BLC Admin Chat: CBI Current Problems Part 1 of 2

BLC Staff RCS1947 and tlm724 Chat 06/15/2015 Central Bank Current Problems

[shunshine] what do you think will happen with the CBI

[tlm724] shunshine I don't know what the CBI will do nor the GOI. Shabbi came out with an interview though, let me grab it and we'll read it together 

[shunshine] ok Was wondering if he was still a player in the CBI.

[tlm724] ok found it, thanks Rocky for posting it for us !
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Central Bank current problems as a result of the loss of independence

6/14/2015

Sinan Mohammed rida Al-Shabibi

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[tlm724] "Iraqi money market live in the present state of instability was the collapse of the market rate of the dinar " so she crashed despite the supporting reserves !

  

[tlm724] The reason is due to this difference between the two prices to enter ministries (Finance) and other parties (House of Representatives

[tlm724] okay now we are getting down to the finger pointing !

[shunshine] Always the blame game.

[tlm724] lets read some more its a long one , Shabs gettin all chatty cathy on us lol

[shunshine] Wow

[tlm724] so he is saying this was due to a double dip kinda thing, everyone charging a fee, tax ... for the purchase of the dollar

[tlm724] So there is the intervention of the Ministry of Finance in the work of the central bank. This intervention is designed to collect the financial resources of the Ministry of nothing to do with monetary policy

[tlm724] uh huh MOF is doing his job BUT it has nothing to do with monetary policy Suspect    ok then

[tlm724] although the central bank is that the collection of these resources

[RCS1947] Rolling Eyes

 

[tlm724] In other words, the central bank is the one who collects these resources for the Ministry of Finance

[shunshine] Thats nuts

[tlm724] RCS1947 ino lol 

[shunshine] And they are supposed to be working together   

 

[tlm724] As the budget included the central bank to buy Treasury bonds and remittances to $ 6 billion and reduce the percentage of legal reserve held by banks at the Central Bank in half to provide budget resources.

[tlm724] The seriousness of these measures GOES to reduce the effectiveness of monetary policy in the fight against inflation.

[tlm724] oh even Shabs is using capital letters now lol  

 

[tlm724] so the plan was to sell bonds to make some money for the budget

[tlm724] Therefore, on the fiscal and monetary authorities to assess what you get compared to inflation of resources and instability, which can be a cause for the collapse in the real rate of the dinar

[tlm724] cause for the collapse in the real rate of the dinar

[shunshine] You think

[tlm724] sounds like way too many hands in the economic pot to me !

[shunshine] Agree way too many

[tlm724] the proxy governor is just a puppet at this point, the GOI is running roughshot over him !They have him going in cirles I am sure !

 

[RCS1947] I like hearing all this noise...... maybe somebody will do something to get off square one!

[tlm724] RCS1947 yes ! scream it from the temple tops !

[shunshine] Time to get rid of him jmo

[tlm724] they want to shunshine !

[tlm724] Thus, the central bank has lost its independence and became a bow to the decisions of the government and parliament

[tlm724] ah ha I just said that

 

[tlm724] The government and parliament policies, and particularly in determining sales, led to a duplication of the exchange rate deceived enriched black market and some of them used by others in other funding terrorism may be one of them.

[tlm724] led to a duplication of the exchange rate deceived enriched black market

[shunshine] And they didn't know this would happen, sure they did.

[tlm724] so while the GOI and the CBI were all trying to get their share of profit the black market went crazy right under their noses and now they are like what happened *slap*   

[tlm724] idiots as bubbies would say !

[shunshine] Thats a nice word for them

  

[tlm724] I still its the CBI's fault , they are independant and should bow to no one ! The buck stops with them,  pun intended Wink   

[tlm724] Loss of autonomy has several caveats most important that the central bank will be subject to the instructions of the government, which will be reflected in the Bank's policies and therefore, the central bank will not be able to adopt the goal of reducing inflation in earnest

[tlm724] shakes head are you kidding me that is why there is a safeguard built into the system in Iraq, that is WHY the CBI is autonomous !!

[shunshine] Why can't they bring Shabibi back to run it.

[tlm724] I hope they do !

[tlm724] To make matters worse, that government spending is inherently inflationary result of the delay in the implementation of projects. And loss of independence would lead to the creditors to look to the central bank's money as government funds, becomes a target for creditors, and this is an important issue should be discussed with creditors and lawyers Iraq.

[tlm724] delay in the implementation of projects

[shunshine] Dayum their going backwards.

[tlm724] he told them years to ago to complete they infrastructure needed ! and this would have brought investment and MONEY ! Not only are they all on the wrong page they are reading different books !

[tlm724] but the government's policies may not fit with the Central Bank Law.

[shunshine] dominate thats the magic word.

[tlm724] their in no cohesive plan being followed 

[tlm724] The imposition of a financial nature policies on the central bank should be the subject of study and coordination by government and parliamentary bodies

[tlm724] there ya go !

Comments may be made at the end of Part 2  Thank You

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