03/28 2020 10:47
Baghdad today - Baghdad
The financial advisor to the Prime Minister, the appearance of Mohammed Saleh, revealed on Saturday (28 March 2020), Iraq’s options to face the new financial situation, which was imposed on the country after the drop in oil prices and the emergence of the Corona virus, while stressing that the issue of printing an Iraqi currencyto avoid the crisis is merely Opinion and suggestion .
Saleh said, in a statement carried by the official Iraqi news agency, that "a team is working with the Ministerial Council to restructure state expenditures," noting that "our options to confront the financial situation are moving towards pressure of expenditures."
He believed that "the issue of printing currency is merely a personal and suggested opinion that is not consistent with the law of the Central Bank," noting that "the salaries of employees are among the priorities of the government and have financial measures that will not lead to faltering."
The Follow-up Cell, in the Prime Minister’s Office, revealed yesterday, Friday, that the government will be able to distribute the salaries of the current month of March, while it will resort to some solutions to ensure the provision of salaries next month, and while it indicated that Iraq’s monthly income from oil is currently estimated at one billion dollars only (after a price drop The barrel to $ 18), she explained that the salaries of employees amount to 3 and a half billion per month, which may prompt Iraq to print the currency as a last option, "as the state of the state will be affected starting next month ."
Cell chief Mustafa Jabbar Sanad said in a press statement, "The crisis of the Corona virus caused the disruption of the economy in general and the oil sector in particular, as global demand for oil decreased by 10 million barrels per day, while it will decrease during the next month by 9 million barrels." "The drop in the world oil price by one dollar means the loss of Iraq's annual budget of one billion dollars ."
He pointed out that "among the solutions that the country’s government may be heading towards is the printing of the currency," noting that "this is not possible without the presence of a cover of gold and hard currency. However, this option is offered as a last option, as things can go for a month or two." ".
Sanad cited his talk about currency printing that "the United States decided today, through a decision by the Congress, to print the currency at a value of two trillion dollars, which is the first country in the world, but it did not adhere to the issue of currency printing, so how do other countries that depend on the US dollar (referring to Iraq)".
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