Iraq's reserves of hard currency to fall to $ 54 billion


Wednesday , 30th March 2016

The IMF announced on Wednesday that Iraq 's reserves of hard currency dropped to $ 54 billion at the end of 2015, indicating that Iraq is continuing to make progress under the program , which is monitored by experts of the Fund.

The IMF said in a statement that "real GDP shrank by - 2.1% in 2015 due to the ongoing armed conflict with al Daash and who continues strained the resources of Iraq, in addition to the sharp drop in oil prices which caused the occurrence of large external shock in the balance of payments and revenues of the budget, leading to disruption of the movement of trade and declining investor confidence level. "

The Fund added that, " as a result it has widened the deficit gap in the current account in the balance of payments of up to 5.1% , which led to a decline in the Iraqi foreign exchange reserves by the end of 2015 , amounting to $ 13 billion to $ 54 billion."

The Fund pointed out that "Iraq continues achieve progress under the program , which is monitored by IMF staff , "noting that" Iraq is making three of the five indicative targets to be achieved by the end of last year, including reducing the level of implementation of spending on wages and pensions, goods and services and transfers. "

The Fund continued, that" Iraqi authorities and experts Monetary Fund made progress towards an understanding on a program of economic and fiscal policies, which can be supported by financing, which would include more measures to adjust the overall financial situation of Iraq, in order to make spending in line with the low level of oil prices. "

Iraq had held 27 - March 28 , the current financial and economic talks with the international Monetary Fund in Amman in order to conduct credit policy arrangement (SBA) that qualify to get financial loans.