Specialist: tight monetary policy means the stability of the exchange market
11/9/13 12: 00 am
Count financial and banking Affairs professional tight monetary policy adopted by the Central Bank of Iraq will contribute to reducing the phenomenon of dollarization has brought the real value of the Iraqi dinar and restored.
Competent Samir said nasiri told the (morning) strategic objectives the central aim to achieve price stability and therefore economic growth. Nasiri said that the free foreign exchange basis and new controls contributed to the reverse auction currency and boosted the value of the Iraqi dinar.
He said that the strength of the response of dollarization is a measure of the effectiveness of monetary policy in providing a reference to the Iraqi dinar is more attractive and usually reflected by stable demand cash or low speed handling and stability of any money due to the influence of two Exchange and interest as to which variables in the cash demand and strengthening stability, mechanical moving cash at the same time.
He pointed out that the current measures and means adopted by the monetary policy to influence the inflationary phenomenon has played an important role in the brakes caused by factors of aggregate demand. Stressing that the Central Bank will continue to adopt the present policy aimed at reducing inflation and addressing trends and causes, and to provide a monetary stability and speed up economic growth and ensure sustained through two signals adopted by current monetary policy from financial market balance and stability, and overall stability in the country.
Nasiri suggested to adopt the requirements of the market economy by central aims to control the public with liquidity reserve (15 percent) and reached the mandatory reserve deposits (5717) billion in 2012 and reach (1250) in 2011 registered an increase of 9.9 percent, the legal reserve balance on deposits of the private sector reached (2907) billion dinars in 2012 after he (2614) billion dinars in 2011, a rise of 11 percent.
He praised the features and trends of monetary policy westratigiatha clear being contributed in reducing hyperinflation, which impacted negatively on all the features of economic life. Since the embargo imposed on Iraq, as a result of what Iraq had suffered from many wars and upheavals, all productive sectors, and has become a very large gap between wages and salaries and high prices, but the Central Bank has created the appropriate monetary policy to reduce inflation by quietly and smoothly does not affect the overall economic situation.
Turning nasiri to the obstacles and criticisms by researchers, experts and bankers and their relationship due to confront the Government and banking sector and specifically its basic credit and investment, particularly the contents of article 28 of the Banking Act No. 94 of 2004.
The Iraqi banking sector consists of the Central Bank and (50) banks (7) and banks (43) private banks including the 12 branches of foreign banks as there are (7) Arab and foreign shares in Iraqi banks and analysis of the activity of the banking sector in light of the financial statements as at 31/12/2012 Note:
The total capital of banks approved operating at the end of 2012 (6, 5) trillion dinars in relative importance (31 percent) to state banks while the Sepah in private banks (69 percent), compared with (3.95) trillion dinars to the total capital of commercial banks at the end of 2011. and increased growth in the banks ‘ capital is one of the positive indicators on enhancement of stability, because it increases the leverage and enhance its capacity to respond to risks, and ensures the safety and soundness of banks The greater protection for depositors, so is this rise in small banks to capital requirements for economic development in Iraq, as a top border to the lending bank’s capital and reserves, as large development projects require large loans and cash facilities to enter by force in the Iraqi market to effectively contribute to the development of the Iraqi economy.
Cash credit granted
Nasiri said that the total balance of cash credit granted at the end of 2012, (28.4) trillion dinars and an increase (118%) against 13 trillion dinars at the end of 2011, and the relative importance of the banking sector the Government 82 percent of the private banking sector 20 percent. and development of total deposits to 61.9 trillion dinars in 2012 by 47 percent compared to the year 2011 of 42 trillion dinars, distributed State banks with 53.3 trillion dinars of the importance of the relative 86 percent private banks 8.6 trillion dinars Of the importance of the relative 14 percent in 2012.
Article Source: bit.ly/13LmxmS