Press release issued by the Central Bank of Iraq

Central Bank of Iraq
Baghdad, April 3

Press release issued by the Central Bank of Iraq

And handled the media format to a press release issued by the Ministry of Finance based on information
Office of Financial Supervision, explaining that the numbers of import of goods and cargo entering the country through the customs, to coincide with the sales of auction of foreign currency at the central bank and the above statement carries the responsibility of the Central Bank and commercial banks, all including banks, the government itself and affiliated to the Ministry of Finance and would like the Central Bank in this regard to clarify the following: -
The Microcredit T are building a path of stability in this transitional phase and difficult experienced by Iraq sought to provide a stable climate that attracts growth began Baktall cash becomes today a strong and solid at every fair-minded people of our people, stressing the following:
First: The auction of foreign currency and means of indirect monetary policy impact on the cash basis of the country in order to control overall spending, or demand generated by current expenditures, particularly the general budget and inflationary pressures them, as they lead the auction three objectives:
1 - It is a tool of central bank intervention in the exchange market to stabilize the value of the dinar
By the Iraqi defense of the equilibrium exchange rate, which reflected positively on the overall level
Prices, especially of goods produced and imported production inputs and strengthen the export base
This is actually scored, after they entered the country in price levels is such that a stable inflation
. Fundamentally there is no% v infected at the present time 6% after it increased the annual rates of 34
2 - as a means Ltt ud indirect tools of monetary policy in the management of liquidity and control over the economy Mnasebha, is a case of the application of open market operations
Required a continuous basis to achieve balance in the money market and strengthen the prospects for stability
Where the financial.
3 - It is an important source of financing private sector trade of goods and services needed by the market
Iraqi and funded essential.
Second: Although the sales of foreign currency in the auction in question is not limited to the financing of a T Seradalsla and goods and proceed as well as to import paragraph wide range of services that can not for the records of customs demonstrate in addition to the domestic demand for foreign currency investments by the banks in that currency by 20% of their capital within the regulations, regulatory
And regulatory acts adopted, the n of your CBI confirms that the monetary policy adopted in the conduct of an auction of foreign currency is not directly responsible for all business activities of import of goods and services outside the scope of funding.
Third: that the functions of the central bank oversight in the management of an auction of foreign currency Tnhs t in the fight against economic crimes is strictly related to combating money-a of money, money, crime and terrorism and not the central bank another mission to create an environment hostile to economic freedom, including free e j to convert the outside environment that breeds stability Economic enshrined in the Constitution that were deprived in the country over more than forty years and Makhalafth of catastrophic consequences on the lives of Iraqi society and the individual and encouraged the flight of capital across national channels mysterious repression.
Fourth: Central Bank of Iraq and to the extent that monitors the movement of financial flows within the country and out, he finds the economic phenomena of natural help maintain the financial system fixed based on market competition and generates at the same time integrated m Rguba in the financial market International, open and wide in banking with the world. In spite of that, the funds and flows should be to Atafee deepening of surveillance and the disclosure that the movements of the funds are legitimate legal and does not contravene the law against money laundering and money, crime and terrorism, or even evasion of forms other obligations with the government authorities Kolajhzp tax, financial or Mkhalvpaltalimat and regulations, regulatory issued by the Central Bank of Iraq, which is also determined, for example, amounts Astosmaralmassarv its money abroad, which represents another form of the flow of local capital out of the country.
Fifth: that any restriction of these outflows not only helps to generate a black market suspicious
At the same time encourage the phenomenon of capital flight abroad, but through illegal channels and other non-bank channels mysterious. It is demeaning
In all cases of direct oversight capacity increases at the same time the cost and burden
Indirect regulatory processes. As well as generating financial environment weakens the negative climate
Foreign investment in Iraq to encourage the flow of t to misuse of foreign funds into the inside
And integration with the international financial system and intersect with at least the principles that came out
. A Guenon Investment No. 13 of 2006 to provide a ISV CBI intervention of the mystery of his policies aimed at economic stabilization and accelerate Altnm are and improve the chances of a market economy, he finds the report of the Audit Court was referring to the statement of the Ministry of Finance motivated biased neutral regulatory
We promised from the Office of the said since its inception reflects Tse a Q deliberately taking advantage of the transitional period the current political for the country to make waves economic purposes unknown lead to hit the economic stability achieved by monetary policy and the successes attendant over the past years and the introduction of the country in economic chaos for Athmd consequences.

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