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Economic calls for banking sector governance to stop the corruption of the currency auction


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Economic calls for banking sector governance to stop the corruption of the currency auction
April 10 2018 09:28 p
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[rtl][rtl]Salam Semisem[/rtl]
[/rtl]
Ihab Jubouri


 
Economic expert Salam Samisem called for banking sector governance to stop corruption in the currency auction and stabilize the Iraqi dinar.
 

Samisem said in a press statement that the importance of the currency auction stems from the fact that it is an auction for the exchange of foreign currency to cover large expenses to support Iraq's foreign trade, and on the other hand to help in partial withdrawal of the local currency from the markets to help maintain specific levels of inflation, where the central bank sells the dollar To the owners of commercial transactions and banks at legal prices, but the entry of the political line on the banks made the transactions of the business is plagued by many suspicions of corruption.
 

Samisem stressed that without the real governance of the banking sector can not stop the corruption of the currency auction because without it are not processing the banks in dollars mainly, especially that the currency offer is a major base to provide stability for the Iraqi currency.
 

The Central Bank of Iraq announced earlier, its decision to deprive three private banks and 99 banking companies from entering the window selling the currency, for violating laws and regulations on the purchase and sale of foreign currency. 
Several documents revealed the biggest corruption outlets, of which $ 312 billion were leaked through central bank auctions to sell the currency through fake bills.


 
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Over the years they have decried corruption. But only in the recent months have so many economists, politicians and others come out against the CBI Currency Auctions! The Auctions are on overtime....Suddenly!!!

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"Samisem said in a press statement that the importance of the currency auction stems from the fact that it is an auction for the exchange of foreign currency to cover large expenses to support system" rel="">support Iraq's foreign trade, and on the other hand to help in partial withdrawal of the local currency from the markets to help maintain specific levels of inflation, where the central bank sells the dollar To the owners of commercial transactions and banks at legal prices, but the entry of the political line on the banks made the transactions of the business is plagued by many suspicions of corruption"

 

Withdrawal of the local currency from the markets to help to maintain specific levels of inflation.

 

We know the currency auctions has been going on for years,

We know the CBI has withdrawn local currency from the markets for years

We know they have liquidity problem

We know inflation is under control 4%

We know 70% of the monetary mass is in chunky cash stashed under the mattresses 

We know the CBI have implemented the latest technology IBAN, RTGS, SWIFT, POS, AML, ATF and many others

 

The pressure is on the CBI

Sooner than later they will have to flip the switch.... Remove exchange control and give real market value to the IQD

 

Go CBI

Go new monetary policy

Go RV

Go $1:1

 

 

 

 

 

 

 

 

 

 

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8 minutes ago, Laid Back said:


"Samisem said in a press statement that the importance of the currency auction stems from the fact that it is an auction for the exchange of foreign currency to cover large expenses to support system' target='_blank' style=" rel="">support system" rel="">support Iraq's foreign trade, and on the other hand to help in partial withdrawal of the local currency from the markets to help maintain specific levels of inflation, where the central bank sells the dollar To the owners of commercial transactions and banks at legal prices, but the entry of the political line on the banks made the transactions of the business is plagued by many suspicions of corruption"

 

Withdrawal of the local currency from the markets to help to maintain specific levels of inflation.

 

We know the currency auctions has been going on for years,

We know the CBI has withdrawn local currency from the markets for years

We know they have liquidity problem

We know inflation is under control 4%

We know 70% of the monetary mass is in chunky cash stashed under the mattresses 

We know the CBI have implemented the latest technology IBAN, RTGS, SWIFT, POS, AML, ATF and many others

 

The pressure is on the CBI

Sooner than later they will have to flip the switch.... Remove exchange control and give real market value to the IQD

 

Go CBI

Go new monetary policy

Go RV

Go $1:1

 

 

 

 

 

 

 

 

 

 

 

Its, not a question of “IF” it’s a question of...........WHEN 

A super day out to you brother Laid Back :twothumbs:

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9 minutes ago, nannab said:

:woot::woot:  Laid Back! Thank you bunches!!!

You're welcome my friend nannab:twothumbs:

6 minutes ago, Wiljor said:

 

Its, not a question of “IF” it’s a question of...........WHEN 

A super day out to you brother Laid Back :twothumbs:

Correct my brother, this a waiting game and the pressure in on the CBI court ..... We patiently wait.

We know the CBI can cover the monetary mass 160%

We know the CBI currency reserves growth 7% last year. To $51.5 billion dollars

We know they have a plan to increase the dinar value against the dollar

We know the gap between the official rate and street rate is +\-2%

 

Just seat back and relax.... It's coming.!

 

Go CBI

Go new monetary policy 

Go RV

Go $1:1

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49 minutes ago, Laid Back said:

Withdrawal of the local currency from the markets to help to maintain specific levels of inflation.

 

We know the currency auctions has been going on for years,

We know the CBI has withdrawn local currency from the markets for years

We know they have liquidity problem

We know inflation is under control 4%

We know 70% of the monetary mass is in chunky cash stashed under the mattresses 

We know the CBI have implemented the latest technology IBAN, RTGS, SWIFT, POS, AML, ATF and many others

 

The pressure is on the CBI

Sooner than later they will have to flip the switch.... Remove exchange control and give real market value to the IQD

 

Go CBI

Go new monetary policy

Go RV

Go $1:1

 

Love how ya' preaching it brother Laid back, PREACH ON!!! :praying::twothumbs: 

 

4 hours ago, stangernan said:

The wheels on the bus go Blaaa Blaaa Blaaaa :lol:  That's my song of the year :lol:

 

Now, I can't get this tune out of my head lmao :facepalm1::lol:

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8 minutes ago, MEP01 said:

I thought we were suppose to be on the edge of our seats.... and not laid back... Has it changed?

