The Central Bank of Iraq ruled out, on Sunday, the existence of a threat to hard currency reserves as a result of borrowing, indicating that the oil market recovery maximizes the reserve.
The Director General of the Accounting Department at the Central Bank, Ihssan Shamran, said, according to the official agency, that “the dollar reserve of the Central Bank is not directly affected by the borrowings that the Ministry of Finance makes from banks,” noting that “its impact is indirect and limited.”
He pointed out, “The Central Bank monitors and ensures the safety of Iraqi dinars that are handed over to traders to buy dollars for fear that their sources are unknown or related to money laundering crimes, after which the dollar is delivered.”
He explained that “the market now feels a little relaxed after changing the exchange rate, which contributed to reducing the import process and creating competition between Iraqi and foreign goods,” noting that “changing the exchange rate will help the national product in marketing its goods after the imported goods have become high in value by about 22%.”
He pointed out that “the change in the exchange rate made by the Central Bank in favor of supporting the national product against the importer.”
He continued, “The recovery of the oil market would maximize the hard currency needs and reduce the deficit in the general budget for 2021, noting that the dollars collected from the oil sales differences will strengthen the foreign operation reserves of the Central Bank, and this will also reduce the pressure on the bank’s reserves of currency.”