IRAQS RESERVES.....................

[FOUNDIT]

Iraq won't touch reserves to balance 2012 deficit

15/09/2011 10:43

Baghdad, Sep.15 (AKnews) - The deficit of 35 trillion IQD ($29.7 billion USD) in the 2012 Iraqi federal budget will not be paid from the financial reserve of the Central Bank of Iraq.

Salam al-Quraishi, a government adviser familiar with the issue, told AKnews, the government would rather rely on raising the revenues in the oils exports, in the industry, as well as through a new law of customs to expand the estimated budget of 180 trillion IQD (152.8 billion USD).

"The Central Bank has 58.9 trillion IQD ($50 billion USD) in financial reserves in order to keep the Dinar's exchange rate. The government can't legally exploit them to balance the budget", Quraishi said.

"The oil ministry will develop a mechanism to raise the export of oil at the beginning of next year to 2.8 million barrels per day of crude oil to fill the deficit", Quraishi said, but did not give further details.

In 2009, Iraq produced 2.5 million barrels of oil per day (bopd). According to previous announcements by the Iraqi government dating back to 2010, the oil production is already supposed to rise up to 12 million bopd in 2016.

Currently, Iraq finances 95% of its annual budget through oil revenues.

Reported by Jaafar al-Wannan

RN/CU/AKnews

Edited September 15, 2011 by FOUNDIT

[Dalite]

If the CBI only has $50 billion USD to back the 30 trillion Dinar in circulation, would we want them to spend half of what they have available to fund a revaluation?

"The Central Bank has 58.9 trillion IQD ($50 billion USD) in financial reserves in order to keep the Dinar's exchange rate".

That should lay to rest the questions of what the CBI can back, and how much they have available to do so.

The next time a Pumper/Guru tells you it is going to RV for more than a penny, ask them how.

Their reserves won't even cover that much, by their own admission...

It doesn't get much plainer than this.

But, I am sure this is just Smoke and Mirrors; the gurus would never lie to us, would they?

[FOUNDIT]

If the CBI only has $50 billion USD to back the 30 trillion Dinar in circulation, would we want them to spend half of what they have available to fund a revaluation?

That should lay to rest the questions of what the CBI can back, and how much they have available to do so.

The next time a Pumper/Guru tells you it is going to RV for more than a penny, ask them how.

Their reserves won't even cover that much, by their own admission...

It doesn't get much plainer than this.

But, I am sure this is just Smoke and Mirrors; the gurus would never lie to us, would they?

yes and they keep the rate down by dumping IQD on the market. And man they got a lot to dump.

[NickMc]

If the CBI only has $50 billion USD to back the 30 trillion Dinar in circulation, would we want them to spend half of what they have available to fund a revaluation?

That should lay to rest the questions of what the CBI can back, and how much they have available to do so.

The next time a Pumper/Guru tells you it is going to RV for more than a penny, ask them how.

Their reserves won't even cover that much, by their own admission...

It doesn't get much plainer than this.

But, I am sure this is just Smoke and Mirrors; the gurus would never lie to us, would they?

I'm not 100% sure how it will work with what they have in reserve when they RV, but according to the IMF up to 80% of a country's value can be backed by their commodity (oil in the ground, gold and various other minerals Iraq has).

Edited September 15, 2011 by NickMc