Iraq: Treasury bonds and precious metal enhances monetary policy

Posted by on Jan 30, 2014 | Leave a Comment

said economic expert, Dr. appearance of Mohammed Saleh: that the announcement of the Iraqi Central Bank intention to sell gold coins to the public would pave the way for the re-emergence of banks mortgages in order to serve the Iraqi economy.

was the central bank, and in consultation with the Committee on Economic Affairs, has decided recently coined a variety of alloys pure gold weights ranging between (5 g and 1 kg). announced immediate measures contracted to import them and then sell them through the banking system, as this procedure represents a monetary policy tools.

origins sober
Saleh said in a statement (morning) that this measure comes to the purpose of diversification means savings for citizens and the provision of large quantities of gold from the origins of solid and reliable sold to dealers in gold, investors and segments of society, wishing the Iraqi dinar.

economist said: that this step has been the study of economic feasibility, by the Central Bank for the purpose of selling gold coins and cash and other foreign currencies as well as treasury transfers to the public soon.

banks, mortgages
and explained that this measure would contribute to the return of banks mortgages that accept mortgages Almkhclat gold for the money you borrow citizen to walk its affairs from buying houses or cars or other, He pointed out that the current safeguards required by the banks is a mortgage has contributed significantly to the decline in the proportion of credit to very low levels as measured by rates of credit for other Arab countries.

, and pointed out that a central bank that would raise the proportion of credit (loans granted by banks to citizens ), which amounts to 5 percent, a very small percentage of Ataatmashy with liquidity in government banks.

origins of global
He added that the citizen has absolute confidence in dealing with the government, which means that he trusts gold imported by being assured and the origins of global best of the items imported traders at the moment, and thus this procedure will enhance the chances of increasing credit including reflect positively on improving the situation of citizens living and the national economy in general.

pointed out that there are a lot of people have the amounts of gold and do not have a property underscores the need to return the banks mortgages Trahan gold in return for cash for periods certain interest rate agreed upon by the two sides, adding that the measure will move also wheel of the national economy towards the construction and reconstruction and moving a lot of sectors of the economy.

precious metal

and between that this action was the case earlier in the eighties of the last century, but the circumstances of the siege in the nineties of the last century has made citizens focused on buying the dollar to ease and speed of discharge in the markets as well as the precious metal is difficult to transfer it to the outside and therefore this measure contributes to the strengthening of the assets of the public by keeping gold within the country.

Salih noted that the treasury transfers and government bonds is another way of means of monetary policy, but Do not circulated by the public for limited circulation currently on banks and private banks on the one hand and the weakness of financial awareness among the citizens on the other hand, explaining that the treasury transfers short-term expires at the end of the year which comes to finance the deficit of my time while the central bank bonds are long-term and will continue over the years.

Between The Bank Bonds and Treasury Notes sold in a weekly auction held by the Central Bank for this purpose.

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