Central bank: $ 60 billion currency reserves are sufficient for six months ..
Central bank: $ 60 billion currency reserves are sufficient for six months
2015/11/20 22:04 •
the central bank announced that foreign currency reserves of 60 billion dollars, "adding that" enough for six months. "
The governor Antrziokalh Bank, on the Keywords in a statement received by the agency all of Iraq [where] a copy of it, that "the Central Bank is working on the application of parallel policy to maintain the overall stability of prices and curb inflation as a mission president of the basis of the target under the Bank Act, and at the same time working on maintaining reserves prevailing dinar and cover high, in spite of the prevailing and known to everybody economic conditions, and is thus the whole maintained and maintains the purchasing power of the Iraqi dinar.
"He noted that" with a lower dollar resources, because of lower oil prices, the reserves are still level enough, but much higher, according to international criteria and are the standard of the local currency cover the equivalent of foreign currency, and the ability of reserves to cover imports for a period of 6 months.
"Among Keywords" The International Monetary Fund predicted at the beginning of 2015 and the arrival of the reserve to $ 40 billion At the end of the year, we have explained at the time that the reserve will be up to $ 60 billion at the end of that year and months after the beginning of the year Justice Fund forecast, estimated reserve of 50 billion dollars, and still we had expected, according to the data and the actual indicators we have the reserve - as we expected - it will be up to $ 60 billion. "
He continued, "The difference between our purchases of the dollar [Ministry of Finance] and our sales of the dollar for the period from 01/01/2015 up to 09/30/2015, it amounted to about $ 600 million a month, and the central bank cover this difference to balance the balance of payments and keep the exchange rate and therefore the general level of prices, "pointing out that" even with the continued decline in oil prices and hence lower revenues from the dollar, the reserve can continue coverage enough adequate presence of about $ 60 billion of reserves ".
According to Bank Governor that" what is happening from the low and high in reserves is frequent occurrence in countries that rely on exports of oil, has happened in the year of 2009, when oil prices fell, then stood at the bank sales rate of the dollar to its purchases of dollar 148% He then returned to accumulate new reserves after prices returned to their rates up ".
He pointed out that" the common mistakes connect low or high reserve of the Central Bank, since this reserve is governed by the nature of the composition and the nature of the use of outside control or the central bank control and is in the Inbox the dollar is doomed to exports of crude oil, the quantity and price, and other sources virtually non-existent 'remittances from abroad, whether from living abroad or foreign investment, or non-oil exports.
"He explained," The state budget expenses represent the main source of aggregate demand for goods and services, which mostly be imported, due to the absence of local production base, while constitute a migration of funds from Iraq phenomenon evident because of the situation of the country, as well as the continuing shortfall in the state budget and covered loans, bonds, money orders, and this means an increase in money supply which is not offset by revenue dollarised, this creates an additional demand for goods and services imported more than it received by the Central Bank of the dollar, which exchanged usually the Ministry of Finance in Iraqi dinars through the bank.
"He Keywords that" restrict the sale of dollar operations lead to a violation of the guidelines of the International Monetary Fund approved and committed to by the Member States, including Iraq while intersects restriction with the Central Bank, which provided in Article 28 thereof on procurement law or simple non-cash conditional or forward foreign exchange] sales, as it would lead to the creation of a large deviation between the official rate and the market rate and achieve the obscene gains for speculators, brokers, and lead it to the general rise of prices and harm the purchasing power of the Iraqi dinar, and the practice of cheating, forgery and fraud and corruption in order to get the amounts of the dollar.
"He argued that" the preservation of the reserve required to stimulate national production and diversify the local production base to reduce the demand for imports and thus on the dollar, and a reduction budget to a deficit of less extent possible, to prevent monetary expansion, which is not offset by the dollar resources, and provide political, economic and security stability factors to curb the flow of money abroad, and to increase investment and savings within Iraq, in addition to the application idle to protect local product laws [tariff law, Consumer Protection Act, Product Protection Act, the anti-dumping law, and the performance of state institutions related Balastairadat for her roles, in the granting of licenses in the supervision and control and obtaining fees and charges and the provision of national databases.
"He said the Keywords, that" the central bank founding member of the IMF and World Bank international, as well as Arab, regional and international financial organizations, and the World Bank in communication and consultation and understanding with those organizations, but that the rules that the joints of the base currency control are the principles, rules and recommendations and agreements issued by these organizations. "" As the central bank has consulting contracts with the best consulting firms Arab and international institutions and international auditing and review, and continues to expand counseling channels, in addition to the support it receives from international organizations and Arab and Islamic central banks and take advantage of its services free by virtue of Iraq's membership in or by virtue of bilateral relations and memorandums of understanding. "He noted," The Bank will be launched soon strategy for the years 2016 - 2020, was built on the latest global developments in the banking and financial sector, the first strategy in the history of the central bank in the method of construction and in the content and direction, and the principles and criteria of total quality in the preparation, with the introduction of a special form shall follow-up and evaluation ".anthy http://www.alliraqnews.com/modules/news/article.php?storytopic=37&storyid=21785