Former MP: The government boosted hard currency reserves by 10 billion dollars

[yota691]

Former MP: The government boosted hard currency reserves by 10 billion dollars

 

- 06-12-2021 10:00 AM - Readings: 1635

 

A former member of the Parliamentary Finance Committee, Jamal Kougar, revealed that the hard currency reserves at the Central Bank had been enhanced by nearly 10 billion dollars.
In an official statement, Cougar confirmed that the current government was able to boost foreign exchange reserves by nearly $10 billion in less than a year, even though the treasury was "almost empty." He added, "The government of the current Prime Minister, Mustafa Al-Kazemi, suffered a financial crisis, but during the last four months there was a breakthrough," noting, "But we cannot say that the state treasury is full and the economic conditions are comfortable for various reasons."
He added, “In the 2022 budget, Iraq will have passed the severe deficit stage, but this does not mean that we are in a state of economic recovery.”
And he continued, "There are two types of empty treasury, the first is that there is no money in it, the bank reserve has decreased, debts have increased, and resources have decreased, and the second is that the state treasury in all cases remains empty, because all financial resources are supposed to be transformed into a budget, and this is the state's policy. And a few countries have sums that are not included in the budget, so most of the resources are supposed to be transferred to the budget,” noting that “it is natural for the budget to be delivered empty, but with better bank reserves than it was in the time of the government of Mr. Adel Abdul-Mahdi and with higher resources, because Al-Kazemi is He fought corruption - to some extent - and border crossings were better controlled than in an earlier time, in addition to the high oil prices.
He pointed out that "during this year, the bank reserve was strengthened by more than ten billion dollars, and this is a positive point that is calculated for the current government," noting that "the deficit included in the current budget was originally a planned deficit, so we will be facing the absence of a deficit, and in In this case we will turn into abundance, but this abundance is not in such large numbers.”
He explained that “the bank reserve was on the edge, and there were warnings to the Iraqi government that if the bank reserve decreased, the Iraqi currency would lose its purchasing power, so it was strengthened, and now we have overcome the problem of strengthening the bank reserve to some extent, and there remain debts for some Iraqi banks that must be addressed. “.

[yota691]

Cougar: The government has boosted cash reserves by about $10 billion

 

beauty cougar

Material uses Economy News - Baghdad A former member of the Parliamentary Finance Committee, Jamal Cougar, said on Monday that the current government was able to boost foreign exchange reserves by nearly $10 billion in less than a year, even though the treasury was "almost empty." Cougar said, in a statement reported by the official "Al-Sabah" newspaper and seen by "Economy News", that "the government of the current Prime Minister, Mustafa Al-Kazemi, has suffered a financial crisis, but during the last four months there has been a breakthrough," noting, "But we cannot say that the state treasury is full and the conditions are The economy is convenient for many reasons." He added that "in the 2022 budget, Iraq will have passed the severe deficit stage, but this does not mean that we are in a state of economic recovery." He pointed out that "during this year, the bank reserve was strengthened by more than ten billion dollars, and this is a positive point that is calculated for the current government," noting that "the deficit included in the current budget was originally a planned deficit, so we will be facing the absence of a deficit, and in In this case we will turn into abundance, but this abundance is not in such large numbers.” He explained that "the bank reserve was on the edge, and there were warnings to the Iraqi government that if the bank reserve decreased, the Iraqi currency would lose its purchasing power, so it was strengthened, and now we have overcome the problem of strengthening the bank reserve to some extent, and there remain debts for some Iraqi banks that must be addressed." ".

Views 313   Date Added 06/12/2021

[Wiljor]

Good morning Yota, a stellar week out to you sir 

 

"the Iraqi currency would lose its purchasing power, so it was strengthened, and now we have overcome the problem of strengthening the bank reserve to some extent, "

 

Interesting statement, The IQD doesn't really have any purchasing power, so, is the CBI enhancing it's reserves for something to come? Also, that increase in reserves was accomplished in less the a year, of coarse, due to the increase in the price of crude. 

I could be wrong, but, I believe that the CBI is enhancing it's reserves to INCREASE the purchasing power of the IQD,  the budget (as far as we know) was calculated at 45usd per barrel. For the better part of this year the ppb has almost been double of the set budget rate 😉

The new COVID variant (Omicrom) has seen a pullback in the price of crude, but, OPEC still sees an increase in demand going forward, hence the bounce off the lows of last week set at 62.40 

OPEC wants 100usd per barrel, so does Iraq, and that price could set the stage for interesting events in the value of the IQD. 

[yota691]

Cougar comments on the fluctuation of oil prices: In this case, the government will need to borrow

•  Time: 06/12/2021 18:29:55
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•  Reading: 2,106 times

  

{Economic: Al Furat News} The former Parliamentary Finance Committee member, Jamal Cougar, commented, on Monday, about the fluctuation of oil prices and its impact on the Iraqi economy.

 

Cougar told Al-Furat News that "the fluctuation of oil prices will affect the country's economic situation, because the organization of the budget is based on calculating the state's resources."
He added, "The main resource for Iraq is oil, and the budget is based on the price of a barrel, and the government usually takes its reserves in the price. When prices reach the price of 60 dollars, the prices of one barrel of oil are based on 45 per barrel in the budget."
Cougar explained, "The price that will be deliberately lower than the general price, and this limits the possibilities of setting a budget with active investment aspects, and if prices drop below 60 dollars, the government will inevitably need to borrow."
Oil prices rose on Monday, after Saudi Arabia, the largest oil exporter, raised the prices of its crude sold to Asia and the United States. And Brent crude futures for the month of February increased by $1.39, or 2.03 percent, to $71.30 a barrel.
US West Texas Intermediate crude for the month of January next rose $67.66 a barrel, an increase of $1.42, or 2.14 percent.
On Sunday, Saudi Arabia raised its January official selling prices for all grades of crude sold to Asia and the United States by up to 80 cents from the previous month.