Central Bank current problems as a result of the loss of independence

Sinan Mohammed Rida al-Shibibi

Iraqi money market live in the present state of instability was the collapse of the market rate of the dinar, which amounted to 1340 dinars to the US dollar while the official price of about 1190 dinars to the dollar, although the size of the reserve is still great, which is considered a key factor in the stability of the currency.

The reason is due to this difference between the two prices to enter ministries (Finance) and other parties (House of Representatives) and Amlaihm policies and terms were not unrelated to monetary policy, and not the central bank’s ability to defend his advisers about the bank by law.

The problem at present is that students have to pay a conversion secretariat equivalent to a certain percentage of taxes and customs when buying the dollar and at the request of the Ministry of Finance, and this is an important factor in the rise in the dollar price. These conditions have served the Ministry of Finance, but the principle that the purchase of foreign currency and selling it must be done fast and smooth and without any obstacles (except banking conditions and a commitment to capital) because the rapid movement of cash, and if there is a need for the central bank to take advantage of foreign currency sale for development was better to use it in Ttaiwiramlah bank credit, if given preference in the auction of the bank, who leads in the banking its credit.
So there is the intervention of the Ministry of Finance in the work of the central bank. This intervention is designed to collect the financial resources of the Ministry of nothing to do with monetary policy, although the central bank is that the collection of these resources. In other words, the central bank is the one who collects these resources for the Ministry of Finance. As the budget included the central bank to buy Treasury bonds and remittances to $ 6 billion and reduce the percentage of legal reserve held by banks at the Central Bank in half to provide budget resources. The seriousness of these measures GOES to reduce the effectiveness of monetary policy in the fight against inflation. Therefore, on the fiscal and monetary authorities to assess what you get compared to inflation of resources and instability, which can be a cause for the collapse in the real rate of the dinar.
Also restrict the sale by the House of Representatives means interference in the work of Parliament’s central bank. Common among among economists and parliamentarians that the central bank continued to the House of Representatives, and this is a big mistake of the Central Bank is responsible to the House of Representatives and not subordinate to him, and here the Central Bank is no different from the rest of the ministries, but this responsibility (the responsibility of the central bank) explicitly mentioned in the Constitution.
Thus, the central bank has lost its independence and became a bow to the decisions of the government and parliament. The style is the right to put forward ideas as proposals in the House of Representatives and then be voted upon.
The government and parliament policies, and particularly in determining sales, led to a duplication of the exchange rate deceived enriched black market and some of them used by others in other funding terrorism may be one of them.
Loss of autonomy has several caveats most important that the central bank will be subject to the instructions of the government, which will be reflected in the Bank’s policies and therefore, the central bank will not be able to adopt the goal of reducing inflation in earnest. To make matters worse, that government spending is inherently inflationary result of the delay in the implementation of projects.
And loss of independence would lead to the creditors to look to the central bank’s money as government funds, becomes a target for creditors, and this is an important issue should be discussed with creditors and lawyers Iraq.
The loss of independence means that the central bank to adopt monetary policies in line with the policy of the government, but the government’s policies may not fit with the Central Bank Law. In other words, it does not focus on the fight against inflation does not give due importance to the goal of economic stability.
The imposition of a financial nature policies on the central bank should be the subject of study and coordination by government and parliamentary bodies. The central bank has weakened administratively from the government, and often tried to governments to impose its policies on the central bank, including the former prime minister tried to borrow from the central bank which was rejected because the bank law prevents him from it, and ended up the attack on the central bank and the arrest of many of the finest staff .
One manifestation of overtaking on independence is to waive it on the Central Bank reserves. Some repeating that this could be justified because the reserve exceeds the currency in circulation and in bank one and a half times. These justifications for the government to gradually dominate the central bank resources. The economy – such as the Iraqi economy – largely open on the outside needs to be significant resources to compensate for the results of any crisis, and if they are borrowing from the central bank would respond when will this money?What is the capacity owned by the bank towards the government to recover the money that?.
The bubble and the high price of the dollar is a result of the policy of the government and the House of Representatives and it ought to be to remove obstacles for the foreign exchange market where you should not be given greater importance of fiscal policy, monetary policy is determine the exchange rate and help to manage the money and functions.
The central bank does not lend to the government but it helps the economy as a whole through price stability and credit regulation and supervision of the banking and financial sector regulation and payments and maintaining the country’s reserve. Lama speak much echoed by the government and the Finance Committee in the House of Representatives on “foreign currency auction”, this auction is a monetary policy which pulls dinars from the market and bought by foreign currency and here Thread ends for the central bank, we have a cash discharge process direct and simple. And if there is no import of “auction” For parliamentarians to inquire about the reasons for this in the customs or the Ministry of Commerce import process does not fall within the monetary process. That the central bank must be matched each dollar demand and this is one of the fundamentals of price stability as the demand that has not saturated by the bank will go and creates another market prices and the other, which is contrary to the central bank law and creates a state of economic instability.
I chose the Finance Committee put an upper limit on the sale of foreign currency (75 million dollars a day) thereby contributing to instability in and create multiple exchange rates for real because the demand was higher. In any case, this request does not ask about the central bank, but ask for all sectors of the economy, why the Finance Committee in the Parliament and practiced legislation and supervision question to sectors of the economy which are supervised by and to the private sector, especially not go and it’s supposed to meet all corners of the economy. We do not doubt that there are irregularities, which requires follow-up with the relevant commercial banks, but we stress that the central bank is in front of the discharge process, but not cash, either by the imports is outside the scope of work of the Central Bank.
On the other hand the money to go abroad because the state did not provide suitable opportunities to invest at home. Also, a section of which is a kind of external savings (within the concept of the national accounts of a country) will return to Iraq in appropriate circumstances that must be provided by the State. As for the extra money must be sure of their sources and legitimacy of the banks and the circles in which anti-money laundering that should be strengthened, the majority of sources may be derived from money laundering or simply that the subject is big operations out of capital.
We must not forget that Iraq falls within the group of countries which are in transition from totalitarian regimes to open democratic systems provide the free economy. This group of countries undergoing many changes in the economy opens up (as states formerly the Soviet Union), but a lot of these countries, its economy was characterized by the transfer of capital abroad. In the case of Iraq also encourages this transition because of the conditions of violence and instability experienced by the country. This situation may explain the large amounts that are being converted to Aforeig.anha go abroad in order to spare, then we are in front of the case of capital flight and not smuggled. The situation in Iraq at the present time encourage capital flight, and if it does not allow for capital that moves the dollar exchange rate in the market will rise significantly hampering economic decision-making.
Iraq has not yet become a safe place brings investment, we need large national efforts to ensure stability and attract investment.

