Interview with CBI’s Shabibi: Dropping zeros; Iraq’s reserves $60 billion

22/04/201


Detection of the Iraqi Central Bank Governor Dr Sinan Shabibi, in a dialogue with the «weekly» that the restructuring of the national currency, starting with the deletion of zeros from the dinar, a very important step, because they relate to the direct purchasing power and inflation. The Shabibi that the central bank independent, which is directly responsible for monetary policy, exchange rates and foreign reserves management and the organization of the banking sector. The details of the interview:
Question: Iraqi Council of Ministers decision, addressed to the Iraqi Central Bank monetary policy adopted to refer to the government for approval and approval, the banking sector has raised concerns the likelihood of government intervention in its affairs. What is your comment on this?
Answer: There is no doubt that monetary policy linked to the central bank that is being questioned by the House of Representatives, and the independence of the central bank does not mean that his attitude from the government which can not afford an explanation of a negative in terms of dealing with the many important issues, and I think that this independence is in favor of the government because it grants the Iraqi Central a great opportunity for the adoption of policies that deal with inflation, and if these policies will be constrained to the negative impact on the state enterprises. I also think that the principle upon which the independence of the CBI is that the authority responsible for printing money is supposed to be independent of the other parties, which holds the spending on state enterprises, by which I mean the executive branch, otherwise it would be able to last and when they need to cash, to resort to Central printing, which leads to increase the amount of inflation or printed. So I see the need for the independence of the central, and this independence of the Central grant the possibility of stabilizing policies, but it certainly requires coordination with the government.
Question: Is there nothing to suggest a link between Iraq’s central and executive power in the constitution?
Answer: The Constitution confirms that the CBI is responsible to the House of Representatives in the implementation of its monetary policy, and the close relationship between the CBI and the House of Representatives are in favor of the executive branch that need economic stability, who works for it’s central. And economic stability is the stability of the currency and prices and inflation, and on this occasion to talk about the need to develop a strategy for the management of fiscal and monetary policies as it provides the opportunity to promote the economic performance better without restrictions shackle workers in these vital sectors and prevent their movement.
Delete the zeros
Question: the project to delete the zeros of the local currency is seen how the «Iraqi Central» and its importance?
Answer: At the outset say that the project to delete the zeros of the new Iraqi dinar, which is expected to see the light at the first of January of next year, is one of the strategic functions of the central, because of its importance in alleviating the lot of suffering faced by economic sectors and wide, in front of the budget and commodity trading day. On this occasion, say that the zeros have been added to Iraqi currency in the early eighties formed a cluster of large cash amounted to 28.5 trillion Iraqi dinars, or nearly five trillion paper money, so it was the Iraqi central line in his new project with its monetary policy based on restructuring and reducing the size of the currency, especially since Iraq is moving towards a market economy stage. As has been initialized supplies required to replace the Iraqi currency and took the Iraqi central accounting measures in order to stabilize the dinar exchange rate so that is expected to facilitate the new dinar cash transactions affected by variation in the currency difference.
Question: What are the expected reactions to this move?
Answer: Draft new dinar there, and the Iraqi central monetary authority which is responsible to delete the zeros project is an essential step because this deletion represents a restructuring of the national currency and the initiation of a new currency system.
Question: Does the international donor (IMF) institutions support this move?
Answer: Yes, that institutions support the restructuring of the currency to facilitate the deal.
Question: On the other hand we ask about the importance of cash reserves in relation to Iraq, which tends to strengthen its currency?
Answer: For the first time in the history of Iraq, rising foreign exchange reserves of foreign currency to the $ 60 billion and is no doubt that the increase in reserves of the CBI that enhances confidence in local currency, and increases the stability, which helped the CBI to take important steps was the most prominent of trade finance for the sector own and maintain the stability of the market and curb inflation. On this occasion I would say that inflation is no longer a concern for us and it is under control and within the policy of price stability. Hence we can say that the cash reserve forces of the hard currency makes us able to curb inflation quickly, and the Central Bank of Iraq was constantly keen to work towards the reduction of inflation through fiscal policy challenge of rising prices, which confuses the family income and a negative impact on price stability in the country .
Question: Experts emphasize the poor performance of Iraqi banks what are your steps to address this imbalance?
Answer: CBI always continually support the Iraqi banks, consider this a priority of his policy, which aspires to take the banking sector role in development and reconstruction, and the advancement of the country’s economy, and I think that the decision to raise the capital of private banks to 250 billion dinars in 2013 would help to promote an important role for the sector expands from the Department of banking services, and we are studying proposals that will help to allow banks to expand its circle of activity, in addition to its traditional, so willing to give loans long term, because of their significant impact on the development of investment activity and project implementation strategy.
Question: Are there specific steps to seek to achieve in this area?
Answer: I think there is now a need to develop the banking culture, and to the wider use of modern systems that facilitate the trading process and transactions between banks and their affiliates, as well as with foreign banks, and we will work to improve this aspect widely.
Question: What is the importance of the Iraqi Central decision pending patent application for the tax levels of foreign remittances to 50 thousand dollars for the expansion of banking activity?
Answer: The decision falls within the framework of personal remittances and in conformity with the tax reform so that it meets the ambition of the market and private banks as part of the market. I believe that this decision will be encouraged to hold a large commercial transactions for companies, especially since the purpose of settling accounts in tax money is not a conversion adapter but on the profits, and the implications of decision-useful to balance the market and sales. On this occasion, I call for a review of some of the tax laws that can create some sort of reassurance to those concerned Balthacb tax.
Question: plague the economic and financial circles, sometimes due to fears of price fluctuations of the Iraqi Central sales of the dollar?
Answer: The strength of the Iraqi dinar strengthened the size of reserves of the Central Bank of foreign exchange of 60 billion dollars, this makes the Iraqi dinar and one of the strongest currencies in the region, so I do not see a positive to any fears of rising inflation due to falling sales of the central of the dollar, so that the bank has the possibility of being able to install large financial stability, and has more measures to increase stability in the rates of prices in foreign currency savings.

