
Financial (market exchange rate etc .. However, this sector suffers from several negative phenomena including:
limited banking products and services qualitatively and geographically marginal activities and preoccupying.
State-owned banks dominate the sector to increase by 80%
exacerbate the problem of bad debts and credit concentration.
institutional weakness of the government.
receive financial shocks due to the decline in the real sector activity and faltering government in payment of dues Contractors
, Processors and others.
8 -daf role of some monetary policy tools:
Some of monetary policy tools play an important role in influencing the money supply upwards or reduced, including the
Interest rate and the percentage of legal reserve and the rediscount rate, but these tools are limited influence young people
Regarding the nature of the economic structure and the structure of the financial system and weak domestic credit.
9 -Low domestic investment and increase savings Foreign Operation:
Due to the circumstances of the security environment, political, legislative, regulatory, a large proportion of the savings go to
Investment outside Iraq, with the weakness of imports of forward foreign currency from export sources such as tourism,
Transfers of living abroad, and foreign investment, all this leads on to become the central bank is
The monopoly currency is displayed in the forward foreign exchange market completely is, they de facto sole source
Which covers the demand for foreign exchange.
01 - Poor coordination between fiscal and monetary policy:
Form of fiscal and monetary policies have cornerstone of economic policy and that's where fiscal policy plays an important role in
Management of public expenditures and revenues and who directly affect the GDP and money supply
Aggregate demand and employment, the coordination between monetary policy is important, without receiving monetary policy
Great pressure and challenges, and with the absence of such coordination of monetary policy was a continuing source of the waves of spending
And the growing weakness of the local revenues and the weakness of investment spending aimed at expanding and diversifying the base
Productivity, all of which affect the effectiveness of monetary policy and achieve economic stability and exchange rate.
11 - influence media system:
With the lack of awareness and economic awareness in general and monetary policy in particular, constitute news and analysis is
Minute considerable pressure in front of the monetary policy, given the sensitivity of this aspect, and Matkhalgah propaganda and OF NEWS
The figures and analysis is the process and not the objective of the direct effects on the market and creating panic
And fear among the citizens and thus disturbed the market and increase Aaketnaz and demand for foreign exchange and other
Phenomena that bedevil monetary policy.
Dr. economic expert. Abdul Hussein Al-Anbuge stressed that monetary policy may not be good when they are
It is able to move Adawadtha but rely on the exchange rate only to create stability and stability in the
Allenbga concepts is only to control inflation but also means that inflationary pressures and diplomatic pressures.
God's economic Abd al-Bandar, the expert stressed that the Central Bank's policy is influenced by the wrong policies of other
And wondered about the reasons for increasing the money supply is responsible for them
Dr.. Ahmed Ali Abrihi explained that all economic activities are one step uninterruptible activities and there
It is always a point neglected the issue of Iraq manufacturing.
Chief of securities in favor of Mr. Nouri made a number of important observations, including how to reduce
Import and sale of currency linked to the import of the private sector and stressed that the Ministry of Commerce is now no limit
It estimated the country's need and quality of imported goods and commodities.
Chairman of the Federation of Business Men Professor Reza Ragheb Blibl confirmed the presence of obstruction to the construction and development of the country views
Indoor and outdoor industrial initiative to block the operation of the industry and the private sector.
Industrial expert on behalf of Antoine stressed the agricultural and industrial sector because of the deterioration of the weakness of the monetary policy
In Iraq and stressed that it should be run useful life sector, which includes more than six million people and give
Real loans to this sector.
Banking expert Professor Samir Nasiri that there are between 126 bank in the areas occupied by the "Daesh"
Has been completely looted and also $) 7) trillion dinars bank deposits in banks in Arbil and Sulaimaniya is the most important
Challenges facing the monetary policy and the banking sector in particular, is the subject of defamation and reputation risk
The banking sector and the central bank.
Business Lady Zainab al-Janabi, confirmed the non-receipt of any industrial initiative dedicated industrial loan
Because of the lack of an industrial base and a lack of coordination among state agencies.
Industrial expert Hamid punitive between the industrial initiative two years older and did not invest properly
All of this is intended for the destruction of the Iraqi economy.
Kazem fistula banking expert stressed that the poor performance of government must Alaather on the work of the Central Bank
As an independent institution.
Ghalib Al-Anbuge diplomat wondered how much the Iraqi reserve Is it $ 45 billion?
Mr. Adnan Chalabi, of Ashur International Bank stressed that the most important challenges is to control the mass increase
Exporting the circulation and control of the external trade of the country cash.
Mr. Tariq Ali, executive director of the Association of Iraqi private banks pointed out that the central bank is
The financing banks and the banks in turn funded by the beneficiary and stressed that the central bank has provided all the money
Initiative has been allocated for each bank required quantity but the problem lies in the nature of the market and demand.
Dr.. Sarmad al-Shammari - Mustansiriya University - wondered about the role of the central bank in the strengthening of the local currency and whether
It can provide investment loans in foreign currency instead of local currency.
Ambassador d. Mohammed al-Haj Hammoud stressed that the central bank performs his duty well, despite the great obstacles
But there are facing a key issue which is rampant corruption in all aspects of the state where the industry
It foundered because of corruption and Agriculture also stalled due to corruption and must Alnhml corruption case because they issue
Major in Iraq.
Mr. heart Hossam Obeid Bank Chairman stressed the economy and a problem with the cadres
Banking and called to facilitate the task of labor and banking cadres from abroad
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