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Iraq is losing 20% of the cash reserves by the financial crisis and Baghdad may have to lower the value of the dinar
27/8/2015
BAGHDAD
revealed network "Bloomberg" specialized in economic affairs, that Iraq reserves which is supervised by the central bank fell by almost 20% to $ 59 billion, by the associated financial crisis, a decline in oil prices, predicting that reflected this crisis, the momentum of the war against al "Daash", what could force Baghdad to reduce the value of the Iraqi dinar against the dollar.
The network says in a report that financial crises usually come with serious consequences for the countries, with the impact posed by Iraq's current crisis shows how this can be profoundly limit the shock to the economy and markets.
She adds, "in fact, can the variables in the exchange of foreign currencies that are affected as a result of change drop of crude oil prices, cause in the process of re-evaluation of the Iraqi dinar with serious risks become with the war against al-Daash more dangerous and difficult", noting that "Iraq's second largest oil exporter after Saudi Arabia within the range of Petroleum Exporting Countries (OPEC) depends entirely on the proceeds of this oil in order to finance its operations in the field, along with unrest plaguing its economy alike."
revealed the network, that the country's foreign exchange reserves had fallen 20% to come down to the level of $ 59 billion by the end of the month of July, which clearly declined since the escalation of fighting with al Daash more than a year, while losses continue to mount. Also, the Central Bank of Iraq mayors in the early 25th of the month of August now days, to sell an estimated 4.6 billion dollars in the auction continued its currency, in order to maintain the value of the current dinar, which means daily sales estimated at $ 184 million, according to figures and statistics Network Economic
Bloomberg., says the author of "The Political Economy of Iraq", Frank Gunter on this topic, commenting that "the big storm Iraq mean that the country is continuing to pace its foreign exchange reserves loss until the government decides to re-pricing of the Iraqi dinar again." He adds Gautner "The Iraqi currency could weaken by 20% in the next year." Global wave seems Iraq is far never from the perspective of the participation of the other to wave back their currencies to the pricing of developing countries with exposed emerging markets painful blows starting this week as a result of the economic situation in China . However, the Iraqi dinar is one of the currencies of these countries more vulnerable and at risk because of what is happening in the Middle East. NBD Bank, the largest banks of the emirate in a report released on Thursday to have pointed out that this situation could be achieved even with the possibility of continuing the pace of the currency exchange rate, which is currently adopted by the government. The Saudi central bank, has cited this week that he is committed to price riyal Saudi as quoted by Arab satellite channel, amid speculation that the government will bring back its currency pricing as a result of the sharp fall in crude oil prices in the year. According to "Bloomberg" that "market forces play a role held Iraqi Prime Minister Haider al-Abadi's efforts to re-retrieve lands that fell to the organization Daash terrorist. As the military success of the Iraqis gradually came up with the continued suffering of the government in its efforts to gain and recruiting the sons of Sunni Arabs in the areas ravaged by the fighting in order to involve them in the fight against extremists. "Although the United States and its allies are sending arms to the Kurds in the north Iraq, with plans of President Obama's administration to spend more than $ 700 million in 2016 to support the troops in Iraq, the Iraqi government provide for the payment of military operations of its budget since the withdrawal of the Americans from Iraq by the end of 2011. Dollar sales, says the network that it can collapse in the value of Dinar cause to raise the value of life costs of the Iraqis who are suffering and are protesting against government corruption and a weak electrical power supply, disruption of water and the lack of other services. and transported Walid Ayed who serves as general manager of the Central Bank of Iraq to say "is our current policy to meet the demand for the dollar." He added that the foreign exchange reserves will not fade because of the continuing oil sales, which means that we will not re-pricing of the new dinar. And prove to the Iraqi Central Bank Iraqi currency exchange rate of $ 1166 dinars to the dollar, along with continuing pressure in this regard. As a result, the Reserve Iraqi foreign currency may fall to $ 45 billion by the end of 2016, according to emphasize Akazhoteix specialized investment affairs in the foreign markets company and based in London. According to a statement to the Executive Director Akazhoteix, Jacob Christenson, he said, "will try to Iraqi authorities resistance and endurance as long as possible, but it may find itself forced to re-local currency pricing if the pressure continued. "options are limited and the network says that the Central Bank of Iraq, has resisted until now, the government aimed to print a new currency worth $ 30 billion under pressure in order to bridge the budget deficit . But Iraq announced a plan to sell government bonds worth 6 billion dollars recently, a move that comes after the funding came from the International Monetary Fund worth $ 1.2 billion, although both figures do not represent little in the face of large deficits between the budget and public imports. The network says it Iraqi Minister of Finance is no doubt that this situation leaves in front of a relatively limited options. He says Gautner that the Iraqi government is seeking to pressure expenses and the fight against corruption, while other options include borrowing from domestic sources, such as public banks, or even force the central bank to buy government bonds from the Ministry of Finance. He concluded his speech by saying the last "Iraq will be able to finance the current inability of 2015. But if the battle continued against the extremist organization Daash along with the continuing decline in world oil prices, Iraq will find himself has hit the wall hard and painful way."
