Dr. Sinan Al-Shabibi, Who Is He

Sinan Mohammed Rida al-Shibibi *: Current central bank problems as a result of the loss of independence

- Published in 06/15/2015
تعيش السوق النقدية العراقية في الوقت الحاضر حالة من عدم الاستقرار تمثلت في انهيار سعر السوق للدينار والذي بلغ 1340 دينارا للدولار الاميركي بينما السعر الرسمي يبلغ حوالي 1190 دينارا...

Iraqi money market live in the present state of instability was the collapse of the market rate of the dinar, which amounted to 1340 dinars to the US dollar while the official price of about 1190 dinars to the dollar, although the size of the reserve is still great, which is considered a key factor in the stability of the currency.

The reason is due to this difference between the two prices to enter ministries (Finance) and other parties (House of Representatives) and Amlaihm policies and terms were not unrelated to monetary policy, and not the central bank's ability to defend his advisers about the bank by law.

The problem at present is that students have to pay a conversion secretariat equivalent to a certain percentage of taxes and customs when buying the dollar and at the request of the Ministry of Finance, and this is an important factor in the rise in the dollar price. These conditions have served the Ministry of Finance, but the principle that the purchase of foreign currency and selling it must be done fast and smooth and without any obstacles (except banking conditions and a commitment to capital) because the rapid movement of cash, and if there is a need for the central bank to take advantage of foreign currency sale for development was better to use it in Ttaiwiramlah bank credit, if given preference in the auction of the bank, who leads in the banking its credit.

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, although the central bank is that the collection of these resources. In other words, the central bank is the one who collects these resources for the Ministry of Finance. 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. The seriousness of these measures GOES to reduce the effectiveness of monetary policy in the fight against inflation. 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.

Also restrict the sale by the House of Representatives means interference in the work of Parliament's central bank. Common among among economists and parliamentarians that the central bank continued to the House of Representatives, and this is a big mistake of the Central Bank is responsible to the House of Representatives and not subordinate to him, and here the Central Bank is no different from the rest of the ministries, but this responsibility (the responsibility of the central bank) explicitly mentioned in the Constitution.

Thus, the central bank has lost its independence and became a bow to the decisions of the government and parliament. The style is the right to put forward ideas as proposals in the House of Representatives and then be voted upon.

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.

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. 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.

The loss of independence means that the central bank to adopt monetary policies in line with the policy of the government, but the government's policies may not fit with the Central Bank Law. In other words, it does not focus on the fight against inflation does not give due importance to the goal of economic stability.

The imposition of a financial nature policies on the central bank should be the subject of study and coordination by government and parliamentary bodies. The central bank has weakened administratively from the government, and often tried to governments to impose its policies on the central bank, including the former prime minister tried to borrow from the central bank which was rejected because the bank law prevents him from it, and ended up the attack on the central bank and the arrest of many of the finest staff .

One manifestation of overtaking on independence is to waive it on the Central Bank reserves. Some repeating that this could be justified because the reserve exceeds the currency in circulation and in bank one and a half times. These justifications for the government to gradually dominate the central bank resources. The economy - such as the Iraqi economy - largely open on the outside needs to be significant resources to compensate for the results of any crisis, and if they are borrowing from the central bank would respond when will this money? What is the capacity owned by the bank towards the government to recover the money that?.

The bubble and the high price of the dollar is a result of the policy of the government and the House of Representatives and it ought to be to remove obstacles for the foreign exchange market where you should not be given greater importance of fiscal policy, monetary policy is determine the exchange rate and help to manage the money and functions.

The central bank does not lend to the government but it helps the economy as a whole through price stability and credit regulation and supervision of the banking and financial sector regulation and payments and maintaining the country's reserve. Lama speak much echoed by the government and the Finance Committee in the House of Representatives on "foreign currency auction", this auction is a monetary policy which pulls dinars from the market and bought by foreign currency and here Thread ends for the central bank, we have a cash discharge process direct and simple. And if there is no import of "auction" For parliamentarians to inquire about the reasons for this in the customs or the Ministry of Commerce import process does not fall within the monetary process. That the central bank must be matched each dollar demand and this is one of the fundamentals of price stability as the demand that has not saturated by the bank will go and creates another market prices and the other, which is contrary to the central bank law and creates a state of economic instability.

