Vice-Governor of the Central Bank of (term): we adopt a tight monetary policy to ease the debt burden of Iraq

Roxy

Roxy

Posts : 433
Join date : 2009-06-08

	Vice-Governor of the Central Bank of (term): we adopt a tight monetary policy to ease the debt burden of Iraq
	بغداد/ المدى الاقتصادي Baghdad / term economic The monetary policy of the Central Bank of Iraqi bone of contention between political and economic circles of the two split. She discusses the economic term, deputy governor of the Central Bank of Iraq d. Brihi Ahmed on this policy in the range of financial and economic extrapolation in Iraq.  هل هناك تحديثات طرأت على السياسة النقدية؟  Are there any updates in the monetary policy? ان السياسة النقدية في العراق ارتبط تاريخها شئنا ام ابينا بمعالجة مشكلة المديونية ، وعندما جاءت سلطة الائتلاف المؤقتة بدأ العراق برنامج مع المجتمع الدولي للتخلص من عبء المديونية وكان من متطلبات هذا البرنامج اعداد تقرير يسمى تحليل استدامة المديونية Dept. That monetary policy in Iraq has been associated with history, whether we like it or not, address the problem of indebtedness, and when the Coalition Provisional Authority, Iraq also began the program with the international community to get rid of the burden of indebtedness and the requirements of the program is to prepare a report called debt sustainability analysis Dept. and system هذا التحليل المفروض يعد ويبين عدم قدرة الاقتصاد العراق على تسوية الديون . and system analysis, this is supposed to indicate the inability of the economy of Iraq to settle debts. . As the debt to pay installments and interest and when it was at that time up to about 130 billion dollars, consisting of annual installments paid on the debt and interest also to the proportion of oil exports in the light of oil prices that prevailed then and the ability of Iraq to export oil. Any other words how can the Iraqi economy to pay and this requires an estimate of Iraq's imports of consumer goods as well as for investment purposes and other purposes and the remainder of the oil resources to pay premiums and the benefits of debt. فكان جهد البنك المركزي ينصب بالدرجة الاولى لعراق يستطيع ان يسدد مثلاً نحو 25% من الصادرات في ذلك الوقت وادناه 5% من الصادرات. Effort was the Central Bank is primarily for the preparation of this report in collaboration with the International Monetary Fund to show that Iraq has no capacity to repay the debt if it remains on the report by the time this report shows the top several estimates that Iraq could pay for example, about 25% of the exports at the time and below 5% of exports. وعندما دخل العراق في التفاوض مع نادي باريس دخله استناداً الى هذا التقرير واستناداً الى توصية من صندوق النقد الدولي بان العراق يستطيع تحمل عبء المديونية ذاك وكان ان وافق نادي باريس على خفض المديونية العراقية بنسبة 80% على ثلاث مراحل. When Iraq entered into negotiations with the Paris Club of income on the basis of this report and based on the recommendation of the International Monetary Fund that Iraq can bear the burden of debt that was approved by the Paris Club to reduce Iraq's debt by 80% in three stages ويعكس نمط التفكير السائد في العالم. In the context of cooperation between Iraq and the International Monetary Fund, among other measures, including ourselves to raise the prices of petroleum products because the fall in the prices of petroleum products was a subsidy from the government to use sectors of oil and was then the great benefits and a comparison between the rate prevailing on the global level and the price difference was significant and therefore their point of view of these benefits and this has negatively impacted on the prices as well as the Iraqi economy to function effectively must be the removal of this distortion, with an indication here that the International Monetary Fund is (an international financial institution) and is not a consulting firm to Iraq or any other country, and it was the international financial institution to reflect the global climate and the pattern reflects the prevailing thinking in the world. فنمط التفكير السائد في العالم في ذلك الوقت كانت الدول النفطية يجب ان لا تتفادى كثيراً من The pattern of thinking in the world at that time, the oil-producing countries, should not avoid a lot of oil consumption because it is productive and should contribute to the world in reducing carbon emission and also contribute to the world in providing an adequate supply of oil to meet demand and therefore in line to oil-producing countries this trend has to raise the prices of petroleum products in Iraq, this is a point and second point in the cooperation was also on the Ministry of Finance to develop information systems that assist in the preparation of the budget, public finance and development, performance monitoring and the cooperation of the Ministry of Finance in this direction, and were also seeking to improve the data (data economic statistics) in general, and this is also part of what has been achieved directly in cooperation with the Central Bank and the Ministry of Finance and also entered the Ministry of Planning and contributed in this area. وكان عن هذا الطريق، هذه تقريباً اهم المحاور في السياسة المالية والنقدية للعراق التي التزم بها. The central bank to address the problem is that the International Monetary Fund believes the presence of excess liquidity in the banking system, which requires the central bank to absorb excess liquidity through open windows of the banks to invest part of their deposits with the Central Bank and the central bank to encourage banks to invest this deposits by raising interest rates and also the other hand, when interest rates rise, this will encourage banks to raise interest rates to 9 of deposits banks can thus attract a larger portion of the savings and the transfer of inertia is also part of the central bank to reduce the mass of liquidity and the impact of inflation on the road , this is almost the most important hubs in the fiscal and monetary policy in Iraq as promised. هل هناك تحديث حسب معطيات الواقع؟  