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Advisor to the Prime Minister explains the size of Iraq's reserves of foreign currency and monetary gold

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Advisor to the Prime Minister explains the size of Iraq's reserves of foreign currency and monetary gold

Today, Tuesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih,

clarified the size of Iraq's reserves of foreign currency and monetary gold, and while
 he indicated that the

management of foreign reserves is subject to international standard investment guides,
he clarified the mechanism for recovering looted and frozen funds outside Iraq.
Salih told the Iraqi News Agency (INA):
"Iraq's reserves of foreign currency have reached their highest levels in Iraq's financial history and have now touched 115 billion US dollars," stressing that
"the monetary authority in Iraq has high efficiency in managing reserves."  He added,
"The coverage of reserves from foreign exchange to the exported national currency amounts to nearly 150%, which is a very high percentage and represents optimal efficiency in reserves management standards, as well as covering the external debt that is obligatory to pay Iraq by about five times."  He stated,
"About half of the amount of reserves is in the currency of the United States of America (US dollar), and a high percentage of the country's dollar reserves is being invested in safe financial instruments, most of which are short-term United States Treasury bonds, which carry interest of more than 4% annually, currently on average, and have a very advanced credit rating."
And it can be converted into liquid dollars immediately, when needed.  And he stated,
"The management of foreign reserves is all
subject to international standard investment guides issued by multilateral international financial institutions, within the framework of managing an
optimal investment portfolio that avoids risks, the most important of which is
legal risks and the
risks of fluctuations in exchange rates, interest rates and
other operational risks."  He continued by saying:
“The rest of the remaining foreign reserves, which are 50% (except for the dollar), are deposited with
reliable European global central banks and
a global monetary institution, and
in currencies such as the
pound sterling, the
European euro, the
Chinese yuan, the
Japanese yen, and the
currency of the International Monetary Fund called special drawing rights units, in addition to
Cash in excess of 132 tons of gold or more as officially declared and deposited in safe global gold vaults.  He pointed out,
"There are reinforcements in foreign exchange for Iraqi private banks in US dollars, and they are made through the window of the Central Bank of Iraq and the current compliance platform,
and are deposited with private bank correspondents in banks abroad, and
they are intended to cover
documentary credits or documentary transfers for the purposes of
financing private trade in goods."  And
services, as well as
payment of electronic payment card dues, in addition to the
deposits of the Iraqi Trade Bank with its correspondents, which is concerned with opening external credits to finance foreign trade for government imports.  He continued,
"All of these external deposits are moving balances, and their average is no less than $12-15 billion."
At the same time, regarding the frozen Iraqi funds, he indicated that
"the pursuit of the Iraqi state's funds that date back to the time of the previous regime or the operations of encroaching on public money as a result of corruption after the year 2003 are all subject to the provisions of Law No. 7 of 2019, which is the amended Money Recovery Fund Law that is currently administered." From a board of directors headed by the head of the National Integrity Commission, which takes recovery decisions according to legal and administrative work mechanisms, in cooperation with the state’s oversight agencies.  He explained,
"The fund's management is responsible for providing the House of Representatives with periodic reports on its follow-ups in recovering public money, especially outside the country."  He pointed out, that
Regarding China's influence on the world economy and the Central Bank's decision to finance imports from it in yuan, he explained that
"China has contributed to lowering levels of consumer basket prices in the world and has led price stability in the world during the last two decades, due to its high competition and the invasion of its goods into world markets at low prices, generating movement It is called (disinflation or moderation of growth in prices around the world).  He added, however, by saying:
"China is still the subject of a complaint and dispute before the World Trade Organization due to its fierce competition, which has reached the point of commodity dumping, which caused a drop in prices globally to indicate whether it is a result of the efficiency of the Chinese economy or as a result of the devaluation of the Chinese currency to the extent that its goods invaded the world's markets." He noted that
"equipment from the Chinese market is still the cheapest compared to other world markets."


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