FROM OCTOBER 5, 2009:
Central Bank Consultant Dr.. Mazhar Mohammad Saleh in an interview with "Major
Dated: 05/10/2009 - number one and forty - the pulse of Iraq
Author: Omar Abdel-Aziz
Central Bank Consultant Dr.. The appearance of Mohammed Saleh in an interview with
In the spotlight number one and forty
He told me that his dialogue with me is the longest of all the dialogues conducted by the press, and said to me in its conclusion: (Despite being a conservative, but that more dialogue was said by many figures and facts).
He spoke CBE advisor and member of the board of directors d. The appearance of Mohammed Saleh in an exclusive and frank with the "lead" on several important issues including: (interactions with the bank's fiscal policy led by the Ministry of Finance, the Bank's policy towards the dollar peg and other, the size of the bank stocks today and the place of inventories, as well as its role in financing investment projects and its role in helping the Iraqi government, lending, and the size of the domestic debt of the Central Bank and the Ministry of Finance, and the truth is that there is a funding currency, Lobbies for the Iraqi market without the central bank, as well as the most important activities of the Office to Combat Money Laundering) .. And other several important issues, this text of the interview ..
Major: why inflation has continued despite the lifting of the blockade and the return of oil for export and the openness of the economy, and has become a broad economic freedom?
Valid: the average inflation in Iraq since 1990 and until 2003 in the range of 50%, and any country where the rate of inflation this would be amplified by the great continuity, especially in light of deteriorating economic activity and investment for decades, such as Iraq.
The Central Bank's role in the face of inflation, but the remedies adopted by modern Iraq, and economic reform program has significant side effects, and when Iraq entered into arrangements with the International Monetary Fund had an impact, including high fuel prices is even a third of Iraq's imports in 2005 and 2006 are oil and its derivatives.
Lead: Is there a future inflationary crises similar to those that occurred in 2006 and reflected on the prices of fuel and goods task?
Valid: due to the policies of modern central bank, inflation rate in 2006 was around 65%, but he returned to drop significantly in 2007 and beyond, will be other similar altitudes, there will be no earthquake in Iraq once again fuel prices as it happened.
Lead: What is the nature of the current relationship between the monetary issuance of the Central Bank and the government needs him?
Saleh: Release of cash is the result of the government's request to the Iraqi currency, and the Iraqi budget Ttamol for internal purposes is currently 98% by issuing central bank cash internally. Thus other budgetary sources are weak, such as taxes, they do not constitute today in the state's income more than 0,5% so far because of the economic structure is located.
Lead: What causes the difference between policies of monetary (central bank) and financial (Ministry of Finance) in Iraq? And how the box preferably financial and monetary policies?
Saleh: monetary and fiscal policies have in Iraq since the fall of living in harmony, and rumors of the existence of significant differences lie, but because of the global financial crisis sometimes occur with disabilities.
Of constraints, is that the stability of the Iraqi dinar exchange rate in its present form constitutes a burden on the budget, so the desire of the budget deterioration Saiklogip Iraqi dinar exchange rate to finance as much as possible and fill the needs and the needs of people, while they maintain the Central Bank of Iraqi dinar exchange rate and market stability and call on the Government to unleash a significant contribution to building companies, and the intervention of these companies in production almost immediately, and be financed from the market by offering the shares guaranteed by the Government.
Lead: What is the most prominent features of modern monetary policy adopted by the Central Bank? Is it the dinar bank's target return of $ 3 dollars?
Valid: the most prominent of these features, that our monetary policy aimed at maintaining the growth rate of prices downward until increases and growth rates and decreasing up to zero.
We are a central bank is not our function returns the price as it was, our job is that the rate increase or an annual growth in prices continue to fall until it reaches zero or the number of natural Kousolh to 5%. Can not be said to go back to square one as we were, and will not return (champion Pepsi) twenty penny as it was. We want to buy the Iraqi citizen of goods and services as dinar was three dollars.
Lead: How does the central bank to achieve price stability?
Saleh: objectives and functions of the central bank is to stabilize the Iraqi dinar, and means to achieve that is a frequent imports to Iraq right now, and while we do not accept nor do we believe that Iraq may become the dustbin of the world of shoddy goods beyond the control of quality (as it is now), we believe in central bank should be no import of high-quality goods, which helps to stabilize the Iraqi dinar.
Lead: How much store on Central Bank of Iraq occupation? What size store's central bank so far? And where the stores?
Saleh: astride the Central Bank of Iraq on the fall amounted to zero, and there was only a billion dollars in the bank stocks, which is not part of the treasury, but back to the Presidential Office. Iraq also had a balance in the overseas Stopped up to 4,5 billion dollars, while free balance, some companies booked 2 billion for the liquidation of their indebtedness.
