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09-12-2013, 12:29 AM
Central Bank achieves its oversight role on corporate banking (http://www.alsabaah.iq/ArticleShow.aspx?ID=54092)


12/9/13 12: 00 am

After private banks competed in the auction sell

Baghdad-Mostafa Hashemi

Counting on the economic role of the Central Bank oversight of companies that broker selling the currency, banking and remittance of exchange rate stability, as well as the stability of the domestic market, said specialists and academics, that the Central Bank has already started to boost its oversight role on the financial transfer and banking companies through its follow-up of those companies and to ensure the safety of its position and activities.

Rival banks

According to counsel the Iraqi Institute for economic reform by Dr. Ahmed El-Husseini that the Central Bank recently began tightening controls on banking and money transfer companies now competing banks and competition through entry in the auction sale of foreign currency.

The dollar exchange rate had soared months ago as a result of the instability of the market due to the massive turnout of the citizens to buy it from outlets and then sell it to mediate in the sale of the currency versus a small profit led to high price compared to the dinar.

Control the parallel market

Husseini said in a statement to (morning) the duties of the Central Bank supervision and control of the parallel market and the banking companies, as the parallel market play a big role in the economy by crowding out the banks in the auction sale of currency.

He noted that the regulatory role of the Central Bank may be oppressive sometimes on these companies for the purpose of providing an opportunity for banks to exercise the natural role, as private banks began to complain of competition from companies that finance that impacted greatly on degradation activities.

The newly registered banking companies does not possess experience in the market and the real work, and that's why before the dollar exchange rate fluctuations and rising rates in the local market.

Central Bank activity

The Central Bank of Iraq cancelled leave of 11 companies to broker the sale of the currency since last may so far.

The Bank reported on its website that it was writing off 5 companies for non-achievement of capital and leave two other companies for a criminal to the Commissioner and the Director of another company established a criminal for one of its shareholders, as well as the two companies breached the Central Bank and other instructions for submitting incorrect information.

Academic economic said Dr. Issam almhaoili success in maintaining exchange rates achieved through the joint efforts of both the Central Bank and private banks must maintain this and not be deprived of their need to buy foreign currency for its purposes such as travel, treatment, etc.

Almhaoili called in a statement for (morning) to impose greater control over Central Bank auction sell and sell dollar to banks and remittance companies,

indicating the involvement of companies and banking to private banks in an auction to sell the currency, is a clear breach of Central Bank law and the instructions for the monetary policy of the Central Bank handles or competent they are not banks and banking money transfer companies,

pointing out that the Central Bank's monetary policy implementation by banks rather than through those companies. and praised The role of the Central Bank in maintaining market stability and take the right decisions to stabilize currency rates in the local market.

People at banks

The large companies in brokering the sale of currency in the monetary policy in Iraq may cause a burden on other monetary variables, so it will be a burden on banks in General by calculating the rate of interest and guide customers to the banks.

Noting that the preparation of the large banking companies would increase demand while limited offer what causes the gap for that money supply today is managed from the Central Bank and monetary policy did not unleash the market to take its course,

because the amount of money supply controlled by the Central Bank and request unspecified open due to increased banking business registration affect currency stability through a gap request for limited supply of the currency caused the country's economic problem.

The Central Bank had called earlier to promote requests for mediation companies buy and sell foreign currencies on the precedence of the deposit of capital General Directorate of accounts at the Central Bank.

the Registrar at the Ministry of Commerce indicate high frequency recording local and foreign companies during the recent period, said Associate Director of corporate registration in the Ministry of Commerce Adnan Tahir said earlier in an interview for (morning) the more firms that are registered in our circle Specializes in the areas of finance and contracting, as well as other activities such as investment, trade, tourism, Hajj &

Umrah offices and said that the reason behind this trend are the facilities offered by central in light of his attempts to maintain a stable currency and is one of the reasons for the spread of this activity among the citizens and their desire to record companies for banking.