On the Keywords .. Iraq's economy will face a tsunami in the next phase

Khalk: Follow-up
He suggested the central bank governor on the Keywords, on Monday, an alternative to selling the currency window, but he alluded to the possibility of flooding the market in the local currency and therefore "collapse" of the dinar, while warned of a "tsunami" could strike the Iraqi economy in the event of the closure of the window.

Keywords and said in an interview with the official newspaper "Sabah", that "for the window sell the currency they receive notes, requires a deeper understanding of this process, as it runs from the shortcomings, because the sale of foreign currency governed by the laws and considerations related to monetary and fiscal policy of the Central Bank, as proceed from the framework legal, law of the Central Bank states that the bank sells foreign sales currency simple unconditional and unrestricted access to the side of the Convention on the international Monetary Fund for Iraq is a member, as signed to join in 2008 and these countries committed not to put restrictions on the sale of currency. "

"The second point is monetary policy that require follow the requirements for this method because the nature of the Iraqi economy is dependent on oil revenues, the dollar and the expenses of the government in dinars, Treasury Department convert dollar the central bank to get the dinar because most of its expenses in dinars Bank is the process of taking the dinar from the market through buying dollars to be delivered to the Ministry of Finance. "

He continued: "It we are surprised to invite others to the failure of the Central Bank in this and the closure of the window that means closing a tsunami hit the Iraqi economy and hits the currency, this means that the Ministry of Finance pumps dinars, and there is no mechanism to control the money supply and absorbed, and other alternative from the window that the central bank when receiving the dollars to print dinars annually by the budget and deliver it to the Finance Ministry, which in turn pumped the market, meaning that he dumped the currency market will collapse the price of the dinar, as happened during the rule of the former regime. "

He noted that the "dollar sale process by the Central Bank is the sterilization process, and a window sell the currency is not an option for the bank it is a legal issue relates to monetary policy requirements if blocking the bank for this collapse of the Iraqi dinar, because the dollar source in the Iraqi government, if the government grabbed the dollar and Ahjpt for sell it meant that the Iraqi dinar would collapse, and the fact that the government spent at any dinars like really gave the citizen dollar or replace goods interview. "

Keywords and pointed out that "some people wondering why are not central banks in other countries in this process? .. The issue is quite different, as the countries that have the dollar as a result of tourism, exports and investment resources or transfer residents from the outside to the inside of the Central Bank which does not need to intervene dollars to the presence in the market, there is supply and demand organize itself and the central bank intervenes when there becomes a disruption of the relationship between local and exotic currency exchange rate. "

He added: "When a shortage occurs or increase the either buy or sell so this is located where the dollars the central bank States does not intervene and does not need to retain dollar, so we see a major advanced industrial nations reserve has a simple, because it does not need a sales process, therefore, this understanding is not available, and today the money supply in the currency of the size of the estimated 43 trillion dinars and if these amounts remained swells does not have the tools absorbed happen tsunami ravaged the situation. "

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