Warning .. Iraq is heading for bankruptcy with the continued sale of treasury of the dollar

01/02/2016



BAGHDAD / JD / .. warned a number of experts and specialists in the financial and economic affairs of decreasing the amount of cash reserves of hard currency with the Central Bank at the continuation of the sale of the dollar in the auction under the low fiscal revenue of hard currency for the country because of low oil prices, while noting the central bank that the continued selling of the dollar comes to keep the Iraqi dinar exchange rate in the domestic market.

The economist said Salam al-Quraishi, the reserve cash foreign currency with the Central Bank is a sovereign balance for future generations as well as a haven safe of the national currency, it can not be manipulated once, indicating that the depletion of central bank balance of hard currency through the continued sale of the dollar will reverse the This thing is a threat to the economic and financial situation of the country.

He said Quraishi told / JD / A reduction in financial revenue of the state of hard currency in light of the low world oil prices this means that the central bank began to draw on cash Balaanaat when it is sold to the dollar in the auction and this is a violation of the law, stressing that the continuation of the central bank sold the dollar will lead to a decrease in size monetary reserves and this will lead to the bankruptcy of the state altogether.

For his part, the financial expert David Zayer warned of the bankruptcy of the Iraqi state in the event of continued central bank selling treasury of the dollar.

Zayer said, "The depletion of central bank balance of the dollar will arrive to the bankruptcy of the state, after he crossed the stage of the bankruptcy of the government, because this depletion leads to yellowing of the bank balance of hard currency."

He explained that "the bankruptcy of the state leads to an inability to economically deal with other countries, stressing that the sale of the Central Bank foreign currency violation of the law, because he does not have a law to sell the currency and can buy the currency, but is justified as buying the Iraqi dinar and this is illegal."

Zayer said he "supposed dollar money that comes from the oil riches of other investment and project management, and not turn them into consumer products, because the financial reserves in the world where more than, more than economic weight, but that happens in the country that we alter this hard currency local Iraqi dinar, which does not benefit beyond its borders. "

The parliamentary Finance Committee has to resort to the use of central bank cash reserve of hard currency to sell the dollar Bmzadeh ruled out, calling on the central bank to maintain the exchange rate of the dinar, without prejudice to his cash balance.

Said committee member Ahmed Sarhan told / JD /: "We do not believe that the central bank monetary manipulation Balahiat or use of it in the process of open sale to the dollar in the auction because this process can not be used as a harm the public economy and the financial situation of the state."

He added that the central bank must take serious action to keep the dinar exchange rate against the dollar without prejudice or manipulation of the cash reserves of hard currency.
For his part, said Governor of the Central Bank on the Keywords that the continuation of the central bank to sell the dollar in light of reduced state financial revenues comes to keep the dinar exchange rate against the dollar in the domestic market, denying at the same time manipulating the cash reserve.

Keywords and said that the cash reserve and can not be present to any party manipulated the final because it is a cover for the local currency, indicating that the central bank continued to sell the dollar in its daily auction comes to keep the dinar exchange rate against the dollar in the domestic market.

The official document of the Finance Committee in Parliament revealed that the central bank sold the amount of the US dollar in the past year more than in 2015 and Iraq's imports of foreign currency obtained from the sale of crude oil in the same year.

The document showed that the country's oil revenues for the year 2015 amounted to $ 38 billion, while sales of the bank in the same year was more than $ 44 billion, a difference of more than five billion dollars, that is what sold Iraq of foreign currency more than its imports from them.

Iraq is facing a financial crisis due to the sharp decline of oil, in terms of financial budget for this year with a total expenditure of more than 105 trillion deficit accounted for 22.8%, reaching a total revenue of the 81 trillion and 700 billion dinars, the oil revenues, of which 69 trillion and 773 billion dinars The increase of 85.1% from total revenues, while non-oil revenues amounted to more than 11 trillion and 927 billion dinars The increase of 13.6% of total revenues.


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