Finance: currency auction sapped the central reserve of up to 59 billion dollars
2015/12/05 (00:23 pm) - hits: 269 - count (3515)

Baghdad/Noor Ali

The parliamentary Finance Committee, confirmed Friday that the Central Bank's reserves fell to 59 billion dollars and demanded to be the size of the reserve in accordance with international standards defined, called to review the currency auction and what round around of misconceptions.

She is a member of the parliamentary Finance Committee, Magda El-Tamimi, speaking for the "range" to "the recent report issued by the Central Bank, shows that the value of the reserve amounted to 59 billion dollars, this checkered between increase and decrease of the budget expenses, if the mental state is less than airadtha, therefore there will be a surplus to be added to the reserve and vice versa".

Tamimi said that "currency auction on significant growth despite numerous appeals to the Central Bank need to reduce such sales of hard currency, indicating that such sales sometimes covers the value of the reserve, affecting its quantity, to maintain the size of the reserve is commensurate with international standards."

It showed that "there is something wrong with large currency auction, the Central Bank's clients from the private sector, are buying the dollar at the official rate on the pretext of covering the State imports, and this step bearing defect meant to sell the dollar at the official exchange rate, go into the pockets of corrupt officials, surprised by the Central Bank's insistence on continuing to bemzadalamlh, asking" is there in the neighboring currency auction, as is the case in Iraq. "

"The private sector imports must be in accordance with the import plan thought out, as in the past, and that growth depended on each year, so the dealer and importer presents goods as import plan welaytkhtaha as pleasure, as is currently the case.
She noted that "day trader imported by pleasure without any controls, and goods are not essential to the citizen, the false invoices".

Tamimi called Central Bank open documentary credits and be on sale through this accreditation and not directly with the importer, which imported between 5 to 95% and the remainder benefiting the trader through the difference between the two prices, the official exchange rate and currency rate, a point defect. "

And increased, "the Central Bank has to be managed by specialists in economics, finance, and not according to political party quota and confused Government institutions, especially the economic ones, with emphasized that a currency auction policy has destroyed the economy of Iraq."

The CBI revealed, Saturday (16/5/2015), the higher the reserve size Ady during may, than it was during April, while noting that the amount of oil sales for the current month, and predicted continued to increase during the coming months.
He said Iraqi Central Bank Governor Ali allaq told (range) on the sidelines of attending Conference (adoption of international accounting standards for banks), that "nature of Iraqi reserves monetary measurement depends on daily transactions for oil sold on world markets, as well as the volume of cash in the home." He confirmed the relationship, "the size of the cash reserve may present higher than it was during the month of April", stating that "it regards oil sales current month".

Relationship, predicted "continued high cash reserves over the coming months."

Referred to as the Central Bank confirmed, during the month of January 2015, the reserves will exceed 80 billion dollars during the first half of the year but will not reach the $ 100 billion because of weak revenue from Iraqi oil sold, and which get the dollar to strengthen.

In turn, the Economist, said Bassem Jamil Antoine in an interview for "term" that "99% of the reserve comes from oil exports, and when oil revenues and continue disbursements, there is a withdrawal from the reserve, and the reserve amount is reduced by currency auction, if stop selling the dollar price rises in the market, thus decreasing the value of the dinar, would maintain inflation head.

He added that "there should be a balance between selling the dollar, the amount of reserve, by world standards, which emphasizes the existence of reserves represents twice as much cash in the domestic market, if the reserve is less, there would be exceeded and risk".
Antoine said that "the existing currency market, estimated at 40 trillion dinars, when we calculate the value of foreign currency reserves, estimated at 60 trillion dollars, it means that more time and a half of the currency on the market, and this is reassuring at this time, but when the teams begin"
Increased by saying that "the IMF forecast that oil prices rise after two or 3, indicating that the flaw lies in the Iraqi economy being a cash economy, and the production process is almost negligible, which would go to oil revenues to imports of goods and foodstuffs.