* Former Central Bank Governor



Baghdad Operations presented tomorrow Confessions of a number of criminal gangs and announce special Ramadan security plan


History of edits:: 2015/6/15 23:49 • 7 visits readable

Baghdad Operations presented tomorrow Confessions of a number of criminal gangs and announce special Ramadan security plan

{Baghdad: Euphrates News} Baghdad Operations Command, presented Tuesday at a news conference confessions of a number of bands, and declare the special security plan holy month of Ramadan.

A statement by the command of operations and Euphrates News Agency {} received a copy of it today that “the Baghdad Operations Command will hold a press conference tomorrow at the headquarters at 12 noon.” 

She said that he “will be displayed confessions number of bands as well as the security plan for Ramadan” .anthy address 

Kurds in control of the entire city of Tel White

By Roudao 43 minutes ago

Roudao – Erbil

Announced the official spokesman of the Volcano Room operations Euphrates, Shirvan Darwish, in a statement to the media network Roudao, that the joint forces composed of units protect the people and a number of the free army factions, seized control of the entire city of Tel white rural northern province of Raqqa.


“Biting the Earth” edit gray three-pronged plan


Joint Operations Command announced, Monday, that the liberation of the city of Ramadi operations going according to plan and bite off the ground towards three axes, while confirming the presence of significant progress in the vine spend.

A spokesman for the joint operations Brigadier General Saad Maan, “The liberalization of Anbar province and the city of Ramadi operations are still ongoing,” adding that “there is significant progress in the district of the vine and thwart repeated attempts to re-Daash land grab”.

Maan said that “the military operations going according to plan and bite off the ground towards three axes around the city of Ramadi.”

The Deputy Prime Minister said Bahaa al-Araji, earlier on Monday, the signs of victory are evident and clear and the ground prepared for what awaited by the people of Iraq, stressing that the enemy is suffering from weakness and refraction could be crushed at all levels.


