Fears of a deterioration in the cash reserve in Iraq
Fears of a deterioration in the cash reserve in Iraq
The writings of Monday, December 07 the first 0.2015
Experts warned of the continuing deterioration of Iraq’s reserves of foreign currency in the light of the economic and security crises plaguing the country, and demanded an urgent plans to save the reserves run out.
And Iraq has reserves of more than 60% during the past two years, as it dropped from $ 88 billion in November 2013 to $ 35 billion currently, according to the Iraqi Central Bank statistics.
In this context, the financial expert Samir al-Qaisi said that ‘the most important reasons for the continuing decrease in the acute foreign currency reserves is the central bank’s task of managing pay by on the Keywords because it does not have any academic qualifications, as well as accusations of theft, embezzlement and corruption and smuggling money out of the country pursuing the bank’ .
According to economic expert Abdul Aziz al-Naimi, ‘Iraq is exporting three million barrels of oil per day, and with the decline in global oil prices by more than 60% during the last period, contributed to the continuation of bleeding cash reserve of the country’. It fell global oil prices of $ 115 in June of last year, to less than $ 45 currently. Naimi pointed out that ‘the central bank sells daily between 200 and 300 million dollars of hard currency in the weekly five sessions, this means that what sells Iraq of hard currency per month exceeds $ 4 billion a month, and the real income of the country does not exceed two billion dollars a month only, and thus Iraq is experiencing a shortage of hard currency by about two billion dollars a month. ”
What raises concerns experts is what was announced by the Governor of the Central Bank said in a statement that Iraq has the hard currency enough to cover imports only six months according to international standards. And sees legal expert constant Abdul Halim, that the continuation of Iraq’s reserves decrease has different reasons, including legal, as the investment law will loose the country’s source of income cash through foreign exemption from fees, and saw Abdel Halim more dangerous than the hard currency smuggling out of the country, ‘Being will turn the country into fiefdoms owned by the political parties and blocs and armed militias, each of which will control what he wants from territory under the pretext of investment, in agreement with the different countries and foreign companies, and that means additional dollars to exchange these companies on an ongoing basis’.
Abdel-Halim and alludes to the investment law and the smuggling of currency sales through auctions of central public will lead to economic catastrophe in Iraq between 2016 and 2017. Dawa and the Supreme Council party and faces charges of exhaustion of the country’s reserves of hard currency through import equipment, weapons and armored cars by far the world market price for decades, to weigh what the state budget caused large amounts of money diminishing hard currency reserves of Iraq.
The central bank announced last month its intention to issue international bonds two billion dollars over the next year in 2016, while Baghdad intensify steps to borrow from international institutions to meet the fiscal deficit of the oil-rich country. Keywords explained that the World Bank will guarantee up to one billion dollars of the total value of the bonds to be issued, predicting that ‘the yield on the new bonds will be much less’ of the adult 11.5% yield, which investors request during a promotional tour in Europe and the United States last September. The financial crisis and prompted the Iraqi government to freeze thousands of projects, and according to official estimates, the deficit in the current year budget about $ 21 billion, is expected to register the country next year like 2016.
kitabat.com
