The central foreign cash reserves have boosted confidence in the Iraqi economy

 
12/14/2021

Samir Al-Nusairi*

It was announced that the foreign cash reserves of the Central Bank amounted to 64 billion dollars and will rise to a higher rate when the Ministry of Finance pays what it owes to the Central Bank, which represents the sad transfers that the Central Bank discounted during the period of the financial crisis that Iraq suffered for the years 2016-2020 and it was a direct support to the treasury The state and the national economy.

The observer and the specialist is well aware that reaching this rate of foreign reserves is the central bank’s adoption of safe investment policies, which has strengthened the credit position internationally and restore confidence in the Iraqi economy and its international banking relations. And to benefit from the rise in international oil prices and its arrival to 80 dollars per barrel and the effects of reducing the exchange rate The Iraqi dinar in December 2020, this is in addition to the measures and initiatives of the Central Bank during the year 2021, which made a significant contribution to revitalizing the economic cycle and stimulating the economy.

What confirms the safety and success of the Bank’s second strategy (2021-2023) and its monetary policy applications in the year 2021. It is the verification of the achievements in the financing activity and the activation of its initiative to finance small and medium enterprises, amounting to 6 trillion dinars, adding an allocation of up to 7.6 trillion dinars, and focusing on encouraging projects Housing at the Real Estate Bank, the Housing Fund and private banks, in addition to the financing of the Tamkeen Fund for Community Projects.

And that all of these measures led to the improvement of the government’s financial position and the reduction of the actual deficit rates in the 2021 budget, which achieved the central bank’s planned goal for this year as far as its tasks and objectives contained in Law 56 of 2004 and its amendment.

The objectives of the reform of the banking sector were mentioned in the white paper. All of this clearly contributed to supporting the national economy, despite the challenges that the economy suffers from for subjective and objective reasons.

Thus, the Central Bank, with its distinguished national team, was able to achieve one of its main tasks and objectives, which is to build foreign reserves that collectively constitute a safe sufficiency that covers the local currency in circulation and the imports of the private sector.

* Advisor to the Association of Iraqi Private Banks

https://economy-news.net/content.php?id=26945