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Allawi, Maliki accused of trying to re-plan the past to seize power

23/04/2012

Baghdad, April 23 (Rn) - accuse the State of Law Coalition led by Prime Minister Nuri al-Maliki, on Monday, the Iraqi leader Iyad Allawi of trying to bring his plan to seize power during the former regime, noting that Allawi did not come out of Iraq opposed to Saddam Hussein's policies, but came out after the discovery of his attempt to seize power at the time.

The leader of the Coalition Mohammed Chihod told the Kurdish news agency (Rn) that "Iyad Allawi, came out of Iraq is not an opponent of the policy of Saddam Hussein, but came out after he discovered the last attempt Allawi and some of his control of the government ... now he wants Allawi return the same ball."

He Chihod that "the accusations leveled at the Prime Minister Nuri al-Maliki over the dictatorship untrue and they know it and are trying to corrosive charges for the owners on an ongoing basis."

Chihod also said, "Why is not said to the Iraqi List, it is tyrannical in the Cabinet, which held nine votes, while state law has only four votes."

Allawi yesterday and attacked Prime Minister Nuri al-Maliki and considered that the extension of the third term has a "monopoly of power and the entrenchment of dictatorship" and said they would lead them to divide the country along sectarian lines.

He said Allawi, in a press statement saying that the country began to slide back toward the clutches of the rule of individual risk is no doubt that it will lead to the dictatorship of comprehensive. "

Chen and the Iraqi List, a sustained attack for months against the Prime Minister Nuri al-Maliki, accusing him of political decision exclusivity, security and determine the fate of the country.

The escalation of criticism between the two lists on the back of the issuance of an arrest warrant for Vice President Tareq al-Hashemi, a senior commander in the Iraqi List, sacked Deputy Prime Minister Saleh al-Mutlaq of the office, who is also a senior leader of the coalition in Iraq.

 

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Iraq says that the new alliances will appear to change the pyramid of power

23/04/2012

Baghdad, April 23 (Rn) - The Iraqi List led by former Prime Minister Iyad Allawi, on Monday, for near the birth of the new alliances will change the pyramid of power in Iraq that have left files of financial corruption and poor services in what was described Maliki's coalition's efforts to withdraw the confidence to "Dreams" that will not be realized.

The recent Iraqi attempts to withdraw confidence from the Prime Minister Nuri al-Maliki with the agreement of the parties in the National Alliance in light of the recent renewal of confidence in Maliki in a meeting the day before yesterday.

Revealed the Iraqi List led by former Prime Minister Iyad Allawi last week for the start of its movement to get what she called "national consensus" for the withdrawal of the confidence of the Maliki government.

Objects based on the mechanism of the Iraqi Department of State by Prime Minister Nuri al-Maliki, who says that it is reserved all powers in his hands.

While Maliki says that the powers granted to him on the constitutionality of the object to change the constitution rather than blame liabilities.

The leader of the coalition in Iraq Zobaie Talal, told the Kurdish news agency (Rn) that "the list went to pick up and set to start aiming to launch of the birth of a new alliance away from the internal differences in order to establish a national project."

The Zobaie that "new alliances for the list aims to change the HRC power and some important joints in the state that created the files of corruption and hampered delivery of services." He said.

The introduction of the issue of withdrawal of confidence in the Maliki government is still the most in the differences between Arbil and Baghdad, which has been accused in recent Btsoev agreements described Maliki as someone who is trying to acquire all positions.

And increased attack cleric Moqtada al-Sadr last week to Prime Minister Nuri al-Maliki, the chances of reducing the political base supporting the owners of the Kurds after his call to prevent the emergence of "dictator" in the new Iraq.

