Post From KTFA by aggiedad77 » July 6th, 2015 Comments From Aggidad below article
walkongstick wrote on July 6th, 2015, 4:33 pm: DS......... Keywords: abolition of additives on the budget law strengthens the independence of the central bank and can diversify monetary tools
Author: ASJ Editor: BK, BS 6/7/2015 10:38 p.m.
Long-Presse / Baghdad Counting the Iraqi Central Bank, on Monday, that the acceptance of the Federal Court appeal lodged by the budget law, promotes independence and allows it to diversify its monetary policy and flexible orientation tools, noting that sales of the dollar aims to provide the Ministry of Finance dinar you need to finance the budget,
and to achieve stability of exchange rates General and prices, and to ensure that bending the citizen and the economy, investment and banditry on the "greedy and malicious."
The governor of the Iraqi Central Bank and the Agency, on the Keywords, in a statement received (long-Presse) a copy of it, that "the Federal Supreme Court's decision to accept the appeal submitted by the Central Bank in the materials, which included limitations and orders to the bank, came accordance with the Constitution and the law of the Central Bank",
He returned to "The court's decision involves a great importance because of its impact in strengthening the independence of the central bank and its support, and its dimensions to influence policies and decisions."
Added Keywords, that "independence is not a matter of form, but a condition mainly to enable the central bank to achieve its tasks, particularly in monetary policy that are inherently the diversity of tools and flexibility orientation",
noting that "the general budget law governing fiscal policy in spending and annual revenue which is we must be specific to the items contained in it by virtue of the nature of the resource and expenditure management. "
Said Governor of the Central Bank and the Agency, that "monetary policy is totally different from fiscal policy, where it is normal mobility and flexibility and to deal with changes in the economic situation and the situation of the market,"
pointing out that it "did not happen in countries that follow the market system to be budget law specific and directed and constrained by the policy of the central bank, or even in the other because it loses its role as the central bank and took away his tools used to create balance and access to achieve the goals that move the market movement and the economic situation and cases of inflation and recession and others. "
Keywords said, that those "movements occur on an ongoing basis and sometimes daily, in the neighborhood of the budget is valid for one year the law," adding that it "makes it real and restrictions tied monetary policy and this reverse their role and nature."
And on foreign currency sales (the dollar), he saw the Governor of the Central Bank and the Agency, that those "Sales is not an option of choice, or a business process or coverage of the activities of a commercial, but is in the Iraqi situation and as it is in countries that control the export and the monopoly of foreign currency by the nature of their resources , oil such as States ",
he underlined that" the process of replacing the existing Iraqi dinar to the dollar in trading, is to provide the Ministry of Finance dinar against the dollar, which is received by oil sales, which do not need, but you need to the Iraqi dinar to finance the general budget. "
He continued Keywords, that "determining the dollar sales ceiling means the result determine the amount of the taxpayer dinar public budget", Msttrda that in "case specifically taking, as stated in the General Budget Law, means a shortage and a large decrease in the amount required to cover the budget expenditures of the dinar."
He went Governor of the Central Bank and the agency, explaining if "sold the central bank $ 75 million a day, as contained in the budget law, it means that the central bank will sell annually the equivalent of 22 trillion dinars, almost, while operating expenses, dinars, about 70 trillion dinars. "
Keywords He said this "The truth is clear to many who call invitations determine the dollar sales ceiling, as well as lack of awareness of the role of the central bank and its mission to stabilize the exchange rate and public prices that require high and continuous flexibility in the quantities sold by the bank,
because there is a big difference in price exchange between the official rate and the parallel market, the price is paid by the citizen and the economy, investment and hurt huge profits in the pockets of greedy and malicious. "
Keywords concluded, that "curb all this will be only to control the quantities beyond a shadow of those dangerous phenomena," according to his statement.
The Federal Supreme Court has ruled, earlier on Monday, the unconstitutionality of some of the federal budget materials for the current year 2015, stressing that the legislation was contrary to the constitution of the fact that these materials were not present in the original sender of the project from the government to the parliament.
The Keywords, Thad today also praised the Federal Supreme Court's decision to accept the appeal submitted to the bank on the budget materials, stressing that the resolution provides for the abolition of all additives by the House of Representatives on the state budget law.
The Governor of the Central Bank of Iraq and the Agency, announced, in (the seventh of March 2015), for an appeal to the Government to paragraph 50 of the financial budget law for the current year 2015,
‘which require him to sell $ 75 million a day, and a description of this paragraph "Balgraybh and dangerous" as a subject Central Bank of the orientations of the government,
and while counting, that paragraph did not make clear in the first and second readings and "squeezed" at the last minute, the expectation that this matter resolved in favor of the central bank.
The Iraqi Council of Representatives (the 29th of January acknowledged, 2015), the financial budget for the current 2015, in the amount of 119 trillion dinars, the equivalent of $ 117 billion, and a deficit of around 25 trillion dinars, or about 23 billion dollars, and calculates the price of a barrel Oil at $ 56 a barrel.
Post From KTFA by aggiedad77 »
ABSOLUTELY beautiful find WS....thank you......the CBI speaks out on the wisdom that comes today from the Federal Supreme Court decision....there are many wise and sage words here in this article that make so much sense....
to bad the Finance Committee can't seem to understand the reality of things....but then that is politics.......such things as knowing the difference between MONETARY POLICY and FISCAL POLICY.....
the central bank must be allowed to achieve goals as relating to market movement, economic situations, and to deal with inflation concerns as they arise, not wait on some political decision that could be delayed by continual arguments between party blocs......
the direction of the CBI is a fluid thing that has to be controlled daily if not hourly at times in order to keep order in the monetary process for the country.....
the Finance Committee in their best effort did not clearly understand what they were attempting to control or see clearly the ramifications of their actions in hurting the overall supply and demand of the money flow.....
over the past 5 or 6 months they have continually tried to point fingers at one level or another of the CBI and allege money laundering crimes or some such other issue,
but where have these allegation gone....nowhere.....the Federal Supreme Court today made the right decision to move the monetary process forward again in a positive manner....
now the CBI needs time IMO.....to rebuild the good they were doing before this debacle started back in January.....lesson learned by the Finance Committee....maybe. Aloha Randy