Mahdi Al-Hafiz calls to take advantage of monetary reserves in the development

03/24/2012 1:54 
Baghdad Yasser incumbent is cash reserve real indicator of the economic situation of the country the more was great, it demonstrates its ability to meet the challenges and problems that beset the world and vice versa, any lack of ability and if we know that the cash reserves of Iraq is estimated at (60) billion dollars, how is measured by its ability to.. meet these challenges?. to answer this question, answer economic thinker Dr. Mahdi Al-Hafiz in his study tagged what the story of cash reserve and published in his magazine known (dialogue) that Iraq’s possession of this reserve is certainly A’dalama characteristic of the economic situation but the problem is that the economic situation now laden contradictions severe obstacle seriously before any real transformation in the general structure and forms of production, investment and overall development in general.

He keeper that Iraq once had the largest cash reserve at the end of the seventies and as much as then-b (40) billion dollars and then used this amount of money to cover the military expansion, and supplies of war and the needs of the previous political system without taking into account the most basic economic controls and was told that the waste of the reserve at the time was of fundamental aspects of the corruption of the former regime to considerations of destructive such as corruption, looting and manipulation. 
He stressed that the re-activity of cash reserves, which has reached the (60) billion dollars was due to the great development which included the volume of oil exports and the increase in yield At the resulting and an outcome of increases rising oil prices and the widening demand and the need for more oil exports in the world 
and sees Hafiz that the protection of the central bank of any intervention to fight inflation and secure monetary policy balanced alternative to destructive practices of the former regime had led to the isolation of the monetary policy for the overall economic performance and a reduction part of inflation but Hmaalnahj did not contribute to support the plans and activities of economic development envisaged by the Iraqi state in this difficult phase. 
It is noted that the continuation of this phenomenon contrasts with the provisions of the permanent constitution, which ruled that linking the full between Sbash cash and performance development, without which can not benefit from the results of performance cash in the interest of overall development, but nevertheless led economic development and the resumption of oil production and increasing returns to an increase in cash reserves of the Central Bank until it reached to (60) billion dollars. According to Hafiz that origination of new reserves comes mainly from the need for the Iraqi dinar produced by the Central Bank and requested by the Ministry of Financial and buy versus the U.S. dollar is a matter of course as part of the proper relationship between bodies and institutions of economic and monetary in different countries and the consequent to increased reserve directly and it is necessary to maintain the state interventions and claims of foreign This reserve was preserved in a bank account in America and then on to four banks in Europe are (Spain, Italy, France and Switzerland) a decision of the Central Bank to ensure the safety of this amount, especially after the deadline for the executive order of President of the American and the specific month Maes said. 
and warned Hafiz that the increase in cash reserves in Iraq has been in a new context and remarkable in terms of the continued need for some foreign loans from international institutions, according to the draft budget for this year’s Iraq plans to benefit from the loan he has (5.4) billion Dolarmen the International Monetary Fund as well as (2) million dollars from the World Bank as the financial obligations of State is the other is still a heavy burden on the country’s financial capacity and economic thinker Dr. wonder. Mahdi Al-Hafiz on the feasibility of cash reserve, if not able to serve the priorities of the overall economic development in Iraq? He concludes by saying that this issue is very important and calls for discussion clearly in the light of the experiences of other countries in terms of development goals and commitments of the foreign hand.