The central bank to achieve its oversight role on the banking companies

12/09/2013 12:00 AM

Having competed with private banks in the currency auction
Baghdad - Mostafa Hashemi

Counting concerned with economic affairs activating the role of the central bank oversight to the work of companies to mediate in the sale of currency , banking and financial transfer of the things that achieve stability in the exchange rate , as well as the stability of the domestic market, and confirmed specialists and academics that the CBI has already begun activating its oversight role on the remittance companies financial and banking through its follow - up to those companies and re- verify the safety position and activities.

Compete with banks

According adviser to the Iraqi Institute for Economic Reform d . Ahmed al-Husseini said the central bank recently began to tighten controls on the banking companies and financial transfer , which is now crowding and competition from banks through direct entry in the auction sale of foreign currency .

 The exchange rates of the dollar a few months ago as a result of increased market instability by Iqbal large numbers of citizens to buy it from outlets , and then sell it to companies to mediate in the sale of currency for a small profit , which led to its high price compared to the dinar.

Control the parallel market

Husseini said in a statement ( morning) that the duties of the central bank supervision and control over the parallel market and not on the banking companies , because the parallel market plays a big role in the pressure on the economy by crowding out banks in the currency auction .

He pointed out that the role of the central bank oversight may be suffocating at times on these companies for the purpose of providing an opportunity for banks to exercise its natural role in the work, as the private banks began to complain about the existence of competition from banking companies , which greatly influenced the deterioration of the activities of these banks.

He noted that the banking companies newly registered not possess experience in the market and its real mechanism of action , and this is caused by a volatile exchange rates of the dollar and rising rates in the domestic market .

Activity of the Central Bank

The Iraqi Central Bank to cancel the vacation of 11 companies to mediate in the sale of the currency since last May , so far .

 He cited the bank on his website that he was removed 5 companies for not achieving capital and cancel vacation two other companies because under criminal investigation against the Chief Commissioner as well as another company proved the existence of being a criminal to one of its shareholders as well as the two companies Khafatta Central Bank and the other for providing incorrect information.

For his part, Dr. economic academic . Essam المحاويلي that success in maintaining the exchange rate has been achieved through the concerted efforts of all of the Iraqi Central Bank and private banks , and should maintain this syndrome and not to deprive those who need effective to buy foreign currency for the purposes allocated to it such as travel and treatment and so on.

He called المحاويلي told ( morning) to the imposition of central bank control on the largest auction of the currency and sell the dollar to banks and not transfer companies , indicating that the post remittance companies and banking to domestic banks in an auction sale of the currency, is a clear violation of the central bank law and instructions for monetary policy because the central bank deals with the sector or a competent authority which banks and not banking companies and financial transfer , pointing out that the implementation of the policy of the central bank monetary done by banks and not through those companies. praised the role of the central bank in maintaining the stability of the market and take the right decisions to achieve stability in the currency rates in the domestic market .

Burden of banks

He stressed that the large number of companies competent broker to sell the currency in light of monetary policy in Iraq may cause a burden on other monetary variables , and therefore would be a burden on banks in general by calculating the interest rate and draws customers for banks .

He pointed out that the number of banking companies large increase of the proportion of demand while the supply is limited what is causing the gap request because the money supply today is managed from the central bank , and therefore, the monetary policy of Iraq did not unleash the market to take its course , because the amount of money supply controlled by Central Bank and the request is not specific and is open due to the increased registration banking companies shall affect the stability of the currency through the creation of demand versus supply gap is limited to what is causing the currency economic problem for the country.

The central bank had earlier called for the promotion of requests for establishment of companies to mediate in the sale and purchase of foreign currencies to be precedence to those who carried them to deposit the amount of capital at the Directorate General of accounts in the Central Bank.

 Noted that the Registrar of Companies at the Ministry of Commerce I mentioned high frequency recording domestic and foreign companies during the recent period .

 said assistant general manager of the Registrar of Companies at the Ministry of Commerce Adnan Tahir Saeed in an interview earlier (morning) that more companies that are registered in our circle concentrated its activities in the areas of banking and construction , as well as other activities such as investment , trade and tourism offices Hajj and Umrah .

 likely that the reason behind this trend are the facilities offered by the central in the light of his attempts to maintain the stability of the currency exchange is one of the reasons for the spread of this activity between citizens and their desire to sign for banking companies .


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