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Font size:2013/05/15 (23: 01 pm) -
Financial caution use of Central Bank reserves and calling balance generations
Baghdad Adel saffar
Caution specialize in financial and banking Affairs of Central Bank credit of foreign exchange reserves in economic development projects, comes at a time when the Central Bank revealed the high foreign exchange reserves to $ 74 billion, coinciding with the depreciation of the local currency by 1127 dinars per dollar on the local market.
The financial expert said Farouk Ramadan "Central Bank reserve balance generations which is supportive of the country's economy, and it has nothing to do with the fluctuation rate of the local currency.
The modern term "country whose economy depends on oil exports only without other aspects that are almost stationary, such as industry, agriculture and other activities adopted by the Nations of the world and expands in support of Bank reserves.
"In terms of investment projects, we can say that the country is mounting a revival project level and an ambitious budget to build and expand in all fields."
The financial expert said Manaf jeweler central reserve represent domestic and international confidence and must not be thrown in the profit and loss potential projects.
He said talking to the extent that "the higher cash reserve enhances the confidence of the international community and the local value of the local currency, based on the evidence on the ability of the economic activity of the country."
"These cash reserves should not be affected by the power for purposes such as debt payment in State institutions because doing so would undermine the confidence of the international community and local State". "If the State had to for reasons such as its budget deficit, for example, prefer to put Government bonds to reduce the deficit, and of course the State will be obligated to pay those bonds."
It is possible to make use of cash reserves in case of optimum regulating investment additional funding as shares in international companies for the development of the money, but I think he preferred at this time away from so projects not being guaranteed. "
The head of the parliamentary Finance Committee, Haidar Al-Abadi told the disciple to receive reassuring messages from officials at the Central Bank to control the fluctuation in the exchange rate, as well as emphasizing the lack of seriousness on the dinar from a large monetary mass, and World Bank officials expressed great confidence in the power of the Central Bank of its hard currency cash reserve of about $ 74 billion, pointing out that the problem is limited to the difference between supply and demand in the market to the dollar.
In the meantime, the economic analyst warned Abdel Salem Al-uqaili of Nice lending part of the Central Bank's cash reserve in investment projects for the country because it would harm the economy and national currency. In an interview, said Al-uqaili disciple range: to increase the Central Bank's balance of foreign currency to more than 74 billion dollars, will boost the value of Iraqi dinar and enhances the strength of the national economy. He cannot use Central Bank reserves to finance any investment project in the country because it will affect the balance of the Bank and will hurt the economy and reduces the dinar exchange rate versus international currencies.
A bank source revealed the size of the Central Bank's reserves of foreign currency has the highest reserve has reached 74 billion dollars, noting that this confirms the Central Bank's ability to continue its policy to cover the needs of the market through dollar auction daily currency and keep reserves growth and development through investments in a number of central banks, diversifying its resources.
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