Regarding the size of the bank stocks now, I can not be pinpointed, but the Central Bank of stocks in July 2008 amounted to 47 billion dollars, a collection of stocks within a year and a half, and stores mostly in America, and some in other countries.
Lead: Why not give the Central Bank of the way for investment projects to take advantage of the Exchequer in the development of economy and investment as the rest of the developed world? Is it not your goals, financing of investment projects?
Invalid: This is where the ruins of Iraq until we come to the Central Bank of stocks and we take after we have compiled in three days, for reasons they say development, and we fear that there will be no development and lost inventory and stability.
Is not the duty of the Central Bank building inventory development directly, but this is the duty of fiscal policy represented by the Ministry of Finance, if fiscal policy was not funded if it is funded?! I am taking responsibility and I entered Iraq so far $ 188 billion since the invasion .. Where development plans?! I judged the development agenda in Iraq, where has this money gone?! .. .. I went to all consumption, no one comes after the bankrupt and says "Come Ealbnk Central and gave us your money."
If it is the responsibility of the Central Bank financing of projects, if Feltlg fiscal policy and investment policy and to keep everything, however, monetary policy, which led the Central Bank.
Lead: Is the Bank lends the government of Iraq?
Valid: the central bank not only lends to banks only lend money to banks and citizens and the global system, Viaqradhana banks is not a problem, but loans to the government's problem because the law prevents it, I am of the faithful to amend the law of the central bank and government lending, but lending a way that helps the government shall not prejudice the policies and one central bank and its independence, and I expect that there will be some amendments to the Law on the Central Bank in the future, and we and the government are serious about this.
Lead: Why is associated dinar to the dollar and who defines it? What is the policy of the bank followed the direction of that?
Saleh: The Central Bank is to determine the relationship of the Iraqi Dinar to other currencies, either U.S. dollars or other, and Iraq, the U.S., because that 95% of its income from foreign currency is one of the oil, the oil market is the U.S. market in the world by default, because only the United States consume 3 million barrels, oil Fborsp be when the consumer first is America, so the oil market has become dollarised, and this persistent problem, Iraq is located within its borders.
As long as oil is priced in dollars, it is difficult to pricing of non-dollar Iraqi Dinar such as the euro, for example, we are our central banker to be non-dollar pricing the dinar to a certain extent and in which diversify our reserves of foreign currency in order to avoid the risk of sharp fluctuations at different currencies, and we are moving achieve this, and this goal will spare Iraq risks of currency fluctuations such as those that took place in the current global financial crisis.
Lead: The size of the domestic debt of the Central Bank to the Ministry of Finance?
Saleh: domestic debt on the fall of Baghdad was 5,7 trillion dinars, the Central Bank's share of which was 5,4 trillion dinars, We have held an agreement with the Iraqi government in 2006 that the payment is over 7 and a half years in each chapter paid 180 billion dinars, but the This Convention has now due to current economic circumstances.
Lead: What is the news which says that the current Iraqi dinar powered?
Saleh: Iraqi dinar is not supported at all, and we Hassanah by 25% from 2006 until now, this slight improvement to such a high pay and others is that makes it real and say that he denies supported.
Lead: What is there to say that lobbies financed currency to the Iraqi market without a central bank? The most important activities of the Anti-money laundering?
Saleh: The Central Bank is the sole authorized the financing of the foreign currency market, and vacate the country in the world of economic crimes, and to think that the Iraq Commission, crime and punishment found in Iraq, and our job is on anti-crime, money laundering and counterfeiting .. الخ. Etc..
And the Office of Anti-Money Laundering to central bank professionally and where many of the inspectors, and had a lot of work, come questions about certain transactions, including those arrested and other aces and check, I do not know if there are crimes.
Lead: What is the size of capital output of their owners out of Iraq within the scope of free transfer of funds?
Saleh: Security Council resolution 1438, has spent on Iraq to settle its debts and normalize relations with international financial institutions including the IMF and the World Bank, Iraq has agreed to this decision, and the decisions of those organizations to the effect the liberalization movement of capital.
And speech transmission headers on a huge Iraqi funds for Iraq is vastly exaggerated, and we sold at auction in the Bank since 2003 and now has almost $ 70 billion, the bulk of the 70 is to finance the goods and services in Iraq and not transmission headers of funds abroad, but the proportion of private capital moving from the 70 billion does not exceed 15% only, and is concentrated mostly in Jordan and then Syria, and the owners of these funds themselves are now trading for Iraq, and I expect that the financial crisis will push the Iraqis to bring their money to Iraq in this way in 2009.
