Is Borrowing $31 Billion from CBI Legal?

One Saturday evening, the Iraqi Parliamentary Finance Committee issued a statement that the government of Iraq has planned to utilize CBI reserves and borrowing $31 billion from the Central Bank of Iraq.

A member of the finance committee, MP Haitham Al-Jubouri said in a press statement that Iraqi Central Bank law in force No. 93/ 2005 engages. This Act prevent Iraqi government for not to borrow from the Iraqi Central Bank. He also pointed out that Iraqi government has obtained 31 billion U.S dollars from the Central Bank of Iraq, and it has been considered illegal & a violation of Iraqi constitution. Al-Jubouri stressed that all the previous record of CBI is available and this record indicates that the reserves at Iraqi Central Bank were at 81 billion U.S dollars in 2014. But, last announcement from the Central Bank of Iraq has shown a continuously declining situation, as the current reserves at CBI were estimated at just 49 billion U.S dollars.

We will Increase Iraqi Dinar Exchange Rate against U.S Dollar: CBI

Jubouri also said that the Iraqi parliament will ask an oral question from the Governor of Iraqi Central Bank regarding the issue. He stressed that borrowing 31 billion U.S dollars from the current reserves of 49 billion U.S dollars at CBI, it might impose another severe threat on Iraqi Central Bank in stabilizing the Iraqi dinar currency. It is important that an important session of the Iraqi Parliament was held under the chairmanship of Salim Al-Jubouri on Saturday. The President of the Council and 170 deputies attended the session and voted on the Arms Act. The MP Hannan put an oral question to the governor of Iraqi Central Bank Ali Mohsin. The Governor of CBI said that economic policy is made up of financial and monetary policy is made up of monetary reserves. It 90 percent consists of foreign assets denominated in the foreign currencies including local currencies, but remaining assets including gold are negotiable at any time.

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