************* Increase the capital of the Central Bank to one trillion dinars

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************* Increase the capital of the Central Bank to one trillion dinars

Post  Admin on Mon Jul 24, 2017 11:03 am

24/7/2017 12:00 AM

 Baghdad / Farah Al-Khafaf

As part of the state's efforts to keep abreast of the global economic development, the Council of Ministers and Representatives are working on amendments to the Central Bank of Iraq Law.

This comes at a time when an economist praised the new amendments, which he pointed out that it will be radical and important and will develop the Iraqi money market.

According to a copy of the draft law, "Al-Sabah" obtained a copy of it, the new law aims to "increase the capital of the Central Bank of Iraq and to keep pace with global economic development and grant powers to the bank and increase the number of members of the Board of Directors of the bank from outside the bank and the formation of a committee to audit and issue commemorative coins and impose interest on Loans granted by the bank to commercial banks and the preservation of its funds from bookings issued by judicial decisions. "

The law stipulates that "the capital of the Central Bank of Iraq shall be one trillion dinars fully owned by the State."

Reserve Management
The new law allows "the Central Bank of Iraq to hold transactions on foreign assets and manages the official reserve of foreign exchange of the State in accordance with international best practices and monetary policy objectives, and the Council may invest such reserves in gold cash in the coffers of the Central Bank of Iraq, and cash and metal coins Which are normally used in the performance of international accounts held by the Central Bank of Iraq or for its own account, credit balances payable on demand or payable after a short period in foreign exchange which is normally used to perform International accounts maintained by the Central Bank of Iraq has accounts or those that invest through the re-purchase and re-purchase the corresponding fixed deposits and multi-term agreements.

Full confidence
In addition to the Special Drawing Rights available to the Iraq Account of the International Monetary Fund, the status of Iraq's reserve with the International Monetary Fund, as well as any tradable or fully trustable securities issued by foreign governments, central banks, international financial institutions, Which are paid in foreign currencies, which are usually used in the performance of international accounts held by the Central Bank of Iraq or for his account.

Investment portfolios
The draft law allows the bank to "use derivatives in the investment portfolios as a hedging tool, issue non-negotiable souvenir coins, and choose the Iraqi Central Bank with the approval of the Minister of Finance, an international company that performs external audit and financial auditing for five (5) years, For consecutive periods of more than (10) ten years. "

Business development
"The legislation of these amendments will contribute to the development of the bank's work, which will allow for greater freedom of funds after increasing its capital," said Rahim al-Shammari, an economist.

He pointed out that "these amendments are the second after the issuance of the law of the Bank issued by Order No. (56) for 2004 on the Coalition Provisional Authority (dissolved)," noting that "the Iraqi Central Bank succeeded during the past period in maintaining the exchange rate of the Iraqi dinar, A good thing about Iraq's financial stock. "

New Products
Shammari expressed "optimism about the next stage, especially with the intention of the bank to develop its work by adopting new products."
The governor of the Central Bank Ali al-Alaq has confirmed that Iraq has passed the difficult stage «pessimistic» that has passed during the past two years and accompanied by statements are not based on facts that raised terror in the Iraqi street.

Exchange rate

The bank's indicators, a "safety valve" for the economy and monetary policy of the country, showed that the inflation rate did not exceed 2 percent, while the dinar maintained a stable exchange rate at an acceptable level despite the challenges, in addition to the index raised the interest of international institutions supporting, The IMF's expectations of 10 billion dollars despite the extraordinary circumstance experienced by the country.



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