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27/8/2015
BAGHDAD
revealed network "Bloomberg" specialized in economic affairs, that Iraq reserves which is supervised by the central bank fell by almost 20% to $ 59 billion, by the associated financial crisis, a decline in oil prices, predicting that reflected this crisis, the momentum of the war against al "Daash", what could force Baghdad to reduce the value of the Iraqi dinar against the dollar.
The network says in a report that financial crises usually come with serious consequences for the countries, with the impact posed by Iraq's current crisis shows how this can be profoundly limit the shock to the economy and markets.
She adds, "in fact, can the variables in the exchange of foreign currencies that are affected as a result of change drop of crude oil prices, cause in the process of re-evaluation of the Iraqi dinar with serious risks become with the war against al-Daash more dangerous and difficult", noting that "Iraq's second largest oil exporter after Saudi Arabia within the range of Petroleum Exporting Countries (OPEC) depends entirely on the proceeds of this oil in order to finance its operations in the field, along with unrest plaguing its economy alike."
revealed the network, that the country's foreign exchange reserves had fallen 20% to come down to the level of $ 59 billion by the end of the month of July, which clearly declined since the escalation of fighting with al Daash more than a year, while losses continue to mount. Also, the Central Bank of Iraq mayors in the early 25th of the month of August now days, to sell an estimated 4.6 billion dollars in the auction continued its currency, in order to maintain the value of the current dinar, which means daily sales estimated at $ 184 million, according to figures and statistics Network Economic
Bloomberg., says the author of "The Political Economy of Iraq", Frank Gunter on this topic, commenting that "the big storm Iraq mean that the country is continuing to pace its foreign exchange reserves loss until the government decides to re-pricing of the Iraqi dinar again." He adds Gautner "The Iraqi currency could weaken by 20% in the next year." Global wave seems Iraq is far never from the perspective of the participation of the other to wave back their currencies to the pricing of developing countries with exposed emerging markets painful blows starting this week as a result of the economic situation in China . However, the Iraqi dinar is one of the currencies of these countries more vulnerable and at risk because of what is happening in the Middle East. NBD Bank, the largest banks of the emirate in a report released on Thursday to have pointed out that this situation could be achieved even with the possibility of continuing the pace of the currency exchange rate, which is currently adopted by the government. The Saudi central bank, has cited this week that he is committed to price riyal Saudi as quoted by Arab satellite channel, amid speculation that the government will bring back its currency pricing as a result of the sharp fall in crude oil prices in the year. According to "Bloomberg" that "market forces play a role held Iraqi Prime Minister Haider al-Abadi's efforts to re-retrieve lands that fell to the organization Daash terrorist. As the military success of the Iraqis gradually came up with the continued suffering of the government in its efforts to gain and recruiting the sons of Sunni Arabs in the areas ravaged by the fighting in order to involve them in the fight against extremists. "Although the United States and its allies are sending arms to the Kurds in the north Iraq, with plans of President Obama's administration to spend more than $ 700 million in 2016 to support the troops in Iraq, the Iraqi government provide for the payment of military operations of its budget since the withdrawal of the Americans from Iraq by the end of 2011. Dollar sales, says the network that it can collapse in the value of Dinar cause to raise the value of life costs of the Iraqis who are suffering and are protesting against government corruption and a weak electrical power supply, disruption of water and the lack of other services. and transported Walid Ayed who serves as general manager of the Central Bank of Iraq to say "is our current policy to meet the demand for the dollar." He added that the foreign exchange reserves will not fade because of the continuing oil sales, which means that we will not re-pricing of the new dinar. And prove to the Iraqi Central Bank Iraqi currency exchange rate of $ 1166 dinars to the dollar, along with continuing pressure in this regard. As a result, the Reserve Iraqi foreign currency may fall to $ 45 billion by the end of 2016, according to emphasize Akazhoteix specialized investment affairs in the foreign markets company and based in London. According to a statement to the Executive Director Akazhoteix, Jacob Christenson, he said, "will try to Iraqi authorities resistance and endurance as long as possible, but it may find itself forced to re-local currency pricing if the pressure continued. "options are limited and the network says that the Central Bank of Iraq, has resisted until now, the government aimed to print a new currency worth $ 30 billion under pressure in order to bridge the budget deficit . But Iraq announced a plan to sell government bonds worth 6 billion dollars recently, a move that comes after the funding came from the International Monetary Fund worth $ 1.2 billion, although both figures do not represent little in the face of large deficits between the budget and public imports. The network says it Iraqi Minister of Finance is no doubt that this situation leaves in front of a relatively limited options. He says Gautner that the Iraqi government is seeking to pressure expenses and the fight against corruption, while other options include borrowing from domestic sources, such as public banks, or even force the central bank to buy government bonds from the Ministry of Finance. He concluded his speech by saying the last "Iraq will be able to finance the current inability of 2015. But if the battle continued against the extremist organization Daash along with the continuing decline in world oil prices, Iraq will find himself has hit the wall hard and painful way."
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