Baghdad / Zahraa al-Jassim
The central bank explained that the reserve of gold that it has, is part of the cover of the national currency, and its function is not the transition time hard to dollars to strengthen the budget as some believe, and stressed by saying, it is not practical to liquidate that reserve and convert it to the dollar in front of any financial problem passes Said that even if Iraq does not recover oil prices, its financial position will be good for four years to come. An economist confirmed that the central bank has good reserves and does not raise the burden of deductions from the citizen, as some believe, indicating that the reserve is used to finance imports. Not for domestic spending This is the case in all countries of the world.
“Iraq is not the fifth country in the gold reserves,” says Ihsan Shamran, director of the Treasury and Issuance Department. “The central bank has built the gold reserve, which now has about 89 tonnes of gold as part of the national currency cap, “When we say that the source of the circulation amounted to” such “billion of the Iraqi dinar, I mean that this source is supported by the dollar and gold as well as the rest of the bonds and others, and here may be liquidated this Reserve any transfer to liquid funds from the dollar in front of any A difficult problem in the country, especially as his job to support the Iraqi currency and make it a very strong currency, thanks to the presence of cash reserves of the dollar and another gold.
“This is also a reserve for international financial organizations in a good position as well. Iraq is known and calculated now what is its financial and economic situation. Even the financial problem is now an emergency and it will be overcome and the Iraqi economy will recover. At a safe level, and Iraq in the next four years and with bad oil prices will be an excellent financial situation, but if oil prices recover, the central bank will return to build reserves of the dollar. The veteran economist Ahmed Barihi, in an interview with (the extent), that Iraq does not need to turn the reserve of gold into a difficult currency, it has enough foreign exchange reserves, and there is a good amount of them now in the Central Bank, and that Iraq does not need To the use of gold, but on the other hand, the existence of reserves of the central bank is good does not raise the burden of deductions from the citizen as some believe, because this reserve is used to finance imports and not for domestic spending, continuing: Usually reserves of the Central Bank of Iraq and in all countries of the world , Used for external payments and not for payments The citizen must know that the foreign currency is used for foreign payments and not for the citizen. The latter must know that, because the newspapers and economists are deceived this fact in the minds of people until there is confusion between the reserves of the Central Bank and the budget, which is a mistake. At a time when it was necessary to focus on the currency used for payments and in all countries of the world, and has no other job, and here the budget is a revenue and expenses and the Central Bank another institution.
Breihi had earlier pointed out that while we are ranked fifth in the global gold reserve, it is useful, especially since gold reserves can be converted into anything else, and the central bank can at any moment convert them into Foreign currency and used in international transactions or re-investment in the international market, which is certainly a good treasure because gold is a means of conservation value and central can convert this gold to foreign currency and uses this currency for the purposes he wants either to finance foreign trade or to invest the amount in the financial market International And to pay off debts.
The Central Bank of Iraq announced on 16-7-2017 that the bank’s gold reserves are 90 tons and it occupies a high international ranking. The total gold reserves in the bank is 90 tons, thus it occupies the 37th position globally and the seventh in the Arab world. The Central Bank of Iraq gold in 2012 was only 30 tons, but it has reached three times now, at a time when the World Gold Council announced the rise of the world’s reserves of gold in the month of February, noting that Iraq has maintained the fifth rank of Arab reserves.
The governor of the Central Bank Ali Alalak, announced on 11/5-2017, the increase in foreign exchange reserves of foreign currency than in 2016, stressing the rise to 49 billion dollars.