##### Economic Analyst: monetary policy lags behind the global dependence on old laws

Saturday 4/5/2013 09:44 am


News Source: Baghdad 2




BAGHDAD / WAP / economic analyst Rissan al-Moussawi, said the Iraqi monetary policy lags behind the global monetary policy, the reliance on old laws.


He said al-Moussawi told the Baghdad international / WAP /, that "monetary policy practiced by Iraq is not suitable to be within the state's plan to rebuild the economic infrastructure and finance in Iraq, because there are institutions, cash is responsible for monetary policy Iraqi same laws that were going out during the period years. "

He added, that "so far did not elevate the Iraqi monetary policy ambition, since this requires to reconsider our monetary policy and the drafting of new laws rise to the ranks of the global monetary policy, to address the distortion made in the monetary policy of the State."

He pointed out that "monetary policy adopted by the government through monetary institutions are lagging behind global monetary policy and this in itself needs a lot of legislation and government decisions that will limit the time to reach this ambitious policy."

He explained that "monetary policy, a trader in Iraq left many erroneous standards in the country, which need a long time and new resolutions placed according to international financial standards contribute to the advancement of monetary policy in the region."

He called on the Ministry of Finance and the Central Bank to "restructure the monetary policy in the country, because the central bank's policy, especially in dealing with the private banks and the size of the reserve is located, adding," All these things are fleeting for attention of the State which is one of the most important reasons for the deterioration of the monetary policy in Iraq. "

He expressed his conviction, that the House of Representatives "can not ايقترح the things minutes specializing in the field of monetary policy, but waiting for the bills from the government for approval."

Turning to the events of the central bank, he said, that "state interference in his work was his impact is clear on monetary policy in Iraq, but this does not come only through political stability, which will have the effect is clear on the economic stability and this case in all countries of the world."


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Economic Analyst: government interference in central bank policy is the foundation of the Iraqi monetary policy fails

Started by: Bian2 ČĘÇŃíÎ: Saturday 4/5/2013 10:38 am


News Source: Baghdad 2

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BAGHDAD / WAP / economic analyst, said Abdul Rahman al-Mashhadani, that "government interference in central bank policy is the foundation of the Iraqi failure of monetary policy."



He said Mashhadani news agency Baghdad International / WAP /, that "monetary policy is seen during the terrace former central bank governor Sinan al-Shabibi, control the process of the dinar exchange since 2006 to the extent of last year, and these things have had the effect is clear in the stability of monetary policy in Iraq . "

"After a process of change at the head of the central bank took a monetary policy oriented last is true despite of measures that the government is trying to take but it is different to previous work, since these measures did not reduce the price of the Iraqi dinar exchange versa began dinar escalate against the U.S. dollar that to the extent (1229). "

And that "monetary policy can not remain constant with the fiscal policy, as the generally accepted that the budgets of Iraq is huge and growing and the deficit in the building budgets considerably, and this year we expect to organize the budget without a deficit, but we were surprised by a deficit much more than $ 14 billion under the budget increase 120 billion U.S. dollars. "

He explained that "this growing budgets will have a significant effect on the Iraqi monetary fiscal policy because of the high rates of inflation primarily foundation, since monetary policy can not resist the fiscal policy because the effects of fiscal policy will not be immediate, but long-term."

He stressed that "monetary policy Iraqi Ataatuaq with global monetary policy because the fundamentals of global monetary policy, based on the lack of government intervention in the cash situation of their respective countries, but in Iraq, we find that the government intervene and unreasonably in monetary and fiscal policy, and these do not comply with international standards."

And that "it is not reasonable to be a sergeant on the central bank is a director who manages monetary policy in Iraq, but this is found in Iraq, which in itself is contrary to the global monetary policy."

Saw, that "today's central bank does not enjoy the presence of an inspector in the control of the central bank and the Office of Financial Supervision is responsible for checking how is the President of the BSA is the head of the central bank at the same time."


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