British newspaper: Iraqi dinar and one of the most vulnerable currencies in the Middle East

Remember this is just an opinion piece, and it sort of not accurate either!



Editor Ammar Kazim - Wednesday 26 August 2015 15:52


Alsumaria News / translation
Newspaper, "said Bloomberg," the British, Wednesday, that the foreign currency reserves at the Central Bank of Iraq had fallen to $ 59 billion since the third of the month of July, saying the Iraqi dinar and one of the most currency risk in the area of the Middle East, as he emphasized, Director General of the Bank CBI that the value of the dinar will not cut it.

The newspaper said in a report, "The currency crisis in any country be of dire consequences for the economy, and that the threat posed by the decline in the value of the Iraqi dinar due to lower foreign currency reserves in Iraq and the fall in oil prices may cause by making the fight against al-Daash more difficult."

The report emphasized that "the second-largest oil producer in OPEC after Saudi Arabia, depends only on oil revenues to finance military operations and try to suppress unrest related to the Iraqi economy," noting that "foreign currency reserves at the central bank fell to $ 59 billion since the twenty-third of July Past and losses escalate. "

He pointed out that "in the first 25 days of August, the current central bank sold $ 4.6 billion of currency to keep the dinar at a constant rate, which means that the daily flow rate of the dollar stood at $ 184 million."

He added that "the Iraqi dinar is one of the most currency risk in the Middle East, although it is likely the stability of the exchange rate at the moment," noting that "the collapse of the value of the dinar could cause rising cost of living for Iraqis who are protesting at the moment against corruption Government and power cuts and water shortages. "

He explained that "the central bank has so far resisted government pressure to print a new currency to cover the budget deficit of $ 30 billion, and announced last week plans on bonds worth $ 6 billion, followed by $ 1.2 billion from the International Monetary Fund."

The report pointed out that "despite the fact that these amounts are not large enough to meet the shortfall, but that leaves the Ministry of Finance a few options, including borrowing from local banks or forcing the central bank to buy dollar-denominated bonds from the Ministry of Finance."

The report said that "Iraq will be able to finance the shortfall in 2015, but in the event of continuing the battle against al-Daash and low oil prices, Iraq Vsastdm the wall."

For his part, he said economic analyst and author of the book "The Political Economy of Iraq," Frank Gunter, said that "the continuation of this storm in its current form means the continuation of the loss of Iraq to its reserves, forcing the Iraqi government to reduce the value of the dinar," noting that "the Iraqi currency has weakened by 20% during the year next. "

In a related context, Idi Walid, one of the directors-general in the Iraqi Central Bank stressed that "the current policy is to meet the demand for the dollar, and that the reserves will not be depleted because of oil sales," stressing that "the value of the dinar will not cut it."


http://www.alsumaria.tv/news/144505/صحيفة-بريطانية-الدينار-العراقي-واحد-من-ا/ar