The Central Bank's capital increase trillion dinars
24/7/2017 12:00 am
Under the State's efforts to keep up with global economic development, the Council of Ministers and deputies on amendments to the law on the Central Bank of Iraq.
This comes at a time when economists hailed the new amendments which indicated that it would be a radical and important capital market will develop.
According to a copy of the Bill got "morning", the new law aims to
"increase the Iraqi Central Bank capital to cope with the global economic development and
granting powers to the Bank and to
increase the number of members of the Board of directors from outside the Bank and the
formation of an Audit Committee and
issue commemorative coins and the imposition of interest on loans granted by the Bank for commercial banks and
keep his money from booking issued judicial decisions."
The law stipulates that "the CBI trillion dinars capital State-owned.
The new law allows that
"the Iraqi Central Bank holds foreign assets transactions and manages official reserves of foreign cash to the State in accordance with international best practices and objectives of monetary policy, as the
Board may invest such Golden monetary reserve in the Iraqi Central Bank vaults, foreign currency and metal usually used in performing international accounts maintained by the Central Bank of Iraq or for his account, and credit balances payable on demand or payable after short Forex usually Used to perform international accounts maintained by the Iraqi Central Bank has accounts or those who invest through repurchase repurchase and fixed deposits for multiple deadlines.
In addition to special drawing rights available to calculate a Fund's Iraq critique, stand by Iraq to the International Monetary Fund, as well as any securities negotiable debt issued by or enjoy the full confidence and adoption of foreign Governments or central banks or international financial institutions and foreign authorities and local agencies that are paid in foreign currency which is usually used in carrying out international accounts maintained by the Central Bank of Iraq or for his account.
The Bill also enables the Bank to "use derivatives in the portfolios as a tool to hedge, issuing commemorative coins non-negotiable, and the Central Bank of Iraq with the approval of the Minister of finance an international company external audit functions and financial audit for (5) five years, and may not be repeated in consecutive sentences chosen more than (10) ten years."
Development of the work
Economist finds iam_ronoc in a statement for "morning" that "this legislation amendments will contribute to the development of the work of the Bank, allowing wider freedom funds after the capital increase."
He noted that "these modifications are second after the promulgation of the Bank issued order number (56) of 2004 the Coalition Provisional Authority (now defunct)", stating that "the CBI succeeded during the last term in maintaining the exchange rate of the Iraqi dinar and gave quite a performance in relation to Iraq, financial stocks.
Shammari was upbeat about the next stage, especially with the Bank's determination to develop its work with the adoption of new products.
The Central Bank Governor stressed that relations Iraq overcome the difficult stage «» pessimistic that passed over the past two years and accompanied by statements not based on the facts elicited horror in the Iraqi Street.
World Bank indicators showed that a "safety valve" for the economy and the country's monetary policy, inflation did not exceed 2%, keep the dinar exchange rate stable at acceptable limits despite the challenges, in addition to supporting global institutions attention effects index, the Central Bank's reserves surpassed IMF forecast ceiling ten billion dollars despite the country's exceptional circumstance.