Monetary policy aimed at stability can serve development

09/30/2015 (00:01 pm)   –   the number of readings: 297   –  number (3466)

Monetary policy aimed at stability can serve development

Dr.. Sinan Mohammed Rida al-Shibibi

 The central bank oversees the flow of cash the way you prevent inflation, this is the main objective of the bank, which does not fall within the terms of reference of his duties or the financing of productive projects (agricultural or industrial), this is a long-term and the central bank projects focused his work on the short-term. This is one of the basics of working in the Central Bank.
It may be argued that lending to finance such projects is through the banks, but lending does not become possible without the Central Bank’s initiative to provide money to banks. It lending to productive sectors, and the repayment period may take a long time, which could conflict with the short-term monetary policy nature.
If we want to talk about the contribution of the Central Bank in the development of an initiative targeted by the central bank recently it is mainly a financial contribution, and the followers of monetary policy should not reduce their contribution to the development of the Central Bank, such as work on price stability and financial stability and credit regulation, only Article 3 of the Bank Act The Bank operates in line with its goals to promote sustainable development. But the rest of the goals of price stability and financial priority in all cases. That the author of monetary policy to appreciate the importance of the relative weight of each of the stability and development, which applies to monetary policy indicators and details. The choice between stability and development issue are especially important when carrying the country’s resources. We would like to make it clear here that when the central bank refused to years of lending to the government before were not the government’s problem of choosing between stability and development, the government did not really need the resources of the bank.
The central bank to serve the development and creates the right environment it by achieving monetary and economic stability, and the reserve bank Central is a supporter of the stability of the exchange rate and paving the economic stability, we are not talking only about savings, and cash reserve to be used only when depleted government resources or on its way to depletion, but saving it is used when there are no adequate resources.
To illustrate this point we are indivisible Article 3 of the Central Bank Law between the goals of stability and development, as the article states that he ((the main objectives of the Bank include the stabilization of domestic prices and work to maintain a stable financial system is based on the competition in the market. The Bank operates in line with the above to promote development goals and sustainable job creation and prosperity in Iraq)). This article includes Astaqraraa part and part developmentally, Vaadaat banks in various bank facilities remain in the central bank and the bank launched to the market (by tightening monetary policy and restricted) because of the inflationary situation in the market and there is a need to economic stability. But these deposits will go to the market (by easing monetary policy) if there was a case of a deflationary such as that experienced by the Iraqi economy at the present time. This movement between the bank and the market is determined by monetary policy used by the Bank as a policy indicators. Jabihna have difficulty in the banks’ resources move into the market because of the security situation, which has identified one way is to access the foreign currency market. It was on the government and the private sector could provide the right conditions in the market, politically and economically even some of the resources transferred from the central bank, for example, if the bank decided to cut interest rates in different its facilities will move depositors to the market.
The holding of the last central bank, which aims to lend to banks, and then sectors can that comes through the conversion of local currency through facilities provided by the Central Bank, and the problem in this style was the use of resources can have a role in the activation of monetary policy and expand its role and increase their flexibility. The global financial crisis has led to the central bank to come in the field of quantitative management policy, which went under which the central bank to print money and lend to banks. This is not linked to specific sectors, and encourage this policy is the situation prevailing recession that will make the goal of monetary policy and the central bank the transition from fighting inflation to the activation of growth.
The contribution of the Central Bank in the development be either by easing monetary policy and lack of emphasis or by creating the conditions for financial facilities development for use as the central bank tries now in Iraq. Also, inflation ranks of lesser importance and therefore, the lending financial or financial assistance and generated growth is gaining more importance.
The Bank’s lending for projects characterized by long Bomayor, but any developmental nature of monetary policy should be guided by policies and not the money, Ketbna low interest rates, for example, or reducing the statutory reserve . We must be wary of reserve depletion That will require reducing the value of the dinar.
Bank initiative should have focused on the adoption of a very lenient monetary policy, which provides for banks in funds used developmentally. In this case, the central bank will remain loyal to its monetary policy.
There is no detail about how they will provide the resources as a result of the initiative of the Central Bank, but organizers may resort to this initiative to print money or use the reserve or mitigate the sizes of monetary policy elements, which will lead to the loss of elements core used in the fight against inflation, and the results of all this unwanted, the most important weakness of purchasing power and the weakness of the exchange rate.
should not the central bank loses its ability to protect the exchange rate and domestic price stability. Therefore, there is a need for coordination between monetary and fiscal policy. For these recent policy must reduce the deficit to a great extent where the budget should be based on the sharp austerity. Borrowing may be necessary, but the most important is the ability to borrow to pay it, taking into account the new conditions of the resources in Iraq.