Is there any updated to the facts? - انخفض اسعار الفائدة الى الان وفق احدث تخفيض اصبح سعر الفائدة الذي يدفعه البنك المركزي على استثمارات المصارف لديه والفائدة 5% فقط. - Interest rates fell so far, according to a recent reduction in interest rates, which became the bank's paid investment banks and has a 5% interest only. وسعر الفائدة الذي يسمى سعر فائدة البنك المركزي هو 7% هذا تخفيض في سعر الفائدة وهذا تغيير حدث على السياسة النقدية ، والحقيقة كان محور السياسة النقدية التي تعاونت مع صندوق النقد الدولي وقدر تعلق الامر بالبنك المركزي محورها اسعار الفائدة وعندما ارتفعت اسعار الفوائد ووصلت الى 20% في اليوم والآن انخفضت الى 7% وفائدة البنك المركزي 5% على ايداعات واستثمارات المصارف لدى البنك المركزي. And the interest rate, called the central bank interest rate is 7% of this reduction in interest rate and this change took place on the monetary policy, and in fact was the focus of monetary policy, which has cooperated with the International Monetary Fund and as far as the Central Bank interest rates and centered when interest rates rose and reached 20% a day and now has dropped to 7% and the benefit of the Central Bank of 5% of the deposits and investments by the banks at the Central Bank.  ولماذا الآن اختار التوقيت الحالي لخفض سعر الفائدة؟  Why is this time chosen to reduce the interest rate? - Because the time before the end of term program of cooperation for the Central Bank with the International Monetary Fund in late 2008 at a time when the government and even the House of Representatives and many experts were putting pressure on the central bank for the withdrawal of investments by the banks having to pay for the private sector banks to provide debt deposits of the private sector rather than investment in the Central Bank this was the desire of many circles of the Government's willingness and desire of the House of Representatives, as well as observations of what experts say you accept deposits in the banks put the central bank was due to go out and Tkarzha of the private sector and we need to develop and need to set up more employment opportunities, this requirement was in place before the end of 2008 before the end of the commitment by the International Monetary Fund and the central bank and when the commitment period at the end of 2008 marked at the same time, the low rates of inflation was significantly reduced the central bank is committed to the interest rate must be equal to the inflation rate plus the margin, which was called the equation of (published) Popular in the appointment of the interest rate equation is the deployment of the cash interest rate = real interest rate + interest rate cash = cash rate = real interest rate + inflation rate. ومفاده يقول مثلا سعر الفائدة النقدي يجب ان يكون هو عبارة عن معدل التضخم + نقطتان مثلاً فاذا كان معدل التضخم 13 هي في 15 واذا كان 18 يكون 20 واذا كان 7 يكون 9. For example, say that the cash rate should be is the rate of inflation + points for example, if the inflation rate is at 13 and 15 if 18 is 20 and if the 7 would be 9. الان انخفض معدل التضخم وبالتالي حسب هذه المعادلة يمكن تخفيض سعر فائدة البنك المركزي هذا التفسير يعني تبرير خفض التضخم عندما تلتزم بهذه المعادلة بسعر الفائدة فعندما ينخفض معدل التضخم تستطيع تخفيض سعر الفائدة، وكان ايضاً في ضوء ذلك. Now decreased the rate of inflation and therefore, according to the equation can reduce the interest rate the central bank to justify such an interpretation means to reduce inflation when it is committed to this equation, when the interest rate reduced the rate of inflation can reduce the interest rate, and was also in that light.  هل تتوقع انخفاضاً متوقعاً في معدلات التضخم في المستقبل القريب؟  Do you expect a decline in expected inflation rates in the near future? - يعني معدل التضخم المنشور الآن منخفضاً جداً الان يكاد يكون 3% وهذا هو معدل منخفض، لا اتوقع ان معدل التضخم سوف ينخفض اكثر من هذا وهذا يعني 3% او 5% وحتى 7% او 9% هذا ليس كبيراً على العراق كدولة نفطية معدل التضخم لا يعد مرتفعاً لبلد مثل العراق. - I mean, the publication rate of inflation is now very low now, almost 3% and this rate is low, do not expect that the rate of inflation will fall more than this, which means 3% or 5% and 7% or even 9% is not big on Iraq oil as the inflation rate is not high for a country like Iraq. في دولة متقدمة مثل الولايات المتحدة الامريكية ومثل منطقة اليورو معدل 3% يعد معدلاً مرتفعاً. In a developed country like the United States, such as the U.S. and the euro zone rate of 3% is high. ولكن في دولة نامية 6% لايعتبر معدل تضخم مالتضخم. But in a developing country, 6% do not consider the high rate of inflation, and oil country, even 10% is not high because it is usually the oil economy is suffering from bottlenecks and suffers from the aggregate demand is not matched by display at home, in the sense that the economy's productive capacity of oil for the production of goods and services, energy limited and also a limited variety of oil and the economy relies primarily on imports from abroad and you can not import all, there are things you can import, there are goods and services imported and can not be locally available when demand is increasing and that can not be limited import of these goods and services and get paid up to this the direction of raising the general level of prices, thus causing inflation.  وبضوء سياسة البنك المركزي هذه، هل انخفضت المديونية ؟  The light of this policy the central bank, is down the debt? - . - The program of Iraq with the world to reduce the debt and the world to impose his conditions of this sentence is to be the reception and bank deposits at the central bank and the payment of interest on deposits that it must be said that, we committed ourselves to reduce the debt which we have committed ourselves that this is the truth, the great .

