Central» Iraqi displays gold coins for sale in local markets through banks

Central» Iraqi displays gold coins for sale in local markets through banks

Tuesday, February 2, 2016

BAGHDAD - Naseer Goldfinch

The announcement by the Iraqi Central Bank raised gold coins in various denominations for direct sale of local banks, fears of Representatives and experts warned against touching these federal funds. It called «Central» last week banks to buy gold Meskukath, referring to the arrival of specie percent dinars category.

He pointed out in a statement to «contract with an international company Stamping five thousand gold commemorative coins, in order to diversify the public's savings and ensure that he receives the gold 24-carat». He explained that «coins are a hundred dinars category, weighing 15 grams on the occasion of the 84 anniversary of the founding of the Iraqi Monetary Authority in 1930, in addition to five thousand specie of category 250 dinars, weighing 22 grams in the anniversary of the 68 of the founding of the Central Bank of Iraq in 1947.» He announced «receipt of the first category of these coins, and will go on sale through banks».

He said the Iraqi Central Bank, to determine the sale price for the banks «will be based on the added cost to the administrative burden by one per cent of the cost, to be the price per minted from this group of 720 thousand dinars ($ 600)».

Parliamentary Finance Committee revealed, for the Iraqi government's move to withdraw part of Iraq's reserves to cover the deficit in the budget. The Finance Minister Hoshyar Zebari warned that the Iraqi government «will not be able to pay the salaries of staff in April (April), if the oil price remained low.»

Iraq's economy is witnessing an unprecedented crisis as a result of falling oil prices and non-availability of other resources to him, since the budget depends 93 percent on the said supplier, offset by an almost complete stagnation of industrial and agricultural sectors as a result of wars and lack of security and stability ».

He stressed the Finance Committee member Ahmed Sarhan in a statement, the need for the «government intends to invest in agriculture and the activation of the industry and lack of dependence on oil in the state budget, because the continuous decline». He pointed to the existence of «actors working to weaken the industry and agriculture, and to expose the government's stand against it». He added that «solve the economic crisis is now over external borrowing, and Iraq has large reserves of foreign currency and gold bullion», pointing to the «government's move to withdraw part of that reserve to fill part of the budget deficit and meet the crisis».

The House voted on the current year's budget, and which formed the current expenditure (operational) Any salaries and others, more than 80 trillion dinars and increase of 76 percent from the total of 105 trillion dinars, while investment expenditure of more than 25 trillion dinars, and the increase of 23.8 percent ».

He warned of the economic and investment commission Abdul Salam al-Maliki, a member of the parliamentary government, against «the withdrawal of part of the Federal Reserve, which is a cover of the dinar». Maliki said that the House already «summoned the Governor of the Central Bank of times to ask why these reduced reserves of 68 billion dinars in 2014 to below 50 billion, which confirmed that it can be increased and decreases numbers in accordance with the proceeds from the sale of oil and the volume sold in the auction currency».

He revealed al-Maliki for obtaining the documents show that «these balances originally reserved in international banks, and how they are affected by auctions.» He pointed out that the gold reserves in the Treasury's central bank was more than $ 192 million in 2014 and abroad 3.9 billion, while a reserve currency 10 billion dollars and deposits and other balances, up to $ 45 billion, not to mention the balances in local government and private banks ».

And announced that a member of the economic and investment commission parliamentary Nora Salim in a statement to «life», the central bank monetary policies «are not clear-cut, since there is a deliberate version of the Iraqi dinar which is rolling up it to 43 trillion dinars operations ($ 35 billion) in 2015 after was at least 10 trillion in 2004. » Considered that any «the process of withdrawing from Iraq dinar balances means put at risk by lifting the lid, the Iraqi market is suffering from the problem of the already« dollarization ».

The MP for the rule of law Ahmed Salim, the importance of «follow the government's alternative policies to overcome the crisis, and not to rely on the cash reserve». He pointed out «solutions including support and reduce the need for the collection of electricity and water funds and taxation to overcome the financial crisis». He pointed out that the indispensability «the government is taking bold decisions to address the crisis, since it take quick measures for the collection of state funds».

He explained that «the collection of state funds ratio constitutes 16 percent of the budget, but if levied innovative manner through mail order increase will range between 16 and 32 percent, according to the expectations of economists».

He guessed Finance Committee member Ahmed Hama, «privatization of some public sectors to solve the financial crisis, which may fail with the government for the payment of staff salaries».