Central Bank Consultant Dr.. Mazhar Mohammad Saleh in an interview with "Major
Dated: 05/10/2009 - number one and forty - the pulse of Iraq
Author: Omar Abdel-Aziz
Central Bank Consultant Dr.. The appearance of Mohammed Saleh in an interview with
In the spotlight number one and forty
He told me that his dialogue with me is the longest of all the dialogues conducted by the press, and said to me in its conclusion: (Despite being a conservative, but that more dialogue was said by many figures and facts).
He spoke CBE advisor and member of the board of directors d. The appearance of Mohammed Saleh in an exclusive and frank with the "lead" on several important issues including: (interactions with the bank's fiscal policy led by the Ministry of Finance, the Bank's policy towards the dollar peg and other, the size of the bank stocks today and the place of inventories, as well as its role in financing investment projects and its role in helping the Iraqi government, lending, and the size of the domestic debt of the Central Bank and the Ministry of Finance, and the truth is that there is a funding currency, Lobbies for the Iraqi market without the central bank, as well as the most important activities of the Office to Combat Money Laundering) .. And other several important issues, this text of the interview ..
Major: why inflation has continued despite the lifting of the blockade and the return of oil for export and the openness of the economy, and has become a broad economic freedom?
Valid: the average inflation in Iraq since 1990 and until 2003 in the range of 50%, and any country where the rate of inflation this would be amplified by the great continuity, especially in light of deteriorating economic activity and investment for decades, such as Iraq.
The Central Bank's role in the face of inflation, but the remedies adopted by modern Iraq, and economic reform program has significant side effects, and when Iraq entered into arrangements with the International Monetary Fund had an impact, including high fuel prices is even a third of Iraq's imports in 2005 and 2006 are oil and its derivatives.
Lead: Is there a future inflationary crises similar to those that occurred in 2006 and reflected on the prices of fuel and goods task?
Valid: due to the policies of modern central bank, inflation rate in 2006 was around 65%, but he returned to drop significantly in 2007 and beyond, will be other similar altitudes, there will be no earthquake in Iraq once again fuel prices as it happened.
Lead: What is the nature of the current relationship between the monetary issuance of the Central Bank and the government needs him?
Saleh: Release of cash is the result of the government's request to the Iraqi currency, and the Iraqi budget Ttamol for internal purposes is currently 98% by issuing central bank cash internally. Thus other budgetary sources are weak, such as taxes, they do not constitute today in the state's income more than 0,5% so far because of the economic structure is located.
Lead: What causes the difference between policies of monetary (central bank) and financial (Ministry of Finance) in Iraq? And how the box preferably financial and monetary policies?
Saleh: monetary and fiscal policies have in Iraq since the fall of living in harmony, and rumors of the existence of significant differences lie, but because of the global financial crisis sometimes occur with disabilities.
Of constraints, is that the stability of the Iraqi dinar exchange rate in its present form constitutes a burden on the budget, so the desire of the budget deterioration Saiklogip Iraqi dinar exchange rate to finance as much as possible and fill the needs and the needs of people, while they maintain the Central Bank of Iraqi dinar exchange rate and market stability and call on the Government to unleash a significant contribution to building companies, and the intervention of these companies in production almost immediately, and be financed from the market by offering the shares guaranteed by the Government.
Lead: What is the most prominent features of modern monetary policy adopted by the Central Bank? Is it the dinar bank's target return of $ 3 dollars?
Valid: the most prominent of these features, that our monetary policy aimed at maintaining the growth rate of prices downward until increases and growth rates and decreasing up to zero.
We are a central bank is not our function returns the price as it was, our job is that the rate increase or an annual growth in prices continue to fall until it reaches zero or the number of natural Kousolh to 5%. Can not be said to go back to square one as we were, and will not return (champion Pepsi) twenty penny as it was. We want to buy the Iraqi citizen of goods and services as dinar was three dollars.
Lead: How does the central bank to achieve price stability?
Saleh: objectives and functions of the central bank is to stabilize the Iraqi dinar, and means to achieve that is a frequent imports to Iraq right now, and while we do not accept nor do we believe that Iraq may become the dustbin of the world of shoddy goods beyond the control of quality (as it is now), we believe in central bank should be no import of high-quality goods, which helps to stabilize the Iraqi dinar.
Lead: How much store on Central Bank of Iraq occupation? What size store's central bank so far? And where the stores?
Saleh: astride the Central Bank of Iraq on the fall amounted to zero, and there was only a billion dollars in the bank stocks, which is not part of the treasury, but back to the Presidential Office. Iraq also had a balance in the overseas Stopped up to 4,5 billion dollars, while free balance, some companies booked 2 billion for the liquidation of their indebtedness.
