SUDANESE ADVISOR: IRAQ IS AT THE BEST STAGE IN ITS FINANCIAL HISTORY
Mazhar Saleh, the financial advisor to the Prime Minister, confirmed that “Iraq is in the best condition in its financial history, through the reserves it possesses of gold and foreign currencies,” indicating that “the growth of the gross domestic product is continuous and stable.” Saleh told the official agency, followed by Al-Mutala’, that: “Iraq’s oil revenues will remain the main source of growth in the country’s foreign currency reserves, and those reserves will rise with the rise in the cycle of oil assets, all of which lead to an increase in indicators of the efficiency of foreign currency reserves, whether Commercial efficiency (coverage of the mentioned reserves for the number of import months for Iraq, which currently exceeds 15 months compared to the global standard of three months), or in covering the money supply, or the fact that these foreign reserves in terms of percentage have the ability to cover the external debt services payable.”
He added: “The country’s oil revenues still provide 98% of the assets of the investment portfolio for the country’s foreign currency reserves, whether in monetary gold or various foreign currencies. All indicators of the efficiency of foreign reserves mentioned above indicate that Iraq today is in the best condition in its financial history.” These reserves flourish and grow with the index of the growth rate in the current account surplus of the balance of payments to the country’s gross domestic product, which was estimated for the year 2023 at approximately (positive 9%), and is estimated for the year 2024, at the same similar rate, according to published data from international credit evaluation institutions. “For Iraq.”
He pointed out that “there are standard investment mechanisms and guides approved globally by the monetary authority in managing the country’s foreign currency reserves, as their tools and methods are evaluated in consultation with multilateral international financial organizations, including the International Monetary Fund and the World Bank, on a periodic basis to ensure optimal management of reserves, both in Providing appropriate returns, sufficient liquidity and low risks at the same time.”
He continued: “It takes into account avoiding all forms of risks, whether the risks of currency exchange rate fluctuations, interest, or liquidity risks, as well as the legal risks in managing those reserves, which are the basis of the country’s foreign investment portfolio, and today they represent something similar to the Iraqi dinar exchange rate stabilization fund that it defends.”
The country’s monetary policy represents assets corresponding to the national currency issued as (liabilities) and adequate coverage of the dinar to ensure its stability, in addition to the role of reserves in financing foreign trade for the private sector.” At the conclusion of his speech, he stressed that “as the cycle of oil assets increases, the country’s foreign assets increase and inevitably rise in the country’s investment portfolio.”
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