Iraqi Bank: Foreign Currency Market Decreased From 150 to 50 Million Dollars a Day
|April 30, 2011||Filled under Iraq Daily News|
Baghdad, (AKnews) – The adviser of the Iraqi Central Bank (ICB) said that selling the hard currency decreased from 150 million $ to 50 million $ per day because of the problems that face the clients in the private and government banks related to the tax disclosure.
Muzher Mouhammed told AKnews that the clear decline in the proportion of buying the hard currency goes back to the governmental strictures on the tax disclosure and it is an obstacle facing clients in the private and state bank.
“The central bank seeks to coordinate between the monetary policy and fiscal policy through the provision of tax disclosure requirements at the government tax departments,” noting that “it is a procedure done by most of the international banks to balance the economic value and achieve the banking development.”
“This sudden drop will certainly affect the purchasing power of Iraq for foreign currency, but it will not last long because of the politicy adopted by the ICB in the promotion of the foreign currency market and increase the Iraqi dinar exchange rate.”
The ICB allocated 250 billion Iraqi dinars as a minimum for the establishment of private banks in the country.
The parliament legislated at its first session the Banking Law in 2007 to organize the work of private and state banks.
The ICB revealed on February that he will give a number of licenses to establish private banks, stressing on that the banks will increase the role of the country’s economy.
The total capital of Iraqi private banks is estimated by one billion and 600 million dollars now, other than what the branches of Arab and foreign banks operating in the country have.
The main task of the ICB is to maintain the prices stability and the implementation of monetary policy, including exchange rate policies, managing the reserves of foreign currency, issuance and management of currency as well as regulating the banking sector.
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