Roxy · 2 cont...pt2 Wed Jul 29, 2009 9:37 am

Roxy

Posts : 433
Join date : 2009-06-08

When you want to reduce the debt of 130 billion to 20% of them, the world can not give you this free of charge, you (your brother is not obliged Boutr) must adhere to and become a great commitment to the Central Bank and for this reason that the Central Bank to open the windows of investment banks have.

هذا هو السبب.

This is the reason. But with great regret that the banks took advantage of these rates the government too much and I, personally, I expect that banks, including that it is administratively affiliated to the Ministry of Finance and that the problem of the existence of the State Bank is to serve the economic policy of the State and not the basis on which the business and was the only private bank, But the truth is, banks have been pressuring the government more than private banks to deposit as possible to the largest deposits in the Central Bank to be the largest deposit of cash at their disposal at the Central Bank and to obtain the greatest possible benefits, and even banks and government deposits were deposited at the bank, forcing the central bank in a timely manner to raise the proportion of reserves to the government deposits. Now this figure has reduced the proportion of reserves to become the government and private deposits equal. The last time the central bank action is taken may not invest in government deposits in the central bank. Now the Bank and other pressing Iraq to allow the return of the investment of government deposits at the Central Bank. There are objections and criticisms of monetary policy, Mataliqkm to do this? - I did not say that monetary policy, good or bad this is not the goal we have to point out the facts as they are because there is a misunderstanding of the recipients of ordinary and even elitist. We find the economic elite is strongly opposed, and full of snobs, knowing they were among the groups more in favor of the debt reduction program and the cooperation between the Iraqi government, but we must admit that we failed to put the facts so we have to be very frank and say that the commitments made by the Iraqi government to reduce the debt and we are not and we did not selected at that time, Iraq can not reduce the debt without commitment to this program and this alone is justification enough for ourselves in due course. The Palace has been the men from the Central Bank of the truth .. Central bank committed itself to with the IMF on behalf of the Iraqi state was not the central bank is the city of the world (the state of Iraq) is the city of the world. Central Bank and the Ministry of Oil and Ministry of Finance three Is their role in this commitment and this is what he had signed the Central Bank. good Why blame the bank?

