Central Bank Governor: No plans to cancel the sale of currency window

Author: morning

1/16/2017 0:17

BAGHDAD / Tariq al-Araji
 The governor of the central bank on the Keywords there is currently no intention to cancel the sale of currency window.

Keywords and said in the interview with »Sabah» Dialogue: The «subject to delete the zeros still exists and its implementation requires security and political stability of the country», declaring the quest to combat money laundering operations.

The following is the text of the interview:

* There is a delay in the launch of private contractors and farmers Treasury bonds, what are the reasons for this delay?

Sticky Treasury bonds a negative impact only on the work environment in general and the considerable social repercussions and the position of the central bank was the starting point of secretions and gravity, and Not surprisingly been floated the idea of ​​issuing Treasury bonds, as the central bank deduction to solve the problem and pay eligible rights of contractors and farmers.

This initiative large from the central bank, because it is related to the agricultural sector, which needs a lot of support and care, especially after the recent years have witnessed significant growth producing some crops, particularly wheat and barley, and also for the construction sector, which is the sector is very important and has a major role in moving the economy labor and others, so the central bank put all the procedures for the extradition of these amounts of direct and has actually after that decision was made by the cabinet the need to review and audit files in this matter before discharge to the emergence of some problems and inaccurate statements Vaclav Supreme audit reviewed the matter, as the head of the censorship financial aware of the importance and seriousness of this issue and ridiculed to great lengths to get the job done, but the problem is by providing data and information required by some quarters, particularly the provinces and the decision was to kind of unfairness or favoritism irrespective amounts do not happen and that launches a full after the completion of audits for fear of affecting operations.

It is also no idea to approach the International Monetary Fund to release the amounts of the transactions completed and depending on the course of events and based on the lag happening in some institutions, there are also differences in some of them will take much longer, so the Chief of Staff in the process of moving on the idea at all of the transactions completed and will be our conversation with the Finance Ministry in this regard that in turn, will talk with the international Monetary Fund to activate it.

Q: What is the extent of coordination between the central bank and the Financial Inspection Office and the Finance Ministry regarding the shared files?

There are a lot of coordination regarding the reforms with the Ministry of Finance and the Office of Financial Supervision required Iraqis before they are international, which is evident in the government's reform program put forward by .. Many of these themes require a joint effort between multiple institutions, especially the Central Bank as the role of leverage of the situation in general, during the year 2016 acted as liquidity support and the Treasury in amounts of up to 20 trillion dinars and the central bank as an adviser and financial agent of the government plays an important role in expressing their views and to participate discussions on some of the financial reforms, especially in the framework of the pressure of costs and increase revenue and the central bank as probes the national economy as a deal with the core of the Iraqi economy problem, which is the weakness of the productive base or weakness of the real sectors of the economy, and today the Iraqi economy is facing a very negative fact is that the government is pumping money from oil revenues for the salaries and expenses of the turn to imports develop the economies of other countries and the Iraqi economy stays down and it is capable of running the citizens and to create real economic growth.

All these things have encouraged the central bank to launch an initiative for the granting of industrial, agricultural and real estate loans a big and serious attempt to contribute to stimulate growth in the real sectors to create a productive and economic base helps run manpower, and there are multiple orientations of reform on the economic side, so it was forming a joint council to coordinate fiscal policies and cash between the bank and finance ministry have its members specialists from both sides.

* There are those who call to cancel the sale window of the currency by the central bank. What do you think of this Referrals?

For window sell the currency they receive notes, it requires a deeper understanding of this process, because it stems from the deficiency, 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 legal framework, law of the Central Bank states that the bank sells the currency foreign sales simple unconditional and unrestricted Besides the IMF, Iraq agreement which as signed to join in 2008 by these countries committed not to put restrictions on the sale of currency, and the second point is monetary policy that require follow the requirements for this method because the nature of the Iraqi economy 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 by buying dollars to be delivered to the Ministry of Finance .. We are surprised to invite others to the failure of the Central Bank this and the closure of the window, which means closing «tsunami» occurrence hits 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 the dollars received the print dinars annually by the budget and deliver to the Finance Ministry, which in turn pumped the market, meaning that it will plunge the currency market at a price collapse of the dinar, as happened during the rule of the former regime.

The process of selling the dollar by the central bank is the process of sterilization, window sell the currency is not an option for the bank it is a legal issue relates to the requirements of monetary policy if the bank withheld for this collapse of the Iraqi dinar, because the dollar source in Iraq's government, F.

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