Exceeded the candor line .. “Baghdad news” dialogue Governor of the Central Bank

06 Jan 2015 In IRAQ Comments Off on Exceeded the candor line .. “Baghdad news” dialogue Governor of the Central Bank

Tue Jan 06 2015 05:30

Iraq’s cash reserve reassuring and 2015 budget deficit financing sources available
** Compulsory savings staff will turn to liquidity and investment will benefit them
** 500 billion dinars and $ 80 million in catastrophe losses central Mosul

** We have completed a draft anti-money laundering and the financing of terrorism law
Interview: d. Abdul Amir al-Faisal
Is one of the oldest financial institutions in the history of the Iraqi state .. not named hesitated a lot before 2003, then jumped and strongly to the fore when the Iraqis found that the only guarantor of the dollar exchange rate in the local market and what this means stability in various areas of their lives swing depending on the price dollar exchange .. he CBI .. giant financial institution by which we can know that the financial policy of our government moving us to safety or vice versa where .. today is the corner based on economic, financial and monetary policy of the country and the budget in 2015 with all surrounded by Details of Atkhvy one made from the central touchstone that give an advisory opinion on the features of the budget deficit did not know the previous budgets, as well as the clamor of many raised here and there about the savings compulsory for employees and why moving the state to him, and how much is the loss of Bank of disaster fall of Mosul, which hit all joints of the state, without exception, and many other questions developed by the “Baghdad news” on the table Governor of the Central Bank on the Keywords who knew about the media that a few meetings and Aihbz talk to one .. this was a dialogue conducted editor with Mr. Alak, which exceeded candor usual line and put points absent on ABC equation complicated situation in which Iraq is facing serious challenges.

Receive special

Reception was Mr. Ali Keywords for “Baghdad news” distinctive What made the atmosphere of dialogue positive all Mathmlh this sense of the word, and before they go off his questions initiated by saying the central bank is a pillar of fiscal and monetary economic policy of the country, because through the central bank realized the things that represent the base basic economy when we talk about inflation and exchange rate and control of the banking sector in general, we are talking about a fundamental aspect of the economy, which is the foundation for everything in the country needs to develop a wide and fast advancement.

The budget deficit and effective treatment
• There is much talk about the budget deficit and talk numbers superstitious what cash reserves of the Central Bank Will Ttmn citizen for cash reserve?
The reserves of foreign currencies for what is owned by the central bank is still in excellent border with international standards and central banks in the world, usually seen as a reserve through the money supply of the local currency traded in the market if the extent of the local currency traded in the market is considered a good thing, and some states put up 70% of the currency in circulation, and for Iraq, the one and three-quarters of the reserve ratio to the currency in circulation and this percentage reassuring, therefore, the Iraqi dinar remained strong, and more recently because Ankhvaz oil resources and the fact that the dollar source in the country When Ankhvaz oil sales at least contained the dollar and this affect the reserve if the clouds and selling dollar operations continued at the same level and so we’re watching this issue very accurately and daily so do not vary our equation and even balance between incoming and sold, and the state can not benefit from the reserve because it is governed by the law of the Central Bank, which does not permit the disposition reserve and the government did not apply to the Bank of reserves, but has consulted with the parties to the government and we are going to deepen this practice as we aim that the central bank is a financial adviser to the government and there is coordination between fiscal and monetary policy, and if each one of them has separately they will affect the economic situation and today we are trying to create some kind of consultation and coordination, therefore, the government took our opinion on the subject of the deficit and we have given a certain part of them ideas for pressing the expenses and I am personally involved in the preparation of the structure of the budget through the pressure of some expenses and at the same time, what can be covered by the deficit by issuing treasury bonds or in bonds and these bonds are not Central Bank, but that the central bank helps to promote and coordinate with the banks and we are in Iraq need to create a bond market that does not exist, and this time we tried to expand the bond department in order to be known and culture in the stock market, and we had our touches directly in the preparation of the budget and we attended the meeting Council of Ministers in which the budget passed to clarify a few things and I think that the budget is designed for the first time its proximity to the deficit, but at the same time proved how to eliminate it, unlike previous years when it was issued the budget deficit and leaves the deficit to surplus and the issuance of a subsequent bond coverage and this time the specific disability and how specific coverage also, and up to 23 trillion deficit, but reassuring to the presence of sources of funding and a portion of these sources is the availability of rounded balance of the Ministry of Finance.

Employees Provident Why?

• Why is the state going to save compulsory for employees?

Was our proposal on the subject of savings that do not reduce employees’ salaries and then turn it into operational expenses shall be pressed on the employee and not on the expenditure was taken on the proposal, the Council of Ministers and that this amount is not used in the financing of the budget, and so it was agreed, and when you read the budget will not be clear where, there are certain mandatory savings rates will be taken of the provisions and not of the salary so it will exceed the low-income groups.

