A number of obstacles hinder the work of the Central Bank… and the finger of blame is directed at the ministries, 28 JAN
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The economic expert, Safwan Qusay, confirmed on Saturday that the Central Bank of Iraq will not be able to control the exchange rate alone, without coordination and integration with the country’s financial policy, indicating that the federal ministries do not work with a single-individual mentality, and according to what the CentralBank desires.
Qusay told “Jarida”, “Despite the Central Bank’s measures to regulate the relationship with international financial transfer operations and the relationship of Iraqi banks with the international environment through international correspondents and improving the quality of banking service performance, the Central Bank alone will not be able to control the exchange rate, without coordination.” And integration with financial policy.”
He added, “The Ministry of Finance and the rest of the federal ministries do not work with a single-individual mentality, and according to what the Central Bank desires, such as controlling border crossings, imposing a fair tax policy, and the possibility of moving on to investigate economic events and prove them accounting according to an accounting system that can faithfully represent those events.” “.
He continued, “So far, working within the budget of items and within a government accounting system is still working within the monetary basis, and does not distinguish between revenues and liabilities, or expenses and assets, and the basic concepts of financial and accounting work, and the Central Bank has internal debts on the Ministry of Finance, But until now, the Ministry of Finance has not cleared these debts in a quick way to enhance the value of the Iraqi dinar.”
He continued, “Tracking the process of movement of goods from the origin to the consumer is still slow, and is outside the control of the Central Bank, in addition to the existence of a weak trade system, and that many merchants do not have bank accounts and tools for long-term commercial contracts, in addition to the insistence on cooperation.” With sanctioned countries and companies, even though the equipment imported from them has not been established. A specific mechanism has not been established for international financial transfer of these to countries or companies.”
He added, “The Iraqi citizen’s insistence on not trusting the banking system, with the Central Bank not having means to expand the circle of financial inclusion by stimulating Iraqi dinar holders, through interest placed on current accounts, or discounts accompanying credit card transactions, are all tools that are still needed.” To the extensive efforts of the Central Bank and Iraqi banks, especially the public ones, because they own 90 percent of the bank balance, in addition to the private banks that were surprised by the suspension of the currency selling window and the transformation of the electronic platform, and the lack of a sharing system between these banks with the financial information required by the global Soviet system.
He explained, “The US Federal Reserve is determined to clean the Iraqi economy of corrupt people and activate the quality of work of the Central Bank and Iraqi banks, because international investors have conditions that are consistent with the balance of the Iraqi economy, and prevent Iraqi banks from changing the type of money or laundering money, and there are many Iraqi banks that have begun investing.” in technology and information sharing to gain global acceptance.”
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