Regarding the size of the bank stocks now, I can not be pinpointed, but the Central Bank of stocks in July 2008 amounted to 47 billion dollars, a collection of stocks within a year and a half, and stores mostly in America, and some in other countries.
Lead: Why not give the Central Bank of the way for investment projects to take advantage of the Exchequer in the development of economy and investment as the rest of the developed world? Is it not your goals, financing of investment projects?
Invalid: This is where the ruins of Iraq until we come to the Central Bank of stocks and we take after we have compiled in three days, for reasons they say development, and we fear that there will be no development and lost inventory and stability.
Is not the duty of the Central Bank building inventory development directly, but this is the duty of fiscal policy represented by the Ministry of Finance, if fiscal policy was not funded if it is funded?! I am taking responsibility and I entered Iraq so far $ 188 billion since the invasion .. Where development plans?! I judged the development agenda in Iraq, where has this money gone?! .. .. I went to all consumption, no one comes after the bankrupt and says "Come Ealbnk Central and gave us your money."
If it is the responsibility of the Central Bank financing of projects, if Feltlg fiscal policy and investment policy and to keep everything, however, monetary policy, which led the Central Bank.
Lead: Is the Bank lends the government of Iraq?
Valid: the central bank not only lends to banks only lend money to banks and citizens and the global system, Viaqradhana banks is not a problem, but loans to the government's problem because the law prevents it, I am of the faithful to amend the law of the central bank and government lending, but lending a way that helps the government shall not prejudice the policies and one central bank and its independence, and I expect that there will be some amendments to the Law on the Central Bank in the future, and we and the government are serious about this.
Lead: Why is associated dinar to the dollar and who defines it? What is the policy of the bank followed the direction of that?
Saleh: The Central Bank is to determine the relationship of the Iraqi Dinar to other currencies, either U.S. dollars or other, and Iraq, the U.S., because that 95% of its income from foreign currency is one of the oil, the oil market is the U.S. market in the world by default, because only the United States consume 3 million barrels, oil Fborsp be when the consumer first is America, so the oil market has become dollarised, and this persistent problem, Iraq is located within its borders.
As long as oil is priced in dollars, it is difficult to pricing of non-dollar Iraqi Dinar such as the euro, for example, we are our central banker to be non-dollar pricing the dinar to a certain extent and in which diversify our reserves of foreign currency in order to avoid the risk of sharp fluctuations at different currencies, and we are moving achieve this, and this goal will spare Iraq risks of currency fluctuations such as those that took place in the current global financial crisis.
Lead: The size of the domestic debt of the Central Bank to the Ministry of Finance?
Saleh: domestic debt on the fall of Baghdad was 5,7 trillion dinars, the Central Bank's share of which was 5,4 trillion dinars, We have held an agreement with the Iraqi government in 2006 that the payment is over 7 and a half years in each chapter paid 180 billion dinars, but the This Convention has now due to current economic circumstances.
Lead: What is the news which says that the current Iraqi dinar powered?
Saleh: Iraqi dinar is not supported at all, and we Hassanah by 25% from 2006 until now, this slight improvement to such a high pay and others is that makes it real and say that he denies supported.
Lead: What is there to say that lobbies financed currency to the Iraqi market without a central bank? The most important activities of the Anti-money laundering?
Saleh: The Central Bank is the sole authorized the financing of the foreign currency market, and vacate the country in the world of economic crimes, and to think that the Iraq Commission, crime and punishment found in Iraq, and our job is on anti-crime, money laundering and counterfeiting .. الخ. Etc..
And the Office of Anti-Money Laundering to central bank professionally and where many of the inspectors, and had a lot of work, come questions about certain transactions, including those arrested and other aces and check, I do not know if there are crimes.
Lead: What is the size of capital output of their owners out of Iraq within the scope of free transfer of funds?
Saleh: Security Council resolution 1438, has spent on Iraq to settle its debts and normalize relations with international financial institutions including the IMF and the World Bank, Iraq has agreed to this decision, and the decisions of those organizations to the effect the liberalization movement of capital.
And speech transmission headers on a huge Iraqi funds for Iraq is vastly exaggerated, and we sold at auction in the Bank since 2003 and now has almost $ 70 billion, the bulk of the 70 is to finance the goods and services in Iraq and not transmission headers of funds abroad, but the proportion of private capital moving from the 70 billion does not exceed 15% only, and is concentrated mostly in Jordan and then Syria, and the owners of these funds themselves are now trading for Iraq, and I expect that the financial crisis will push the Iraqis to bring their money to Iraq in this way in 2009.