29/7/2017 12:00 am
Mustafa Mohamed Ibrahim
Within the recent trends of the International Monetary Fund on economic reform in Iraq, especially after the recent meetings of the standby credit agreement (SBA) Stand By Arrangement, the IMF has a policy of fiscal restraint.
As the braking means (Financial Repression)
A set of restrictions placed by the authorities
Cash on the financial and banking system, which is intended primarily to satisfy the financial needs of the Government by imposing Low or no interest rate and forcing banks to Buy the bonds low dividend as well as Imposing severe restrictions on the movement of capital.
Among the manifestations of throttle policy Particular financial interest rate management Loans and deposits as well as allocate credit and implicit tax are high on the banking sector,
since most Countries of the world had the throttle policy CFO or financial liberalization by imposing a set of laws and regulations and the quantitative and qualitative restrictions imposed by the Government which allow financial intermediation by employing the available capacity by, Another aspect of financial restraint policy prevail.
Or financial liberalization many systems for the price Most important exchange fixed exchange rate regime,
the Central Bank select value Currency steadily through Banks of gold and foreign assets,
therefore the need to provide legal and technological reforms in State banks to take Its role in providing banking service to all Economic sectors at the same time focus on Financial liberalization policy as internationally and locally option Helps to achieve economic development and create a sound bank.
Therefore, monetary policy must continue to attain the ultimate goal of building a sound banking device and is able to realize all the challenges facing the banking business by building an efficient and effective system to meet all the macroeconomic variables,
plus the Fund draws a centralized setting monetary policy operations accounts and be under the supervision of international auditing company and continue on this basis shows mutual impact of fiscal policy on the financial budgeting,
but the question remains how important it is to keep external borrowing.