«Central» Iraq: Do not fear the dinar
Thursday, April 5, 2012
Baghdad: Hisham Abdul Wahab Banking community has received the Iraqi decision to caution the Council of Ministers directed to the Iraqi Central Bank, the judge approved the monetary policy to refer to the government for approval, raising fears of a potential intervention in the banking business.
The government informed the Central Bank that the Constitution provided that the terms of reference of the federal authorities formulating monetary policy and the establishment of the Central Bank and its management, and requested therefore to provide the monetary policy adopted by the Central Bank to the Council of Ministers for perusal and approval, and stressed the failure to adopt policies in the future without approval of the Council of Ministers By signing the Cabinet Secretary on the Keywords.
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However, Deputy Governor of Central Bank of Iraq, the appearance of Mohammed Saleh, said in a statement to «life» that monetary policy is linked to the Central Bank, which follows the Parliament, despite the existence of constitutional articles associated with the executive branch. He pointed out the need to develop a clear strategy and powers to manage the monetary and fiscal policy. He said «duty requires knowledge of details of any decisions relating to monetary policy, without being subject to challenge any tendencies of the efforts of the central administration block at the level of cash and issuance, and supervising the work of the banking sector and the civil government and follow the movement of capital».
Banking sources and expressed concerns about the consequences of the Iraqi government's decision on the banking performance and the possibility of the emergence of a type of custody of the sector to make it bound constraints are not conducive to the advancement of his performance.
In preparing the Finance Committee in the Iraqi parliament to listen to the Governor of the Central Bank Shabibi for the latest update on the status of cash in the country and his decision to the government official said that the impasse that accompanied the performance of «Central» Iraq in recent years encouraged the executive branch to take the initiative and intervene in the direction in which it deems appropriate to move the performance of the banking sector and its development.
To Iraqi banks that are preparing to hold several meetings of the bodies of public and discuss the results of its work last year in conjunction with the World Bank expressed doubts about the difficulties faced by private banks to increase their capital to 250 billion dinars in 2013 (about $ 213 million). The officials in the sector that there are opportunities for the participation of foreign banks in the development of Iraqi banks by buying stakes in it. He expected the Executive Director of the «Association of Iraqi private banks» Abdul Aziz al-Hassoun told «life» that banks start from Lebanon and Turkey to work in Iraq in 2012 widely. He believed that such a move would activate the performance of the banking sector and make it attractive for investments and development of its ability to raise capital his money in the future.
And intends to «Bank of North Finance and Investment» double the capital and increase its banking sources suggest that the bank announced over the next month to increase its capital to 210 billion dinars in preparation for submission to 250 billion.