Monetary policy objectives until 2020
08/5/2017 12:00 am
Samir Al Nassiri
Monetary policy is the most prominent economic policies aimed at achieving economic stability and stabilize exchange rates that increase the national economy and effectiveness of economic challenges to achieve foreign exchange reserve now stands at 49 billion dollar limits and install the dinar against the dollar are necessary and appropriate, with foreign currency Central's window played a positive role in maintaining the appropriate level of the exchange rate and install it.
The CBI has taken several steps to expand the list of tools available for monetary policy and coverage required reserve to cover government deposits and the granting of facilities on deposits maturing in the short term in order to allow banks to manage their liquidity more effectively.
You can select the most important funeral of monetary policy tools during the years 2004 to 2006 the first of the relative stability of exchange rates and tight monetary policy, the stability of the financial system, as well as reduce inflationary phenomenon, control and manage liquidity levels, stimulating banks to market orientation.
Since the Central Bank is currently implementing its plan for the coming years, we are studying a series of observations which monitor the implementation of the strategy and policies of the future Central cash until 2020 with the banking sector's contribution to GDP,
it is necessary to search for new policies that aim to provide Government and private banks to participate in the growth and investment in accordance with applicable policies and mechanisms without imposing strict policies and give sufficient elasticities, addressing the gap between state fiscal policies and monetary policies adopted by the Bank.
The central requirements of combat inflationary pressures and reduce the current expenditure and coordination of plans and programmes to achieve the Iraqi economy from financial meltdowns.
It is important to activate the monetary policy to support the banking system and review the lending policies and mechanisms of credit risk management in granting credit and loans to SMEs and investment in productive sectors and investment that satisfy a clear cash flow and boost the economic cycle by contributing to economic development and diversification of the financial resources of the general budget.
It is necessary to develop, support and stimulate Iraq market for securities and means and tools that drive toward corporate and market index prices in line and their assets and profits and production standards at least inevitably real shareholder value and prevent speculation detrimental to Iraqi assets not commensurate with the real value and actual.
It is important to follow closely the foreign exchange window instructions issued in 2017 and organize my dollar and define the role of banks in the mediation between the customer and the supermarket in addition to establishing the responsibility of the ministries of trade, finance and planning in offences committed by some customers and not burdening the banks only.
Create (a box) or (portfolio) of certificates of deposit issued by banks wishing to address the deterioration of stock prices in Iraq market for securities and adding new investment banking management present to stimulate the investment climate in the market as well as increasing the size of bank deposits leading to increased investment activities in all economic sectors and thus achieve positive returns for investors.
The boards of Directors of banks adopt the strategy of operational risk and implementation of executive management of the Bank to ensure determine operational risk relating to all types of banking products. custom review bad debts according to the indicative list and return additional periods and elasticities for banks to be able to filter these debts mostly dating back to earlier periods and that most debtors have migrated out of their cities Iraq for security reasons beyond their control and that these ratios lead to reduced profits actually realized as a result of subtracting these percentages of net profit and thus affect New investment banking activities.
The restructuring of the banking sector, particularly the banking sector and Government study privatizing some sections and branches and to activate banks expand and diversify their services private banking increased share credit and investment in a balanced manner with their returns Dean to become effective economic growth pillar banks to avoid some banking monopoly and block government activities public institutions and private banks.