In the opinion leaders in the Islamic Supreme Council, led by Ammar al-Hakim and falls under the National Alliance, that the withdrawal of confidence from the al-Maliki will complicate matters, while describing the leaders in his coalition, talk to withdraw confidence from the leader to "Dreams" is achieved.

A member of the coalition Hanan al's (Rn) that "to talk about the withdrawal of confidence in Prime Minister Nuri al-Maliki still dreams of non-verifiable Alliance National announced his position explicitly and clearly by all parties affiliated to it that there is any movement or any other agreements with other parties to withdraw confidence. "

Fatlawi said that "the unity of the National Alliance for the still united on key issues and thus promote the confidence of Maliki are trial balloons launched by the other parties to know the reactions of the political blocs."

According to the Iraqi List, said discussions for the withdrawal of confidence from the al-Maliki arrived in the final stages, but any party to the National Alliance did not adopt a formal efforts to withdraw confidence from the al-Maliki.

Political analysts say that foreign interference in Iraqi internal affairs peppered more differences between the blocks and not be resolved except through the table of the Interior.

He said political analyst Hussein dry (Rn) that "the resolution of internal differences are not put through Foreigha but to sit at a table away from the talks dragged outside parties internal affairs of Iraq."

The dry that "the political leaders to be aware that the internal affairs of foreign intervention will not resolve the problems and be held more."
The Turkish Prime Minister Recep Tayyip Erdogan last Friday harsh criticism of Prime Minister Nuri al-Maliki

Policy and take it with its disturbing for him has lead to a conflict between Sunnis and Shiites and response.

But Maliki's response to the Turkish official statements and consider interference "blatant" in the internal affairs of his country and an attempt to extend influence over the region.

And supports the Iraqi List, hold a meeting at the level of political leaders in order to resolve the differences, especially that took a political dimension as an issue Hashemi accused by the Iraqi judiciary of supporting "terrorism."

And spin differences between the three blocks of the President of the National Alliance and the Kurdistan Alliance and the coalition in Iraq on the State Administration of Arbil plus its agreements and the issues of al-Hashemi and al-Mutlaq.

 

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Alwani: new alliances will be announced within days to withdraw confidence from the al-Maliki in the next legislative term

 Monday 23/04/2012

Baghdad (news) .. MP for / coalition in Iraq / Ahmad al-Alwani, the formation of new alliances for the withdrawal of confidence from the Prime Minister in the next legislative term, which will be announced in the coming days, accusing the state of law to hold the National Congress of stalling.
Alwani said in a statement (of the Agency news) said on Monday: There are no real signs of it can break the crisis and solve the problem on the political scene, accusing the state of law not to desire to hold a national conference.
He added that requests for the Iraqi National List is not impossible and there is an initiative of President of Kurdistan Region Masoud Barzani and can be consulted to resolve the problems but there is no sincere intentions by state law to resolve those problems.
He said the Attorney for the coalition in Iraq to: that there is a political blocs have not satisfied with what is going on in the political process of escalation and spasm and can thus be new alliances issued an important decision and dangerous, a withdrawal of confidence in Prime Minister Nuri al-Maliki may happen during the legislative term next year.
Alwani, who did not disclose the blocks, which includes the new alliance, said: The new alliances will withdraw confidence from the Maliki and the will of the Interior.
He was a member State of Law coalition MP / National Alliance / Mansour al-Tamimi, a delay explained the Preparatory Committee of the National Conference, due to the development of the Iraqi List, items not agreed upon after the end of each meeting of the Committee.
Timimi said in an earlier statement (the news): The political blocs agree on the appointment of the Preparatory Committee is meeting, and after it ends "undermines" the meeting through the development of the Iraqi List, items not agreed upon, and continued: in the event of continuing the policy of Iraq in this way on preparations for the National Conference , it can not avail of the conference. / Finished / 2. n. r /

 

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Abdul Salam al-Maliki: Meeting of the Preparatory Committee of the National Conference for tomorrow will determine the features of the crisis and how to solve them

 Monday 23/4/2012

Baghdad (news) .. A member of the State of Law Coalition MP / National Alliance / Abdul Salam al-Maliki, said that the meeting of the Preparatory Committee for the National Conference on Tuesday will determine the features and how to solve the crisis, adding that the meeting will ease the tension between the blocks and be a gateway to resolve the crisis.
He (the Agency news) is that tomorrow's meeting of the Preparatory Committee will determine the features of the crisis, and the most thorny issues after that come to the surface many of the demands on the basis of it is political problems, as he will restore the confidence of the Iraqi citizen Bkiedath political as with the resolution of the crisis.
The Attorney-Maliki that the meeting will alleviate the current crisis will be resolved to the gate, and the National Congress is the desire of the blocks, and its success depends on the menu seriously Coalition and Iraqi Kurdistan to resolve the crisis, the fact that the alliance for my country with the resolve and the holding of the conference.
This after coordination with the President called on Vice President of the Republic Khodair al Preparatory Committee for its meeting held on the afternoon of Tuesday. / End / 33. T. U /

 

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