View Full Version : Central» Iraqi exclude customers from currency auction

05-24-2016, 09:11 PM
Central» Iraqi exclude customers from currency auction


BAGHDAD - Naseer GoldfinchDenied a source in the Iraqi Central Bank is handed down by some media about the existence of suspicions funded civil terrorism banks, prompting central to the lack of involvement in the auction of the official currency, stressing that there are many reasons for this procedure, and most of them have nothing to do with terrorism.And limited participation in the auction sale of hard currency which is evaluated by the central bank on the participation of 49 banks and financial companies and banking out of 110 institutions. And witnessed the financial and banking sector increased strikingly in the number of financial and banking institutions, working seven state banks, three of which sector, while the number of private banks rose to 24, and Islamic banks to 11 banks, while Arab and foreign banks, bringing the number 19, in addition to four under incorporation ». And it works in the market of financial institutions dealing Guarantees and bonds and smart card, number 6, in addition to 42 company money transfer, 10 of which are under incorporation and 12 Financial Investment Company, and 4 under formation.
The source told «life» that «the party responsible for the auction of the currency adopted mechanisms and conditions must be met by the customers, for the management of any bank or provide Tahdan company, the first sum to be transferred abroad and the beneficiary, and the second amount for sale at home, then they can be to bring all Documents which document the financing and the entry of goods and port of entry. »
He added that «reasons not to involve some institutions in the currency auction is the existence of suspicions in funding, and this is what is known as money laundering, or the lack of conditions and failure to provide the documents, here are accused of smuggling currency or use the amounts they receive hard currency for speculative purposes in the market, what cause the disruption of exchange rates. » He defended source for sales mechanisms, but he did not rule out the existence of fraud operations, pointing out that «is the central point of technical and must cooperate with others working on the border of economic, foreign and security to ensure that the smuggling of currency».
He stressed the economic and investment commission in Parliament member Abdul-Salam al-Maliki's «life« that «one of the main gates of corruption in the country is the auction currency, and everyone knows that all the financial institutions follow the points of the window, which is difficult to process accounting». He pointed out that «the central ensured own daily statements auctions size Sales amount and proportion of external him money orders, and the quantities injected into the local market to secure insider, but today no one knows the amount transferred or inside the market, here's call for the central bank to explain.» He added that «the private banks and companies switching customers auction achieved astronomical profits from buying the dollar at prices far below the prevailing market price, and by 10 points to the dollar, which means that the profitability rate of up to 10 million dollars a day from the currency difference.»
According to statistics obtained by the «life», commercial banks posted last year a net profit of 1.6 trillion dinars ($ 1.3 billion). Showed increasing majority of capital for banks to 7.6 trillion dinars government for banks and 6.2 trillion for eligibility, 23 percent of them recorded in favor of the Islamic banks that described Balkhamlh, while the percentage of contribution of capital to GDP of 2.8 percent recorded, while the total assets of commercial banks amounted to 227.5 trillion Dinar".
The foreign banks in Iraqi assets, which increased due to increased business activity and investment and projects implemented by foreign companies, more than 22 trillion dinars. The banking authorities warned that the phenomenon known as «instruments of volatile», launched by currency traders seeking to raise the value of the dollar against the dinar, to increase their profits illegal, users «instruments without the expense» in agreement with the civil departments of banks.
Iraqi market is experiencing a gradual rise in the dollar's exchange rate against the dinar, to reach 1229 dinars to the dollar, the highest rate in two years. This was not the first rally of its kind, rising more than once last year, while Central to sell the dollar B1190 (http://www.amazon.com/gp/product/B006HYGZP2) dinars.
In turn, assured the financial expert on behalf of Jamil Antoine in the presence of these phenomena's remarks, said: «A network of speculators in the currency auction, buying hard currency through the instruments do not contain a credit agreement with the staff in some banks». He added that «the central previously had confirmed the authenticity of the instrument after 3 days, and this period allows the speculator to profit».

In order to eradicate this phenomenon, suggested «cancel the auction currency and dollar grant to those who need it from real traders who Isturdn goods, with a reliance on bank credit system, as opposed to activating the role of oversight and ensure the entry of goods into the country.» One of the important tools used in the financing of foreign trade operations and import and export letters of credit, as it runs through the banks, giving it security and stability due to the confidence of the importer and exporter mediated by banks in the implementation of these funds.