Economic Adviser to the head of Government is the financial reserve "well" in the shadow of the economic crisis
2016/04/05 (00:23 pm) - hits: 241 - number (3616)

Baghdad Ibrahim Ibrahim

Economic Advisor to Prime Minister Mohammad Saleh appearance on Monday, the value of the fiscal reserves of between 50 to 60 billion dollars, while noting that variable and not fixed by oil revenues, has denied reports that the Government withdraw any amount of that money.

The IMF, stressed that Iraq currency reserve reduced to 54 billion dollars in 2015, indicating that Iraq is continuing to make progress under the IMF monitored program.

He said the Economic Adviser to the Prime Minister and the appearance of Mohammed Saleh, in an interview for "the range", "the Central Bank is moving in accordance with deliberate steps to address gaps in the domestic economy resulting from the lack of government revenue as a result of low oil prices for nearly years.

Saleh said "Government revenue from oil sales reached $ 8 billion in 2013 thus rose to nearly 75 billion dollars, now that oil revenues do not exceed 2 billion dinars per month therefore reserve ranges between 50 and 60 billion dollars.
Economic adviser said that "there is an ongoing coordination between the Central Bank and the International Monetary Fund through the agreements to enter the open market operations to purchase allocate Treasury and liquidity

The "variable reserve because of the size of the revenue derived from the sale of oil and the amount of funds sold through auction to sell daily.
Economic Adviser denied "withdraw any amount of Government Treasury the financial reserve of the country to plug the cash because of the economic crisis."
He stressed that "the Central Bank plans balanced programmes to control the economic crisis through prudent monetary policies pursued by gradually commensurate with the daily work.

He said the Fund, Wednesday (30 March 2016), in a statement received "range", a copy of that "real GDP contracted by-2.1% in 2015 because of continuing armed conflict with organize daash which continue to strain the resources of Iraq, adding to the sharp decline in oil prices causing significant external shock on budget revenue and balance of payments, disrupting traffic and diminishing investor confidence."

The Fund added that "as a result of this widened the current account deficit in the balance of payments of up to 5.1%, leading to a decline in foreign exchange reserves by the end of 2015 Iraqi $ 13 billion dollars to reach 54 billion dollars.

The Fund noted that "Iraq continues to make progress under the program that monitors the IMF", adding that "Iraq will achieve three objectives guided the five required at the end of last year, including reducing the level of implementation of wage and pension expenditure, goods, services and transfers".

The Fund, he said that "Iraqi authorities and IMF experts made progress towards reaching an understanding on the programme of economic and financial policies, which can be supported through funding, and would include more measures to adjust the general financial conditions for Iraq, with the aim of making the expenditure conforms to the low level of oil prices".

Iraq was conducted on 27-28 March in the current financial and economic talks with the International Monetary Fund in Oman for a credit policy arrangements (SBA) qualify to obtain loans.

Said economist Mohammed Mustafa Habib in an interview for "the range", "undo the country's cash reserves rapidly is a serious indication, so State financial institutions review their policies, according to market data.

"Successive Governments have wasted billions of random effect on the financial reserve directly without achieving any breakthrough".

Beloved explained that "the Central Bank's insistence on continuing the daily currency auction commissioned the local economy large amounts as a result of adhering to laws and teachings are not commensurate with the deteriorating economic situation in the country nearly biennium".

The "balancing 2015 included an item determines the amount and the capacity of 75 million dollars is sold at auction currency daily to control the financial drain, but the Central Bank law was challenged in court, and continued with the sale of up to 150 million dollars a day.

"The Central Bank is responsible for maintaining the financial reserve for Iraq and work on development and increased through control of the daily activities and supported by new laws and help maintain the commodity and service flow level without the side effects caused by some corrupt speculators."

The Iraqi Government said in a memorandum to the International Monetary Fund, Tuesday 13 klnon second, it plans to finance the deficit in the balance of payments, withdrawals from Iraq as foreign reserves will drop to $ 43 billion in 2016 from 59 billion at the end of last October.

She said, under a program approved by the IMF as a precondition for the loan, from the expected balance of payments deficit of 14 billion dollars in 2015, before shrinking to $ 11 billion in 2016.

Iraq has estimated that GDP will grow by 1.5 percent in 2015 and 10.6 percent in 2016, with increase in oil production, while falling oil prices will lead to a budget deficit of 15 percent of GDP in 2015, and a deficit of 10 percent in 2016.