CBI annnounces increase in financial reserves; Up by $8 bill

[Stillw8n]

CBI annnounces increase in financial reserves; Up by $8 billion

Rise up the Iraqi Central $ 8 billion since the beginning of the year
06/10/2011 14:38

Baghdad, October 6 / October (Rn) – The Central Bank of Iraq on Thursday, the high financial reserves of eight billion dollars since the beginning of the current, indicating that the reserve was 50 billion last year and is now to 58 billion.

The deputy governor of Central Bank of Iraq the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that “the Iraqi Central Bank reserves reached $ 58 billion of the $ 50 billion the end of last year.”

Saleh said that “high reserves is a sign of maturity and development of monetary policy and consistency with fiscal policy in the country,” adding that “the rise confirms the extent of the central bank to address the economic gaps in the circulation of local and foreign currency.”

“The reserve bank is not stagnant or stock is used in the open market in order to achieve a balance between liquidity and demand in the local currency trading.”

The Iraqi government has confirmed earlier that it would not close the budget deficit in 2012 from the Iraqi Central Bank reserves.

Government figures indicate that Iraq’s budget for next year will amount to 131 trillion Iraqi dinars (about $ 112 billion), up 36% from the current year budget and a deficit of 23.3 trillion Iraqi dinars (20 billion dollars).

The government says the deficit will be met from cash retained from the current year budget 2011 is internal and external borrowing and the rate of savings is expected to increase selling prices or increased oil production or borrowing from the IMF and World Bank.

Iraq relies He is a member of the Organization of Petroleum Exporting Countries on oil revenues to finance about 95 percent of its annual budget.

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