There are a lot of criticism directed to the Central Bank, particularly in respect of auction sale of the dollar, for example, The Minister of Planning and Cooperation, Ali Baban, the auction of smuggling foreign currency out of Iraq What is your response?
There is no absorption of the concept of free economy and a critic of our methodology is able to bear the appearance of other exchange rates if the money to prevent the transmission Alternator Valaptokid will show a different price because there was need for the dollar may appear a third the price shown here we have a plurality of the exchange rate in this case the government can not that planning programs because the exchange rate enter all the goods can not all sectors have to calculate import cost and production cost accurately because in front of multiple exchange rates, and the issue would allow the movement of capital is to balance the market so that there is a request, and you control the presentation spoke of the balance of the market according to price specific and there is no smuggling of funds, because banks and their customers that fall auction provide sufficient information of the Central Bank either the claim of the Ministry of Planning and that worked out and proud of this you must make a careful analysis of the accounts and how ratios are contraband and that which we have come upon the former Ministry of Planning is not how things must be said, but accurately.
There is a demand on the currency and it should meet this request 100%, if the house 90% of demand, there is 10% may be provided by other markets, can she accept the Ministry of Planning or the government to show different rates for the dinar, how to plan and how to calculate costs and the issue is not media because it is purely scientific as a result of the balance between supply and demand factor.
Central Bank says that through its monetary policy was able to rein in inflation in Iraq by controlling the price of the dollar, but economists say that inflation in Iraq is not monetary inflation but is stagflation?
The main goal is that we have created a market where the exchange rate stable, there is a recession in the market and this also needs to accounts, but the main issue is that the march Altdhm rather than inflation in the case of static, the process of overall inflation was 65% two years ago, inflation was 40% partial, but dropped to 7% and inflation that now exists is not high in developing countries Mqais Many States stable inflation is 14%, inflation lowers the pieces was a real productivity of industry, agriculture and services and not pieces of cash to take advantage of the opportunity to exchange rate stability and knowledge of the cost in the exchange rate because we Now we know the cost and the cost of foreign currency exchange rate and the cost of the contribution of the exchange rate on the cost of production is stable as long as we can not predict, but when the exchange rate was not stable how can the government plans, and the case, in fact, the volatility in prices due to the non-coverage of each market foreign currency when sold 90% or 80% and not 100% there will be fluctuations in the exchange rate will create a kind of uncertainty will therefore be difficult planning process and this is what the Anridh.
Some people say that the central bank does not contribute to the production process, but we believe that the biggest contribution in the production process is to create a stable environment can predict the scheme through a stable environment, and if this is not considered a contribution to the national economy, production and planning do not know how to be a contribution.
Inflation lowers all ministries including the Ministry of Planning that dealt with because all the available stability and economic stability, I mean, not political, but the suspension of the failure of others to us and avoid this in itself because we are making available land suitable for work If there is no production, this is not our sin.
How serious is dealing in two currencies on the national economy, now we are dealing in two currencies in Iraq, why not be the Iraqi dinar is the currency only deal?
The official currency is the dinar in Iraq and we do not have any other currency either if people accepted the dinar is subject to replacement Baldolarao any other currency there is no problem, but if he refuses to deal in dinars by the people of this thing at risk, either for trade, the process means the import and export of the international treatment of the dollar, most traders are replacing the dinar to the dollar for trade and some people think the dollar is the value of stocks and after a dip in global markets is no longer a good arsenal, and now the Iraqi dinar is stockpiling good value after the stability is better than the dollar.
Stairway to the central bank recently cut interest rates for more than Thelat times, what is the purpose of this reduction?
Central Bank to deal with developments after the fall in inflation levels, the central bank cut the interest rate and the terms of our monetary policy has become less and we Tarcn banks determine interest rates on lending and borrowing, and we define the interest rate on the light of inflation and that should be higher than inflation, and lower inflation, reduce our interest rates and we need after the change of the level of inflation to a month or two to monitor the level of inflation for lower interest rates then, monetary policy is generally a short-term policy planning to Sete for example interest rates are not as the rate of tax, there are lower interest rates every day and there are interest rates change every day, so We are changing the interest rate is calculated each time by inflation, but before you see inflation because things are more external than internal.
