Frank26: "TO PROTECT MONETARY & FINANCIAL STABILITY"........F26
Central Bank of Iraq: Reserves cover 12 months of imports
The Central Bank of Iraq confirmed on Sunday that its reserves cover 12 months of imports, while indicating that it possesses "financial buffers".
In a statement received by Shafaq News Agency, the bank said, “Within the framework of its constitutional and legal responsibilities to protect monetary and financial stability and maintain the strength and integrity of the banking system in Iraq, the Board of Directors of the Central Bank of Iraq held an extraordinary session to follow up on current economic and financial developments, review the most prominent macroeconomic indicators, and assess future expectations in light of local and international developments and the challenges or opportunities they may present to the national economy.”
He added that "during the meeting, the council conducted a comprehensive assessment of the monetary and financial market conditions, including an analysis of liquidity levels in the banking system, developments in the money supply, as well as a review of the central bank's foreign currency needs."
He explained: “The Council also reviewed financial stability indicators and the performance of the banking sector, in addition to monitoring foreign trade and payment flows, while assessing potential risks associated with regional and international economic variables and their potential repercussions on the Iraqi economy.”
He added, “The Council also discussed a number of potential economic and financial scenarios for the next stage, focusing on how to enhance the flexibility of monetary policy and the sustainability of financial stability, and ensure the banking system’s ability to respond efficiently to the requirements of economic activity.”
He continued: In this context, it is necessary to clarify that the Central Bank’s reserves cover about 12 months of imports, and the Council affirms that the bank has full readiness and effective tools to deal with various developments, especially with its comfortable reserve balance, and that it is prepared to take action.
He pointed out that “appropriate measures at the right time to ensure the stability of monetary and financial markets and enhance confidence in the banking sector.
Based on this comprehensive assessment, the Council concluded the following: The strength of foreign reserves and financial buffers: The Central Bank of Iraq enjoys a strong level of financial buffers and comfortable foreign reserves at safe levels, which provides an important margin of flexibility in managing monetary policy and confronting any potential economic shocks or fluctuations, and contributes to enhancing monetary stability and maintaining the strength of the financial system in the country.”
He added: “Securing salaries and basic expenses: The Council discussed a number of alternatives to ensure the securing of salaries and basic expenses during the coming months, in a way that guarantees the regular implementation of the state’s financial obligations, and contributes to supporting the economic and living stability of citizens, as well as enhancing confidence in the state’s financial and monetary policies, and the continuation of economic activity in a normal manner.”
He pointed to “strengthening the liquidity of the banking system: The Council affirms the importance of the Central Bank continuing to support the liquidity of banks in order to ensure the stability of daily banking operations and the smooth flow of financial services provided to the public. This aims to enable banks to meet the needs of citizens and the private sector efficiently and regularly. The Central Bank seeks to enhance the role of the banking sector in supporting economic activity and financing various productive and service sectors.”
He concluded by saying, “Ensuring the smooth flow of external transfers: The Council stressed the importance of the continued smooth flow of external financial transfers to cover import operations and other international payments, thereby ensuring the stability of foreign trade and the availability of goods and services in the local market. This comes within the framework of supporting the private sector’s ability to meet market needs and maintain stable supply levels in local markets.” LINK