The Central Bank talks about mechanisms that will boost hard currency and restrict importers and currency smuggling
Yes Iraq: Baghdad… The Iraqi Central Bank ruled out a threat to hard currency reserves as a result of borrowing, and while noting that the oil market recovery maximizes the reserve, he stressed that changing the exchange rate created competition between the local producer and the importer.
The Director General of the Accounting Department at the Central Bank, Ihssan Shamran, said in a press statement that “the dollar reserve of the Central Bank is not directly affected by the borrowings that the Ministry of Finance makes from banks,” noting that “its impact is indirect and limited.”
He pointed out that “the central bank is monitoring and ensuring the integrity of Iraqi dinars that are handed over to traders to buy dollars for fear that their sources are unknown or related to money laundering crimes. Then the dollar is delivered.”
He explained that the market now feels a little relaxed after changing the exchange rate, which contributed to reducing the import process and creating competition between Iraqi and foreign goods, noting that changing the exchange rate would help the national product in marketing its goods after the imported goods became high in value by 22%.
He pointed out that “the change of the exchange rate made by the Central Bank in favor of supporting the national product against the importer.”
He continued, “The recovery of the oil market would maximize the hard currency needs and reduce the deficit in the general budget for 2021, noting that the dollars collected from the oil sale differences will strengthen the foreign operation reserves of the Central Bank, as this will reduce the pressure on the bank’s reserves of currency.”