The parliamentary Economic Commission is seeking the ATM project and the Central Bank is thinking about raising the value of dinar by selling gold coins.
Ahmed al-Alwani, head of the Parliamentary Economic Commission has said that the committee will address the associated authorities for starting the ATM project all over the country.
Alwani has further added on Tuesday that the project which was initially conceived to work for years and help in the reception of the financial dues of the citizens, but the projects was discontinued because of the situation of Iraq.
He has also said that the committee is planning to address the companies and the authorities that have been responsible for the work like building development and banking sector and providing the support experience.
According to Alwani, this experience is worthwhile when compared to the other countries and their developments.
ATM is one of the most basic parts of the modern life and especially in the banking sector and it was scheduled to start form 2008.
Economic expert Akram Abdel Aziz has confirmed that the central bank is banking upon the idea so selling gold coins in the banks for the citizens and they are taking this step to ensure that the value of Dinar will increase in comparison to the US dollar.
Aziz has further stated that this very idea of selling of gold coins to the other banks by the Central Bank is will actually help raising the value of the Iraqi Dinar in comparison with the US dollar. The dinar will be pulled from the citizens who are agreeing to buy gold coins and the lack of Iraqi Dinars in the market will ensure increased demand and tighten the supply.
He has further added that according to the available information, Central Bank has planned to block 30 trillion of dinars to block the cash surplus. This will led to an increased amount of supply and less amount of demand and that increases the value of the Iraqi dinar in comparison to the US dollar. This whole process will also include the supply of index liquidity money in the Iraqi banks. This liquidity has exceeded 51% and hasn’t found their ways to any kind of employment. This whole procedure is going to raise the prices of the various goods and create the state of inflation in the economic market of Iraq.
The sale of these gold coins will ensure that the inflation will be absorbed, the devaluation of the US dollar will happen and the price of the goods will also get reduced in the market of Iraq.
Mahma Khalil, the MP of the Economic Commission and member of the Kurdish block has confirmed that the custom convention with Iraq has concluded and there is nothing more to it, due to the enactment of the tariff in the country and it will indicate the agreements that won’t serve the national economy but actually they are creating propaganda rather than becoming professional solution.
Iraq has finally signed a memorandum of understanding with the customs and its joint venture along with Iran in the conference of Non-Aligned that took place in Tehran. Khelil has said that the Federal government has refused to work with tariff that has been enacted by the house of Representatives in the year 2010, it has also stressed the desire that the Iraqi government is not going to work with the new Law tariff, rather it will work with the old law that has been applicable from the 1955.
It has also been added that the memorandum of understanding the customs agreement along with the Iranian side and it will not serve the national economy unless the new Tariff Act gets implemented. It has also stressed the fact that old laws have been created on a specific time period and that is why they are not applicable at this age. That is why there is a need for an appropriate law.
It has also been pointed out that the national economy of this day is quite different from the economic situation of the past, especially before the initiation of the Tariff Act of 1955. This act was created for trading with Iran, Turkey and Jordan and then the situation changed significantly. That is why the requirement for a new Tariff Act is being felt. Iraq is still the second largest economy that does not have a tariff law.
Source [Al Mutmar]