Raised some political circles and economic idea of lending from the central bank and international monetary reserves, the suitability of these calls for the importance of monetary reserves?
Moreover, the Ministry of Electricity and complained of lack of central bank lending to the ministry to resolve the problem of electricity to the ministry resorted to borrowing from foreign banks?
The World Bank does not lend, it is not the duty of the central bank lending for development or production projects because the central bank lends to banks and short-term in the case of banks face any problem and may be saving too, but this short-term lending and should be back the loans quickly, read the statements from Mr. Raad older agent guard and the central bank provided a suitable environment for the Ministry to improve its ministry and the problem to be solved, the central bank has arranged to borrow the government (Ministry of Finance) of banks and the banks to turn this proceeds from lending to foreign currency, the government borrowed from commercial banks (Bank of Iraq) and proceeds borrowing from the central bank will convert the foreign currency lending to go to companies and LG Smenz, the central bank has facilitated the process of getting the Ministry of Electricity to the resources they need, but borrowing from the central bank directly because this is prohibited by law and is prohibited economically because it means the government will depend on the central bank and its reserve, which must be used to exchange rate stability.
Q: What is the size of central bank reserves?
Reserve of $ 43 billion, which changes every day, as a result of the auction process, which is now sold only, since the government of oil resources in foreign currency they need to turn those resources into the Iraqi dinar to pay salaries, since we are producers of Iraqi currency, we sell them the currency, The reserve is located in the central bank not to cover the government's budget deficit because it is not a resource for government, and ours can not be disposed of only to achieve a balance in the private sector when the dollar buys at auctions His presence bring stability to the currency and inflation and I hope that the Muslim Brotherhood in the government to understand the usefulness of this thing.
Louder calls from the private banking sector to support the appropriate regulations issued by the Central Bank of Iraq to organize its work, the validity of that?
This requires long discussions with private banks and the regulations certainly needed to be adjustable, but private banks have great opportunities available, because their very large during the fight against inflation after the deposit of 20% in the Central Bank and after that made a lot of profit they have to contribute in the development process This regulation is not an obstacle, and they should have been something of courage does not work without risk, and we have case sensitive except for the contributions of these banks in all sectors, the private banking sector in the process of evolution, but the interaction between fiscal and monetary policy and to give them the financial opportunity in the opening credits, and must be These short-term targets because the government for more than sixty years is one of the projects development can the private sector was far removed from these projects, but would only develop through the provision of assistance to him, but even the Constitution emphasizes the development of the work the private sector.
What is the Central Bank's role in resolving Iraq's debt, and how much of the remainder of this debt?
The central bank and Ministry of Finance, which both sides negotiated the debt and finance were the foundation of religion as it was our role as adviser and the debt issue is very important because the survival of a strain on the balance of payments and currency and creates a need for foreign currency, the central bank and the interest of the fight against debt has been reduced 80% of debt and remained Gulf states, except UAE, which has reduced its debt and the remaining $ 50 billion now, after the $ 140 billion.
Q: But borrowing now for consumer spending?
I agree with you on that borrowing must be for investment only, which I heard is that borrowing for investment spending, but such borrowing should be within the terms of many of them have to calculate the resources to repay the borrowing to generate and negotiate the loan and repaid the debt and commissioners advanced world and even after the end of the borrowing can negotiate a rescheduling of this debt, in the case provides all of these conditions is no harm in borrowing.
Where did the negotiations, the Central Bank and the Ministry of Finance with the International Monetary Fund is there periodic reviews and what the nature of these negotiations?
We got to the very advanced stages has been debated recently in the technical issues that you need and Ministry of Finance and Central Bank, and negotiations are in the ninth month is the stage of decision-making.
Q: What about the deletion of zeros from the currency Where did this project?
Is a project in mind, who is still very important because it needs substantial resources and a large cadre and this is what is lacking now, we do not have adequate staff, who deals in these cases as a result of the many issues we are dealing with, including research and the relationship with the International Monetary Fund and the relationship with the government, which project is very important.
* But first delete the zeros version or purchases of large groups?
