Iraq: a sufficient cash reserve for the next five years.
Version: -International paper Monday, March 13, 2017 (00:00-GMT)
Last update: Monday, March 13, 2017 (00:00-GMT) Baghdad-Adel Mahdi
The Governor of the Central Bank of Iraq on the relationship of dollar imports slipped to sell crude oil to 70 percent, but the «Central maintain an acceptable level of cash reserves in foreign currency and gold at $49 billion, covering external commitment and is a positive indicator.
He pointed out that it was highly specialized global organizations, as the reserve counts by «central» IMF accurately and no raises for the next five years.
During the briefing stressed that exchange rates in local markets are still within acceptable limits in comparison to other countries, pointing out that "selling Central Gannan 2016 to 33 billion dollars from 44 billion the previous year.
He stressed that 2016 is hardest on the financial level, as a deficit of 24 trillion dinars (20.4 billion dollars), and had great difficulty covering ports, but caught the situation despite the Government's position on external financing can be difficult, and not only international specialized organizations, including the International Monetary Fund gives green light to get through his reports on the country concerned».
He explained the relationship that «interested central file of money laundering and financing of terrorism, which is one of the most prominent criteria dealing with the International Monetary Fund, saying «what caught the IMF inflation index which was controlled in spite of all the challenges faced by Iraq, with periodic meetings between international organizations specializing in financial affairs and Iraq to identify highlights».
«Confirmed the need to increase the financial resources of the country, but Iraq remains prisoner of oil imports that entice threats», «a gradual move to productive resources development 5 percent annually is very important and reduces dependence on oil sources».
He added that «previous budgets have not developed real industrial and agricultural sectors, tourism, creating a negative impact on the economic model reality, and the nature of the current economic cycle evolution of national economy as foreign dependence on imports hurt».
He noted that the central initiative to allocate $6 billion under difficult financial condition of production and service sectors target activation process productivity and address the core economic problem», pointing out that «PSI entrepreneurial reality hit that couldn't actually invested on the ground».
He explained that «the Central dish of 90 percent of the 45 standards, and across it from the access of the gray area to the area of Mothering and moved away from the danger zone.
And selling the central relationship that said linked to compliance with international rules, and have developed programs to sell the dollar and opened international offices for external conversion», said «selling obtained legitimacy, based on Central Bank law».
Turning to the growing activity of Islamic banking and Islamic banking approvals granted, considering that many people wish to deal with this type of banks, and will be subject to the calendar after a certain period.
The central relationship revealed that Iraq is capable of international liabilities and foreign trade finance, and currency reserves within the central standards and also covers a large proportion of local currency, affecting future generations shares wealth, that would bear the burdens of the current generation to consumer policy».
He added: "Iraq has adopted in recent years to bridge the fiscal deficit through internal and external borrowing, to conclude an agreement with the International Monetary Fund to borrow $5.4 billion, the Fund is a guarantor for loans worth $18 billion of Arabic and foreign States».
It was finally announced that "central banks sales in 2016 exceeded 33 billion dollars, compared with 44 billion by 2015.
He followed with interest the situation of banks and responsiveness of asking their customers to withdraw their deposits, and taken action against banks that faced faltered, and achieved a quantum leap in their situations, and finally placed under guardianship to ensure banks improve their performance and to provide normal activity.