Economic Adviser to the Prime Minister is a financial reserve "good" in light of the economic crisis

Last updated 04/05/2016 - 19:39

BAGHDAD / Economy News ...

Economic Adviser to the Prime Minister emphasized the appearance of Mohammed Saleh, on Monday, that the value of financial reserve of between 50 to 60 billion dollars, and as pointed out that variable up and not flat as oil revenues, denied reports that talked about the withdrawal of the government any amount of that money .
The International Monetary Fund, stressed that Iraq 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 IMF staff.

Economic Adviser to the Prime Minister, said the appearance of Mohammed Saleh, in an interview, said the central bank is going according to a deliberate steps to address gaps in the local economy and the resulting lack of government revenues due to lower oil prices in nearly two years. "
Saleh added that "the government's income from the sale of oil reached $ 8 billion in 2013 to reserve rose to nearly $ 75 billion, but now, the oil revenues of the two not to exceed one billion dinars a month so we find reserves of between 50 and 60 billion dollars." .
Economic Adviser explained that "There is constant coordination between the Central Bank and the International Monetary Fund through agreements concluded to engage in open market operations to buy treasury remittances and provide liquidity
He said the "reserve variable because of the size of fiscal revenue from the sale of oil and the amount of funds sold through the daily auction to sell the currency."
Economic adviser, denied "the government withdraw any amount from the treasury of the financial reserves of the country to meet the cash shortfall due to the economic crisis she is."
He stressed that the benefit of "the central bank developed plans and programs to control the balanced economic crisis through prudent monetary policies pursued by gradually commensurate with the requirements of daily work."
The IMF said, Wednesday (March 30 2016), in a statement, said the 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 shock large external balance of payments and budget revenues, leading to disruption of the movement of trade and declining investor confidence level. "
The fund added that, "as a result of the deficit that widened the gap in the current account in the balance of payments of up to 5.1%, which led to a decline of Iraq's foreign exchange reserves by the end of 2015, amounting to $ 13 billion to $ 54 billion."
The Fund pointed out that "Iraq is continuing to make 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 through the funding, and would include more measures to adjust the public finances of the Iraq situation, the aim of making spending in line with the low level oil prices. "
Iraq has held in 27-28 March 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.
In turn, said economist Mohammed Mustafa Habib, the monetary reserves of the country declined rapidly is a dangerous sign, so the financial institutions of the state review its policies according to market data. "
"The successive governments have wasted billions of dollars wildly impact on the financial reserve directly without any achievement is noteworthy."
He explained that the beloved "Central Bank's insistence on the continuation of the daily currency auction cost the local economy a lot of money as a result of adhering to the application of laws and regulations are not commensurate with the deteriorating economic situation since the country nearly two years."
He said the "budget in 2015 included a clause specifies an amount of $ 75 million to be sold in the daily auction of the coin to control the financial attrition, but the central bank challenged the law with the District Court, and continued to sell to up the amount the rate to $ 150 million a day."
"The central bank has a responsibility to maintain a financial reserve for Iraq and work to develop and increase it by controlling the daily its activities and consolidation of new laws and regulations to maintain the commodity and service flow level without the side effects caused by some corrupt and speculators."
The Iraqi government, in a note to the International Monetary Fund, Tuesday 13 Klnon II, it plans to finance the deficit in the balance of payments, withdrawals from Iraq, including foreign reserves will make it drop to $ 43 billion in 2016 from 59 billion last October end.
She added, under a program approved by the IMF as a precondition for the loan, it is expected that the balance of payments deficit of $ 14 billion 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 the 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.