Government Adviser: Counts the benefits of rising Iraq’s reserves of the dollar

Government Adviser: Counts the benefits of rising Iraq’s reserves of the dollar

2022-05-26 08:18

Government Adviser - Counts the benefits of rising Iraqs reserves of the dollarShafaq News/ The financial advisor to the Prime Minister, Mazhar Muhammad Salih, stated on Thursday that the rise in the central bank’s hard currency reserves will positively affect the Iraqi dinar and the ability to curb inflation, indicating that the existing reserves have almost covered the Iraqi dinar.

Saleh said in an interview with Shafak News Agency; “The rise in Iraq’s hard currency reserves will increase confidence in the Iraqi dinar and will increase its stability,” stressing that “the Iraqi dinar is approaching full coverage of hard currency reserves in light of the current exchange rate.”

He added that “these reserves maintain the purchasing power of individuals, as it preserves the real income of the individual from fluctuations in the event of the deterioration of the dinar, and at the same time it is a way to curb any large inflation that may occur in the future by following a strict monetary policy,” noting that “one of the functions of these reserves is One of the hard currency is to curb inflation if prices continue to rise.”

He pointed out that “the reserves also have a function in the process of financing foreign trade, which is related to development through the import of production means and supplies that will revive economic development.”

Finance Minister Ali Abdul-Amir Allawi confirmed on Wednesday that the Central Bank’s hard currency reserves amounted to 70 billion dollars last April, and expected them to reach 90 billion dollars by the end of this year.