Barzani meets with Crown Prince and UAE

By Roudao 27 minutes ago
الشيخ محمد بن زايد (يمين) - مسعود البارزاني
Sheikh Mohammed bin Zayed (right) – Massoud Barzani

Roudao – Erbil

He met with President of the Kurdistan region, Massoud Barzani, on Monday, during his visit to the Gulf States, with Emirates Crown Prince of the Emirate of Abu Dhabi Sheikh Mohammed bin Zayed, to discuss political and security issues in Iraq and the region.

A statement by the presidency of the region seen by Roudao network media: that “has been talking about the relations between the Kurdistan Region and the UAE and how to develop these relations and expand,” as the two sides discuss the political and security situation in Iraq and the region and the threats of terrorists to the security of the region and the world.

The statement added that the two sides also humanity to situations of displaced people who have left their homes and their areas because of threats of violence and murder of organizing Daash search.

It is noteworthy that the facilities for the President of the Region delegation included both the Security Council adviser in the province delighted Barzani, the head of the Presidium of the Kurdistan region, Fouad Hussein, and Minister of Planning Ali Sindi, Minister of Electricity and Salahuddin Babacar.


U.S. Works to Bring More Sunni Tribal Fighters Into Islamic State War

Published: 2015/6/15 18:366 Reads
Follow up (AIN) -US President Barack Obama’s administration is ramping up its efforts to train and arm Sunni tribal fighters, who it hopes will lead a coming effort to reclaim Anbar province from the Islamic State, a tacit admission that the Iraqi military itself won’t be up to the job anytime soon — and that the Islamic State has managed to expand its control of the region despite months of U.S. airstrikes.

The White House’s move will involve the deployment of up to 450 additional U.S. military advisors, pushing the total American troop presence in Iraq to roughly 3,600. This new effort will be centered at the al-Taqaddum military base in Anbar, which is situated between the Islamic State-held cities of Ramadi and Fallujah. The site will mark the fifth U.S.-staffed training site in Iraq.

The new push comes just weeks after Ramadi fell to the Islamic State, which managed to conquer the city of 500,000 with a force estimated at just a few hundred fighters. As with previous cities claimed by the militants, the Iraqi forces deployed there fled in droves, leaving behind large quantities of U.S.-provided weaponry and vehicles. The militants have in turn converted large quantities of armored American Humvees into Mad Max-style rolling bombs.

It’s far from clear that the move will mollify White House critics on Capitol Hill and in Baghdad, where Iraqi Prime Minister Haider al-Abadi and other top officials say the United States has been slow to provide Baghdad with the weapons needed to mount a concerted effort to beat back the Islamic State. Many Republicans, meanwhile, want the administration to deploy U.S. special operations personnel to fight alongside the Iraqis they’re training and to move closer to the front lines to call in American airstrikes.

“The need for additional U.S. forces to help our Iraqi allies defeat ISIL has been apparent for some time,” said House Armed Services Committee Chairman Mac Thornberry (R-Texas), who supports the additional deployments. “However, disconnected from a broader coherent strategy, it is not likely to be any more successful than our previous efforts.”

In a call outlining the plan to reporters, Deputy National Security Advisor Ben Rhodes said Obama has not ruled out additional steps — including, potentially, more forces and air power — should they be needed. But Rhodes said a more lasting stability would be gained by having Iraqi forces, including local Sunni tribal fighters, lead the way.

Obama has made clear, Rhodes said, that “there has to be local solutions to taking back this territory and holding it, and that the U.S. military cannot and should not do this simply for Iraqis. And frankly, the Iraqis wanted to be in the lead themselves.”

Rhodes repeatedly said that U.S. troops would not go on any combat missions from al-Taqaddum. But officials conceded that American troops would engage in force protection, which in the past has given wide latitude to soldiers who leave their base on lethal patrols to head off future attacks. Al-Taqaddum was picked as a training site to put U.S. troops closer to the Iraqi forces they will be guiding — and to the fight itself. “We need to make sure that in terms of where our forces are and how we are able to equip Iraqi forces, that we can be more nimble,” Rhodes said. “Because clearly, this is a very nimble enemy.”

