Government advisor: We maintain high foreign exchange reserves

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[size=52]Government advisor: We maintain high foreign exchange reserves[/size]

[size=45]Baghdad / Hussein Hatem[/size]
[size=45]Iraq's foreign currency reserves are managed within the scope of an investment portfolio by the monetary authority and in accordance with international best practices, as Iraq ranked first among the Arab countries that purchased the most US bonds during the past year 2022, according to the US Treasury Department.[/size]
[size=45]While specialists stressed the need to invest part of the US Treasury bonds as a mortgage in favor of French and German banks to finance the companies responsible for the energy file, and other strategic and service projects.[/size]
[size=45]And the US Treasury stated in a statistic on its official website, yesterday, Saturday, and followed it up (Al-Mada), that “Iraq bought US bonds during the past year 2022, starting from January to December, at an amount of 18.31 billion dollars, with a growth rate of 81.38%, and its possession amounted to 40.814 billion dollars.” And to rank first among the Arab countries that were the most buying US bonds during the past year.[/size]
[size=45]And she added, "The UAE came second by purchasing bonds during one year by $13.7 billion, with a growth of 30.51%, followed by Kuwait by purchasing $2.1 billion, with a growth of 4.53%, followed by Saudi Arabia by purchasing $700 million, with a growth of 0.59%."[/size]
[size=45]She pointed out that "Saudi Arabia was the most Arab country in possession of US bonds, with a value of $119.709 billion, followed by the UAE with $58.50 billion, followed by Kuwait with $48.522 billion, and then Iraq fourth with $40.814 billion, followed by Oman with $6.860 billion."[/size]
[size=45]The financial advisor to the Prime Minister, Mazhar Muhammad Salih, told (Al-Mada) that “a distinction must be made between external debts on the one hand that are in the possession of public finances and the foreign reserves of the Central Bank of Iraq, and the importance of paying the dues of those debts in indicating the standard of creditworthiness of Iraq, which means the ability to Paying debts and their services on their due dates, which are very high.” And he indicated, "The country's foreign currency reserves are managed today within the scope of an investment portfolio by the monetary authority and in accordance with international best practices that adopt evidence and standards in managing those foreign reserves issued by multilateral international financial organizations."[/size]
[size=45]Saleh added, "Efficient management of reserves requires two things, the first: diversifying those reserves in various currencies, and the second is making a safe investment of those reserves in different global geographic regions and in central banks and global monetary institutions with semi-liquid financial instruments such as international treasury bonds." And he continued, “Because Iraq, by virtue of oil revenues, is located within the dollar region, the dollar’s ​​share in Iraq’s foreign exchange portfolio is approximately 50% of the total investment portfolio in most cases, as those foreign reserves are invested in quasi-monetary financial instruments with a very high credit rating (without the possibility of failure). ) and with a distinguished return of not less than 4.5% annually today in short-term US Treasury bonds, which made Iraq in the rank of developed countries in the safe investment of foreign reserves in US Treasury bonds and the highest possible returns currently due to the high interest in the United States, which benefits the value of the reserves themselves and the national economy as a whole.[/size]
[size=45]And he added, “As foreign exchange for Iraq provides coverage for the exported national currency by 150%, and covers external debts payable by about 4-5 times, which is a very high percentage in international standards, in addition to covering those reserves for about 20 import months, while the global standard is 3 import months.[/size]
[size=45]In turn, the researcher on economic affairs, Safwan Qusay, told (Al-Mada) that “the increase in the reserves of the Central Bank of Iraq after reducing its sales as a result of adopting the international money transfer system (Swift) contributed to increasing rates by one billion dollars per week.” Qusai added, "This rise led to a financial surplus in the reserves," noting that "the US Federal Reserve and the Central Bank of Iraq tried to invest the increase and direct it towards an income-generating return, as it was resorted to US Treasury bonds."[/size]
[size=45]He pointed out, "The return is close to 4% in relation to the US dollar of the value of the bonds, and this is reflected in the reserves of the Central Bank."[/size]
[size=45]He pointed out, “The Central Bank has recently resorted to diversifying reserves in different currencies; To finance foreign imports and preserve the value of the Iraqi dinar.[/size]
[size=45]Qusai stressed, "the need to invest part of the US Treasury bonds as a mortgage in favor of French and German banks to finance the companies responsible for the energy file, and other strategic projects."[/size]
[size=45]He called on the government to "diversify the value of reserves and investments and not rely entirely on the rentier economy."[/size]
[size=45]It is noteworthy that the rise in oil prices contributed to strengthening Iraq's dollar resources, but some restrictions related to financial transfers led to a shortage of hard currency in the markets and an increase in the price of the dollar.[/size]
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