The central bank governor is likely to decline hard currency reserves for this reason
The central bank governor is likely to decline hard currency reserves for this reason
10/14/2020 9:06
{Baghdad: Where News} The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, said, on Wednesday, that foreign reserves in the bank would decline due to the increase in import financing and the decline in dollar revenues from the Ministry of Finance.
“The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues, and thus the dollar amounts that were sold by the Ministry of Finance to the Central Bank of Iraq in exchange for the Iraqi dinar that it used to finance Expenses locally. ”
The governor added, “This led to a decline in the accumulated quantities of foreign currency at the central bank, as well as the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Central Bank of Iraq in favor of government banks.”
He noted that “most of the current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decline in oil revenues if the current data do not change.” “.
alliraqnews.com
