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"FINANCIAL SITUATION MEANS MONETARY REFORM SUCCESS!!! by FRANK26, 5 OCT

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FRANK26: "FINANCIAL SITUATION MEANS MONETARY REFORM SUCCESS!!! 

Government Advisor: No concerns about Iraq's financial situation and our foreign reserves are diverse

10/2/2024

 

 The financial advisor to the Prime Minister, Mazhar Muhammad Salih, reassured about the financial and economic situation of the country.
 
Saleh told Al Furat News Agency:  "We should not worry about the current fluctuations in either monetary gold or the various foreign currencies that make up the country's foreign reserve portfolio, which varies from major foreign currencies and monetary gold, according to the global standard investment guidelines adopted by the monetary authority in high-level technical cooperation with multilateral international financial organizations, specifically the International Monetary Fund and the World Bank."
He explained, "Usually, the Central Bank of Iraq hedges in managing its sovereign investment portfolio with a studied and highly sensitive diversity and with standard ratios and precise weights for each foreign currency in addition to the monetary gold that makes up the foreign reserves, within the scope of what is called hedging against the risks of fluctuations in exchange rates of currencies and gold, which is a policy that expresses the efficiency of managing the country's investment portfolio and according to diversification in various foreign currencies and gold."

Saleh explained, "The decline in the market value of gold, for example, must be met with an increase in the value of the dollar or other foreign currencies through the management of the components of the foreign reserves portfolio itself, as diversification is an important pillar of the hedging policy in managing investments in foreign assets from fluctuations in foreign exchange rates and gold through diversifying the country's sovereign investment portfolio."

He pointed out that "the sovereign investment portfolio avoids what is called in the literature of accounting policy of central banks (unrealized losses) by immediately realizing (unrealized profits), which are the same unrealized profits that correspond to the unrealized losses resulting from fluctuations in gold or foreign currency prices at the same time."
He pointed out that "the availability of a good diversification policy, in the assets or holdings of the investment portfolio, is sufficient neutrality in maintaining the total market value of the country's foreign assets reserve and the stability of its value at all times."
.
Raghad

 

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