Conscious / Parliamentary Finance reveals a threat to the central bank's foreign currency reserves
June 29, 2020 35 Views
Conscious / Baghdad / M.A.
A member of the Parliamentary Finance Committee, Ahmed Al-Saffar, revealed today, Monday, that the Central Bank of Iraq succeeded in light of the global crisis caused by the collapse of oil prices, while stressing that the window to sell the dollar currently poses a risk to the bank's reserves.
Al-Saffar said, in a statement received by (Iraqi Media News Agency / conscious) that "the value of what is sold from the dollar within the window of the Central Bank of Iraq is much greater than the proceeds from the sale of crude oil, given that the latter is the most important source of hard currency in the country, and therefore the window actually affects Cash reserve, even though these funds go on the basis of supporting importers according to the official papers provided by banks that participate in the currency auction.
Al-Saffar added, “With a calculation between what is sold from the dollar through the currency, and what is received through selling the dollar, it reveals a big difference that really affects the cash reserve, but the latter, according to his policy, tries to maintain the dollar’s exchange rate against the Iraqi dinar, because any reduction It will lead to an increase in the value of the dollar and a reduction in the dinar, and consequently an increase in prices.
He is trying to create a balance between the value of the dinar and the reserve.”
He pointed out that "the central bank is an independent institution, and it is not possible to interfere in its monetary policy, and it succeeded in the last period because it maintained the rate of inflation and the exchange rate of the dollar after the collapse of international oil prices and their accompanying repercussions in the health crisis."