Economists specialists: political Central Bank of lies under the influence of political and security conditions deteriorating financial

Author: bian2 on: Saturday 15/06/2013 11:44 am


 News Source: Baghdad 2

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BAGHDAD / WAP / report Ghani al-Saidi: see Economists said one of the reasons for poor fiscal policy of the country, especially cash and the fluctuation of the dinar exchange rate against the U.S. dollar, are the political differences that disrupted a lot of things the state and weakened, including fiscal policy or monetary, as well as the conditions of the country's current in general are not particularly the security situation and the serious repercussions on citizens and life in the country.


He saw an economic analyst Abdul Rahman al-Mashhadani, said "the policy of the Central Bank is located under the influence of the security and political conditions and financial situation in Iraq, which paid to disrupt monetary policy in Iraq.

Mashhadani said news agency Baghdad International / WAP / Thursday, said, "The problem is not the policy of the central bank, but the problem in other policies affecting the central bank, which includes policy (economic and financial) in addition to the political situation, economic and security experienced by Iraq at the moment . "

He added, "Among the problems is the lack of regulation of trade and non-cooperation of responsible parties with the Central Bank monetary policy in the process of Iraq, and the other problem that the central bank took manages large amounts of money beyond what was run in the previous time."

He explained, "The cash dollar was sold between three million to ten million and more is reached by the sale of the dollar is 21 million cash in 2011, and that cash sales up to the limits of 100 million."

He said, "This current difficult to control as a result of the security situation and the deteriorating economic and political, in that a lot of the Iraqi capital took to go out of Iraq, as well as attempts to obtain cash has become greater than ever before."

And in between, that "monetary policy alone can not you adjust things unless financial control of the other circumstances surrounding the work of the central bank."

He explained that "in Iraq economists believe that the reform of the general situation of the Central Bank either by reference to the totalitarian regime or work to provide adequate solutions to equate the dollar with the Iraqi dinar."

He stressed that "the political situation in Iraq and the monetary and fiscal policy as well as the economic situation in Iraq a significant impact on the work of the central bank, because if there is no correlation between central bank policy and monetary and fiscal policy can not control the market."

He added, "The central bank can not follow all that goes on in monetary and fiscal policy, both for banks governmental or civil because he does not have the intelligence to follow the work of these banks properly, but are up through the development of mechanisms and general controls the work of these banks and hold-up sudden to be there is a commitment to the work of these banks. "

For his part, said economic analyst Ahmad ÇáČŃíĺí that central bank policy not Tngieroanma process demand for Ngiller dollar and the circumstances surrounding the work of the Central Bank, which took effect.

Added ÇáČŃíĺí to Baghdad International News Agency / WAP / Thursday that "monetary policy in Iraq تتغيير not because they rely fixed exchange rate (1166 -1170), and that the interest rate did تتغيير have the central bank as well as the exchange rate over the past three years."

He pointed out that "the price of official dollar fixed either the market price is higher than the official price difference of a certain, and that the official price at the central bank did not Itagier because monetary policy has not تتغيير not the state nor the Central Bank, but the problem is that the exchange rate in the market is higher than the price determined by the Central Bank. "

Between that "sales of foreign currency at the central bank is less than the demand, when the central bank sales is less than demand there is another price for sale and this in itself be of a strong influence on the policy of the central bank in addition to other circumstances surrounding the Central Bank."

The economic expert said Raed Fahmi that the independence of the Central Bank is required and desirable, provided that meshes with the role of government supervision.

He said in a press statement, said that "the banking business requires the need for consensus and harmony between fiscal and monetary policies and the integration of work and doing political tools for each of them in order to achieve economic growth and to rebuild and modernize and develop infrastructure physical, institutional and diversify the productive base of the Iraqi economy as well as social objectives, distribution and fair disposition of resources.


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