* Iraq dinar will not be used in oil sales

January 8th, 2012 07:54 am · Posted in NEWS: Dinar Currency & World Currency News 
Denied the Deputy Governor of Central Bank of Iraq the appearance of Mohammed Saleh, and there are efforts to use the Iraqi dinar in the sales of some of the oil exports of the country, because the «market speculators will buy the dinar to sell to countries dealing with the country’s oil, and we will enter into a whirlpool of speculation in the dinar, and we are already to reduce inflation suffered monetary Ktltna ».Saleh pointed out that countries that have turned their currencies to the international currency has a very strong economy, such as the European Union, China, Japan and the United States. The Iraqi dinar covers foreign currency assets of over $ 53 billion.

In a draft deleting three zeros from the dinar, said that «the central bank ended the preparations for the replacement process end of the year», pointing out that «dinar witnessed the first process of replacing a successful year 2004, when it replaced more than six trillion dinars Bdnanar new and is expected to begin the process of replacement of a second After removing three zeros end of this year, and this will be decided by the government ».

The size of the Iraqi currency traded locally about 33 trillion dinars, after he was no more than six trillion in 2003, and controlled banks accounted for 70 percent of the money supply.

Salih stressed that the auctions of the Central Bank sold $ 40 billion over the past year, pointing out that «the auction is one of the most important means of monetary policy shift in which oil revenues to the liquidity of local insurance requirements of government budgets, in addition to control of the dinar exchange rate and reducing inflation».

He added that «the bank will be obliged to block the issuance of additional cash during the current year, due to the increased size of the budget, and that means securing additional reserves in hard currency, which is normal with the growth of the overall economy of the country».

He explained that the Central Bank introduced binding amounts greater than the dollar through auction the higher government expenditures denominated in dinars, as the 60 per cent of the proceeds of the sale goes governmental expenses, and the remaining are for the benefit of the private sector, and expected to increase demand for the dollar in the current year due to the adoption of the government budget is the highest in the country’s history.

Budget cuts

The Iraqi government decided to cut the budget this year of $ 115 billion to 100 billion, based on the price of a barrel of oil worth $ 85, and a deficit of $ 14 billion would be covered through internal and external borrowing from the IMF and World Bank.

The volume of foreign trade to Iraq in the last year, according to the benefit of $ 46 billion, two-thirds of the private sector. It is noteworthy that the Iraqis would prefer to deal in dollars because of the low value of the dinar, as the value of the banknote the same category Top 25 thousand dinars (equivalent to $ 20).

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