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Central bank will not lend money to the government and us, the subject of the deletion of zeros
Long-Presse / Baghdad
Stressed the Iraqi Central Bank, on Friday, a n drop in oil prices "would not be" a reason for the government to borrow from the bank, pointing to the existence of the law "does not allow" the government to borrow from its reserves, among a the growth of foreign reserve resources (the dollar) has consisted of increase the prices and quantities sold oil-run "government," which, among it for the subject of the deletion of zeros from the currency.
The central bank said in the answers to a private response to questions (range Press) that "the decline in oil prices will not be a reason or motive for the government to borrow from the central bank," attributing the cause to be "the Central Bank Law No. 56 of 2004 with Article (26) does not allow the government borrowing from the central bank reserves, because the ability to exchange in the budget exceeds the ability to achieve the resources as well as the bank's reserves earmarked for economic stability, "stressing that" the growing tide of achieving resources from non-resources mean generation version critical new inflation borne by future fiscal years without justification. "
He added that the bank "countries whose economy depends on oil, such as Iraq, the net foreign assets of any foreign currency derived from the sale of oil is a mainstay with the cash basis because it depends on oil to finance its spending and dramatically."
The bank added that "the Iraqi government, specifically the Ministry of Finance are replacing foreign currency (dollar) that you earn from the sale of oil with the Central Bank of Iraq for the local currency (the dinar), to be able to cover internal expenses, so the foreign reserve resources growth (dollar) when The government consists of increasing the prices and quantities of oil sold. "
The bank said that "this will enable and continuously available from barter with the central bank for the local currency (the dinar), and in quantities that you need, but with the drop in oil prices, the oil revenues certainly would be affected would be reflected on the low cash reserves at the central bank."
On the other hand, stressed the Central Bank of Iraq, that "the subject of the deletion of zeros from the currency has been postponed for the time being."
The Oil Ministry has approved in the (18 October 2014) that the government has not yet determined the price of a barrel of crude to be adopted as a basis for the preparation of the budget next in 2015, indicating that efforts are currently ongoing in coordination with OPEC members, to determine the estimated taking into account the challenges and fluctuations in world prices and spare the economy National any negative impact, while experts called to the need to find alternatives to support the local economy and the adoption of the austerity policy and an end to disputes with the Kurdistan region of re-exports from the northern fields.
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Long-Presse / Baghdad
Stressed the Iraqi Central Bank, on Friday, a n drop in oil prices "would not be" a reason for the government to borrow from the bank, pointing to the existence of the law "does not allow" the government to borrow from its reserves, among a the growth of foreign reserve resources (the dollar) has consisted of increase the prices and quantities sold oil-run "government," which, among it for the subject of the deletion of zeros from the currency.
The central bank said in the answers to a private response to questions (range Press) that "the decline in oil prices will not be a reason or motive for the government to borrow from the central bank," attributing the cause to be "the Central Bank Law No. 56 of 2004 with Article (26) does not allow the government borrowing from the central bank reserves, because the ability to exchange in the budget exceeds the ability to achieve the resources as well as the bank's reserves earmarked for economic stability, "stressing that" the growing tide of achieving resources from non-resources mean generation version critical new inflation borne by future fiscal years without justification. "
He added that the bank "countries whose economy depends on oil, such as Iraq, the net foreign assets of any foreign currency derived from the sale of oil is a mainstay with the cash basis because it depends on oil to finance its spending and dramatically."
The bank added that "the Iraqi government, specifically the Ministry of Finance are replacing foreign currency (dollar) that you earn from the sale of oil with the Central Bank of Iraq for the local currency (the dinar), to be able to cover internal expenses, so the foreign reserve resources growth (dollar) when The government consists of increasing the prices and quantities of oil sold. "
The bank said that "this will enable and continuously available from barter with the central bank for the local currency (the dinar), and in quantities that you need, but with the drop in oil prices, the oil revenues certainly would be affected would be reflected on the low cash reserves at the central bank."
On the other hand, stressed the Central Bank of Iraq, that "the subject of the deletion of zeros from the currency has been postponed for the time being."
The Oil Ministry has approved in the (18 October 2014) that the government has not yet determined the price of a barrel of crude to be adopted as a basis for the preparation of the budget next in 2015, indicating that efforts are currently ongoing in coordination with OPEC members, to determine the estimated taking into account the challenges and fluctuations in world prices and spare the economy National any negative impact, while experts called to the need to find alternatives to support the local economy and the adoption of the austerity policy and an end to disputes with the Kurdistan region of re-exports from the northern fields.
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