Central: $ 45 billion in hard currency reserves



01/30/2017 (0:01 pm) - The number of readings: 117 - Issue (3839)



Baghdad / term

The governor of the central bank on the Keywords low central bank reserves, during the past three years, about $ 21 billion.

Keywords and said, through his answer to a parliamentary question in front of the House of Representatives, said that "economic policy is made up of fiscal and monetary policy and monetary reserves which is a foreign assets denominated in the foreign currencies does not enter, including local currencies, up to about 90% and the remaining gold and assets are reserved. Negotiable liquidate at any time. "

He said the central bank governor to "the importance of distinguishing between the Central Bank reserves and the excess reserves in the state treasury, which expressed the sovereign funds which is unrelated to the reserves of the Central Bank as lead functions present or future to cope with crises and bridging fiscal deficits and contributing to investment trends and its source is part of the state treasury." .

Keywords and added that "the Reserve which is managed by the central bank does not take from the state treasury and Aaattiyha and function to stabilize the exchange rate in order to curb inflation and maintain prices."

He noted the chief financial officer, said "the central bank through the Reserve pumped money to prevent the devaluation of the local currency," adding that "the reserve consists of state revenues received in dollars of oil by 95% and the remaining local revenues depends Ministry of Finance on the Iraqi dinar."

He stressed Keywords that " dollar selling process is very important to maintain the value of the Iraqi dinar and the balance in the local economy as the work of the dinar to float an incorrect status for Iraq and the fact that the central bank only source to sell the dollar. "

He noted the central bank governor that "high financial reserve of the Ministry of Finance to the Central Bank does not represent an achievement and if the decline does not represent a deficit because the case involves what has been achieved from a financial and imports, the larger the overhead of the state's biggest of its revenues will affect the central bank reserves."

Keywords and added that "the central bank's reserves had peaked at the end of 2014 more than $ 66 billion in 2015 and dropped to about $ 53 billion and in 2016 came to nearly $ 45 billion and a book value of $ 48 billion."

And the chief financial officer, said "the central bank resorted to the method of supporting the general budget through the purchase of treasury transfers and collided with the financial situation not great funding in case the central bank refrain from buying treasury transfers, it will lead to significant repercussions on the general situation in Iraq, stressing that the bank contributed to cross the hardest years that have passed during the years 2015 and 2016 especially given that the contribution amounted to 20 trillion dinars, which does not violate the law, "adding that" the talks with the international Monetary Fund showed a lack of access problem in the reserve until 2021 ".

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