Flexible Management of Foreign Currency

19/7/2018 12:00 am

Dr. Basem Ibrahimi


The Central Bank has been able during this year to strengthen foreign currency reserves to reach more than five and fifty billion dollars, this is contrary to the expectations of some international organizations two years ago, which indicated that foreign currency reserves will fall to less than 30 billion dollars as a result of the financial crisis suffered by Iraq It is worth mentioning here that the International Monetary Fund currently adopts what is known as the composite index of foreign reserves without regard to the absolute size of the existing ones.



By calculating this index in Iraq, it is estimated at (169%), which confirms the adequacy of foreign reserves
we've got.


The success of the Central Bank in the management of foreign currency and reserves was the result of a number of important steps, which adopted a new method in the management of foreign reserves through self-management, where the bank performs the renewal of deposits and currency conversion itself according to the latest global practices in this
the field.


The movement of the foreign currency has been pursued internally through the introduction of a new system for the series of banknotes and tracking them until they reach the exchange companies. The system has started to operate in electronic form, starting with recording the dollar sequence electronically until the final distribution of the cash categories, Ensures that the dollar does not reach the terrorist organizations posted on the OFAC list, which is one of the world's most sophisticated systems and requires compliance requirements
Dollar.


In order to control the flow of foreign currency issued by the Central Bank instructions for the sale and purchase of foreign currency for the year 2017 and continued to follow the commitment of banks in quarterly terms, as well as to follow a package of administrative procedures to close the exchange rate gap, which contributed to control the sales of the dollar and stability of its price In the same context, user security applications were approved with SWIFT International for the first time, as well as work to comply with all SWIFT network users in Iraq to implement these standards according to the time limit set for them.


The experience of the Central Bank in the transparent and flexible management of foreign currency reserves proved successful and this requires the support of the experiment by all of us.


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