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KO15
02-04-2010, 12:31 PM
Central bank will invest part of funds in Dutch counterpart
Warning against the use of Bank's Federal stock
Translated by IRAQdirectory.com - [2/4/2010]
An official at the Central Bank warned of the risks of using of Bank's Federal stock in the event of a decrease in the State budget, noting that the bank's reserves are few and simple, built primarily to support the foundation of the Iraqi dinar .. He explained that the mandate of a lender must take place by agreement between the parties and in accordance with the desire lender ...The central Bank , primarily on drawing the financial policy of the country and not interested in lower prices, stressing that the bank had also contributed actively to the reduction of high rates of annual core inflation to reach until the end of last year's 6 % after reaching a maximum range in 2007 to reach to 30 %.

The advisor at the CBI Mohammed Saleh, said that the bank's reserves are few and simple and basically built primarily to support and strengthen the Iraqi dinar, and this structure is not the allocations of the budget, but expenses arising from the budget .. and the disposal of budget by Iraqi dinar which has been replaced by the dollar by dinars which the Bank pumps ,, and the dinar becomes a right for the citizens .. The invitations had been fired earlier called for the use of the Federal Reserve central bank in the event of a shortfall in the state budget, which made opposite reactions that demanded most of them not to touch the reserve in order to preserve the strength of the dinar, which was secured by inventories. Meanwhile, Saleh explained : The function of the central bank is the main financial policy-making of the country, nor is it the process of reducing prices, adding to the Bank's role in the process of reducing the effects of inflation through fiscal policy is working to curb the rising prices that may confuse the family income and affects the stability price in the country .... indicating that the CBI works at the moment to maintain the value of prices and seeks to pursue a policy of declining increases ...
Inflation range maximum in 2007 when it reached nearly 50 %, which eventually forced the CBI to follow a policy which limits the escalation of those alarming percentage, which made it open the currency auction, which, according to economists contributed to the reduction of high inflation, and the increased value of the dollar against the dinar during that period .....
In the view of some concerned that the main reasons for rising inflation and increasing prices in the last periods is the removal of subsidies on petroleum products, especially gasoline and benzene, causing high transport wages in and then high prices of materials and goods, which jumped its values seriously then ...
And confirms that, according to these disturbances of price inflation, the central bank seeks to normal price increases that commensurate with the size of family income and the nature of the salaries of employees in public sector .. while calling on the government to support the private sector and to enter an economic partnerships with it in, building a huge industrial compounds under the supervision of the government and private sector partnership and are interdependent interests and inputs, and said that the policy is successful in absorbing unemployment and eradication of poverty and inflation at the same time ...
Meanwhile, Saleh said that the CBI will invest part of his money to its Dutch counterpart, adding that this comes in a move aimed at doubling the bank's reserve of hard foreign currency .. and the CBI runs two types of reserves the first , deposits of local banks, and the second , foreign currency State reserves, and this administration must be subject to standards of sound financial management in the world ..
And seek to achieve certain revenue profitability .., prompting the CBI in moving towards the exploitation of some of the proceeds and invest them in the rest of the banks.

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