September 17, 2011Prime Minister, Central Bank policies are wrong and last longer "cheap talk" and guarded
The Prime Minister said Saturday that the monetary policy of Central Bank of Iraq to address economic conditions "wrong" because they should be adapted to other policies and development programmes, while the last count on some charges "failure" to address monetary policy in the country, "" cheap talk, showing the Bank's readiness to manage the country's economic development if they failed to other institutions.
He said Prime Minister Counsellor for Economic Affairs, Abdel Hussein Al-Anbuge, in an interview for "Sumerian news, on the sidelines of a seminar hosted by the Institute of economic reform, Saturday, at the Sheraton downtown Baghdad," the Central Bank used in the process of the reform policy of deflationary Iraqi currency depend on monetary reform without ".
Al-anbaki said that "the Central Bank should not deal with inflation alone to ensure the stability of the Iraqi currency, but that means tackling the recession and unemployment in Iraq because it would contribute to the development of the country economically."
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"The Central Bank had not coordinated with other economic policy system in the country to address the situation", stating that "there is a mistaken understanding of the topic of independence by the Bank."
"Independence does not mean never be decisions taken by the Bank away from the interests of the economy, which should be in", "monetary policy should be adapted to other economic policies."
The Deputy Governor said the Central Bank of Iraq, the appearance of Mohamed Saleh, in an interview for "Sumerian news", "some claim on Central Bank policy fails to address the situation in Iraq, not only guarded and turn green with envy. success of the reform process of the Central Bank over the past years", describing it as "just talk is cheap", according to his opinion.
"The Central Bank exercises its coordination with fiscal policy and Government agencies to fully address the external indebtedness of Iraq accordingly arranged for signing agreements with the IMF," he said, adding that "what he was talking about some of the Central Bank's isolation and spacing on other State institutions, the word void guide everyone still operates under the umbrella of the International Monetary Fund to address the issue of indebtedness, loans obtained by Iraq."
And the World Bank had demanded Iraq several economic reforms, including the lifting of government subsidies on petroleum products and ration for abolition of foreign debt, estimated at more than $ 120 billion.
Saleh said that "the Central Bank achieved its objectives through sheet and build large reserves supported Iraqi dinar and created a stable", pointing out that the "Iraqi dinar exchange rate has stabilized, as well as low inflation to price level to one decimal.
"Development policy for Iraq was not the responsibility of the Central Bank of Iraq, as well as with entrepreneurship, because it is the responsibility of political finance", wondering "ability of fiscal policy in building production plants or power stations or hospitals."
Saleh said that "the Central Bank unable to manage the economic development of Iraq if unable to other institutions."
The Central Bank of Iraq has four branches in Basrah, Sulaymaniyah, Erbil, Mosul, founded as an independent bank, under a special law (the Central Bank of Iraq Act), promulgated on 6 March 2004, and is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management of foreign reserves and currency management version, in addition to regulating the banking sector.
He accused the Central Bank of Iraq, in a statement issued Monday (12 September 2011), government bodies, "block" the idea of monetary reform in Iraq, and while he retains the legal right to defend its existence, those responsible for "endangering the financial interests of the country to danger."
This is not the first time attacked Prime Minister Counsellor for Economic Affairs, Abdel Hussein Al-Anbuge, Central Bank, as it was considered at the twenty-fifth from last August, the lifting of the Iraqi currency zeros is "biggest" corruption in Iraq if it was during this time, pointing out that they fall under the rubric of "tampering", warning of "maviat" preparing for counterfeiting trillions of Iraqi dinars in light of the upcoming changes to substitution.
While the Central Bank said in its statement dated 12 September, it had received an official letter from the Committee on Economic Affairs in the Cabinet during 2007 which calls the draft study of Iraqi currency system reform through restructuring and deleting three zeroes.
The Iraqi Central Bank Governor Sinan Al-Shabibi, confirmed during a meeting of independent bodies with Prime Minister Nouri al-Maliki, on 19 June 2011, ready to initialize all items to replace Iraqi currency.
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