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Two experts in the economy: new central bank bonds borrow another type

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Two experts in the economy: new central bank bonds borrow another type

Economy   Breaking   Central Bank of Iraq   Financial bonds   Internal loans
2021-09-30 02:19

Two experts in the economy, said that the goal of the latest Central Bank of Iraq on issuing new financial bonds is to reduce the rise in cash inflation in the country.

The Central Bank of Iraq announced last Sunday, issuing new bonds with two Malten categories.

The bank stated in a statement and responded to the Agency News; "Continuing to the role of the Central Bank of Iraq in the development of the local financial market and the mobilization of savings, the central bank subtracted the first ingredient of two categories

(500,000) dinars (500,000 dinars) an annual interest (6%) for two years, and

(1,000,000) dinars (Million dinars) an annual interest (7%) for four years

The Central Bank confirmed; "The purchase of these bonds will be through the banks, which receive purchasing requests from wishing to do so and receive a delivery of the purchase of these bonds, as it is issued by the central bank and recognizes the banks within a short period."

Other loans

The economic expert, Ahmed Saddam, says that "bonds are a kind of loans, but vary where loans or a support of the central bank to the public are declines, an important monetary policy used by many countries of the world, is one of the important tools of the central bank tools Control for cash."

Saddam reminds the Agency of Twilight News; "The objectives of these bonds by the central bank at this time are specifically financing and reducing cash as a result of high level of inflation,

where the central bank raises these bonds for the purpose of reducing individual purchasing power,

and at the same time there is a capacity by the central bank on Lending some investment parties and have adequate liquidity to approve some projects,

to move these funds in homes and from individual pockets and direct them in an investment

Saddam, "in Iraq there is a confident confidence or part of the country, the central bank and banks on the other) and representatives of these bonds that are issued between the time and the other, if we assume the exchange rate of the Iraqi currency, He also happened in the past, we will be an obsessed with the citizen or by the owner of the Sindh if the exchange rate is reduced, which is unexpected, we will be a significant loss to the owner of the bond."

"The lack of understanding between buyers and decision owners will pay much to not go to such decisions to buy these bonds, as the matter needs explicit guarantees in this regard."

Internal borrowing

Member of the Iraqi Council of Representatives, Ammar al-Taima, issued a statement on the issue of these bonds to the public, announced his rejection of the Central Bank's decision to issue bonds (an internal borrowing) to address the industry and justification for this decision in accordance with the data.

"Such a resolution can listen to him the prices of oil selling without (thirty a barrel), while oil prices rise to nearly 80s, there is no acceptable or justifications or justifications The efficiency of the collection of outlets and from all governorates of Iraq, including the region, will provide at least (ten trillion dinars) at least, which is confirmed by the Ministry of Finance in an earlier official statements."

Continue, "firm control measures on a currency auction will provide at least at least (four trillion dinars).

Unsubsible profits for parasitic banks are giving indicators on the return of their ownership or subscribed to their ownership, but the figures indicate that the profits of the witness Banks days after a jump at the exchange rate end of 2020 in two months only reached more than (1,3) trillion dinars."

He noted that "pressure unnecessary expenditures and relying on actual expenses for past years will confirm the need for the nation of the State to be accompanied by internal or external borrowing.

Plan for 2021 (130) trillion dinars are far from realistic need for actual expenditure, which requires a pressure of many expenditures disappearing in a general violation of a general exercise that makes control of expenditure and truth.

He pointed to the "Cancellation of unfair federal licensing contracts as well as foreign oils with foreign companies adopted and replacing partnership contracts and replacing them in a useful national form.)  Of oil produced in the region goes foreign companies."

It was called for "Review of Mobile Contracts, as official documents indicate that phenomenon revenue in the data of those companies for 2013, for example, 4.2 trillion dinars for two companies only from the total three companies, and according to the three companies, the total mobile service revenues are not less than About (6) trillion dinars."

Government agent

Turn; The economic expert, Abdulrahman al-Mashhadani, how to issue bonds in Iraq, stressing that there are two parties within the country (first government and the second central bank can be agent for the government for the purpose of issuing bonds), but now in these bonds, The bank is one of these bonds and not agent for the government.

The scenery spoke to the Agency of Twilight News; "The Government is when either indoor or external bonds, aim is to finance deficit in the general budget or financing some important projects, which has happened over the past years and another year and has been to finance the general budget deficit and the government has not been successful."

He adds that "the Central Bank when he issued bonds, there are cash objectives other than the government's goals and the last central bank's step, after several loans to the government and residential initiatives provided to citizens,

and all these steps confirm that the central bank pump new currency in the market worth more than 30 Iraqi trillion, because the monetary offer rose from 64 trillion to 94 trillion dinars in the market, which led to high inflation rates in the country, through the indicators of the Ministry of Planning that inflation rose in the country at 14%.

"The central bank has issued these bonds to one goal of control, because 70 to 77% of the central bank currency goes to the market and do not return as deposits in banks, and therefore be locked in the pockets of citizens and ties in their homes," the central bank.

That "There is a mixing of the central bank and conducting the government in terms of issuing bonds, and therefore some political blocs believe that this procedure is incorrect and it is released at a time when the price of oil may be $30 and less, but this is not issued by the government, but it is aimed at control To inflation in the country, as it is not as she saved for some small banks in the country."

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