***** Treasury bonds and precious metal enhances monetary policy

1/27/2014 0:00

For its role in economic development

BAGHDAD - Mustafa al-Hashemi


The economist said the appearance of Dr. Mohammed Saleh : that the central bank announced its intention to sell the Iraqi gold coins to the public would pave the way for the resurgence of mortgage banks to serve the Iraqi economy .

The central bank , in consultation with the Committee on Economic Affairs , has decided recently coined a variety of pure gold bullion weights ranging between ( 5 g and 1 kg ) .

He announced the direct contracting procedures for imported and then sold through the banking system , as this procedure represents a monetary policy tools .

The origins of sober


Saleh said in a statement to the (morning ) that this measure comes to the purpose of diversification means savings for citizens and the provision of large quantities of gold from the origins of solid and reliable gold sold to customers , investors and society wishing to do so in Iraqi dinars .

The economist said : that this step has been the study of economic feasibility , by the Central Bank for the purpose of selling gold coins and cash and other foreign currencies as well as treasury transfers to the public soon.

Mortgage banks


He explained that this measure would contribute to the return of banks mortgages that accept mortgages Almkhclat gold for the money you borrow citizen to walk its affairs from buying houses or cars or other , indicating that the current safeguards required by the banks is the mortgage has contributed significantly to the decline in the proportion of credit to if very low levels as measured by rates of credit to other Arab countries .

He pointed out that a central bank that would raise the proportion of credit (loans granted by banks to citizens ) , which amounts to 5 percent , a very small percentage of Ataatmashy with liquidity in government banks .

Origins of global


He added that the citizen has absolute confidence in dealing with the government, which means that he trusts gold imported by being assured and the origins of global best of the items imported traders at the moment , and therefore this measure will enhance the chances of increasing credit including reflect positively on improving the situation of citizens living and on the national economy in general .

He pointed out that there are a lot of people have the amounts of gold and do not have a property underscores the need to return the banks mortgages Trahan gold in return for cash for certain periods and the interest rate agreed upon by the two sides , adding that the measure will move also wheel of the national economy towards the construction and reconstruction and moving a lot of economic sectors .


The precious metal


He said the measure had been in place previously in the eighties of the last century , but the circumstances of the siege in the nineties of the last century has made people focus on buying the dollar to ease and speed of discharge in the markets as well as the precious metal is difficult to transfer it to the outside and therefore this measure contributes to the strengthening of the assets of the public by keeping gold within the country .

Salih noted that the treasury transfers and government bonds is another way of means of monetary policy , but not circulated by the public for limited circulation currently on banks and private banks on the one hand and the weakness of financial awareness among the citizens on the other hand , explaining that the treasury transfers short-term expires at the end of the year which comes to finance deficit my time while the central bank bonds are long-term and will continue over the years.

He said the bank bonds and Treasury Notes sold in a weekly auction held by the Central Bank for this purpose .


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