Turkish workers arrived 16 who were kidnapped in Iraqto the Turkish capital of Ankara after their release on Wednesday.

The Anatolia news agency reported that the Turkish authorities -ovq instructions President Recep Tayyip Erdogan – sent a private plane to the airport of Baghdadquoted workers to Ankara. Erdogan is scheduled to meet with the workers and their families in the Turkish presidential compound.

He was on board the plane that took workers from Baghdad, Turkish Deputy Prime Minister and Minister of Economy and Health and the Secretary General of the Presidency.

Erdogan congratulates
Erdogan congratulated the Turkish ambassador in Baghdad, Farouq Qaamakja in a telephone call for the release of the abducted workers and spoke with two of them congratulating their safety.

The Turkish Prime Minister Ahmed Davutoglu announced earlier today the release of the workers and handed over to the Turkish ambassador in Baghdad.

And the release of the 16 workers, Turkish workers kidnapped in the file closes Iraq after he was released two others on September / September 16 in this city of Basra in southern Iraq.

The 18 construction workers were kidnapped early September / September of the ongoing construction site of a sports stadiums, north of Baghdad by gunmen wearing military uniforms later took them to an unknown destination.

And it published the group responsible for the kidnapping, which called itself “death squads” in earlier this month, the first shots of the kidnapped workers and set terms for their release.

The highlight conditions that Ankara stop what the group claimed it “operations transport of oil stolen from the territory of Iraqi Kurdistan through its territory, and lift the siege of the army conquest of the Syrian opposition from the regions of virulence and Kefraya and nobility and Zahra (north-western regions of Syria loyal to the regime of President Bashar al-Assad), in addition to its demand to stop the militants to prevent the transmission of Iraq “, as alleged by the group.

He called Shiite cleric in Iraq, Ali al-Sistani this group, “which claims to follow the Imam Hussein,” the release of the workers, after members of the group appeared in a video standing in front of a banner reading “Beck O Hussein.”

Ambassador Faily Statement on US Congressional Commitment to Unified Iraq

WASHINGTON (September 29, 2015) – Ambassador Lukman Faily released the following statement regarding the strong support the US Congress is providing to Iraq through the final National Defense Authorization Act for fiscal year 2016:

“We are pleased that the final defense authorization bill continues Congressional support for a unified Iraq. This legislation builds on the strong bilateral relationship between the United States and Iraq and helps to ensure that our government and security forces have the resources, training, and military capabilities necessary to defeat the violent and persistent threat of Daesh.

“Our government and the Iraqi people continue to face numerous obstacles. We are prosecuting the fight against Daesh barbarians while also working to decentralize and reform the government so it is more responsive to the needs of all Iraqis, especially at the local and provincial levels. We believe, in accordance with our Constitution, that this will best empower and represent all segments of our diverse society.

“We are pleased that the final version of the defense legislation leaves in place current US policy to provide military assistance only through the central government in Baghdad. Congress’s decision to leave in place the current US policy of providing security assistance only through the democratically-elected central government – and not directly to local military units – demonstrates clearly that the United States continues to seek to keep Iraq united.

“Prime Minister Haider al-Abadi’s government will continue working with the international coalition, and with the US Congress and the administration, to ensure that collectively we succeed in defeating Daesh and building an Iraq that empowers all Iraqis.”

Read Ambassador Faily’s Statement in Arabic, click here.

PM Haider Al-Abadi (Facebook)

Prime Minister Dr. Haider Abadi meet Wednesday in New York, Secretary-General of the United Nations, Mr. Ban Ki-moon. The Secretary-General of the United Nations’ full support for the implementation of reforms in Iraq and speed up the application of corporate governance, referring to the United Nations and its support for Iraq in all areas. It was addressed through meeting the political, security and economic situation as well as the United Nations programs in Iraq.

Kurds take ground from Islamic State in north Iraq

World | Wed Sep 30, 2015 10:21pm BST

Members of the Kurdish security forces pass an explosive device on the outskirts of Kirkuk September 30, 2015.

