Cash Reserves of Central Bank of Iraq Decreasing: IMF

The Iraqi Central Bank confirmed the stability and said that its foreign reserves approaching at 76.3 billion U.S dollars and it is much better figure which showing the capability of Iraq to handle the consequences regarding lower oil prices. The Central Bank of Iraq is managing very well despite the weakening global oil prices. The CBI has announced that its cash reserves will rise up to 70 trillion Iraqi dinars at the end of 2015. A number of factors involved in declining of fluidity and degradation of Iraqi financial and economic condition, such as political instability and war against terrorism.

The terrorist organization Daash caused too many problems such as human and material losses in most of the cities, and the loss is estimated billions of dollars. The low oil prices also heavily affected the Iraqi economy and misbalanced the structure of Iraqi economy, because Iraq is mainly dependent on their oil export which is up to 95 percent. The International Monetary Fund announced that foreign exchange reserves of the Central Bank of Iraq were at 78 billion U.S dollars at the end of 2013, but now these reserves have decreased from 78 billion U.S dollars to 66 billion U.S dollars. The corruption also caused losses and the Iraqi Finance Committee said that Iraq faced loss of up to 360 billion U.S dollars between 9 years period, 2006 to 2014, due to money-laundering and smuggling problems. Reports indicated that billions of dollars have been smuggled to Syria and Iran, which caused problems in the Iraqi currency market.

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