- Because the central bank did not mention these facts, the realities of the commitment of the Iraqi state and the Paris Club and the International Monetary Fund, and whether too much of Iraq the opportunity to extinguish the debt to a difference in the interest rate 5% or 6%.It is not related to whether or not the reduction of inflation as the biggest Matujd the fact that Iraq was involved substantial indebtedness must be salvation, and now we have a chance to talk seriously about what monetary policy should be and what should not, and dialogue and to agree and disagree, but in reality were not the case this opportunity existed at the time, but at the same time is not appropriate to appear before the world that the capacitance of leadership in economic management is forced by the international community is also a matter of concern and frustration among the people. Originally the subject until the year 2008 is the program of debt at the end of 2008 and so far this period does not mean the central bank has a wider choice, but also contracts where there is not easy to get the deposits of banks by the Central Bank and its investments in one go because this also will create confusion in the sector banking and create a storm before the central bank under pressure, arguing that these banks have been used for a long period of time for the source of income you want to suddenly cut off the source of these banks and used the place of employment of these deposits for a period of 4 or 5 years and suddenly you want to close this place and we must issue to be gradual and therefore chose the entrance to the Central Bank to lift interest rates this investment will mean a reduction of interest rates to a certain extent in the hope that the banks find that after a 5% rate this Unrewarding is better for them to look for opportunities outside the central bank to invest deposits and thus achieved the goal of the World Central without having to move the administrative closure of the outlets of investment, rather than to issue any order, says the windows closed this immediately reduces the interest rate.

 كيف يتم التنسيق بين السياستين النقدية والمالية؟

 How is the coordination between monetary and fiscal policies? - As an analytical truth that the finance sector in Iraq, called the (Financial secter) any sector in Iraq, the money potential is very limited except for banks and almost no insurance companies, as well as a simple investment companies and the simple fact erroneous, but not much money is a sector of the banks and the Stock Exchange (KSE ) and total bank assets, which means the credit provided by banks and investments.

و الاشياء الموجودة في جانب الموجودات من الميزانية العمومية الموحدة للمصارف هذه كلها قليلة نسبة الى الناتج المحلي نسبة الى حجم الاقتصاد العراقي.

And things on the side of the existing assets of the consolidated balance sheet of these banks are small in relation to GDP ratio to the size of the Iraqi economy.

وايضا حجم الرسملة Capitalization يعني قيمة الاسهم المتداولة للشركات المدرجة في سوق العراق للاوراق المالية هذه نسبة الى الناتج المحلي من أوطأ النسب في العالم.

And also the volume of capitalization Capitalization means the value of traded shares of companies listed on the Iraq Stock Exchange this ratio to the GDP of the lowest in the world.

وهذا يعني ان شركات المساهمة رؤوس اموال الشركات المساهمة بمجموعها تمثل نسبة الى الناتج المحلي الاجمالي في العراق، نسبة الى حجم الاقتصاد في العراق، فاصبح كل الموجودات المالية يعني موجودات المصارف والاسهم هذه ايضا عندها هي كلها باكملها تجعلنا نقول بثقة: ان القطاع المالي في العراق هو محدود الامكانات جداً.

This means that companies contribute to the capital contribution is a whole in relation to GDP in Iraq, the proportion to the size of the economy in Iraq, making all financial assets means the assets of these banks and the stock is then also the whole of us all we can say with confidence: that the financial sector in Iraq is very limited potential.

فعندما يكون القطاع المالي بهذا الحجم المتواضع فأن الدائرة تتحرك بها السياسة النقدية ايضا تكون محدودة يعني ما ادوات السوق النقدية أي السياسة النقدية عمليات السوق المفتوحة يعني شراء خصم حوالات واعادة خصم وسعر الفائدة رفع او خفض سعر الفائدة تقريباً هذه هي اداوتها.

When the financial sector in this modest-sized move, the Chamber of monetary policy, also be limited in what I mean any money market instruments of monetary policy open market operations mean the purchase of discount voucher and re-discount and the interest rate raise or lower the interest rate is almost this Adautea.

وان فرص التنسيق بين اهل السياسة المالية واهل السياسة النقدية حولها ينسق بشأنها هي ايضاً موضوعات قليلة.

