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Monetary policy: problem in principles or performance?

Date: Thursday, 12-04-2012 03: 19 pm

D. Hafidh

Problems relating to monetary policy in Iraq worth looking on grounds of professional, objective and detached from the narrow political partisan conflicts. The most important of these foundations is concern to protect Iraq and securing investment funds are really constructive and fruitful.

Yesterday, tensions on the Iraqi currency and gradually decline against the US dollar, then came the Ministerial Economic Committee decisions to signal their desire to issue a formal request to the US Government to extend the executive decision of the US President's decision to protect Iraqi funds.

And between this and that rumored talk about the disappearance of large sums estimated at several billion dollars in recent years, have not been found satisfactory answer.

This imbalance in the policies and behaviors explicitly addressed "Bank" in a very important report and hinted that the imbalances in the financial and monetary situation lies in a number of joints mainly turmoil and underdevelopment which afflict both formal banking sector (Government) and private (private).


In the report, which was issued last year following a formal request from the Iraqi Government (Ministry of finance and the Central Bank of Iraq).

Fixed rights, is keen on community and public opinion all insiders fiscal and monetary policy, opinion and advice and even pressure to secure the project intact in ongoing transactions in this Center.


For example, the Iraqi dinar to the shock and the consequent intensification of price fluctuations, which authority to form a Special Committee to look into this matter.

And what did the official administration of the monetary sector on the approaching expiry of us protection of Iraqi funds amounting to less than a month, where it ends at Maes.

It's also wise and right frequency question on size of Iraq funds in the bank account of an aggregatable and return to Iraq, the US is now required to renew protection.

That problem has been and still is a weak performance. No true overstated principles cited some articles of the Constitution to justify practices of erroneous or deficient.


Methodology of direct official pledged officials suffer from a lack of deep, where there is neglect of the economic situation and the need for reforms as a crisis for monetary policy and the opinion of another estimated economic difficulties as a reason for some shortcomings.

The Constitution is explicit in emphasizing the link between monetary policy and economic development but considered inseparable issues.

The reference to "independence" absolutely it towards some kind of isolationism. It is not acceptable in a State building on new foundations designed and modern.

If I got the wrong practices or procedures, or is not desired, then how could be addressed without return to power bases and public order in the State.

Independence principle inadmissible under specific terms and subject to the General principles of the system of State administration.

This should be referred to as by the guarantor in any excesses as a way of maintaining state funds and the safety and vitality of the Monetary Authority.


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