Saleh: The Central Bank Has A Comfortable Reserve That Helps It Impose Stability In Exchange Rates
Saleh: The Central Bank Has A Comfortable Reserve That Helps It Impose Stability In Exchange Rates
12/19/2021 | 6:01 PM
information / special
The economic expert and financial advisor to the government, Mazhar Muhammad Salih, confirmed today, Sunday, that the Central Bank currently possesses a comfortable cash reserve of foreign currencies, pointing out that there is a direct correlation between the current account surplus of the Iraqi balance of payments and the development of foreign reserves.
Saleh said in a statement to the “Information” agency, that “the monetary policy of the Central Bank of Iraq has today, a strong foreign reserve tool that can maintain the purchasing power of the Iraqi dinar and face inflationary expectations with a high capacity due to the surplus in the current account of the balance of payments.”
He added that “the Central Bank of Iraq’s dollar reserves can be exploited through the power of intervention to impose stability in the exchange market through open market operations exercised by the monetary authority to achieve the operational goals of monetary policy with ease and flexibility.”
He pointed out that “there is a positive indicator of the accumulation of the foreign reserves of the Central Bank of Iraq during the year 2021 with a change in the direction of increase by more than 20% compared to the levels of the year 2020. .
And the Central Bank of Iraq revealed, earlier, the rise in the Iraqi hard currency reserves to 64 billion dollars.
International reserves, or foreign exchange reserves – deposits and bonds of foreign currencies held by central banks and monetary authorities – are important to support the currency and pay debts owed by the state.
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