Kurdish forces said they drove Islamic State militants out of villages near the oil city of Kirkuk in northern Iraq on Wednesday, in an offensive backed by airstrikes from the U.S.-led coalition.

The assault consolidated their control over Kirkuk and brought the peshmerga, the military forces of Iraq’s autonomous Kurdistan region, closer to the insurgents’ bastion of Hawijah, around 55 km (34 miles) west of Kirkuk.

Around 3,500 peshmerga took part in the operation beginning early on Wednesday southwest of Kirkuk, the Kurdistan region’s security council said in a statement.

By late afternoon, Kurdish forces had secured 140 square km (55 square miles) including a number of villages and the Ghara heights, “further diminishing ISIL’s ability to attack peshmerga forces and putting additional pressure on ISIL in Hawijah.”

Islamic State, which has taken control of large parts of Iraq and neighbouring Syria, is also known as ISIS and ISIL.

Kurdistan’s security council said at least 40 Islamic State militants had been killed in combat and others were seen fleeing the battlefield towards Hawijah and surrounding areas. Fifteen peshmerga also died, according to a source in a Kirkuk hospital.

Coalition warplanes struck 30 militant positions during the ground offensive, including three Humvees, three pick-up trucks and suicide car bomb, the security council said.

There was no immediate independent confirmation of the details of the report or comment from the coalition forces.

The Kurds took full control of Kirkuk last summer when Iraqi soldiers abandoned their bases in and around the city as Islamic State militants overran around a third of the country.

The peshmerga, who gained battlefield experience fighting Saddam Hussein’s forces when the autocrat was in power, are seen by the United States and its coalition partners as a vital deterrent against Islamic State, which wants to redraw the map of the Middle East.

Iraq’s army is regarded as ineffective and corrupt, and depends heavily on Iranian-backed Shi’ite militias in its efforts to contain Islamic State.

Kurdish leaders say they will never give up the ethnically mixed city, which sits outside the formal boundary of their region on some of Iraq’s largest oil reserves, but to which they, as well as Turkmen and Arabs, lay claim.

The peshmerga have been widening a buffer around Kirkuk city in a series of offensives in recent months.

Apart from the gains around Kirkuk, the frontline between peshmerga and Islamic State has hardly moved for months.

Islamic State has not been able to take ground from the peshmerga since the U.S.-led coalition started bombing the insurgents.

The Kurds already control most of the territory they claim as their own, and have little incentive to push further into predominantly Arab towns and villages, except where they pose a direct threat to their region.

(Editing by Michael Georgy and Andrew Heavens)

Eye Iraq launches formal application on smartphones

Wednesday 30 September 2015 | 06:35 evening

BAGHDAD / .. Agency launched“Eye Iraq News”, on Wednesday, the official application on smartphones and tablet devices that run “Android” system.

This allows the application to its user access to the latest news and updates first hand, in addition to the reporting of news and stories.

It features an application main sections of the site that include political news, local news, security, international news, interviews and reports, sports, general news, and articles.

It also allows sharing news with friends via various social networking sites “Facebook” and “Twitter” and “YouTube”.

The application interface is characterized by the use of new and improved, easy and property notices “Alerts” immediate and settings.

To download the application, press here

Abadi’s office: The Iraqi government did not agree to the formation of military coordination in the four-party alliance cell

By Shirin Dawood 29 minutes ago
حيدر العبادي
Haider al-Abadi

Roudao – Erbil

Denied the Information Office of the Prime Minister General Commander of the Armed Forces Haider al-Abadi, said Iraq have agreed to form a military coordination cell in the four-party alliance.

And came in a statement seen by Roudao network media, “Iraqi government confirms that the creation of a cell in Baghdad with Russia, Syria, Iran is only to share information about the organization Daash terrorist in order to help Iraqi forces to defeat the terrorist organization and the protection of the Iraqi people.”

Where Abadi Office issued a denial to “Iraq’s agreement on the composition of the military coordination with the countries mentioned cell and any claim to the contrary is false.”

It is said that the leadership of the joint operations, was announced last Sunday, the presence of intelligence and security cooperation with Russia, Iran and Syria in the capital Baghdad to eliminate the militants Daash and the formation of the coordination center of the quartet alliance in Baghdad.

As the prime minister Haider al-Abadi, he had said last Monday, that Iraq had established a center to gather intelligence to address Daash cooperation with Russia, Syria and Iran.

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