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The economic advisor, Mazhar Muhammad Salih, counted the increase in the central bank's reserves as a positive sign of the strength of the Iraqi economy, stressing that the legislative authority is the only one capable of holding the bank accountable in implementing its policies.
Saleh said in a press interview seen by Taqaddam, “The increase in the value of the central bank’s reserves is a positive sign of the strength and stability of the economy through high efficiency indicators, foremost of which is the coverage of more than 20 import certificates, and at the same time their coverage of 150 percent of the monetary base or issuance.” Cash, covering 75 percent of the broad money supply, and covering 150 percent of short-term debt, so the indicators of these reserves reflect the efficiency of the economy and the implementation of monetary policy well.
He added, “Reserves represent an important pillar in fiscal policy, especially in fighting inflation, and it is a basic guarantee for Iraq. Therefore, the central bank’s reserves portfolio is a semi-sovereign wealth for the state, and the Iraqi economy stabilization fund, and it is also protected by Central Bank Law No. 56 of 2004, which gives it independence.” On behalf of the authorities, with the exception of the legislative authority, which holds independent bodies accountable for achieving its objectives, including the Central Bank, in the use of reserves and the direction of moving or investing them according to its oversight role.
Today, Friday, the Central Bank of Iraq announced an increase in the value of its cash reserves to 90 billion dollars, but some experts expected the government to intervene and withdraw part of the reserve balance to fill the financial budget deficit or to finance its programs announced in its platform, while others feared the possibility of enacting a law Similar to the emergency development support that invested the $30 billion oil sales surplus.
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