Some of the troops heading to Iraq will be involved in teaching the Iraqi Army how to train the tribal forces themselves, which would eventually allow the Americans to focus their attention on other critical tasks like logistics, intelligence collection, and coordinating airstrikes. Since the fall of Ramadi, al-Taqaddum has become an operations center for the fight in Anbar, and U.S. forces based there will be very much involved in the air war, along with managing the flow of supplies to Iraqi forces in the field.

The new plan also calls for speeding up the equipping of Iraqi forces, which Pentagon spokesman Col. Steve Warren said on Wednesday will include body armor, small arms, radios, and other basic equipment. But when it comes to the tribal fighters, American forces will not equip them directly. Instead, they will hand over equipment to Baghdad for distribution to the tribes. It also will create an $800 million fund, handled by the United Nations, to help Iraq communities stabilize once Islamic State militants have been pushed out.

Much of the new training will revolve around Iraqi special operations forces and building up the depleted strength of the Iraqi 8th Division, which has lost hundreds to fighting and desertion. U.S. officials estimate that 3,000 raw Iraqi recruits will have to be trained to make up for the shortfalls.

Turning those recruits into a cohesive fighting force, while trying to integrate thousands of Sunni tribal fighters with little love for the central government into a force that can stand on its own, will be a huge test for American patience and Iraqi will. And the first step in this uncertain process will be to maintain pressure on the Iraqi government to make a consistent effort to not only reach out to those tribes, but also to arm, equip, and sustain them over the long haul.

In effect, Washington is trying to revive a strategy used to great effect during the so-called “Sunni Awakening” that began in 2007 when large numbers of Sunni tribal fighters joined with U.S. troops to help defeat al Qaeda in Iraq, the Islamic State’s predecessor. Former Iraqi Prime Minister Nouri al-Maliki promised to incorporate the Sunni fighters into Iraq’s standing security forces and pay them regular salaries, but failed to do so, sparking widespread sectarian fury across Anbar that left some Sunni tribal leaders amenable to working alongside the Islamic State. Washington and Baghdad are now working to reverse that dynamic and get the Sunni tribal fighters to turn on the militants, but it’s far from clear if enough of the fighters will be willing to do so to truly change the situation on the battlefield.

Officials also highlighted continued concerns about the flow of foreign fighters joining the Islamic State, the number of which Rhodes estimated at between 20,000 and 30,000. He said that includes about 180 Americans and “thousands” of Europeans who aspire to fight in Iraq and Syria./End/

ISIL leading terrorist killed in eastern Karma

Published: 2015/6/15 22:081 Reads
Anbar (Forat) –The security forces managed to kill a leading ISIL terrorist in eastern Karma district on Monday.

Commander of 2nd Regiment within Brigade 30th, Colonel Mahmoud al-Jumaili, said to Alforat News Agency “The security forces killed Abu Sanad al-Shortani, a leader within ISIL terrorist group in al-Rashad area and injured his assistant.” /End/

Activation heal the memorandum signed by the governor of Basra .. receives a delegation from the US city of Houston and looking with them ways of activating the memorandum

History of edits:: 2015/6/15 19:13 • 21 visits readable
Activation heal the memorandum signed by the governor of Basra .. receives a delegation from the US city of Houston and looking with them ways of activating the memorandum

{Basra: Euphrates News} governor of Basra Majed Nasraoui, received Monday in his office at the Diwan of the province and a delegation diplomatically and commercially represents the US city of Houston, in order to activate the memorandum signed by the two sides during the visit of the Governor of the United States of America in the month of May.

The governor of Basra told {Euphrates News} “We have discussed during the meeting, join the province of Basra mechanism to the international oil group cities, and in this aspect we have received an invitation from the Republic of Brazil to complete the procedures for accession”. 

He Nasraoui “As we discussed with the delegation of Houston on a mechanism to send fellowships that we agreed to in our visit to the US of the city, as well as speed up the visit US medical delegation which will assess the health situation in Basra, and the possibility of sending the owners are very incurable diseases for treatment in Houston at the expense of the local government of Basra” . 

“The US delegation will continue its city with circles Basra province in the next two days; so that both sides come out to see integrated joint cooperation.” 

For her part, Advisory lawyer US Department of Commerce Mays Alabbosi that “the representative of the delegation to the US Department of Commerce, came to Basra to meet with the delegation, who visited the city of Houston, which was chaired by the governor of Basra, and we discussed ways of activating the program, which was agreed upon in heal agreement signed between the province of Basra, the US and the City” . It ended up as h