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27/8/2010
Central: the rate of inflation to 2.7% encouraged the launch of liquidity to banks
Baghdad, Central Bank of Iraq adviser, on Friday, the drop in inflation to 2.7% of Iraq encouraged to release liquidity to the banks by 5% of the existing legal reserves have, in order to expand lending operations and accelerate development.
The appearance of Mohammed Saleh told (Voices of Iraq) that the primary mission of CBI is concentrated in "stabilizing the inflation rate, which amounted to 2.7% currently, a figure not seen since the Iraqi economy for many years."
The Iraqi Ministry of Planning announced that the rate of inflation fell to 2.7% in June after he was last an average of 3%.
Saleh pointed out that the central and by the arrival of prices to this level of stability, "decided to release liquidity to the banks, government and private rate of 5% of the monetary reserve the legal 20% and reduced to 15%, to enable them to expand lending and coverage of economic activities."
About the reasons that prompted the central bank to raise the proportion of the legal reserve previously Saleh said it was "part of the monetary policy, which the CBE which retain 20% of each deposit has a reserve and to reduce the liquidity and limiting expansion of lending," and thus "control the rate of inflation , and when we saw a decline at the rate we release liquidity to achieve a balance between stability and push forward development rates. "
Prior to the Iraqi Central Bank to cut the cash reserve ratio, which was legal a 25% to 20% is divided into 5% liquidity at banks and 15% in the central treasury.
Asked told (Voices of Iraq) on the possibility of raising the rates of lending to banks, Saleh said "the lending capacity of banks amounting to eight times the capital and many of them did not reach this level, a conservative credit granting", pointing out that there are "many channels could be expanded through Banks in activities such as investment vouchers treasury or deposit with the CBE, and other other activities. "
There are currently 37 banks in Iraq, civil strife is the Iraqi Central Bank with the task of supervision and oversight, as well as government banks Istaran on most banking activities are Mesopotamia and rational.
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Releasing cash to banks reinforces economy – banker
August 28, 2010
BAGHDAD / Aswat al-Iraq: The decision of the Central Bank of Iraq (CBI) to release 5 percent of cash reserves is a step toward reinforcing the role of the private sector in the Iraqi economy, a banker said on Saturday.
“The amount was semi reserved without taking advantage of it,” the banker told Aswat al-Iraq news agency.
He explained that the cash will improve loaning, credit, and letters of credit.
“Having cash in banks will also improve daily banking services,” the banker added.
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