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Thread: CBI confirms the abandonment of an auction sale of foreign currency

  1. #1
    Join Date
    Oct 2004

    Default CBI confirms the abandonment of an auction sale of foreign currency

    CBI confirms the abandonment of an auction sale of foreign currency
    25/04/2012 11:21

    Baghdad, April 25 (Rn) - The Central Bank of Iraq Wednesday, about his quest for the transfer of an auction sale of foreign currency (the dollar) to a commercial bank government, saying the auction is not within its terms of reference, and criticized in a living the same accusations made against him on the mechanism adopted by the sell the currency.

    para, dolar, money And saw the price of the dollar compared to a rise in local currency during the past few days, which officials attributed to a local banking companies, the central bank to stop sales of hard currency.

    And picked up local media reports about the widening phenomenon of smuggling hard currency from Iraq to Syria and Iran to the border crossing points unless confirmed by the CBI.

    The deputy governor of Bank of the appearance of Mohammed, told the Kurdish news agency (Rn) "It is time for an auction sale of currency out of the Iraqi Central Bank, and shall state that a commercial bank, Vmzad sell the currency does not fall within the competence of the Central Bank of Iraq."

    He explained that "all banks in the world does not work that way, and we we were in the central bank finance foreign trade and this is not our job, and I will work hard with other government institutions for the transfer of an auction sale of foreign currency to the state commercial bank."

    The Deputy Governor of the Bank "Unfortunately the policy of intervention the central bank in the market to maintain the stability of the Iraqi dinar ended in foreign trade financing to the private sector, because of the unity of the Iraqi economy (oil), and the market required graduation dollars under various pretexts legal and illegal, and there are worn out to get the currency including the difficult does not serve the Iraqi economy. "

    He continued that "the Central Bank of Iraq lies in its mission to intervene to absorb liquidity, and will deal with the bank which will be an auction sale of currency in the total without going into details," critic at the same time "the accusations made against the bank on a mechanism to sell the currency."

    The mission of the Iraqi Central Bank is to maintain price stability and the implementation of monetary policy, including exchange rate policies and management of reserves of foreign currency and regulate the banking sector, while stressing the Finance Committee of parliamentary support for any efforts presented by the Central Bank of Iraq and lead outturn final to the stability of the exchange market.

    A member of the Committee Secretary Hadi's (Rn) that "the real exchange rate and the actual government is the one who sells 1118 dinars per dollar, while the crackdown of the Central Bank to sell the currency prompted the companies to buy dollars from banks at a higher price is due."

    Hadi said that "the central bank if the easy procedures for the sale of hard currency, is sure to decrease the exchange rate," noting that "the transfer of the daily auction of foreign currency to other banks rather than the central bank will reduce one of the obstacles, and then will be the Finance Committee in support of Bank Procedures" .

    And that "his committee with the tightening of measures to sell the currency, but not this way, the conversion of the amount of thousand dollars to the outside should not include the same procedures for the transfer of $ 100 thousand dollars."

    In the opinion of experts in the Iraqi economy to transform the task of selling the hard currency from the central bank to state bank may not resolve the problem once and for all.

    In this context, sees Majid picture that "it is possible that there will be an auction for the sale of hard currency managed by a private entity separate from the central bank, but the bank takes control of market supply and demand to be considered the only party that sells the dollar."

    He said Suri's (Rn) that "I have a perception that management of the auction by the Central Bank or any other party will not lead to any change in the current reality, but are beginning to resolve the economic problems." Noting that "the problem is that Iraq is a country unilaterally economy depends on oil, and even tourists spend money, not an Iraqi hard currency inside Iraq. "

    The parliamentary Finance Committee had warned earlier, the General Secretariat of the Council of Ministers of trying to dominate the monetary policy of the Central Bank of Iraq, and limit the powers of the province, noting that this was a violation of the constitution and has serious consequences on the national economy.
    Consensus is the absence of leadership-Margaret Thatcher
    Concentrated power has always been the enemy of liberty.
    Ronald Reagan

  2. #2
    Join Date
    Nov 2007


    Auction is the untimate flaw in CBI policy by the incompetent board who had no knowledge of monetary working and were just following ill advice from opportunist that cost probably more than half of CBI deposits, I think this is making some people very rich by emptying the Iraqi coffers. I guess someone did not got their share of this fraud and opened this Pandora box

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