I chose the Finance Committee put an upper limit on the sale of foreign currency (75 million dollars a day) thereby contributing to instability in and create multiple exchange rates for real because the demand was higher. In any case, this request does not ask about the central bank, but ask for all sectors of the economy, why the Finance Committee in the Parliament and practiced legislation and supervision question to sectors of the economy which are supervised by and to the private sector, especially not go and it's supposed to meet all corners of the economy. We do not doubt that there are irregularities, which requires follow-up with the relevant commercial banks, but we stress that the central bank is in front of the discharge process, but not cash, either by the imports is outside the scope of work of the Central Bank.

On the other hand the money to go abroad because the state did not provide suitable opportunities to invest at home. Also, a section of which is a kind of external savings (within the concept of the national accounts of a country) will return to Iraq in appropriate circumstances that must be provided by the State. As for the extra money must be sure of their sources and legitimacy of the banks and the circles in which anti-money laundering that should be strengthened, the majority of sources may be derived from money laundering or simply that the subject is big operations out of capital.

We must not forget that Iraq falls within the group of countries which are in transition from totalitarian regimes to open democratic systems provide the free economy. This group of countries undergoing many changes in the economy opens up (as states formerly the Soviet Union), but a lot of these countries, its economy was characterized by the transfer of capital abroad. In the case of Iraq also encourages this transition because of the conditions of violence and instability experienced by the country. This situation may explain the large amounts that are being converted to Aforeig.anha go abroad in order to spare, then we are in front of the case of capital flight and not smuggled. The situation in Iraq at the present time encourage capital flight, and if it does not allow for capital that moves the dollar exchange rate in the market will rise significantly hampering economic decision-making.

Iraq has not yet become a safe place brings investment, we need large national efforts to ensure stability and attract investment.

* Former Central Bank Governor

Source: newspaper term, 15/06/2015



Central Bank Governor Sinan al-Shabibi

Eliminate exonerate Shabibi of "corruption charges for lack of evidence."

Author: HH, TG
Editor: HH
22/12/2014 14:05
Number of Views: 457

Long-Presse / Baghdad

Announced a judicial authority in Iraq, Monday, that Rusafa Criminal Court decided to acquit former central bank governor Sinan al-Shabibi of corruption charges related to the central bank, while the main reason for the "lack of evidence".

A spokesman for the judiciary Judge Abdul Sattar Bayrakdar said in an interview to the (long-Presse), "The body was competent integrity issues second in Criminal Rusafa court, today, a decision to acquit former central bank governor Sinan al-Shabibi of corruption charges against him issues related to the Central Bank through duration of his tenure as governor. "

He attributed the reasons for acquittal Birqadr to "insufficient evidence in the charges against the Hbibi."

A source in the Supreme Judicial Council announced on Monday, (December 22, 2014), that the Rusafa Criminal Court began hearing the trial of former Central Bank Governor Sinan al-Shabibi on charges of corruption.

He revealed human rights source familiar with the (26/11/2014) that both the former central bank governor, and former Minister of Communications, for example, before the court as soon as they returned to Baghdad, after promises that they would receive a fair courts, noting that the judge released them on bail.

Legal Parliamentary Committee confirmed, in (November 29, 2014), and an orientation for the retrial of a number of politicians and officials who were subjected to prosecution previously, while promised that it falls within the wide process for "reform of the judiciary," revealed the changes included more than 90 responsible in the judiciary.

Justifying the former Central Bank Governor Sinan al-Shabibi, in (the tenth of November 2012), not to make the World Bank and international organizations to comment on his dismissal, non-interest of those organizations personalities, which manages the central bank as far as concerned with monetary policy, and guessed that these organizations monitor the central bank policy to take a position on monetary changes to be undertaken by the new management of the bank.

The Iraqi Council of Ministers decided, in (16 October 2012), the prime BSA Abdul Basit Turki tasks Governor of the Central Bank and the agency.

