Adviser to the Prime Minister Mazhar Muhammad Salih stated, on Monday, that the rise in the hard currency reserves of the Central Bank of Iraq guarantees the stability of the local currency.
Saleh said in an interview with Shafaq News Agency that “the reserves of the Central Bank decreased during the last period due to the health crisis and the financial crisis in 2020,” noting that “the monetary policy of the Central Bank was balanced and was able to restore these reserves by more than 23 percent at the present time, to reach 64 Billion dollar”.
He added that “the rise of the hard currency gives a positive signal to the Iraqi economy and gives precautionary reassurance to the stability of the Iraqi dinar,” noting that “the issue is being monitored over the long period and its importance in defending the value of the dinar and stability in the service of monetary policy goals, stability of the currency value and reducing inflation.”
Saleh stressed that “the monetary policy is currently a rational, balanced policy that has managed to maintain the value of the dinar and the stability of the reserves, and there is a constant monitoring of the situation,” noting that “in the short term, we cannot do anything just raising the amount of reserves and maintaining them, but in the long term it is considered a safety valve.” of the Iraqi economy.
Saleh pointed out that “the size of these reserves depends and is linked to the monetary blocs also what is called the monetary basis. There is a proportion and proportionality that must also be achieved, so monetary policy studies its proportions and amounts accurately, so it monitors the movement of the Iraqi balance of payments from a deficit or surplus and the status of reserves and their strength and preservation, liquidity, size and all Variations are not easy and take time and scope.
The Deputy Governor of the Bank, Ihsan Shamran, had revealed to Shafaq News Agency, that Iraq’s reserves of hard currency, which includes the cash currency of the dollar, the euro, sterling and other other foreign currencies, in addition to the gold reserves have risen to more than 64 billion dollars.