Central Bank adviser:

Iraq is committed to the policy of liberalization of current accounts

The Iraqi Central Bank's adviser stated on Monday, that Iraq was committed to liberating current accounts of payments balance, which have no restrictions on foreign transfers, except anti-money laundering and crime funding and terrorism, stating that Iraqi dinar holder has the right to act freely.

Mudhir Mohammed Saleh clarified that Iraq "is committed to liberate the current accounts of payments balance, according to the rules of the International Monetary Fund Convention, which forbids any restrictions on transfers, except for anti-money laundering, crime funding and terrorism," he said, adding that such measures "is the monetary policy to create a liberal atmosphere for future investments, that transferring currency freely will be attraction factor to the currency as well, and if we have restrictions on the exit of currency this will prevent it to be back again."

Saleh added that " Iraqi dinar holder, as to evaluate foreign currency, has the right to act freely, according to economic freedom, which adopts the rules of Iraq's economic practice without restrictions, with the exception of economic crimes."

The Minister of Planning and Development, Ali Baban said on Monday that the five weekly sessions convened by the Central Bank for the sale and purchase of the dollar is the process of smuggling of Iraqi funds abroad, and that the money smuggled through auction and offices of Iraqi central bank is for the private sector funds for establishing successful mega-projects, in Jordan and Syria.

The adviser of the central bank explained the auction mechanism, "Central Bank auction for currency is responsible to move this money, and has three duties, first is to finance the foreign trade of private sector, second is adaptation of cash and consequently facing the inflationary pressures," ,and third is " raising value of Iraqi dinar, which increased 25% during the last three years ", which he considered" a major asset for Iraqi people, after decades of suffering from the decline in the value of dinar. "

Saleh said, "We do not deny that the transfers and the rights may not100% for trading purpose, but they are citizens' rights, because, " Iraqi dinar user of is the holder his own wealth and has the right to act however he wants with this wealth."

The wealth distribution issue is not purview of monetary policy," and money exile, is (was) related to security conditions that prevailed in Iraq and fear of people on their money", in addition to "the presence of Iraqi immigrants, especially in the neighboring countries. To limit transfer process would mean creation of black markets outside the scope of law and non-control "

He concluded his speech by saying that "these things are not easy, but they are price to build a free and developed Iraqi economy."

Source : IRAQdirectory.com