He announced the Supreme Judicial Council (19 October 2012), the issuance of an arrest warrant against the governor of the Central Bank and a number of officials in corruption cases, after he was quoted by local media, in (14 October 2012), for control sources that the judiciary has issued an arrest warrant Shabibi corruption charges, noting that he escaped out of the country after the issuance of the memorandum, as the bank has denied these reports, saying that the governor is currently taking part in an annual conference in Tokyo and will return to Baghdad.

And met with the issue of the dismissal of the governor of the Central Bank of Iraq, international reactions mixed it called the American ambassador to Iraq, Stephen Beecroft in (25 October 2012 a month) to a transparent investigation in this case as it represents the great importance of the Iraqi economy, as the World Bank stressed the need to conduct an investigation transparent in this case, pointing to the lack of knowledge of the chaos that prevailed Central Bank of Iraq, which talked about the Iraqi officials.

She described the Parliamentary Integrity Commission, in the (November 10, 2012), the Special Committee to investigate corruption cases attributed to the CBI that it is "illegal", and confirmed that he will form a new committee to re-investigate this file, calling for a freeze on the decision to arrest the right Bank Governor Sinan al-Shabibi.


A source in the prime minister: Shabibi will return to his central bank governor


A source in the prime minister: Shabibi will return to his central bank governor

BAGHDAD / JD / .. An official in the Prime Minister's source, about the intention of the prime minister Haider al-Abadi return of former central bank governor Sinan al-Shabibi to his post after the issuance of the court acquitted.
The source, who preferred not to be named, told / JD /: "The day Monday, 22.12.2014 date the trial of former Central Bank Governor Sinan al-Shabibi for the acquittal of the charges against him by the previous government under the pretext of waste of public money."
He added: "The prime minister Haider al-Abadi board the return of the conservative story office Kmhafeza the central bank in the event of an acquittal from the court, is the fact that Shabibi figure of great economic mentality."
She had announced the Integrity Committee in the House of Representatives of the previous session that sack Shabibi been through it, that the competent court of inquiry to consider the fairness issues defused charges against the governor of the Central Bank of the article Shabibi, describing him out of office, "targeted personally" for failing to grant money to Prime Minister Nuri Maliki and his son Ahmed, where a court investigation proved that he did not entered the central bank and former boss Shabibi process waste of money mentioned by the investigative committee formed by the House of Representatives, not even BSA "Report ./ ended / 8 /



Former director of the Central Bank Sinan Shabibi accused of corruption

Shabibi and Mohammed Allawi granted bail by a court in Baghdad .. and their case to be resolved

Author: RS
Editor: RS
26/11/2014 19:23
Number of Views: 748

Long-Presse / Baghdad
Source confirmed my rights, that both the former central bank governor, and former Minister of Communications, for example, appeared in court on Wednesday, as soon as they returned to Baghdad, following the promises that they would receive a fair courts, noting that the judge released them on bail.
The source said on condition of anonymity, said Shabibi Governor of the Central Bank, and Mohammed Allawi, the former minister of communications, were released on bail, was postponed Mgmthma to 22 of the next month.
To the right of Shabibi and Allawi in the framework of the issues and Cefaha Eadah, in the era of former Prime Minister Nuri al-Maliki, is returning now part of the new political climate in which many hope his success in correcting the mistakes of the past period.
Earlier this month, re-Abadi account to the appearance of Mohammed Saleh, who was vice Hbibi at the Central Bank, was arrested in the same case and was imprisoned, but Abadi has appointed a special advisor for the economy, a demonstration that he supports different from his predecessor's policy, and pay attention to the experts who have been rejected by the previous government acted.
Many political figures and still prosecute the arrest warrants were issued on the basis of their criticism of the policies of Maliki or refusal to obey orders they considered contrary to the Constitution.

The Iraqi judiciary issued in November mid-2012, an arrest warrant for Central Bank Governor Sinan al-Shabibi and 15 of the bank's employees on suspicion of "committing financial crimes," according to a statement of the spokesman for the Judicial Council, and coincided with the issuance of an arrest warrant against the Minister of Communications Mohammed Allawi, and a number of his ministry staff .


