MilitiaMan: Currency Rates are mechanisms. Bonds are mechanisms, bonds have interest rates associated with them, the are liquid assets just as currency, that can be traded on the secondary markets.. Looks like they are even mentioning the banks international interface as the vehicle to do so.. The bonds will be for local and or global availability. They even have an open for business sign out (lol) for all days of the week to keep things flowing from now on, even taking into account the epidemic. imo ~ MM
Don961: In the first official position, the central bank proposes a mechanism for the government to cross the financial crisis
Localities 2020/06/21 21:13 2337 Editor: ht
In the first announced official position in support of the government, the Central Bank confirmed its readiness to assist the government through a legal mechanism to cross the financial crisis in Iraq.
The Director General of the Accounting Department at the Central Bank of Iraq, Ihssan Al-Yasiri, said in a televised interview I followed (Baghdad today) that “there are 3 advantages enjoyed by the financial situation of Iraq, the first of which is a rich country and its oil resource is quantitatively stable and the last barrel of oil in the world according to studies will be from Iraq and secondly that the bank The central bank has good reserves and will not leave the Iraqi state subject to financial insolvency more than it should, and the third is that the government is responsible to its people and will not give up employees there are difficulties and hardships, but things are solvable.
And that “the central bank took a decision in this crisis to postpone the payment of installments by private banks without interest, and we strengthened its position by freeing a portion of the legal reserve held by us, which has a value of one trillion dinars, and was granted to these banks, which allowed the entry of new funds for them, moved the wheel of funds, and allowed loans to continue “.
He pointed out that “what is going on in Syria and Lebanon from two stifling financial crises, among its causes is the Corona pandemic, and the economic burdens it has set up and Iraq have also been affected, but the Iraqi economy is solid and the financial reserves it owns help it in this crisis.”
He revealed that “government banks possess 90% of government and public deposits, while private banks hold the rest, and banks are the oil that drives the economy.”
Bushra revealed by noting that “the Rafidain and Rashid banks and the Iraqi Trade Bank are currently engaged in major business with the Ministry of Finance and the Central Bank to cross this crisis,” revealing that,
“the central bank will be supportive of the government in its crisis, but its law prohibits granting money in a direct way, and it can support it directly By purchasing treasury bonds that the government offers for sale, or by facilitating the government’s obtaining of loans, with the bank’s international interface.
The Central Bank of Iraq, on Tuesday (14 April 2020), directed the banks to meet customers ’requests for all days of the week, taking into account the preventive measures issued by the official authorities. And a document issued by the Central Bank, which was received by (Baghdad Today), included that “based on what was included in the decisions of the crisis cell formed according to Diwaniya Order No. (55) for the year 2020 installed in paragraph (1) of the Ministry of Health’s letter \ Director of the Minister’s Office numbered (422) ) Last March 24, which excluded all bank employees from the decision to ban roaming, and in order to maintain the permanence and smoothness of work, the following is attributed to the following: Directing your banks to meet customers ’requests for all days of the week, taking into account the preventive measures issued by the official authorities to limit the spread of the Corona epidemic. . link