Transparency in Iraq criticizes the central bank's measures

[yota691]

Transparency in Iraq criticizes the central bank's measures

- FEBRUARY 8, 2014

BAGHDAD - Eastern February 8: criticized by the Association of transparency in the Iraq action the CBI not to allow banks to enter the currency market, but after putting their money in full the bank and the association said in a statement, a watchdog popular said that these measures will reduce business lending, credit and lead to a lack of liquidity cash because of the freeze unjustified money account 231 brought by the Central Bank and the association said that the original in the process of cash is to sustain liquidity and facilitate business credit and lending, something which perpetuates the economic cycle in the country at the level of public and private sector is that the Central Bank would be counterproductive and impede the smooth flow of cash cycle which is automatically reflected on the general economic cycle and alerted the Association of transparency that the overwhelming proportion of banks and local banks will be affected by this measure, while benefiting banks Originally created on the remains of offices banking and remittances of Foreign Affairs continued its rhythm the same without you acting credit The lending and called on the Association's central bank as a regulator and sponsor of the system of cash to reconsider his instructions new in order to achieve two things: first to ensure the smooth flow of cash and non-freezing of funds and the second to ensure justice among all banks and not to favor some at the expense of others and scrutinize the reasons and motives behind the passing of some senior staff of the formula Instructions for new motivated interest and benefit in breach of the justice system and uniform standards

Edited February 8, 2014 by yota691

[MyLadiesDaddy]

So, the CBI is freezing accounts and preventing the free flow of cash. And apparently

this is something new. And now this action is upsetting some people. But wouldn't

you want to freeze cash flow if you were about to make a drastic rate change? I mean

it seems like that would just be prudent. Unless the central bank really wanted to

collapse the entire Iraqi economy. It's ALWAYS darkest before the dawn.

[stealthwarrior]

Not sure which way this goes.

[EagleEye]

LGD I SURE like the way that you think 

[captl1]

LGD l agree.

[Butifldrm]

So, the CBI is freezing accounts and preventing the free flow of cash. And apparently

this is something new. And now this action is upsetting some people. But wouldn't

you want to freeze cash flow if you were about to make a drastic rate change? I mean

it seems like that would just be prudent. Unless the central bank really wanted to

collapse the entire Iraqi economy. It's ALWAYS darkest before the dawn.

 

LGD this article is just another depiction of the scenario from the thread yota started earlier.  I'm sure yota started a new thread for a reason but basically, the private banks are not going to be allowed to participate in the currency auctions.  The CBI is not freezing the private banks money.  The CBI is freezing the money alloted to the private banks for auction.  The private banks will no longer be able to buy hard currency  to sale.   The private banks are upset because selling currency is their business.  The only money they make is upon the spread from the sale.  So you can only imagine that they were asked to raise their Capital to 250M, just to be shot down in the business of selling hard currency.  I will say, this move would be completely contradictory to what the IMF has asked the CBI to do in as keeping the exchange rate parity within 2%, if the CBI were not planning to do something rather large with the economy.  that being allowing the banks to make loans and charge interest. Move toward a free market economy.

[sandfly]

ME TOO