Dr. Sinan Al-Shibibi, former CBI Governor

Posted on January 13, 2013 Posted in: Iraqi Experts Profile, Speaker and Panalists


      Consultant on Trade, Debt and Finance.

      Was until retirement a Senior economist at the United Nations Conference on Trade and Development (UNCTAD).

      Undertaken research on Financial flows, Economics of disarmament, Balance of Payments, External debt, Globalisation, and the Iraqi Economy.

      Managed projects for the implementation of policy, analytical and institutional aspects of debt management including the implementation of UNCTAD’s Debt Management and Financial Analysis System (DMFAS) in several Arab countries. Familiar with the macroeconomic and operational aspects of the “Debt Sustainability Model (DSM)” of the World Bank, and with the HIPC initiative.

      Coordinated UNCTAD’s work on OPEC financial flows to other developing countries resulting in the production of numerous reports on the subject.

      High-level contacts with Government Officials especially in the Arab region.

      Delivered numerous lectures and talks on the “Economic Prospects of the Iraqi Economy” in many international fora.

      Extensive travel experience in connection with work on debt management, OPEC Financial Flows and the work on the Iraqi economy.

      Strong quantitative background and high-level computer literacy.

Academic Qualification:

      1966 Baghdad University, College of Economics and Political Sciences, B.Sc. (Economics), First Class Honour

      1970 University of Manchester, Diploma in Advanced Studies (Economic Development)

      1971 University of Manchester, M.A. (Economics), Department of Econometrics

      1975 (March) University of Bristol, England, Ph.D. (Economics), Department of Economics

Experience and Career:

      United Nations Conference on Trade and Development (UNCTAD)
December 1980 – Oct. 2001

      Ministry of Planning, Iraq
Chief, Plan Preparation and Co-ordination Division
April 1977 – December 1980

      Ministry of Oil, Iraq:
Head Importation and Marketing Section
May 1975 – March 1977

Teaching Experience:

Geneva University
School of Translation and Interpretation (Arabic Language Unit)
- Introductory Economics and International Economics (in Arabic).

      1989 (Oct.-Dec.) & 1990 (May-July)
Webster University, Geneva.
-Statistics and Introductory Econometrics to MBA students.

      1979 -1980
Baghdad University, Iraq
Regional and Urban Planning Centre
-Delivered lectures on “Economic Planning” to M.Sc. students.
-Participation in the examination of MA dissertations.

      1975 – 1976
Mustansiryah University, Iraq
College of Administration and Economics
-Introductory Econometrics to B.Sc. students.

      1966 -1968
Demonstrator, Statistics Department,
College of Economics and Political Sciences,
Baghdad University, Iraq

Nationality: Iraqi
Date of Birth: 1 July 1941
Marital Status: Married, 2 children
Languages: Arabic (Mother Tongue), English (Fluent), French (Good Knowledge).

Areas of Specialization

      Econometric Model-Building,

      External debt management, with emphasis on macroeconomic and analytical aspects,

      Debt Sustainability Analysis,

      Analysis of Balance of Payments,

      Financial Flows from OPEC countries, especially from Arab Financial Institutions,

      The economics of petroleum and energy,

      The development problems of Arab countries and the Middle East region in general,

      The Iraqi Economy, and

      Development implications of trade and financial Globalization.


      “Globalisation of Finance: Implications for macroeconomic policies and debt management”, March 2001, Paper presented to a conference on “Globalization and the Gulf organized by the institute of Arab and Islamic Studies, University of Exeter, England, 2-4 July 2001.

      “Prospects for the Iraqi Economy: Facing the new reality”. Paper presented to a conference on “The Future of Iraq”, organized by the Middle East Institute, Washington. The paper was published in a book with the same title in November 1997 and reprinted in the UNCTAD secretariat. It deals with the effect of sanctions, debt, and war reparations on the future prospects of the Iraqi economy.

      “The Arab share in OPEC Aid: Some related facts” in Arabic, in Al-Mustaqbal Al-Arabi, Centre of Arab Unity Studies, Beirut, September 1988.

      “OPEC Aid, Issues and Performance” in the OPEC review, Vienna, spring 1987.