Financial disclosure and transparency. Settled curriculum of the central bank
Sunday 07 April 2019 55
Samir Amna Nassiri
Central banks in the countries of the world are primarily aimed at achieving economic stability through monetary and financial stability in accordance with their programmes and policies aimed at maintaining stability in the exchange of their domestic currencies against other foreign currencies and building sufficient foreign reserves.
According to Special International Monetary Fund (IMF) standards, banks are assessed on the basis of other criteria relating to the response to crises, challenges and economic and political shocks in their countries, the control of stable rates of inflation and interest rates, the application of compliance regulations and rules and the fight against Money-laundering and the financing of terrorism.
The march of the Central Bank of Iraq over the past four years has proven to be progressing steadily to achieve the goals of monetary policy and a firm and prudent approach that relies on transparency and disclosure of financial statements and dealing with international financial organizations and institutions, in the interest of restoring confidence The international banking transactions suffered by Iraq prior to 2014 due to reputational risks and the negative media impact on the damage to the Iraqi economy and the diversion of inaccurate and fabricated data and information.
This led the central bank to draw up a strategy for the next five years, one of the main objectives of which is to adopt transparency and disclosure locally and internationally about the results achieved by the financial and banking sector and abide by the standard international standards established by the banks A sober world, which has led to the building of a new and balanced relationship with banks and international banking institutions based on confidence in the financial statements made and announced by the central bank.
For example, a detailed report on Iraq's dollar revenues and expenditures for the years (2005-2017) was announced earlier because the central bank is the financial advisor to the Government and manages the foreign exchange accounts of the Ministry of Finance from Iraq's oil exports, which is the main supplier of foreign currency It accounts for 93 percent of total budget returns and 65 percent of GDP.
The report explained with high transparency and disclosure the accuracy of the data as a total of 706 billion dollars and government expenditure totalling 703 billion dollars and the remaining was transferred as the opening balance of the Ministry of Finance for the year 2018.
What is important and essential in this report is that it has clarified the sections of government expenditures during the years, which were concentrated in the operating expenses by a large percentage and the expenses of security and the war on terrorism and government imports in the light of contracts concluded by the ministries, in particular electricity, oil and ministries SOA.
Investment expenditures accounted for only a small proportion of the operating expenses that were higher than those of salaries and wages, and the report clearly indicates that the highest oil revenues achieved in 2012, the highest expenditure in 2013 and the lowest income achieved in the year 2016.
The central bank also daily announces its sales to the dollar in the Currency Sales window distributed to the banks that enter the window according to the classification of each bank and a comprehensive disclosure.
In addition, the centre always confirms through the monthly meeting of the banking leaders the obligation of the banks to adopt transparency and continuous disclosure and all available means of the results of their actions periodically and the adoption of international accounting standards that ensure the transparency of the financial statements.
It is all to note that the central bank with this stragtegic and approach announces to local and international public opinion the following:
1. The statements issued by him and the Iraqi banking sector confirm the transparency and disclosure by the Central Bank of Iraq of the fact that, for the first time since 2003 at least, it has declared certified and transparent reports of total foreign exchange earnings and total foreign currency expenditures of the Government in accordance with the approved exchange lines.
2. The data contained in his daily reports on his official website refute all media statements made by non-professionals in the various media outlets.
In particular, the currency of the sales window.
Through my analysis as a follower and expert I think that the central bank's disclosure of the financial statements, particularly with regard to foreign currency with the required accuracy, will greatly help to restore confidence in our national economy and the Iraqi banking sector domestically and internationally because disclosure, transparency and credibility will be lifted Financial inclusion rate.