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Adviser to the Prime Minister: There is no problem with cash flow in the Iraqi currency
Thursday 08, August 2024 10:10 | Economical Number of readings: 334
Baghdad / NINA / Mazhar Muhammad Saleh, advisor to Prime Minister Muhammad Shia al-Sudani for economic affairs,
denied the existence of a problem with cash flow in the Iraqi currency.
Mazhar Muhammad Saleh said, according to Rudaw Media Network:
“There is no problem with liquidity at all because it is covered by foreign currency,” indicating that
“the mechanism for obtaining cash liquidity is that oil sales are converted into US dollars, and
when the government needs dinars for internal exchange, oil sales are exchanged for dollars.”
"It goes to the issuing bank, which is the central bank, to give it the currency." He pointed out that
"the central bank, with the aim of maintaining market stability, sells foreign currency to the market through the currency sale window and auction, to withdraw liquidity a second time and repeat it again so that there is a natural growth in the exported currency." Mazhar Muhammad Salih noted that,
“In this case, when the government wants liquidity in the Iraqi dinar, the cash issuance increases, that is,
instead of absorbing it from the market, a new issuance occurs, and
this is what led to a jump in the exported currency, but
there is no problem with that because it is 100% covered.” /End H
https://ninanews.com/Website/News/Details?key=1146399
Thursday 08, August 2024 10:10 | Economical Number of readings: 334
Baghdad / NINA / Mazhar Muhammad Saleh, advisor to Prime Minister Muhammad Shia al-Sudani for economic affairs,
denied the existence of a problem with cash flow in the Iraqi currency.
Mazhar Muhammad Saleh said, according to Rudaw Media Network:
“There is no problem with liquidity at all because it is covered by foreign currency,” indicating that
“the mechanism for obtaining cash liquidity is that oil sales are converted into US dollars, and
when the government needs dinars for internal exchange, oil sales are exchanged for dollars.”
"It goes to the issuing bank, which is the central bank, to give it the currency." He pointed out that
"the central bank, with the aim of maintaining market stability, sells foreign currency to the market through the currency sale window and auction, to withdraw liquidity a second time and repeat it again so that there is a natural growth in the exported currency." Mazhar Muhammad Salih noted that,
“In this case, when the government wants liquidity in the Iraqi dinar, the cash issuance increases, that is,
instead of absorbing it from the market, a new issuance occurs, and
this is what led to a jump in the exported currency, but
there is no problem with that because it is 100% covered.” /End H
https://ninanews.com/Website/News/Details?key=1146399
