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BLC Admin Tlm724 News & Comments 4-5-16 Part 2 of 2
Economic Adviser to the Prime Minister is a financial reserve "good" in light of the economic crisis
Baghdad / Ibrahim Ibrahim Economic Adviser to the Prime Minister emphasized the appearance of Mohammed Saleh, on Monday, that the value of financial reserve of between 50 to 60 billion dollars, and as pointed out that variable up and not flat as oil revenues, denied reports that talked about the withdrawal of the government any amount of that money .
the international Monetary Fund, stressed that Iraq reserves of hard currency dropped to $ 54 billion at the end of 2015, indicating that Iraq is continuing to make progress under the program , which is monitored by IMF staff.
he said the economic advisor to the Prime Minister and the appearance of Mohammed Saleh, in an interview for "long", " the Central Bank is going according to a deliberate steps to address gaps in the local economy and the resulting lack of government revenues due to lower oil prices in nearly two years."
Saleh added that " the government 's income from the sale of oil reached $ 8 billion in 2013 so reserves rose to nearly $ 75 billion, but now, the oil revenues of the two not to exceed one billion dinars a month so we find reserves of between 50 and 60 billion dollars. "
He said economic adviser that" there is constant coordination between the Central Bank and the international Monetary Fund through agreements concluded to engage in open market operations to buy remittances Treasury and the provision of liquidity and said the "reserve variable because of the size of the fiscal revenue from the sale of oil and the amount of funds sold through the daily auction to sell the currency."
He denied economic adviser " to withdraw the government any amount from the treasury of the financial reserves of the country to cover the deficit monetary faced because of the economic crisis she is. "
he emphasized the benefit that" the central bank put plans and programs balanced to control the economic crisis through prudent monetary policies pursued by gradually commensurate with the requirements of daily work. "
he said the fund, Wednesday (March 30 2016), in a statement received "long", a copy of it, that "real GDP shrank by -2.1% in 2015 due to the ongoing armed conflict with al Daash and who continues strained the resources of Iraq, in addition to the sharp drop in oil prices which caused the occurrence of external shock a large balance of payments and revenues of the budget, leading to disruption of the movement of trade and declining investor confidence level. "
he said the fund, that" as a result of that widened the deficit gap in the current account in the balance of payments of up to 5.1% , which led to a decline of Iraq 's foreign exchange reserves by the end of 2015 $ 13 billion to $ 54 billion. "
the Fund pointed out that" Iraq is continuing to make progress under the program , which is monitored by IMF staff , "noting that" Iraq is making three of the five indicative targets to be achieved by the end of last year, including the reduction of the level of implementation spending on wages and pensions, goods and services and transfers. "
the Fund continued, that" Iraqi authorities and experts Monetary Fund made progress towards an understanding on a program of economic and fiscal policies, which can be supported through the funding, and would include more measures for fiscal consolidation Iraq, in order to make spending in line with the low level of oil prices. "
Iraq had held the 27-28 current March financial talks and economical with the international Monetary Fund in Amman in order to conduct credit policy arrangement (SBA) that qualify to get financial loans.
turn economic expert Muhammad Mustafa Habib said in an interview for the "long", " the decline in monetary reserves of the country rapidly is a dangerous sign, so the financial institutions of the state review its policies according to market data."
he added that " the waste of successive governments of billions of dollars at random after the reserve financial directly without any achievement is noteworthy. "
He explained the beloved" the insistence of the Central Bank of the continuation of the daily currency auction cost the local economy a lot of money as a result of adhering to the application of laws and regulations are not commensurate with the economic situation deteriorating since the nearly two years the country. "
He said the " balance in 2015 included a clause specifies an amount of $ 75 million to be sold in the daily auction of the coin to control the financial attrition, but the central bank challenged the law with the District Court, and continued to sell to up the amount the rate to $ 150 million a day. "
he added that" the central bank has a responsibility to maintain a financial reserve for Iraq and work to develop and increase it by controlling the daily its activities and consolidation of new laws and regulations to maintain the commodity and service flow level without the side effects caused by some corrupt and speculators. "
the Iraqi government, in a note to the international Monetary Fund, Tuesday 13 Klnon II, it plans to finance the balance of payments deficit withdrawal from Iraq reserves and foreign including make them fall to $ 43 billion in 2016 from 59 billion last October end. she said, under a program approved by the IMF as a precondition for the loan,
it is expected that the deficit in the balance of payments 14 billion dollars in 2015, before shrinking to $ 11 billion in 2016.
He estimated that Iraq 's GDP will grow by 1.5 percent in 2015 and 10.6 percent in 2016, with the increase in oil production, while falling oil prices will lead to a budget deficit of 15 percent of GDP in 2015 and a deficit of 10 percent in 2016. LINK
tlm724 he said the fund, that" as a result of that widened the deficit gap in the current account in the balance of payments of up to 5.1% , which led to a decline of Iraq 's foreign exchange reserves by the end of 2015 $ 13 billion to $ 54 billion. " the Fund pointed out that" Iraq is continuing to make progress under the program , which is monitored by IMF staff