Iraqi Central Bank Governor: the dinar in a good position

The Iraqi currency dropped to about 1,400 dinars to the dollar on the parallel market in mid-June The Governor of the Central Bank of Iraq on the Keywords, that «the decline in oil revenues reduced foreign exchange reserves to about $ 60 billion, enough to cover imports needs for 18 months», the second largest producer of crude in «OPEC» Organization. Has come under public finances of Iraq under great pressure, because of lower oil prices since last year's war with the organization of the Islamic state. The government expected the «fiscal deficit by about $ 25 billion in the current year budget» amounting to about $ 100 billion. He explained Keywords, that «the low dollar-denominated expenses also eased demand for foreign currency». He stressed that «precautions in Iraq comfortable level, they are decreasing every month, but not in great shape».

And played down fears that «the Iraqi dinar is under pressure as a result of the continued decline», which sells to banks and dealers who obtained licenses to a fixed rate of 1166 dinars to the dollar. He said «If we look at the markets these days, we note that the price is stable and very reasonable, so no need to worry at this time». The Iraqi currency dropped to about 1,400 dinars to the dollar on the parallel market in mid-June 1228 week earlier. According to traders that the price «amounted to 1218 dinars to the dollar the day before yesterday».

In the framework of efforts to help plug the budget deficit, shopping Baghdad for the first version of the international bond in nine years in Europe and the United States this week. The government hopes to raise $ 6 billion in a series of bond issues in US currency, but Keywords pointed out that «the first phase will be to collect two billion dollars.»He predicted that «beyond the interest rate of eight percent because of security concerns». Also plans to issue a Baghdad local bonds worth five billion dollars starting from the last quarter of this year.

He announced «Central» governor that «a bond issue in international markets will help the reintegration of Iraq in the global financial system, after years of wars and sanctions.»He believed that Iraq «also needs to reform its banks through the restructuring of the largest banks are owned by the State and T_khasasma, two« Iraq »and« rational ». It was considered that «the president who can change that is conducive to change the entire sector», pointing out that these two banks «dominate about 80 or 90 percent of the Iraqi banking sector». Did not rule out that «acquires foreign banks shares in the two banks through two or three years».According to the law, can not be the central bank lending to the Ministry of Finance, but Keywords reported that «pumping liquidity into the banking system through the purchase of treasury bills and bonds by as much as 5 trillion Iraqi dinars (4.38 billion dollars) in the secondary market this year ».