The CBI Law Stopping Government to Contribute CBI Reserves

Iraqi Dinar 123 News:– On Thursday, The economic adviser to the Iraqi Prime Minister, Muhammad Saleh has confirmed that Law of Iraqi Central Bank prevents lending to Iraqi government in any condition. It is also said that the law implemented at the time when law making authorities realized severe situation after involvement of governmental financial power agencies in the former government. Muhammad Saleh further said in his interview to ‘Eye Iraq News’ that Act 56 in the law 2004 prevents lending to the Iraqi government to utilize the reserves of Iraqi Central Bank, whether foreign cash reserves or Gold reserves.

He further added that it doesn’t apply on the Iraqi markets, because managing Iraqi currency markets is the responsibility of Iraqi Central Bank and CBI is accountable to take necessary steps to stabilize the Iraqi currency markets. The Iraqi Central Bank is also responsible in managing loans borrowed by the government from internal or external sources and maintains those accounts without stand alone lending process. He also explained that law making issue is referred to the House of Representatives, specifically since most of the countries are borrowing from the Iraqi Central Bank due to its low rates. It allowed Iraqi financial authorities to borrow more than one time from external sources. Now, the Iraqi foreign cash reserves in the Iraqi Central Bank is estimated at 59 trillion Iraqi dinars and Iraqi gold reserves are measured at 32 tons.

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