Cash reserve ensure the stability of the dinar

Cash reserve ensure the stability of the dinar

9/16/2015 0:00

Iraqi dinarBAGHDAD Mustafa al-Hashimi
said economic researcher Firas Amer that cash reserve to cover the dinar adequate to achieve the necessary exchange rate stability for a long time.
He said in an interview with {morning ┬╗he never Amajaov the decline in the exchange rate, explaining that the measures taken by the Central Bank and the private banks which capable of achieving exchange rate stability and returned to a normal level after he had witnessed a rise during the first quarter of this year because of Article 50 of the budget, which obliges the central bank to sell a specific amount of the dollar to the markets, which can accommodate twice the amount specified by the law.
The Article 50 of the Budget Law for the year The current has committed to identify sales of the dollar in the auction daily currency selling ceiling not to exceed $ 75 million a day at a time when the market absorbed about $ 200 million.
Amer said that the Governor of the Bank Dr. Ali Keywords -ouhsp what appeared in the news media -zkr that the reserves are sufficient to cover more than six months of imports, which is higher than usually required to maintain the exchange rate, noting that the budget deficit this year is likely to be less than 25 trillion dinars because of campaign reforms and public spending cuts.
He said Amer out that there are no concerns on the value of the dinar against the dollar, stressing The measures taken by the Central Bank, which contributed significantly to the reduction of inflation volume during the last period.
He saw the strengthening of the reserve currency basket extra amounts of gold would also be granted the dinar extra power enables it to withstand the fluctuations of world oil prices, noting that the greater the diversity of the cash reserve It said the effects of lower oil prices directly on the value of the currency.
Central Bank of Iraq set new requirements for the purpose of providing monetary policy to the economy of market needs through foreign currency auctions and where buy or sell CBI dollar from or to the market in light of its objectives of maintaining price stability and the implementation of monetary policy (including exchange rate policies), as well as the management of foreign reserves and the issuance of currency management as well as regulate the banking sector to promote a competitive and stable financial system.

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