Central Bank of the safety valve

17/06/2013 12:00 AM

Yasser incumbent
Revealed the central bank governor for the cash reserves of foreign currency to Iraq could reach 80 billion dollars in next July, what will give the power of new economic entice investors to look for investment opportunities in the country and is based in the desire of these on the availability of government guarantees to insure ensure their rights.


Since the government guarantees derives its strength from the potential available in the country, namely oil wealth and the development of production, which could reach 6 million barrels per day, according to forecasts based on output, the universal desire available and based on these capabilities superior but what hinders investment to come to Iraq, despite considerable efforts efforts by the National Investment Commission to take its role in the construction and reconstruction of the country?


The main reason is the loss of planning, organization and the potential to attract these investments and what makes the environment repellent for investment and it requires a case to reconsider the manner required to restore confidence in the guarantees through strict laws reservation of rights and have the ability to prevent any conflict with them ahead of the previous laws and subsequent.


No different Two of the need for Iraq to investments to Atkvaha all the capabilities available because we want to build a strong Iraq amounts to its potential and its history Economic and it requires facilitate the achievement of this goal, and perhaps the investment budgets began somewhat moving towards achieving the goals set out in the realignment of the provinces towards the starting revolution of development required Among the requirements to speed up the passage of the Law of infrastructure and payment on credit so consistent towards achieving the goals of sustainable development.


Lord says means: What is the relationship of this narrative titled columnist? Tell him to do a close link in achieving the goals if we admitted that the construction needed for resource Atkvaha China are available.


I noticed an interview with the Governor of the Central Bank and Agency Abdul Basit Turki in a television interview with one of the satellite channels while pointed out that the government can not borrow from the reserves of foreign currencies unless the amendment of the law's central bank to allow use of the cash reserves and the possibility of investing in building the country, despite the importance of maintaining for times of adversity, but the current phase may require to deal with them and what he believes the government achieve its strategy in the construction and investment, including the cash reserves in all countries of the world is a red line that can not be exposure to them, but at critical times allocated to it and to maintain the strength of their economies, the justification may be available to adjustment in the event of the need arises to do so.


Understand the foregoing it is possible to take advantage of the cash reserves, according to the urgent needs and the question that arises here that Iraq needs to borrow from the Reserve?


We have prevented the Article 26 of the Central Bank Law No. 56 of 2004 the government to borrow from cash reserves as allowed the same article of the law to provide banking facilities to banks government the same controls to deal with private banks, but if the country was hit to allow God to the crisis, what the importance of maintaining monetary stability and even Economic when it Valahtaati the foreign currency cash available to address critical crises and thus the central bank remains a safety valve for Iraq's resources and wealth, and we find that monetary policy is going in the right direction to maintain the integrity of the national economy.




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