• Are the ministries covered by compulsory savings?
Did not specify any ministry but identified the income levels of appropriations, we suggested that this amount is not used to finance the budget, so it is not part of the deficit, but will provide liquidity, and we have proposed to invest and returns for the benefit of the employee, and thus we have achieved two goals: first, we we used the money in the economic stimulus because if we pressed citizens and personnel expenses broadly, we Snather negatively on the economic cycle and therefore it would negatively affect the budget in terms of revenue on the other hand such as taxes and other so including that 40 trillion salaries of the 2 trillion, which will be taken in savings they will invest and be cost-effective ones in favor of the employee, and there are areas for investment does not carry a high risk and we are in Iraq, we have a great investment opportunities and if fed us every opportunity it can be used as bills and trading in the market, and that the proportion of 23 trillion sections of it will be rounded to the Ministry of Finance up to 3 trillion and the Department is parcels of banks tpi which has a surplus of an estimated 3 trillion and the Department of bonds in agreement with the Rafidain and Rasheed, who possess liquidity and there are also foreign bonds because we are active in this aspect Some foreign banks operating in Iraq is ready to help us access to this aspect and bring buyers of these bonds.

• Can I be forced to save interest on the employee?

Our proposal was in the Council of Ministers to return forced savings interest on the employee and approved by the Council of Ministers and then will be consulted about the method that achieve the best value to the employee after a meeting between the government and the central bank.

Scary figures for disaster Daash

• How much of the central bank lost money when entering Daash to Mosul?
– Lost approximately 500 billion dinars and 80 million dollars in addition to banks, Rafidain and private banks and that there are no accurate statistics about.

Those who follow the central bank?

• Does the central bank continued to the government or the parliament?

Central Bank is a government but it is an independent body but within the Constitution and the law of the central bank has to be that there is coordination between monetary policy and monetary Finance and the Central Bank, and the government is seeking to implement the largest and disbursement of what can be, as there was no brake because the government can go spending without accounts of the economic impact this may traces creates inflationary central bank when it is falling in problematic curb this inflation.

• Are the politicians who are under the pressure?
Through my presence in the Central Bank did not touch any pressure from politicians, but there is pressure to be through the media and communications across from politicians, so I can not find any intervention at the present time and I am trying to overthrow the equation always government interfere with operation of the Central Bank and today trying to reverse the equation.

Linking eliminate important money

• Can I connect the judiciary and money to create a strategy for the state under this circumstance?
No doubt that the state can not live Kjzr scattered all authorities they must meet to serve the state so it can not be that policies are far apart from each other because distancing itself affect each other and the central bank that did not coordinate with the judiciary can not exercise its activities and, for example, money laundering and who care about him some states Activity if not the modalities with the judiciary in this matter, how governs issues to respond to him through us and if not effectively eliminate this activity, I needed a competent judge of money laundering and not leave it for another judge does not know what are the issue of money laundering being the issue relating to financial need aspects to knowledge of the background, so the authorities must be integrated with each other and the central bank in some countries called the monetary authority to be an essential authority operate independently in determining policy related to each country, and I came today’s decision what I may change my economic, political and security thewhole situation .

Anti-money laundering

• What Ajraouatkm on the phenomenon of money laundering?
Unfortunately in previous years was to manage the bank’s particular point of view about taking responsibility for the fight against money laundering and was not see that this activity is through the central bank, and I, personally, I disagree with the central bank on this issue because it is in accordance with the law of the bank and the Office of the reporting of money laundering is linked to the central bank therefore see previous administration this subject led to the failure of Activity anti-money laundering because it enabled to law-money laundering in the central bank did not happen and there was an effort to convert it to other destinations in the time I have been discussing the administration that the law provides for anti-money laundering, and today we are working to correct deficiencies in the making existing, and we as a member of the Financial Action Task organization concerned mainly money laundering office and this year chaired the organization it is painful and a few gaps and report and assessment by the World Bank to follow up the organization in which many of the observations so since Mbacherta in the central bank you activate the-money laundering office and gave him a kind of independence in its budget, management and activation of existing staff capabilities which we have completed today a draft anti-money laundering law and the funding of terrorism and this was the demand of organizations and stakeholders in this regard and I was given a priority of this issue and today, the draft was sent to the State Council and will be an important law at the national level and even though we are late in the preparation of this project but now we have prepared within the last developments in this field developments.

Banks financed terrorism

• What is the central bank measures against terrorist financing banks?
The truth is that this potential things get not only in Iraq, but also in some neighboring countries, therefore we practice today supervisory role may be troublesome for banks and corporate conversion, but this occurs as a result of the seriousness of what could happen in the banking system and the corporate conversion at the present time and there is a large monitor the movement of transfers and deposits etc. There are no specific figures, but the focus of our interest in this subject and put it most of our focus.

