Dinar to be More Stable Due to High Cash Reserves

Iraqi Dinar 123 News:– A famous economic expert Firas Amer said that Iraqi foreign cash reserves will be used to cover the need and stabilize the Iraqi dinar exchange rate. He issued statement in an interview that Iraqi Central Bank and private banks have taken a number of steps in order to achieve stability in the Iraqi dinar exchange rate against most of the major currencies. It would enable to bring Iraqi currency at normal level as country experienced high price of U.S dollar against Iraqi dinar in the first quarter of this year, because of Article 50 in the Iraqi budget law 2015. This law restricted the Iraqi Central Bank to sell the U.S dollars on a specific amount of 75 million U.S dollars per day limit.

This decision showed fluctuation in the Iraqi currency markets because balance of demand and supply was disturbed that caused an increase in the U.S dollar rate in the Iraqi currency markets. Firas Amer further added that the Governor of Iraqi Central Bank Dr. Ali said earlier that Iraqi foreign cash reserves are in much better conditions and enable us to cover our imports for more than six months. Point to be noted that budget deficit of current year is about 25 trillion Iraqi dinars due to implementation of reform package to cut down the expenditures. Amer said that there is no fear to Iraqi dinar currency against the U.S dollar and Iraqi Central Bank has taken a number of steps to reduce the inflation rate in the last period of time.

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