Posted 11/08/2012 08:12 AM
Babinaoz (Reuters) – Central Bank of Iraq, the rise of foreign exchange reserves to $ 67 billion, confirming that these reserves are the largest in the history of Iraq, pointing out that these reserves is one of the monetary policy to reduce inflation in Iraq.
The deputy governor of the Central Bank of the appearance of Mohammed Saleh said that “the Iraqi Central Bank’s reserves of hard currency rose to $ 67 billion, up from $ 63 billion the end of last May,” noting that these “reserves are the largest in the history of Iraq.”
Saleh added that “this increase will increase confidence in local currency and will increase stability,” stressing that “the Iraqi dinar has become covered by these reserves to 1.3 in the foreign currency.”
Salih stressed that “the Iraqi currency has become strong due to high bank reserves, in spite of fluctuations in recent exchange rate of the Iraqi dinar due to outflows of foreign currency,” pointing out that “these oscillations are treatable, but they need time to cure the problem.”
Saleh pointed out that the “high bank reserves would be a monetary policy that could reduce inflation in Iraq through the use of an impact on levels of domestic liquidity, to absorb the excess demand by providing a display of foreign currency.”
The Central Bank of Iraq announced on 27 January last, the high foreign currency reserves to $ 63 billion, after recording the sixth of January 2012 bank reserves $ 60 billion, up from $ 50 billion year-end 2010.
The central bank held the Iraqi daily sessions for buying and selling foreign currencies with Iraqi banks, except for public holidays on which depends the World Bank for these auctions, and sales are either cash, or in the form of money orders sold out for a commission of certain.