Al-Araji reveals a procedure that represents the government’s start to act with “currency reserves” and warns of “an unknown future”
Al-Araji reveals a procedure that represents the government’s start to act with “currency reserves” and warns of “an unknown future”
04/30/2020 11:53
Baghdad today – Baghdad
Former Deputy Prime Minister, Bahaa Al-Araji, Thursday (30 April 2020), revealed a measure that represents “the government’s beginning” to act with “currency reserves”, while warning of an “unknown future.”
Al-Araji said in a tweet on Twitter, “Oil imports do not exceed $ 50 million per day after paying the costs of production.”
He added: “It is noticed that the central bank sold through the currency auction and over 10 days, up to 150 million per day.”
He explained, that this measure “means that our government began to act with currency reserves,” noting that “the crisis, if it continues for six months, then this means that we are facing an unknown country in the future!”
Earlier in the day, economist Rasem al-Aqidi, on Tuesday (28 April 2020), warned that Iraq would declare bankruptcy of its financial system if the government took a step toward withdrawing money from currency reserves in the central bank.
Al-Akidi said in an interview with (Baghdad today), that “any possible government decision to withdraw the cash reserve in the central bank is considered as lifting the cover from the currency, which leads to collapses in monetary and financial policy and the size of the economy and will lead to social collapses and is a declaration of bankruptcy of the financial system.” , Indicating that “the cash reserve should not be withdrawn from it, under any circumstances.”
Al-Okidi asked, “What happens after this decision if the currency collapses? Certainly, the government will resort to withdrawing the largest amount of reserves, and as a result, the moment of exposure, the declaration of bankruptcy and the collapse of the currency will lead to complete chaos.”
He pointed out that “the issue is related to the Iraqi currency and it is assumed that there will be a withdrawal of the cash block in the markets to the banks in many ways in order to give the government space to provide the necessary salaries and public expenditures. Otherwise, all the solutions and money in the banks’ possession will go to blanks that cannot be neglected.”
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