Iraq has (90) billion dollars in central bank reserves

Abtan: Iraq has (90) billion dollars in central bank reserves
September 3, 2011

Baghdad (news) .. the committee said that Iraq’s parliamentary Ghaderaly improve the status of the dinar and adopt it as part of international reserves, noting that Iraq had more than (80 to 90) billion in reserves at the central bank and this is positive for the benefit of the Iraqi dinar.

A member of the Committee of Economy and Investment and parliamentary deputy / National Alliance / Abdul Hussain Abtan told the reporter Agency (news) on Saturday: “It is certain that Iraq is able to adopt the dinar as part of the reserves of international and especially that he has a big supplier in the field of oil and more than (80 to $ 90 billion) Central Bank reserves and the positive impact on the Iraqi currency against the dollar and make the dinar as its currency position as was formerly the world’s currencies. “

Alabtan called the Central Bank of improving the status of the dinar against the dollar, and (1200) dinars to the dollar is not the right thing. “

It is noteworthy that the central bank adviser said in an earlier statement, “the Agency news” that the Iraqi
dinar is not an international reserve currency until it is handled in the outside, saying we as a policy cash aspire to be the Iraqi dinar portion of the reserves and this needs to be a long time.

Saleh said: The Iraqi dinar is the local currency convertible to other currencies, excluding that are dealing in Iraqi dinar externally at present evidence is that the bank instructions Antrzelatzmh taking out the Iraqi dinar, but the limits of (200) thousand dinars for the traveler.

now how in the hell did they get THAT MUCH RESERVES!!!!

Great-now RV already!! thx Pan!!

In the "Meeting in London" thread i posted the article say's,{quote}"This year,foreign investment is set to double from $42 billion in 2010,to an estimated $80 billion in 2011".{unquote}....so that is reserves,right?

CBI announces an increase of its reserves of hard currency to $58 billion
Posted: September 3, 2011
Central Bank of Iraq, Saturday, the high foreign currency reserves to $ 58 billion, attributing the increased demand for foreign currencies by the Iraqi banks and the lack of offers to rent the economy of Iraq.

The adviser said the Iraqi Central Bank Governor appearance of Mohammed in an interview for “Alsumaria News”, the central bank’s reserves of foreign currency amounted to $ 58 billion after the $ 50 billion at the end of last year, 2010, “noting that” the Bank was able during the period the last trade finance to the private sector and to maintain market stability and curb high inflation that existed during the periods of years. “

Saleh pointed out that “increased demand for foreign currencies by the Iraqi banks and the lack of offers for foreign currency in daily auction conducted by the Iraqi Central Bank of Iraq’s economy back rent, which depends on oil imports in the general budget.”

Saleh said that “the State offers foreign currency to the Central Bank of Iraq to finance its expenditures in Iraqi dinars to the Central Bank, in turn, to meet the market need of foreign currency,” noting that “the State is that supply of foreign currency, while the market is a student of foreign currency to cover the financing of foreign trade.”

Saleh pointed out that “Iraq does not receive external financial flows because the Iraqis do not send workers abroad, the financial savings to the country, in addition to the absence of large foreign investment companies operating in Iraq.”

Iraq relies on oil exports for more than 90% of its income and is currently exported more than two million barrels per day of crude oil, and signed the Ministry of oil service contracts with international oil companies to develop oil fields, and is expected to achieve additional revenues worth $ 200 billion annually over the next six years .

The central bank held the Iraqi daily sessions for the sale and purchase of foreign currency with the participation of Iraqi banks, with the exception of public holidays by the World Bank depends on these auctions, sales are either cash or the form of remittances to the sold abroad in return for a certain commission.

http://bit.ly/oaQEIx

Thanks gente!!! all kinds of good news!!!!

The March/2011 IMF review of Iraq does show that at the end of 2010 the central bank's reserves were approximately 50 billion in US dollars. This is a quote from Shabibi's letter to the IMF "The CBI's international reserves increased to $50 billion at end-December 2010, from $44 billion at end-2009." What is interesting is that the report's projection of reserves does not indicate any significant increase in 2011.

HMMMMMM, two articles with a huge disparity between the figures. If I had to take a guess, this could be one explanation. The 90 billion article indicates total reserves, the second article indicates 59 billion in hard currency. Hard currency would only be one element of the total reserves. This is the definition of international reserves copied from the IMF report.


"Net international reserves (NIR) are defined as gross usable reserves minus reserve-related liabilities of the CBI. Gross usable reserves of the CBI are claims of the CBI on nonresidents that are controlled by the CBI, denominated in foreign convertible currencies, and are immediately and unconditionally available to the CBI for meeting balance of payments needs or for intervention in foreign exchange markets, and are not earmarked by the CBI for meeting specific payments. They include CBI holdings of monetary gold, SDRs, Iraq’s reserve position in the IMF, foreign currency cash, and deposits abroad, except for the resources of the DFI but including the CBI DFI sub-account. Excluded from reserve assets are any assets that are pledged, collateralized, or otherwise encumbered; claims on residents; precious metals other than monetary gold; assets in non-convertible currencies; illiquid assets; and claims on foreign exchange arising from derivatives in foreign currencies vis-à-vis domestic currency (such as futures, forwards, swaps, and options). Reserve-related liabilities shall be defined as foreign currency denominated liabilities of the CBI to non-residents with original maturity of one year or less, and all liabilities to the Fund, but excluding the liabilities represented by SDR allocations. They include: foreign currency reserves of commercial banks held at the CBI; commitments to sell foreign currency arising from derivatives (such as futures, forwards, swaps, and options); and all arrears on principal or interest payments to commercial banks, suppliers, or official export credit agencies. As of December 31, 2009, (net) international reserves amounted to US$44.34 billion, all comprising of reserve assets."

This report was prepared before the DFI fund was turned over to IRAQ. The CBI set up new accounts at the Federal Reserve and moved the funds from the DFI account to the new account. This would have transpired after this report was prepared. Once those funds were deposited in the new account, they would be included in the the reserve total. This could account for the significant increase. In addition, the CBI has been waiting for the funds from the liquidation of the sale of the London branch of the Rafidain Bank, which may have been deposited. Additionally the frozen assets were also turned over to Iraq.


The only problem with this evaluation is that it is extremely problematic as it is based on statements from news articles from individuals who may be using terminology incorrectly. Until the next IMF report is issued, it will difficult to ascertain what changes have occurred in the reserve levels. Either way, as long as the reserves continue to increase it is good news.