Central Bank of Iraq confirms that the reserves of foreign exchange a few

Monday, 12 March 2012 08:58 GMT

Adviser to the CBI the appearance of Mohammed Saleh

Sumerian News / Baghdad
The Central Bank of Iraq, Monday, that Iraq's reserves of hard currency low, attributing the cause to the weakness of economic diversification, as he said he needs to Htiattiyat great to deal with any crises that might occur in the future.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh in an interview for "Alsumaria News" that "the Iraqi Central Bank's reserves of hard currency, which range between 60 to 62 billion dollars are few," attributing the cause to "the weakness of economic diversification in Iraq."

Saleh added that "the Bank needs to be large reserves to deal with any crises that might occur in the future," adding that "Iraq depends mainly on its annual budget on the revenue derived from sales of crude oil."

He continued favor of that "other sources of production in Iraq almost non-existent does not exceed in agricultural production from 5.5% in industrial production 1.5%, while there are millions of employees who do not exceed 2% of their productivity."

Salih stressed that "the bank's reserves of hard currency is not Foa˙dha or sovereign wealth funds, but is a trade-off of foreign currency in Iraqi dinars," pointing out that "the central bank is a product of the Iraqi dinar and works at the same time to exchange dinar to the dollar."

The sovereign wealth fund, or the so-called sovereign wealth funds, is a fund owned by the state consists of assets such as land or stocks or bonds or other investment devices, it is possible to describe these entities manages surplus funds from the state for investment.

It is noteworthy that the Iraqi Central Bank, announced (January 6, 2012), a rise in foreign currency reserves to $ 60 billion for the first time in the history of Iraq, having marked the beginning of September of the year 2011, up precautions amounted to $ 58 billion and the $ 50 billion the end of the year 2010.

The central bank held the Iraqi daily sessions for buying and selling foreign currencies with Iraqi banks, except for public holidays on which depends the World Bank for these auctions, and sales are either cash or in the form of remittances sold abroad for a certain commission.