After falling to $ 51 billion .. specialists: Reserve monetary Iraq is enough for two

08/23/2016
BAGHDAD / JD / ..

specialists revealed in the economic and financial affairs for the decline in cash reserves of hard currency in the Central Bank about $ 29 billion after it was $ 78 billion, he now $ 51 billion, due to the financial crisis and the continuing decline in oil prices in world markets, which making the federal government relies on monetary reserves in the bridge the fiscal deficit in the state budget.

In light of the decline happening in the cash reserve specialists have confirmed that the size of the current reserve Iraq would be sufficient for only two years because of the expectations that point to the continuing decline in oil prices in world markets.

He says an expert on financial affairs on behalf of al-Tamimi, said the size of the monetary reserves at the Central Bank began to gradually diminish until he was in the last period, according to international reports between 53 billion to 51 billion dollars after it was three years ago or more, exceeding the $ 80 billion.

He said al-Tamimi told / KD / that such a large decrease in the size of the reserves requires data and explanations by the government because it is the sovereign credit of the state and cover local currency Vtnaqs mean lower value of local currency, stressing that this reserve will be enough country for only two years in the light of the continuing financial crisis and low prices oil.

For his part, predicted economist nice Abdul Salem Ugaili, the continuing decline in reserves of the Central Bank in the coming years in the absence of processors of the financial crisis and plans to expand the resources of the state, stressing that the security situation and the war against terrorism and the decline in oil prices in the absence of the role of the productive sectors (agriculture and industrial and tourism) led to the worsening of the financial crisis in the country, making the government be forced to resort to monetary reserves to fill some of the expenses.
He warned Ugaili told / KD / The unilateral Iraqi economy side and is supported on oil revenues, oil, volatile oil prices because there is a well-known political will try to affect the subject of supply and demand and thus affect oil prices, and oil prices will not rebound until 2018, meaning that Iraq It will remain in this vortex if they do not find outlets to get out of this crisis, namely the development of other economic sectors, which will maximize state resources and increase cash reserves.

To that, the Finance Committee member Ahmed Sarhan, said the size of the monetary reserves decreased to US $ 51 billion due to the government to withdraw some of the money to meet the operating expenses due to the financial crisis faced by the country as a result of lower oil prices.

He said Ahmed told / KD / that the country is going through a severe economic crisis made the states have to withdraw some of the money to meet the staff and the salaries of retirees, noting that the World Bank and IMF loans will help Iraq avoid the government from withdrawing cash reserves over the coming years.

He added that the government had resorted to foreign loans is the result of increasing the fiscal deficit and the decline happening reservoir Central Bank.

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