Central bank: $ 60 billion currency reserves enough for six months
Central bank: $ 60 billion currency reserves enough for six months 11 21 2015
The central bank announced that foreign currency reserves of 60 billion dollars, "adding that" enough for six months. "
The governor of the Central Bank and Kalhali 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 to maintain prevailing on the reserves of the dinar and to cover high, in spite of the prevailing and known to everybody economic conditions, so it is kept whole and preserves the purchasing power of the Iraqi dinar. "
He pointed out that "with a lower dollar resources, because of lower oil prices, the reserves are still the level of efficiency, 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." .
And the relationships that "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 the fund was amended his expectations, and as the reserve b $ 50 billion, and is still expected in accordance with the actual data and indicators we have the reserve - as we expected - it will be up to 60 billion dollars. "
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, amounted to about $ 600 million a month, and the central bank to cover this difference to balance the balance of payments and to maintain 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 hold enough coverage and 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 sales of the bank rate of the dollar amounted to purchases of dollar 148% and then returned to accumulate new reserves after prices returned to their rates up ".
He pointed out that "the common mistakes link decline or reserve high 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 represented in the set of the dollar is doomed to exports of crude oil, the quantity and price, and other sources quasi no transfers 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 often are 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 additional demand for goods and services imported more than it received by the Central Bank of the dollar, which usually exchanged and the Ministry of Finance in Iraqi dinars through the bank. "
Keywords and he pointed out 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 sales foreign exchange, as it would lead to the creation of a large deviation between the official rate and the market and achieve the obscene gains for speculators and brokers price, and lead to a general rise in 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 reducing the budget deficit to less extent possible, to prevent monetary expansion, which is not offset by the dollar resources, and provide political, economic and security stability factors to limit the flow of money abroad, and to increase investment and savings within Iraq, in addition to the application of broken laws to protect local product [Customs Tariff Act, the Consumer Protection Act, Product Protection Act, the anti-dumping law, and the performance of the relevant state institutions Balastairadat for her roles, in granting leave In the control and control and obtaining fees and charges and the provision of national databases. "
He said the Keywords, that "the central bank a founding member of the International Monetary Fund and the World Bank, 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 Arab and international consultancy firms and institutions of 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 soon launch its 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 formation The special monitoring and evaluation. "