Iraq dinar will not be used in oil sales
8.1.2012 | (Voice of Iraq)
denied the Deputy Governor of the Central Bank of Iraq for the appearance of Mohammed, and there are efforts to use the Iraqi dinar in the sales of some of the country's oil exports, because the «market speculators will buy the dinar to sell to countries dealing with the country's oil, and we will enter into a whirlpool of speculation in the dinar, and we are already to reduce the inflation experienced by Ktltna cash ». Saleh pointed out that countries that have turned their currencies to the international currency with the economy is very strong, such as the European Union, China, Japan and the United States . The Iraq covering the dinar in hard currency through the assets of $ 53 billion. In regard to the project to delete three zeros from the dinar, said that «the central bank ended the preparations for the replacement process end of the year», pointing out that «dinar witnessed the first process of replacing a successful 2004, when Replace more than six trillion dinars Bdnanar new and is expected to begin the process of replacement of a second after the removal of three zeros end of this year, and this will be decided by the government ». The size of the Iraqi currency traded locally about 33 trillion dinars, after he was no more than six trillion in 2003, by banks, to 70 per cent of the money supply. Salih stressed that the auctions of the Central Bank sold $ 40 billion over the past year, pointing out that «the auction is one of the most important means of monetary policy shift in which oil revenues to the liquidity of local insurance requirements of government budgets, as well to the control of the dinar exchange rate and reducing inflation ». He added that «the bank will be obliged to issue a block additional cash during the current year, due to the increased size of the budget, and this means insurance reserves an additional hard currency, which is normal with overall economic growth of the country». He explained that Central Bank is obliged offering larger quantities of the dollar through auction the higher government expenditures denominated in dinars, as the 60 per cent of the proceeds of the sale go expenses-governmental organizations, and the remaining are for the benefit of the private sector, and expected to increase demand for the dollar in the current year because of the adoption by the Government budget is the highest in the country's history. to reduce the budget , the Iraqi government decided to cut the budget this year of $ 115 billion to 100 billion, based on the price of a barrel of oil equals $ 85, and a deficit of $ 14 billion would be covered through internal and external borrowing from the IMF and World Bank. The volume of foreign trade to Iraq in the last year, according to the benefit of $ 46 billion, two-thirds of the private sector. It is noteworthy that the Iraqis would prefer to deal in dollars because of the low value of the dinar, as the value of the banknote the same category Top 25 thousand dinars (equivalent to $ 20).