British newspaper: the Iraqi currency and one of the most vulnerable currencies 8/26
British newspaper: the Iraqi currency and one of the most vulnerable currencies
The newspaper "Bloomberg" the British said, Wednesday, that the foreign currency reserves at the Central Bank of Iraq had fallen to $ 59 billion since the third of the month of July, saying the Iraqi dinar and one of the most currency risk in the Middle East, as he emphasized, Director General of the Bank CBI that the value of the dinar will not cut it.
The newspaper said in a report, "The currency crisis in any country be of dire consequences for the economy, and that the threat posed by the low value of the Iraqi dinar as a result of foreign currency reserves decrease in Iraq and the fall in oil prices may cause by making the fight against al-Daash terror more difficult."
The report emphasized that "the second-largest oil producer in OPEC after Saudi Arabia, depends only on oil revenues to finance military operations and try to suppress unrest related to the Iraqi economy," noting that "foreign currency reserves at the Central Bank dropped to $ 59 billion since the twenty-third of July past and losses escalate. "
He pointed out that "in the first 25 days of the month of August of this, the Central Bank sold $ 4.6 billion of currency to keep the dinar at a constant rate, which means that the daily flow rate of the dollar stood at $ 184 million."
He added that "the collapse of the value of the dinar can cause high cost of living for Iraqis who are protesting at the moment against government corruption, power cuts and water shortages."
He explained that "the central bank has so far resisted government pressure to print a new currency to cover the budget deficit of $ 30 billion, and announced last week plans on bonds worth 6 billion dollars followed by $ 1.2 billion from the International Monetary Fund."
He pointed out "that" despite the fact that these amounts are not large enough to meet the shortfall, but that leaves the Ministry of Finance a few options, including borrowing from local banks or forcing the central bank to buy dollar-denominated bonds from the Ministry of Finance. "
The report said that "Iraq will be able to finance the shortfall in 2015, but in the event of continuing the battle against al-Daash and lower oil prices Vsastdm Iraq by the wall."
For his part, he said economic analyst and author of the book "The Political Economy of Iraq," Frank Gunter, said that "the continuation of this storm in its current form means the continued loss of Iraq to its reserves, forcing the Iraqi government to reduce the value of the dinar," noting that "the Iraqi currency has weakened by 20% during the year next. "
In a related context, one of the Directors-General of the Central Bank and Walid Idi stressed that "the current policy is to meet the demand for the dollar, and that the reserves will not be depleted because of oil sales," stressing that "the value of the dinar will not cut it."