View Full Version : Central Bank safety valve

Hue Mi
06-18-2013, 12:20 AM
Central Bank safety valve (http://www.alsabaah.iq/ArticleShow.aspx?ID=48450)

17/6/13 12: 00 am
Yasser Metwally

The Governor of the Central Bank disclosed that the foreign currency reserves of Iraq has reached 80 billion dollars next month as a new economic power will tempt investors to look for investment opportunities in the country and are based on the desire to provide Government guarantees for ensuring their rights.

Since the Government guarantees draws strength from the country's potential, oil wealth and the evolution of production which may reach 6 million barrels per day, according to forecasts based on production, the universal desire available and based on these capabilities, but what hinders investments come to Iraq despite considerable efforts by the Commission to take part in rebuilding the country?

The main reason is the loss of planning and organization, and the possibility of attracting investment and making the environment inhospitable to investment and it requires the case to review how to restore confidence in the guarantees through strict laws keep the rights and have the potential to prevent any conflict with them before from previous and subsequent laws.

Not differ from that required Iraq to investments not suffice her all possibilities because we want to build a strong rise to economic history and potential required to facilitate the achievement of this goal and perhaps somewhat started investment budgets geared to achieving specific objectives in repositioning prefectures towards starting the revolution required the development requirements for the accelerated adoption of law infrastructure and payment term to consistent objectives towards sustainable development.

And Lord liquid says: and what does this combo press column heading? Tell him a solid link relationship goals if we recognized the need for timely available resources not suffice her construction.

Caught my attention a modern Central Bank Governor Abdel Basset Turki said in a television interview with a satellite while the Government cannot borrow from foreign currency reserves only if the Central Bank Act was amended to allow use of the cash reserve and the possibility of investment in the country despite the importance of conservation for times of adversity but the current phase may be dealt with as the Government believes the strategic objectives in the construction and investment as cash reserves in all countries of the world the red line no exposure Only in critical times that have been allocated to maintain the strength of their economies, the rationale may be available for the adjustment if necessary.

We understand from the above that it is possible to take advantage of the cash reserve in accordance with urgent needs and the question that arises here is that Iraq needs to borrow from the reserve?

I've blocked the article 26 of the Central Bank Law No. 56 of 2004 the Government of borrowing the cash reserve with the same article of the law allowed to provide banking facilities for State banks as private banks handle controls but if the country is to allow God to crises, the importance of maintaining the monetary stability even when economic, monetary reserves of foreign currency allow the critical crisis the Central Bank thus keeps the safety valve of Iraq and its riches, and that monetary policy is going in the right direction to keep The safety of national economy.