Revealed the reason for the rise in the Iraqi Central Reserve of the dollar .. What is the relationship of the currency auction?
Noor AS 3 hours ago one minute
An economic center revealed the reason for the high reserves of the Central Bank of Iraq.
And the Future Center said in a statistic followed by (Al-Oula News), that
“dollar purchases by the Central Bank from the Ministry of Finance for the period from the beginning of 2021 until the seventh month of the current year amounted to 79.8 billion US dollars.
In return, the Central Bank sold, through the dollar sale window, for the same period 65.5 billion
This led to an increase in the central bank’s foreign currency reserves by 14.3 billion dollars. He added,
"The Central Bank buys the dollar from the Ministry of Finance to cover the central government's needs of the local currency and sells it back through the foreign currency sale window to cover the domestic demand for the dollar," noting that
"the value of dollar purchases from the Ministry of Finance rose as a result of the rise in Iraq's oil revenues, which created Government surplus of US dollars that you sell to the Central Bank.” He pointed out,
"Despite the demand for the dollar in the local market, this demand did not equal the amount of abundance of the dollar in the Central Bank." And he indicated,
“The central bank, in the event that bank deposits or government institutions’ deposits in local currency are not sufficient with the Central Bank and does not increase dollar sales through the window to provide the local currency, increases the issued cash currency to meet the demand coming from the central government for the local currency, which made the value of the currency
The issued cash is more than 82 trillion Iraqi dinars,
an increase of 19% compared to the beginning of 2021, where the value of the issued cash currency was 68.9 trillion Iraqi dinars,
so the central bank increases its dollar sales through the window to provide the local currency needed for the central government without the need to increase the issued cash currency“.