The rise in Iraq's cash reserves to more than 70 billion dollars .. How will it affect the citizens?
Sumerian special 2022-05-27 | 06:12
Source: Alsumaria news 3,167 views
Report: Alsumaria News
Iraqi Finance Minister Ali Allawi issued a statement, and said that the country's cash reserves are expected to rise to more than $90 billion by the end of 2022, noting that this is a record level for Iraq.
Yesterday, Thursday, the Central Bank of Iraq said that "Iraq's foreign currency reserves amounted to 74 billion dollars, distributed geographically between 8 to 9 major countries, with various forms and assets," while noting that
the Iraqi economic situation is very excellent compared to the countries of the region and neighboring countries.
He added, "This relatively high level makes Iraq in a comfortable position in terms of the adequacy of the level of foreign reserves," reassuring "about the level of Iraq's foreign reserves," stressing that
"the economic situation is very comfortable," calling on government agencies to exploit this financial abundance
. At the end of last year, the Central Bank of Iraq said that foreign currency reserves had risen to $64 billion, from $48 billion since Baghdad devalued its currency in December 2020.
How will altitude affect?
The economic advisor to the Prime Minister, Mazhar Muhammad Salih, explains the impact of the rise on citizens, and the financial and economic situation in general in Iraq.
Saleh said in an interview with Alsumaria News, "The main and primary task of the Central Bank is to stabilize the currency and maintain the value of the Iraqi dinar against the rest of the currencies due to the ability of the Central Bank to intervene in the market and control the levels of the Iraqi dinar and has high flexibility to comment and thus control the exchange rates for long periods
In addition to controlling income stability, it also has the ability to support the economy through financing foreign trade.
He added: "What is supposed to be during the next stage of the rise in Iraq's cash reserves is that there will be a process of balance between the level of financing, development steps and the means of production," noting that
"consumer imports should be legalized on the grounds that they do not provide anything for development, and
we hope that the private sector will go towards productive import.
He added, "What we need are special policies that contribute to directing the private sector to productive import," explaining that
"the fiscal and monetary policies in Iraq are advanced, and we do not expect them to exist in many countries of the world,
but they need to move, organize and direct and unify efforts, especially political ones to support monetary policies."
And finance in order to develop and support the wheel of development in the country instead of putting obstacles that could cause harm instead of benefit to the Iraqi economy.”
He stressed that "the basis of economic and financial reform should be objective and practical, and
we believe that the white paper is the main means for correcting future policies,
but it needs application and cooperation among all to achieve its set goals in an optimal and correct manner."
In this context, experts in financial markets confirmed that reaching the central bank’s reserve a threshold of more than 70 billion dollars will strengthen the structure of the local economy and its position globally,
but the challenge of ill-considered and unproductive spending remains Iraq’s biggest economic challenges, and
raising the value of the Iraqi dinar will make it A competitive currency that helps lower the prices of commodities and foodstuffs in the markets.
The Diwan of Iraq
, and the Minister of Finance, stated that the total external and internal debts amounted to more than 99 trillion dinars (67.8 billion dollars).
Karrar Jassim Editor: Karrar Jassim