An Economist Shows The Monthly Government Spending And Its Impact On The Rise Of The Dollar, 25 JAN

 An Economist Shows The Monthly Government Spending And Its Impact On The Rise Of The Dollar

Friday 24 January 2025 18:48 | Economic Number of readings: 137   Baghdad / NINA / Economic expert Manar Al-Obaidi revealed today, Friday: "The average monthly spending of the Iraqi government in 2024 amounted to about 12 trillion dinars," noting that: "Adding the loans and advances obtained by government agencies and ministries, which are estimated at about 2 trillion dinars per month, raises the total government spending to 14 trillion dinars per month."

Al-Obaidi said in a statement: "The government sector usually works for 20 days a month, which means that the daily spending rate is about 700 billion Iraqi dinars," noting that "to cover this level of spending, the Ministry of Finance needs to sell at least $ 400 million per day to the Central Bank, so that the latter can provide the cash needed to cover government expenditures. "

He pointed out: "The Central Bank cannot provide the Iraqi dinar needed by the Ministry of Finance, except by selling its equivalent in dollars."

The economic expert explained: "The dollar sales by the Central Bank are directly linked to the increase in the size of government spending," indicating that: "The more spending, the more the Central Bank needs to sell larger quantities of dollars."

He added: "If this trend continues, we may reach a stage where the market witnesses daily sales ranging between 400 and 500 million dollars through the various mechanisms adopted by the Central Bank," warning that this reflects the direct impact of the rise in public expenditures on the currency market." / End8    https://ninanews.com/Website/News/Details?Key=1181860