Iraq’s Reserves of Foreign Exchange and What It Means for the Life of the Citizen
|September 29, 2013||Filled under Iraq Daily News|
The Central Bank of Iraq, as in other countries of the world, the management of the national currency and maintain the value and size of rolling them. Central bank also oversees the commercial banking system. Unlike the Commercial Bank, the central bank has a monopoly to increase the money supply in the country or be reduced, which is that prints paper currency and metal coin.
The central bank controls the quantity of money supply through mechanisms such as setting interest rates and be the last resort to support the banking sector in troubled times and financial crises. Among the most important functions of the central bank to maintain the value of the national currency and protect it from Fluctuations.
And kept the central bank to provide cover for the national currency to build up the country’s foreign exchange and gold, for example. Indicated that the Iraqi Central Bank as an institution has succeeded generally in this task until he level of efficiency is almost to be an island in a sea of inefficiency compared with other institutions, service was or productivity.
Central bank kept at this level, although he suffered tremors before the period and attempts to undermine its independence. The bank announced recently that the reserves of Iraq’s foreign exchange and gold amounted to about $80 billion, compared with approximately $74 billion in June. said the central bank governor Agency Abdul Basit Turki in an interview that this increase is due to the high price of oil on world markets expected to increase the reserve in the the coming months as well.
Radio Free Iraq met a former adviser to the Central Bank of Iraq the appearance of Mohammed Saleh, what this means the size of the cash reserve explained that sovereign wealth offer strong protection for the Iraqi dinar as well as securing months import of approximately 12 months, compared with 6 months in the past, but this extreme importance if we know that Iraq imports almost everything.
Predicted a former adviser to the central bank that reflected such a cover strong that provided by foreign exchange reserves of the national currency in the high purchasing power of the Iraqi dinar.
Member of the Economic Commission parliamentary Mahma, Khalil noted that the increase in the reserve by the Iraqi build basket foreign currency and gold as well as an investment portfolio of Iraqi Assets in the financial centers task such as London, Paris and New York means the success of the monetary policy pursued by the central bank.
Predicted MP Mahmh Up Khalil to go up the value of the national currency accumulated balance of the sovereign so that the Iraqi dinar equivalent to the US dollar within the next four years (where Iraq plans to increase its oil production to 8 million barrels per day by the year 1917, also said a member of the Economic Committee of Parliament.
Stressed Mahmh Khalil on the importance of retaining the CBI باستقلاليته in order to continue its monetary policy sound calling on the government to stop its attempts to interfere in Bank’s policy, especially as the Constitution itself guarantee him this independence. financial expert Majid picture cautioned that the presence of large reserves of foreign exchange alone is not enough to maintain the value of the national currency affected by external factors such as the volatility of oil prices, which sells for Iraq and the prices of goods imported by, and another Interior in the Forefront of the security situation and consumerism with the government and the private together at the expense synergies product.
Regarding the living conditions of the citizens, the reserve big foreign exchange means what it’s supposed stability of consumer prices , but parasites usually exploit the deteriorating security situation and political instability and ignorance dealers dollar and the dollar to increase prices various Pretexts), as noted financial expert Majid picture. Expected and the U.S. Agency for International Development late last year that leads the Iraqi economy, the economies of other Arab countries in the next five years.
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