Iraqi Currency to Collapse by Withdraw Funds from CBI Reserves: Economic Experts

Iraqi Dinar 123 News:– A large number of economic specialists and experts warned about collapse in the Iraqi local currency due to withdraw funds by the government from the reserves at Iraqi Central Bank in order to manage deficit problem of Iraqi federal budget 2016. Most of the economic experts stressed that Iraqi government should find other alternatives and the issuance of its sovereign bonds, and motivate Iraqi citizens for savings to meet the challenges of the financial crisis. According to the memorandum of the International Monetary Fund (IMF), the Iraq government is planning to finance the budget 2016 deficit and payment of salaries of governmental employees by withdraw from Iraqi reserves, that are held by the Iraqi Central Bank.

It is important that these reserves would go down and will be reached at 43 billion U.S dollars in 2016, while the Iraqi Central Bank declared at the end of October 2015 that Iraq has 59 billion U.S dollars reserves. Another economic expert Hadi Al Tamimi also warned that Iraqi dinar would experience major disaster in the event of withdrawal of hard cash reserves by the Iraqi government from Iraqi Central Bank to manage the financial crisis issues, he also stressed to find other measures and sources of financing. Al Tamimi further added that Iraqi government should take some exceptional decisions to meet the financial crisis. He added that there are various other measures that should be adopted such as Iraq focused on domestic production in the 1980s and 1990s. It would enable the country to meet the need of food, medicines and daily life supplies products in spite the insufficiency of financial resources.

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