Economic morning: the Central Bank of Iraq and its role in the national economy
Hilal Ta `
The role of the Central Bank of Iraq in the national economy can be seen from two basic: the first in terms of the post World Brkabth central bank on the monetary and Sirefi in the country and its impact in this, the second: in terms of the role played by
Or it can play in achieving economic stability and growth.
Known that the generally accepted view is that entrusted with the task of the Central Bank usually control the monetary and Sirefi in the country, however, recognize the Central Bank of this function is different from the ability to implement effective monetary control due to the fact that the bank is functioning and the central banking operations under the conditions of certain economic and financial and the impact of its operations and adopt its ability to implement its policies significantly on the amount of speed that foster the results of those processes and policies in the financial, monetary and Sirefi This, in turn, is linked to the availability of certain conditions can be summarized as follows:
1. Provide monetary and financial market advanced, systematic and integrated manner.
2. Tendencies commercial banks to keep rates steady monetary reserves compared Bmtlobacha of deposits.
3. Exercise commercial banks to the policy of the pieces in the Central Bank widely and resorts to borrowing it when needed as the definitive source of liquidity.
Therefore, the availability of these factors determines the success of the Central Bank to ensure effective control over the monetary and Sirefi of the country.
The fact that must be recognized is that the Central Bank is a bank which banks safe and Lifeboat and reference monetary support, without which we would see the Iraqi banks falling Kaorac autumn say this does not fear nor Zanier but the word right and the right of the Central Bank of confession as an important support provided by the Central Bank for banks Iraqi and conditions the recommended precautions.
But I am and I am kind of afraid that dragged the Central Bank once the abuse of power because of the wide powers to the banks on one hand and reaction to the irregularities on the other, and here the question arises which is the role that could be played by the Central Bank of Iraq in anti-inflationary monetary in Iraq? The answer is that the Central Bank played an important role in the fight against inflation, but not the only player in the Iraqi court to fight this dangerous phenomenon, but there are a number of other players should have the same role albeit in varying degrees will remind them later. Focused effort in the Central Bank combat the phenomenon of inflation in the two main points are:
First: the lifting of the exchange rate of the Iraqi dinar.
Second: raising interest rates paid by banks on the deposit as well as those charged by the disillusionment balances that the banks have, facilities and loans offered by them.
The lift came in stages and in more frequent intervals during one year and the result ultimately became interest rates twice what it was a year ago and in some cases exceeded weaknesses and should say here that if we want to address or solve the problem is we have to determine the date of the emergence of this the problem into existence and the reasons stood behind and the circumstances that have helped to spread and identifying those that are directly or indirectly related to the direction and coordination with the role of Co, effective and reassuring that does not have a role unhampered.
In this case, the key parties that are supposed to participate in the Central Bank to take responsibility and have a positive role within its jurisdiction because each of them contributed to the extent or another, inadvertently or intentionally created a problem of inflation.
We emphasize that such coordination can happen voluntarily if not binding decision of the Council of Ministers and Programme of Action measured by the real experts, not experts Mstenain Mslkyin got a degree because of years of service only, not own any scientific expertise are much in the current Iraqi government departments. I mean, those are the ministries of finance, oil, electricity, trade, industry, transport, planning and development cooperation, culture and media organizations and other quarters or other ministries have different roles in the score and details contributed to the creation of this deterioration, which they call a critical inflation and the Central Bank leaves struggling waves crashing alone unless he wanted That is to enter battle alone and this is what leads me to doubt his success in his difficult and thorny. To highlight the obstructionist role played by each ministry in the failure of the central bank's plan as wanting or not, which aims behind strengthening the purchasing power of citizens through improved capacity reciprocity for Iqdin owned or money, as follows:
1. Mone illation Finance Ministry: increasing staff salaries or salaries of retired law, I do not think that these actions serve to strengthen the purchasing power of employees and retirees at a time when rising inflation rocketed and no one able to eliminate or at least stop the encroachment This increase is the increase or illusory so-called scientific term Mone illation any illusion cash any increase in the number of monetary units, but their purchasing power is also the subject of a few buying the Iraqi dinar from the Central Bank and then the American dollar spent on the ministries and government departments in the absence of ownership of the country's tax system to a high level can withdraw liquidity from growing domestic markets In the hands of the citizens, all of these actions have contributed, in one way or another contribute to increasing rates of inflation, the monetary equivalent survey in Iraq indicate that the total spent most of the total money in circulation withdrawn and this will increase the money supply and the resulting increase in rates inflation.
2. Ministry of Industry: What did you do during the last four years after the events of 9 4 2003 May rehabilitate and operate factories? Are dissolved theme Mentsepe MIC dissolved? How is the number of workers who will serve in both pre-operational "stage of reform", or beyond? What did the issue of the protection of national industry arising from foreign competition in the Iraqi market dumping of foreign goods are cheap and expired.
3. The Ministry of Electricity: What did I do to alleviate the burden of suffering citizens and non promises inaccurate and Stumping on the issue of terrorism Yes terrorism destroys wire carrier of energy and fuel pipelines feeding stations What is the alternative? What solution? Terrorism destroys and the Ministry of Electricity and last question here continue to be conducted this serial strange? As of the end? The solution? To this dilemma, which has become a problem so that every Iraqi citizen is spent on gasoline for the operation generated more than is spent on nutrition, health and education.
4. Ministry of Trade: What did I do to serve the Iraqi people are responsible only for providing the food basket of the citizen or the so-called quota Supply citizen receives as a single article or articles of the total ten material assigned to him in the month and the remainder comes after several months under the manipulation of agents and carriers to share materials Without control of the ministry or any other government, and this has led to scarcity of this material in the local market and thus higher prices sharply For example, milk is not limited to adult material had been distributed among the ration for a month in February 2007 and so far this has led to high packet milk weighed 1 2 500 5000 dinars The question here would be how the price of a single canister in the blessed month of Ramadan? Is that milk is the rule Material Chemical dual difficult for the Ministry of Commerce import?
5. Ministry of Oil: Is it possible that the second largest oil reserves in the world lacks gasoline, kerosine, oil and gas cooking? Is it reasonable that the price of the bottle between 25000 to 30000 dinars, how is income citizens to buy gas bottle? It is strange that the ministry was talking about in strategic projects in 2010 or in 2012 we do not want to talk about these projects people want giant bottle of gas for cooking or litres of oil to protect our children from the winter cold bitter.
Thus, if most of the ministries and media organizations and other no need to engage in more details are known to all citizens and talk daily and all these gaps All of this imbalance is calculated on the government to speed up the drying and find appropriate solutions to them either to speak on the achievements of fictitious This kind of madness in fact none, statements resonant something else, and the best proof of that distress most people at the meeting with them on television and satellite channels must therefore take to the street to see the Iraqi reality deteriorating Iraqi citizen and a very bad and not Valsuwenh Iraqi Ile sank in the Sea of ocean waves, God forbid.
AI