And opportunities for coordination among the fiscal policy and monetary policy are coordinated around them are also a few of the topics.

وزارة المالية تستخدم البنك المركزي لتمويل انفاقها المحلي تبيع عملة اجنبية والبنك المركزي يعزز .

Ministry of Finance and the Central Bank used to finance domestic spending and selling of foreign currency the central bank enhances the dinar current account in domestic spending, the central bank take the foreign currency bought by the Ministry of Finance and sell part of them to the private sector, and another retained by the requirement (the reserve) to add any of these reserve the Central Bank and the Ministry of Finance almost do not need to coordinate, because the Ministry of Finance will not sell to the Central Bank foreign currency only to the extent of their spending.

فهذه العملية بيع عملة من وزارة المالية الى البنك المركزي هي محدودة، هذه عملية لا تحتاج الى الاحتياطي، العملية غاية في البساطة.

This is the currency of the sale process by the Ministry of Finance to the Central Bank is limited, this process does not need to coordinate as much as any requirement of the Ministry of Finance of the gross domestic product will sell a foreign currency by the Central Bank and the Central Bank will sell to the private sector as needed and as often as required and the remainder added to the reserve, the process is very simple.

بتعبير آخر بساطة الاقتصاد العراقي والبساطة الشديدة في القطاع المالي تقلل اصلا من الحاجة الى التنسيق بين وزارة المالية والبنك المركزي.

In other words, the simplicity of the Iraqi economy and the very simplicity of the financial sector already reduce the need for coordination between the Ministry of Finance and the Central Bank. Because the system is very simple and not complicated at this point. As for why, because the Ministry of Finance in expanding spending and tight monetary policy is part of this is linked to the program to reduce the debt burden and distribution and also difficult for Iraq at that time to accept the restrictions on government spending, if imposed, such as those contracts to the political consequences of very large. Valthdd easier monetary, social and political radicalism of the restriction of the financial spending of the most difficult to raise interest rates. Is this clearly understand that the International Monetary Fund and the international community acknowledges the Iraqi government to reduce spending, or imprisonment of either spending the easiest course of monetary tightening, fiscal tightening easier. Another issue is coordination between the Ministry of Finance and Economic Policy of the State of these points are very important, not the Ministry of Finance as part of the government? So if the minister wanted to get the bank deposits from the central bank to lend to the private sector, why do not the Ministry of Finance so with their own banks? Then we need to start the coordination between the government and the Ministry of Finance and by the other banks have to coordinate between the Central Bank and the Finance Ministry if the Ministry was arranged with banks to get their deposits and invest in the private sector means that already 90% of government had been for some time, within the government the same potential of the banking sector means the government about 90% of the potential for banks.

واكثر استثمارات المصارف في البنك المركزي هي من المصارف الحكومية.

And more investment banks in the Central Bank is one of the State banks. Was the Ministry of Finance could be solved this problem in coordination with the banks first, and harmony with the general economic policy of the state, without placing the burden on the central bank. This was easier and this was also supposed to be talking about the staff of the Central Bank question of prejudice to the international reserves of the Central Bank of Iraq, we know that the invitations to resound in the media and the political and parliamentary circles for central bank lending to the government of the reserve of the State?

- اصلا هذه المسألة وضعت بطريقة الخطأ.

- Originally put this issue the wrong way. He is not the first place, because this issue was put on the head rather than be put on its feet, this question is already started wrong, and I personally can not enter into this subject because he never gave basically the wrong way. Government does not have a deficit of foreign currency at all. With the inability of the local currency, so why sell the foreign currency by the Central Bank and then say to the Central Bank foreign currency Agherdhani? And I do not agree with that exaggerates the exaggerations that the government wants to take the central bank reserves, can not be such a thing, the central bank reserves is the need for more reserves has been used so far will not be used.

 كم بلغ الآن؟

- Do not say so, the reserve of the Central Bank is sufficiently large and will not be used so far and is not expected to be used in the future.

Vice-Governor of the Central Bank of (term): we adopt a tight monetary policy to ease the debt burden of Iraq

1 Vice-Governor of the Central Bank of (term): we adopt a tight monetary policy to ease the debt burden of Iraq Wed Jul 29, 2009 9:26 am

Roxy

2 cont...pt2 Wed Jul 29, 2009 9:37 am

Roxy