Parliament: CBI reserve is able to bridge the 2012 budget deficit
Parliament: The Central Bank has a significant financial reserve is able to bridge the budget deficit (2012)
On: Sun 11/20/2011 6:32
Baghdad / economic-term follow-up
Between the member of the Economic Committee in the House of Representatives Joseph Tai, the central bank has the largest financial reserve in the history of Iraq, stressing mightily to fill any deficit or a problem occur in the next budget. Said Tai, according to the Agency (news): The Central Bank has backed a major financial and beyond (60) billion dollars, that is the largest financial reserve Ojmah in the history of the Central Bank of Iraq.
Tai said: that this amount is too large and the State can resort to in case of any disability or financial problems in the next budget to meet the financial shortfall, which gives great motivation for the Iraqi economy in the future that is evolving and moving forward.
Tai pointed out that this large reserve will reflect positively on the exchange rate of the Iraqi dinar, which lead to a strengthening in the future, stressing that it would give some sort of credibility in dealing with the Iraqi currency if Iraq opened up economically with the most advanced countries.
Noting that it would attract foreign investors and international companies to invest in sober inside Iraq and in all sectors, indicating that Iraq next major economic investment that needs to monetary stability and that is what is provided by the Central Bank.
So warned by the Finance Committee Ahmad electrodes, government borrowing from the reserves of the Central Bank in the payment of budget deficit (2012) is considered as a cover for the existing currency, likely that the budget (2012) will reach more than (112) trillion dinars.
The electrodes according to the Agency (news): The government can not be manipulated or borrow from the Central Bank reserves to fill budget deficit (2012) the fact that these amounts are a cover for the currency of existing, indicating that the central bank an independent and not linked to the government can not be anyone to interfere in the affairs of his or manipulation
It is not surprising to get Iraq to rank low in business over the past years. These procedures apply to a lot of things in Iraq, which still suffers miserable bureaucracy.
Iraq did not do anything to solve any of these problems because the country relies mainly on oil, which derives most of his fortune from oil, and there is no incentive to reform the country's economy. The private sector in Iraq is relatively small, has dropped some sectors such as agriculture and industry in recent years. Government has not affected because they depend entirely on oil and have put its future in the development of this industry. What did not change the Baghdad government priorities, it is likely to continue this situation and Iraq will remain at the bottom lists the World Bank.