Keywords highlights the obstacles facing monetary stability


(Morocco Today) -20/07/2017
Said the governor of the Central Bank of Iraq, on the Keywords, the financial and monetary stability in Iraq is facing phenomena represented in the non – oil deficit resulting from the difference between revenues and local expenditures, and the 78 – trillion dinars’ about $ 70 billion ‘, pointing out that’ the second phenomenon is the growing deficit in the budget , which reached 21.6 trillion dinars, and added to the deficit in the balance of payments of non – oil exports of 37.7 billion dollars ‘, declaring that those negative indicators clearly reflect a significant imbalance structural’.
He considered Keywords in a seminar organized by the ‘Institute for the progress of development policies’, in the presence of experts in economics and money, to’ improve the reality of monetary and fiscal policy requires the strengthening of local revenue and activating the redistribution of income to move the economy policy, through the benefit of the money supply in the markets of salaries, which a large part of which goes to cover foreign imports’.
Keywords stressed the need to ‘pressure operating expenses according to strict scientific controls and standards, and reduce the demand for foreign currency factors and to provide elements of stability to reduce the migration of funds, as well as providing an attractive environment for investment.’
For his part, the financial advisor to the Prime Minister, the appearance of Mohammed Saleh, that the Central Bank of Iraq was independent from the government in the first period, but when the economy faced a deficit started this independence weakens pointed ‘, saying:’ began the central bank lends the government turned its independence to the second division ‘.
Saleh stressed that ” the central policy was a major reason for the victory of Iraq in its war against terrorism, through the hidden national role played in supporting the government, crossing danger ‘, and saw that the central bank’ was faced with two choices, to give up its independence and lends the government under the circumstance complex or reduce the value of the Iraqi dinar ‘, adding’ and here may provide some money to the government, but we will be in front of a big rise in inflation rates, and will not have the money any value available, so the bank sacrificed the center of internal independence and lent the government to confront the stability of the crisis. ”
Saleh pointed out that the value of the loan to the government of 21 trillion dinars in two years, to meet the needs, believing that this is a part of the victory in the war against terrorism through the funding of the budget, check the military victory , which was behind the victory of a financial and economic ‘.
Saleh pointed out that ‘ the investment file in Iraq , the results were not in the level of funds spent, amounting to $ 360 billion over 10 years, through the inclusion of a large number of projects in order to get up the country’, stressing that ‘ the result was disappointing and this was in the oil abundance of time, while in the top ten oil time orientation it was about an increase in oil product quantities and source to compensate for the difference in prices by investing in the oil sector, which is unbalanced and leaving the leadership of the oil sector ‘, declaring that it’ means a return to point zero means that the oil is a horse that leads the development cart ‘.
With regard to debt, Saleh warned that this file is one of the ‘dangerous files’, revealing that the IMF is working to determine the level of carrying Iraq ‘s public debt, and did not lose sight of that Iraq is facing a problem at the customs border and ports that are experiencing great corruption, so moving the government to outsourcing outlets to specialized companies’.
The former Minister of Planning Mahdi Al – Hafiz, began the seminar by talking about the difficulties facing the Iraqi economy, pointing out that the ‘anomalous situation of fiscal policy raised the importance of thinking about new sources to strengthen the financial situation, particularly through cooperation with the Bank and the International Monetary Fund, in order to increase funding external conditions appropriate ‘, pointing to the ‘ start of the so – called credit phase that provide parts of the external financing of these organizations and other sources. ”
Hafiz highlighted that the Government ‘initiated the agreement with the International Monetary Fund and the end of 2015 to this goal, through the issuance of the so – called Letter of Intent and «memorandum of economic and financial policies’, following the credit phase’ includes a range of basic tasks, including revision of the fiscal policy General and the issuance of a new law so, the restructuring of the banking sector and confirm the audit of the financial statements of the banks’ Mesopotamia ‘and’arashid’ and’alaraca trade ‘, which accounts for about 90 percent of the deposits of the state’.
He stressed Hafiz, that the credit stage ‘confirms subjecting monetary policy to control, especially in areas related to money – laundering and window selling the dollar, and to address the budget deficit and seek to make it economically acceptable’, considering that such measures will help to obtain loans and make positive cooperation with institutions international.
According to Hafiz as witnessed in the recent period B’trah the issue of the supplementary budget for this year, the details were discussed during the last meeting in Amman a month ago, and agreed to provide a loan of 800 million dollars for Iraq, on favorable terms within the standby credit program signed between the parties’, did not rule out that ‘approved by the international Monetary Fund early August / Au


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