When you delete a logical zeroes may Ananaj to issue coins bearing the largest zeros of our research and studies in this area, but what we need is the resources it takes to complete this command.
There is no absorption of the concept of free economy and a critic of our methodology is able to bear the appearance of other exchange rates if the money to prevent the transmission Alternator Valaptokid will show a different price because there was need for the dollar may appear a third the price shown here we have a plurality of the exchange rate in this case the government can not that planning programs because the exchange rate enter all the goods can not all sectors have to calculate import cost and production cost accurately because in front of multiple exchange rates, and the issue would allow the movement of capital is to balance the market so that there is a request, and you control the presentation spoke of the balance of the market according to price specific and there is no smuggling of funds, because banks and their customers that fall auction provide sufficient information of the Central Bank either the claim of the Ministry of Planning and that worked out and proud of this you must make a careful analysis of the accounts and how ratios are contraband and that which we have come upon the former Ministry of Planning is not how things must be said, but accurately.
There is a demand on the currency and it should meet this request 100%, if the house 90% of demand, there is 10% may be provided by other markets, can she accept the Ministry of Planning or the government to show different rates for the dinar, how to plan and how to calculate costs and the issue is not media because it is purely scientific as a result of the balance between supply and demand factor.
Central Bank says that through its monetary policy was able to rein in inflation in Iraq by controlling the price of the dollar, but economists say that inflation in Iraq is not monetary inflation but is stagflation?
The main goal is that we have created a market where the exchange rate stable, there is a recession in the market and this also needs to accounts, but the main issue is that the march Altdhm rather than inflation in the case of static, the process of overall inflation was 65% two years ago, inflation was 40% partial, but dropped to 7% and inflation that now exists is not high in developing countries Mqais Many States stable inflation is 14%, inflation lowers the pieces was a real productivity of industry, agriculture and services and not pieces of cash to take advantage of the opportunity to exchange rate stability and knowledge of the cost in the exchange rate because we Now we know the cost and the cost of foreign currency exchange rate and the cost of the contribution of the exchange rate on the cost of production is stable as long as we can not predict, but when the exchange rate was not stable how can the government plans, and the case, in fact, the volatility in prices due to the non-coverage of each market foreign currency when sold 90% or 80% and not 100% there will be fluctuations in the exchange rate will create a kind of uncertainty will therefore be difficult planning process and this is what the Anridh.
Some people say that the central bank does not contribute to the production process, but we believe that the biggest contribution in the production process is to create a stable environment can predict the scheme through a stable environment, and if this is not considered a contribution to the national economy, production and planning do not know how to be a contribution.
Inflation lowers all ministries including the Ministry of Planning that dealt with because all the available stability and economic stability, I mean, not political, but the suspension of the failure of others to us and avoid this in itself because we are making available land suitable for work If there is no production, this is not our sin.
How serious is dealing in two currencies on the national economy, now we are dealing in two currencies in Iraq, why not be the Iraqi dinar is the currency only deal?
The official currency is the dinar in Iraq and we do not have any other currency either if people accepted the dinar is subject to replacement Baldolarao any other currency there is no problem, but if he refuses to deal in dinars by the people of this thing at risk, either for trade, the process means the import and export of the international treatment of the dollar, most traders are replacing the dinar to the dollar for trade and some people think the dollar is the value of stocks and after a dip in global markets is no longer a good arsenal, and now the Iraqi dinar is stockpiling good value after the stability is better than the dollar.
Stairway to the central bank recently cut interest rates for more than Thelat times, what is the purpose of this reduction?
Central Bank to deal with developments after the fall in inflation levels, the central bank cut the interest rate and the terms of our monetary policy has become less and we Tarcn banks determine interest rates on lending and borrowing, and we define the interest rate on the light of inflation and that should be higher than inflation, and lower inflation, reduce our interest rates and we need after the change of the level of inflation to a month or two to monitor the level of inflation for lower interest rates then, monetary policy is generally a short-term policy planning to Sete for example interest rates are not as the rate of tax, there are lower interest rates every day and there are interest rates change every day, so We are changing the interest rate is calculated each time by inflation, but before you see inflation because things are more external than internal.
