Are the reserves of the Central Bank of Iraq in danger?, 20 JUNE

 Are the reserves of the Central Bank of Iraq in danger?

2024-06-18 06:34

Experts’ statements revealed a decline in the value of the foreign reserves of the Central Bank of Iraq by 2.4%, while gold reserves increased by 16%.

Monetary reserves of foreign currencies are an extremely important issue for the economies of any country to confront challenges and crises and to ensure the stability of national economies, especially for developing countries.

However, some do not see their decline as a problem.

Rather, countries are not working to develop them, or rather they do not have reliable reserves, but It has diversified economies and local production constitutes an important proportion of its national income and thus compensates for the decline in its cash reserves.

Iraq worked at various times to increase the cash reserves of the Central Bank and had a large reserve referred to by the countries of the world, estimated at $36 billion, which strengthened the strength of its economy at that time before the war with neighboring Iran, but the war consumed it and it emerged with exhausting debts and an economy that was difficult to bear its burdens and complete devastation. ..

But after the overthrow of the regime, the rise in oil prices, and the increase in its financial resources, foreign currency reserves grew again and exceeded one hundred billion dollars, and declined again, according to press statements, albeit by small percentages until now.

It is said that the intention is to withdraw from it in larger quantities, and it was stated that the official reserves of the Central Bank of Iraq It decreased by 2.4% in the fifth month of the current year compared to the end of 2023, bringing the value of official reserves down from 147 trillion dinars in 2023 to reach 143 trillion at the end of the fifth month of the current year.

If the reserve in the previous time was known to have been spent on the war, then the government did not explain where the money was spent in the present situation?

A question that must be answered transparently, and it is the right of people to obtain information and follow up on this money that belongs to them.

On the other hand, the Central Bank’s gold reserves increased by 16% compared to 2023, bringing the value of the gold reserves to 14.3 trillion dinars, up from 2023, when the value of the gold reserves at the end of last year was 12.3 trillion dinars.

This is a good thing, especially the diversity in saving reserves or investing them in something that is productive and maximizes resources in light of the fluctuation of currencies and the risks of keeping them in one type.

It is noted that countries are trying to benefit mainly from this reserve in developing the productive sectors, economic, industrial, agricultural and other branches, that generate income and its growth and for the well-being of their people by building a solid and solid economy that will move them to a better state and lift their citizens out of poverty and backwardness.

shafaq.com