Central bank: a natural decline in dollar reserves and we have enough to import a long time

05/10/2016 (0:01 pm) - The number of readings: 74

Baghdad / Acer Jabbar-term

Counting the Iraqi Central Bank, on Tuesday, reduced its reserves from the dollar, "a natural phenomenon" due to lower selling prices, and stressed that this decrease was "vain" and achieved economic purposes and social "very important", and as pointed out that the current reserves "are sufficient to cover exporting currency and imports for a long time, "said an expert in economic affairs that foreign reserves fell by $ 8.5 billion a year, indicating a large floundering in monetary and fiscal policy of the government without finding realistic solutions to stop financial attrition process.

The governor of the central bank on the Keywords in an interview (range Press), "The decline in central bank reserves is a natural because of the fall in oil prices worldwide phenomenon, what impact directly on Iraq's financial revenues," returned to "the bank's policies were wise and were based on a balance required between maintaining the desired stability in the exchange rate of the hand, and meet the needs of imports by the private sector on the other. "

Keywords and added that "the decline of these reserves did not go in vain and it has achieved a very important economic purposes, social, and not, as some believe that he went without a little help," adding that "the reserves are still good enough to cover the exporting currency and imports for a period of six months exceeds a required minimum , according to the global financial indicators. "

Keywords and continued that "to avoid low reserve is by avoiding the public budget deficit and large amounts."

For his part, Economic Adviser to the Prime Minister and the appearance of Mohammed Saleh said in an interview for the "long", that "the reserve of foreign exchange at the central bank of more than $ 47 billion, and is considered a major figure in light of the crisis taking place in the country for nearly two years and of a lack of revenue derived from the process of the sale of oil prices, which fell dramatically Finance. "

He added that "the amount of the reserve covers imports necessary for a period exceeding internationally accepted term for this is reassuring at the moment and within a sound economic contexts."

Saleh explained that "the central bank's foreign reserves ridiculed during the previous years in the face of the private sector to cover the requests for import because the state imports 95% of the total of goods and services entering the country in exchange for a clear inability of the private sector."

And between economic adviser he said, "the new policy adopted by the central bank, which certainly represented the government and private banks audited funds provided sources for the purchase of Atar, sense that they are of sound real and not Hmah, sources as the daily operations to inspect each of the different import operations documents."

Salih stressed that "the central bank has taken a series of measures to create a balance between maintaining foreign reserves has requirements between the market price and to ensure the stability of the Iraqi dinar exchange rate against foreign currencies and prevent large economic shocks affect the local market."

In turn, the economic expert Uday Abdul Amir Al Amer said in an interview for the "long", "The decline in foreign reserves at the central bank at a rate of $ 8.5 billion a year, indicating a large floundering in monetary and fiscal policy of the government without finding realistic solutions to stop financial attrition process."

"The inability of the central bank during the previous three years for maintaining the existing reserve has, as opposed to seeking the Finance Ministry to withdraw more money spent on operating expenses of the government, estimated at billions of dollars a year."

He said Amer said "the process of maintaining foreign reserves and development is to invest part of it in the establishment of development projects, the strategy helps to perpetuate the natural movement of the local market to check the result of a lump-well turn keeps the cash cover of the national currency and prevent the low price against other currencies."

And that "Iraq did not arrive to the point of actual financial bankruptcy to pay the federal government to withdraw money from the foreign exchange reserves with cash provided by external and internal loans can contribute to reducing the proportion of splendor in the general budget of the country."

The governor of the central bank on the Keywords confirmed, in the (11 September 2016), the International Monetary Fund "surprised" that Iraq's reserves of foreign currency exceeded expectations by about ten billion dollars.

The Central Bank of Iraq's refusal, during (the month of January 2016), the government has directed withdrawal of financial reserves, and stressed that the law does not allow the government to draw from the hard currency reserves, while calling on the government to issue bonds and sell them to banks.