With this guys I am praying for this year. Unless they can steal some off the top for themselves then we should be moving a long a t a better pace.

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1 hour ago, Boozer said:

When ?   SOON

 

Or it could be “ in the near future “ or even closer than that by golly gee whiz ya,  don’t ya know “ in the coming days “ yaaaa ( he says in his best Fargo voice ).

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The Mohamed Reda
irq_1766844418
Mahdi Mohamed Reda
 He entered us from an unexpected door, it was a surprise. He is Ali al-Alaq, acting central bank governor. His entry was dramatic, from a side door, the scene was lacking in applause, or any other effect . Shook us all, and wiped away all the previous aura . He was witty, contemplative, hoping that his message would reach us easily, maybe he knew we were not well spent, he would say, and we have no capacity for interventions. He was sitting on his right, deputy governor Munther al-Sheikhli, and the director of the administration . I thought myself, loaded with questions, doing my best, I waited until he completed his words, about the achievements of the Central Bank, since taking office. Talked about the importance of the independence of the Central Bank, and monetary stability, and control of inflation. And the most important developments that took place in the bank, the management of foreign reserves, and investment in it, after he developed Kadra for this task, and is now overseeing the process .He also spoke about the central role of supervision and control over the public and private banking sector. His talk about government banks, represented by Rashid and Rafidain, was painful, burdened with the weight of the legacy of the past, which can not be solved, but uprooting it from its roots and liquidating it. I do not think he can do it . He also referred to the private banking sector, which has nothing to do with the fact that the country has 70 banks, which do not have the lowest banks in its work . He said he did not give a single leave to any new bank, except Islamic banks, embarrassed by the parliament, where he voted for it . He also spoke proudly about the central bank's pre-emptive control of private banks in the event of any imbalance in which personal control and technical techniques interfere .One of the worst we have heard: Iraq's bank dealers are only 11 percent of Iraqis. This suggests that the failure of citizens' trust in banks is justified by a culture of society (Iraqi society tends to put money in its hands casually), perhaps . Also referred to the bank lending industrial and agricultural projects, about $ 6 million and a half, and this was a successful achievement, it was not quite clear. How he spent this money, and what his influence actually was . Most importantly, the rise in reserves in the central bank does not depend on the bank, and probably on the finance ministry itself .He talked about how to sell the dollar at the auction of the currency, which is as follows: Finance receives oil revenues in dollars, giving it to the Central Bank, in order to sell them, because the bank is more knowledgeable, in the process of selling, and the association of banks and drainage and transfer companies. This makes it easy to sell. Since it is the finance that determines the need for sale, for the purpose of paying salaries, for example, in dinars, and the budget of the ministries as well, so the story of the sale and quantity, determined by the Ministry of Finance, not the Central Bank . He explained to us recently, that there is no alternative to the currency auction, but the bank takes the dollar, and print a dinar, which means a disaster in inflation . Thus, even the question of lower reserve is not directed to the central, but to the financial. "We need more information here on the subject of reserves ."The man ended up talking and began to wait for the questions of his guests. The eldest, Adnan Hussain, began to ask questions, obviously both public and non-specialized. The others spoke as well, and it was quite clear that no one specialized in economics . Have we been summoned for this reason, being non-specialists? But what does a man do? How his message will reach the media, and then the public . The truth is not the blame, but the blame here is all of us, the owners of the newspapers. I am one of them. I do not have a single economic journalist .
And to meet the rest ..

 

 

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“He explained to us recently, that there is no alternative to the currency auction, but the bank takes the dollar, and print a dinar, which means a disaster in inflation.“

Agreed Alak, you cant keep doing what your doing! So Whatcha Gonna Do ALAK???

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So I read all these articles from "noted" economist in Iraq but still the same thing, nothing.  Do the economist not have the ear of anyone in the GOI or CBI???  If this were the case don't you think that someone at some point would listen to them and raise the subject in one of the "many" sessions they have????  At least here in the US if an economist speaks people listen.

 

SR

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43 minutes ago, jcfrag said:

“He explained to us recently, that there is no alternative to the currency auction, but the bank takes the dollar, and print a dinar, which means a disaster in inflation.“

Agreed Alak, you cant keep doing what your doing! So Whatcha Gonna Do ALAK???

 

It appears most countries that do not trade primarily in a reserve currency have currency auctions.  The difference between Iraq and most countries is that Iraq's primary asset is oil which is primarily traded in the dollar and since Iraq does not have an internationally traded currency, it''s auctions should be much larger than most.  Now I'm not taking into account  the vast corruption which apparently has been rampant in Iraq.  IMO, Iraq has not progressed into article VIII because the corrupt would definitely go bankrupt and this also has affected  monetary reform.  Therefore. Iraq have chosen to reside under IMF article XIV WHICH ALLOWS THEM THE LUXURY OF DEBT PROTECTION Iraq/CBI must sell the dollar to provide for trade and international exchange.   Alak's only move to reduce the amount of currency/dollar traded in the auctions would be to move into article VIII and accept it's debt obligations, and truly for Iraq they have very little debt compared to the most developed countries per capita.  We know Iraq is trying to join the WTO. The majority of countries accepted into this trade organization hold IMF article VIII designation.  There are a few acceptions, but they do exist. We can only hope since the CBI is attempting to keep that 2% spread between the CBI rate and the market rate, that they are attempting monetary reform, but truly, Iraq will still have to maintain some sort of currency auction, but just only enough to support trade and not the corrupt.

 

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