Iraq: cash reserves sufficient for over 5 years

Iraq: cash reserves sufficient for over 5 years



Version: paper - International Monday, March 13 / March 2017 (00:00 - GMT)
Last Updated: Monday, March 13 / March 2017 (00:00 - GMT) BAGHDAD - Adel Mahdi
Said Governor of the Central Bank of Iraq on the Keywords dollar from the sale of crude oil imports fell to 70 percent, but the «Central» Keep an acceptable level of monetary reserves in hard currency and gold at $ 49 billion, which covers the outer commitment and is a positive indicator. He pointed out that it has received praise from specialized international organizations, and the reserve is calculated by the «Central» and the International Monetary Fund does not accurately raises concern for the next five years.
He stressed during a meeting with media that «the exchange rates at local markets are still within acceptable limits compared to other countries», pointing out that «the central Gannan sell the dollar in 2016 to 33 billion dollars from 44 billion the previous year». He stressed that «in 2016 considered the most difficult on the financial level, as the deficit 24 trillion dinars ($ 20.4 billion), and was covered outlets facing great difficulties, but Astdrickna situation despite the government's position of access to external financing could be described as difficult, and did not we have only specialized international organizations, including the international Monetary Fund, which gives the green light to get the debt through the reports regarding the country concerned ».
Keywords explained that «the Central interested in money laundering file and the financing of terrorism, which is one of the most prominent deal with the International Monetary Fund standards», adding that «What struck IMF inflation index, which was brought under control in spite of all the challenges faced by Iraq, as it holds periodic meetings between the organizations international specialized in the financial affairs of Iraq and to identify the most significant developments. » He stressed «the need to increase the financial resources of the country and that Iraq remains a prisoner of its oil imports, which subjected to threats», stressing that «the gradual move to the development of the productive resources of 5 percent a year is very important and reduces dependence on oil sources».
Keywords and pointed out that «the previous budgets have not developed real economic sectors, industrial, agricultural, tourism, creating economic model had a negative impact, in fact, as to the nature of the current economic cycle is not the development of the national economy as it is in the dependence on foreign imports». He pointed out that «the central initiative to allocate $ 6 billion in light of the financial situation is difficult productive and service sectors aim to activate the productive process and to address the core of the economic problem», pointing out that «this initiative collided institutional reality that was not really able to invest on the ground». He explained that «the central dish for 90 percent of the 45 standards, and we were able to access through the gray area to the outer area of ​​follow-up and we moved away from the danger zone».
And sell the dollar Keywords said that «the central linked to the extent of compliance with international rules, and we have developed programs and sell the dollar opened international offices outside convertible», adding that «sell the dollar unearned legitimize and is based on the Central Bank Law». Turning to the growing activity of Islamic banking and openness to granting approvals for Islamic banks, saying that «a large number of people want to deal with this type of banks, will be subject to the experience of the calendar after a certain period».
Keywords revealed that the «Central is able to cover Iraq's international obligations and financing of foreign trade, and the reserve currency within the standards and Central also covers the local currency by a large margin, as it affects the future generations servings of wealth, which will bear the burden of false consumer policies of the current generation». He added: «adopted Iraq in recent years to bridge the fiscal deficit through internal and external borrowing, which led him to conclude an agreement with the International Monetary Fund finally to borrow $ 5.4 billion, and the fund is a guarantor for other loans is estimated at 18 billion dollars from Arab and foreign countries ».
The «Central» finally announced that sales for banks during 2016 exceeded $ 33 billion, compared with 44 billion in 2015. He stressed that it is following with interest the banks' conditions and their response to requests from customers to withdraw their deposits, and taken action against banks that faced falter in it, and made a quantum leap in their positions, and finally put banks under the trusteeship to ensure the improvement of their performance and provide them back to the ordinary course of business requirements.

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