High reserves gives the Iraqi dinar additional power
Date: August 18, 2012
The Central Bank of Iraq that the high reserves of hard currency to 67 billion dollars, it returns a positive, given the dinar additional strength.
The deputy governor of the Central Bank, the appearance of Mohammed Saleh, in a press statement yesterday, said that there is a correlation between the direct current account surplus of the balance of payments and trade growth cash reserve of foreign currency.
He stated that this correlation passes through the federal budget of the state, where they pass through state revenues from oil to foreign currency dinar through the Ministry of Finance, which convert the dollar to the local currency, pointing out that every dinar currency or foreign currency exporter covered with the Central Bank.
He explained that the management of the cash reserve be in accordance with evidence of investments and in accordance with international standards in the management of central banks in terms of diversification in the currency diversification and investment tools, which are always treasury bills and the guarantor countries with high credit.
The central bank has recently announced high reserves of hard currency to 67 billion dollars, stressing that these reserves are the largest in the history of Iraq, and that these reserves is one of the monetary policy to reduce inflation in Iraq.