Economist: The decline in the strength of the Iraqi currency as a result of the internal borrowing law
Economist: The decline in the strength of the Iraqi currency as a result of the internal borrowing law
11/17/2020 11:27:04
(Baghdad: Al Furat News) The economist, Manar Al-Obaidi, said today, Tuesday, that the decline in the strength of the Iraqi currency was due to the internal borrowing law
In a statement, Al-Furat News received a copy of it, Al-Obaidi said, “The assets of the Central Bank of Iraq for the month of September decreased by 4.31% compared with the month of August, so that the total assets amounted to 106 trillion dinars compared to 111 trillion dinars in August, as for the value of gold and cash reserves. Available stocks decreased by 10.9% to reach 16.88 trillion dinars, compared to 18.95 trillion Iraqi dinars.
He added, “The level of investments in foreign banks has decreased by 8% to reach 35 trillion dinars, after it was 38 trillion Iraqi dinars. As for the value of bank deposits, it increased by 1.44% to reach 21 trillion dinars after it was around 20.8 trillion dinars.”
He explained that “the level of obligations of the Ministry of Finance of the Central Bank at the same level without change and the value of 30.4 trillion dinars.”
And that “the decline of the central bank’s reserves to the reasons for selling the dollar more than buying it from the Ministry of Finance as a result of the decline in the ministry’s revenues from the US dollar as a result of the decline in oil sales with the continuation of the same levels of demand in the local market for the purpose of importing goods in a way that forces the central bank to use its reserves in compensation. Shortage. ”
He stressed that “it is expected that the reserves of the Central Bank will decrease for months 11 and 12 as a result of the internal borrowing law, which is expected to be a large part of the borrowing amount from the reserves of the Central Bank, pointing out that” this decrease, but the reserves are still within acceptable levels internationally, but any continuation in The contradiction of reserves will lead to a weakening of the Iraqi currency’s strength, and thus a large dislocation of the exchange rate, which may lead to an increase in the rate of inflation in the Iraqi market and the loss of the Iraqi currency’s strength.
alforatnews.com