• Have you been lifting roofs claims of banking offices?
We put a lot of controls and restrictions and committees inspection continuing on a daily basis and requirements conducted against conversion companies obviously heavy but they are required because we have no choice but to control and in fact the measures we have taken in the past few days to reconsider sales cash dollar because all the cash Shi be the subject of suspicion and the phenomenon of the use of “Cache” in Iraq phenomenon not fit with what is happening in the rest of the world because there are no day aircraft movement amounts from New York to Rasheed Street in order to sell the dollar for the citizens and the issue has become controversial of States and international organizations, and we want to enter everything within the banking system, a system of for traffic control and direction, and I know where he went amount to any activity used as well as the other countries are complementary you turn, it also monitors and criteria used agreed in most countries surely will complement the roles and today, the principle of know your customer any know Mayaml and where his money sources, therefore we were able to detect last attempt that occurred in the Rafidain Bank, and when you see the eye-catching amount must know the customer where it came the amount and when received instruments of large amounts of people newly accounts at the bank, it has also drawn attention directly were contacted although the fundamentalist treatment and complicity by the employee and when you connect approaching responsible and knowledge to pass the number of billionaires we were able to network detection and constipation Boukaotha, and today we are seeking to move away from cash trading and this culture we seek to consolidate the central bank recently occurred a slight increase in the dollar, because we reduced the cash sales and left the transfers of cash to traders and importers, because that is our responsibility to cover foreign trade activities, but when someone comes and asks to withdraw a large amount of the dollar, it is difficult and strikingly, because the dollar is used by travelers and a few percentages.

• Do private banks censored?
All banks are controlled and monitored violations and impose fines and when we spotted the bankruptcy of a bank job by Bonashh and imposing guardianship but some understood it wrongly, but the right thing is to restore and rehabilitate the bank, refreshed from bankruptcy in order not to damage the depositors, for example, we run a bank the economy and the processes that make up the resources of the bank Kmzad currency and buy the dollar, we managed, as well as loans granted by entering debts to the bank, and another option for us is to allow a bank bankruptcy.
• What are the civil deposits ratio at the banks?
The proportion of very Mnkhvzh I mentioned in the cabinet, we give the salaries of up to 40 trillion and 90% of staff to interfere in the banking system, and I proposed to put the machine in each department and the Ministry through which the payment of salaries to employees in order to avoid cases of theft and congestion that could happen to banks and therefore it provides financial liquidity.

Yellowing of the currency where to?

• Is the reset process stopped the currency?
The project is still in place and such steps need to organize the process and stability in order not to create any violations and to ensure the success of the process and what we think now replace the paper method and this is the risk of the breaches and the need occur to the complex administration and we are in the current situation we fear the occurrence of violations Therefore, our plan is the introduction of the new currency without withdrawing the old currency and when Maroina stabilize the situation, we will implement the project, after the order of the issue with all stakeholders, in order to avoid the problems that may occur in the records and figures and others, and we’ll educational measures on the subject before you start it, which is an ongoing project and will be implemented, but are regulatory framework, and we’ll zoom in currency as we finished the issuance of the 50 thousand coin and currency this will not increase inflation.

• What is your relationship with the World Bank?
Our close relationship with the World Bank on several levels as Iraq is part of the international organizations and shareholders therefore take advantage of the facilities and expertise provided by the World Bank in many areas that are developing existing staff through the World Bank, as well as studies and recommendations offered by us, and many of the recommendations imposed by the World Bank but our condition does not allow the current application, and sometimes we find them of interest, as the World Bankconfirms the restructuring of the banking sector, especially in the Rafidain and Rasheed was the World Bank’s significant role in providing advice and recommendations.

The region can benefit from the central

• How do you deal with the fiscal policy in the region?
The Central Bank has two branches in Arbil and Sulaimaniya, but a matter of fact we do not have direct management in them; they operate independently of the central bank and this thing does not serve the region, because the central bank is the third party between the banks and the public and the government, which regulates the rhythms to avoid risks in the work of banks and I think that there is disagreement in the process of overseeing the province and the result was the provincial government is overseeing it, and we did not agree on it, and now there is a change in attitude and this may see the region that the banks there must be managed by the central bank because this relationship will benefit the region of the existence of an independent party capable of that regulates the process in general, because the absence of central bank got problems appeared floating on the surface of reality, and I expect changes.
• Are you satisfied with the government program to Dr. Abadi?
I’m satisfied with his work if he continues to apply the vision and the program within the schedule.

• how to manage the process damaged the currency switch?
That a lot of people standing queues to switch damaged currency with new ones, and we have our work in the switch and canceled wages that were imposed on citizens who have changed their damaged new.

Comments are closed.