Economists for the Obelisk: The coming months will see a further decrease in the reserves of the Central Bank

by **claud39** on Sat Jul 11, 2020 1:30 pm

7/8/2020 2:25:34 PM

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Baghdad / Obelisk: Economic expert Manar Al-Ubaidi said, on Saturday, July 11, 2020, that the coming months will witness a further decline in the reserves of the Central Bank.

Al-Obaidi told Al-Masala: The central bank assets for May 2020 decreased by 1.83% compared to April 2020, but it increased by 3.93% compared to May 2019, to reach the value of the assets 105.6 trillion dinars.

Al-Ubaidi added: The reason for the decrease in the Central Bank’s assets is due to the continued volume of sales from the dollar for the purpose of importing with the decrease in the volume of purchases from the dollar from the Ministry of Finance, which leads to the trend towards using the reserve to compensate for the shortfall, and the gold and cash reserves increased by 0.54% compared to April 2020 At a rate of 15% compared to May 2019, to reach 21 trillion dinars.

Al-Ubaidi continued: The percentage of decline in investments reached 4.64% compared to April 2020 and 11.3% compared to May 2019 to reach 43.5 trillion dinars.

On the level of the issued cash, Al-Ubaidi confirmed that it increased by 1.3% compared to April 2020 and 26% compared to May 2019, to reach 58.6 trillion dinars, and to represent 55% of the bank’s total liabilities, a large proportion attributed to the decline in bank deposits and government institutions balances As the banking sector suffers from weak banking transactions that reduce the size of its deposits with the central bank and also the need for government institutions for funds, which causes them to withdraw part of their assets with banks to cover their expenses.

Al-Ubaidi said: It is expected that the coming months will witness a further decline in the reserves of the central bank as a result of the decline in the purchase of the dollar from the Iraqi government as a result of weak imports and the continued purchase rates of the dollar for import purposes at the same pace, which leads to withdrawing more of the bank's reserves to compensate for the shortfall.

Al-Ubaidi added: Three parties responsible for industrial investment in Iraq:

1- Industrial development according to the Industrial Investment Law

2- The National Investment Commission according to the investment law in Iraq

3- The Directorate of Industrial Cities, according to the Industrial Cities Act

Al-Ubaidi continued: In natural and logical circumstances, the three sides are competitive entities. The size of the competition between the three bodies should be at their height, and the three bodies work to win over investors through:

- Inviting investors to view the opportunities available in each body.

- Building a model for what the agencies offer, the future image, investment returns, guarantees and facilities.

- Internal and external marketing campaigns to attract investors from various countries.

- Direct dialogues and visits with major investors and big companies.

Al-Ubaidi stressed: But the absence of goals and monthly plans and the consequences of the lack of investigation made their field of work confined to dealing with the consequences and problems without talking about the achievements.

Al-Obaidi added: The three directorates, along with the three laws, could have built an investment environment capable of establishing industrial societies that would contribute to increasing the local product and providing job opportunities for thousands of unemployed youth.

Al-Ubaidi added: With the exception of the reasons paid by parties and parties working to use laws and laws to serve them only, the reason that comes after it is weakness and lack of interest in competition.

Al-Ubaidi said: The competition results from the size and follow-up of the goals set and the consequences that follow the lack of investigation, which constitutes a pressure factor on all bodies to work aggressively and fiercely and use all means to achieve these goals.

Al-Ubaidi added: All previous and current governments are talking about investment and the private sector, especially the industrial sector, but there is not a single report that explains the size of the desired goals from each body and the amount of what has been produced on the ground and what steps have been taken rightly from achieving these goals.

Al-Ubaidi concluded by saying: When the consequences disappeared, the goals were lost and the spirit of competition and perseverance died with them.

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