Article from Holly1 in the Chat Room
Blombera: Central Bank sees limited risk of devaluation

Tomorrow/Baghdad: the Governor of the Central Bank, Mohsen Al-allaq, said Iraq has enough foreign reserves to maintain the economic status, but has not ruled out devaluation of the dinar to support affected government revenues due to falling oil prices and the cost of war against daash.

He said his bank's relationship with him, "the reserves are sufficient to cover the country for more than six months of imports, while maintaining the exchange rate, the budget deficit for this year is less than $ 20.9 billion, i.e. approximately 25.4 trillion Iraqi dinar".

He added: "there is no fear on the dinar, but happens a slight change in the exchange rate to increase revenues from the Finance Ministry, and what work it is just an option needs to be careful because we don't want to abandon what we have achieved."

Meanwhile, consumer prices rose by 2.6 per cent, according to official data.

Against the background of the Central Bank Governor's comments on the Iraqi budget deficit, OPEC plans to raise bonds granted to Iraq worth six billion dollars to meet the Iraqi budget deficit problem, a deficit ratio of 17.4 percent in 2014, an increase of five percent this year.

It is noted that the IMF has given Iraq $ 1.24 billion to meet emergency last July.

And the invasion of Iraqi territories daash militants last year, it is expected that rising inflation in Iraq amid growing discontent among Iraqis who complain of a severe shortage of water and electricity which push them to get out of editing to express their anger at the lack of basic services.

Experts attribute the success to the military in the fight against militant daash patchwork, as well as the difficulty of collaboration with Sunni communities at the present time despite suffering from almtzorf, the latest problem and a financial crisis is clear.

Jean Michel Saliba, Economist at Bank of America Merrill Lynch says "Iraq has suffered from dual shock and immense in the past year, falling oil prices and predominance of militants daash on parts of its territory, and this has led to a sharp rise in the deficit."

Saliba said, "the Iraqi authorities have few options, one of which is for the Central Bank to reduce the value of enhancing revenue, we do not see an immediate decline, but see sharply."

And fears that oil-dependent economies may abandon dollar pegs, after allowing lkaskhstan and China use their currencies, while Saudi Arabia, the largest oil producer in the world, is committed to maintaining the policy of linking the riyal to the dollar.

In the Middle East, the Iraqi dinar is most at risk, despite assurances from Emirates NBD Bank the largest bank in Dubai, that the dinar will maintain its status, but as it is known, the war that most economic shocks and lower oil prices by 50 percent prevented, while the CBI strives to
Holly1 says(10:04 AM):
relieve pressure on governmental finances, while local banks were allowed to use their reserves by 50 percent, according to the word of the relationship.

Translation: Ahmed Alaa