Disclosure of the size of Iraq’s cash reserves amid strict warning
Parliamentary Finance Committee revealed, on Tuesday, the size of the central bank’s reserves of foreign currency and gold bullion, while warning of tampering with the reserve by implementing agencies.
“The central bank reserves amounted to 87 billion dollars, and it does not include cash and foreign currency only, but it includes gold bars,” the committee’s rapporteur, Ahmed Al-Saffar, told Shafaq News.
He added that “an increase in the reserves comes through the process of withdrawing, depositing and obtaining the benefits that are taken from the loans granted by the bank to the government, banks and state institutions.”
Al-Saffar continued, “The central bank reserves are used only in critical cases, and any manipulation of the reserves by the implementing agencies will affect the financial arrangement of Iraq within the global rankings.”
He explained, “Withdrawing funds from the bank’s reserves without studying will reduce the Iraq-B rating to D, confirming that“ this classification depends on the domestic product, the general budget, and the economic situation of the country.
”Fitch maintained the credit rating of Iraq at (B). -), a degree of risk, but with a stable outlook look.
Iraq, the second largest crude oil producer in the Organization of the Petroleum exporting countries (OPEC), with an average daily production of 4.5 million barrels per day.
the decreased government debt in Iraq to less than 50 percent of GDP in 2018, compared to 66 percent of GDP in 2016
and reached the reserves Foreign Mellat excluding gold, Iraq has $ 61 billion at the end of 2018, compared to US $ 46 billion in 2017. The
range of external debt service to the Iraqi government between $ 2.5 billion and 2.
Fitch said that the decline in oil prices leads to a renewed deterioration of the fiscal situation and balance of payments in Iraq between 2019-2021.
Iraq, a member of OPEC, relies on oil revenues to finance up to 95 percent of the country’s expenditures. Source