Raised some political circles and economic idea of lending from the central bank and international monetary reserves, the suitability of these calls for the importance of monetary reserves?
Moreover, the Ministry of Electricity and complained of lack of central bank lending to the ministry to resolve the problem of electricity to the ministry resorted to borrowing from foreign banks?
The World Bank does not lend, it is not the duty of the central bank lending for development or production projects because the central bank lends to banks and short-term in the case of banks face any problem and may be saving too, but this short-term lending and should be back the loans quickly, read the statements from Mr. Raad older agent guard and the central bank provided a suitable environment for the Ministry to improve its ministry and the problem to be solved, the central bank has arranged to borrow the government (Ministry of Finance) of banks and the banks to turn this proceeds from lending to foreign currency, the government borrowed from commercial banks (Bank of Iraq) and proceeds borrowing from the central bank will convert the foreign currency lending to go to companies and LG Smenz, the central bank has facilitated the process of getting the Ministry of Electricity to the resources they need, but borrowing from the central bank directly because this is prohibited by law and is prohibited economically because it means the government will depend on the central bank and its reserve, which must be used to exchange rate stability.
Q: What is the size of central bank reserves?
Reserve of $ 43 billion, which changes every day, as a result of the auction process, which is now sold only, since the government of oil resources in foreign currency they need to turn those resources into the Iraqi dinar to pay salaries, since we are producers of Iraqi currency, we sell them the currency, The reserve is located in the central bank not to cover the government's budget deficit because it is not a resource for government, and ours can not be disposed of only to achieve a balance in the private sector when the dollar buys at auctions His presence bring stability to the currency and inflation and I hope that the Muslim Brotherhood in the government to understand the usefulness of this thing.
Louder calls from the private banking sector to support the appropriate regulations issued by the Central Bank of Iraq to organize its work, the validity of that?
This requires long discussions with private banks and the regulations certainly needed to be adjustable, but private banks have great opportunities available, because their very large during the fight against inflation after the deposit of 20% in the Central Bank and after that made a lot of profit they have to contribute in the development process This regulation is not an obstacle, and they should have been something of courage does not work without risk, and we have case sensitive except for the contributions of these banks in all sectors, the private banking sector in the process of evolution, but the interaction between fiscal and monetary policy and to give them the financial opportunity in the opening credits, and must be These short-term targets because the government for more than sixty years is one of the projects development can the private sector was far removed from these projects, but would only develop through the provision of assistance to him, but even the Constitution emphasizes the development of the work the private sector.
What is the Central Bank's role in resolving Iraq's debt, and how much of the remainder of this debt?
The central bank and Ministry of Finance, which both sides negotiated the debt and finance were the foundation of religion as it was our role as adviser and the debt issue is very important because the survival of a strain on the balance of payments and currency and creates a need for foreign currency, the central bank and the interest of the fight against debt has been reduced 80% of debt and remained Gulf states, except UAE, which has reduced its debt and the remaining $ 50 billion now, after the $ 140 billion.
Q: But borrowing now for consumer spending?
I agree with you on that borrowing must be for investment only, which I heard is that borrowing for investment spending, but such borrowing should be within the terms of many of them have to calculate the resources to repay the borrowing to generate and negotiate the loan and repaid the debt and commissioners advanced world and even after the end of the borrowing can negotiate a rescheduling of this debt, in the case provides all of these conditions is no harm in borrowing.
Where did the negotiations, the Central Bank and the Ministry of Finance with the International Monetary Fund is there periodic reviews and what the nature of these negotiations?
We got to the very advanced stages has been debated recently in the technical issues that you need and Ministry of Finance and Central Bank, and negotiations are in the ninth month is the stage of decision-making.
Q: What about the deletion of zeros from the currency Where did this project?
Is a project in mind, who is still very important because it needs substantial resources and a large cadre and this is what is lacking now, we do not have adequate staff, who deals in these cases as a result of the many issues we are dealing with, including research and the relationship with the International Monetary Fund and the relationship with the government, which project is very important.
* But first delete the zeros version or purchases of large groups?
When you delete a logical zeroes may Ananaj to issue coins bearing the largest zeros of our research and studies in this area, but what we need is the resources it takes to complete this command.
