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Central Bank of Iraq (CBI) announced on Thursday that, for the first time in Iraqi history, its foreign currency reserves increased to 60 billion dollars. The bank can curb inflation in the event it reaches two decimal ranks, CBI revealed considering that current levels of inflation don’t raise concern.
“Foreign currency reserves in Central Bank reached 60 billion dollars for the first time in Iraqi history,” deputy governor of Iraqi Central Bank Mazhar Mohammad Saleh told Alsumarianews explaining that the highest reserve scored was in the end of 2010 when it reached 50 billion dollars then in the end of September 2011 when it increased to 58 billion dollars.
“Reserves’ increase will enhance the value of Iraqi currency,” Saleh added noting that the increase in Central Bank reserves will stabilize local currency and boost confidence in it.
“Central Bank managed lately to fund trade in private sector, maintain stability of the market and curb the major inflation that has been taking place during the last period,” Saleh assured noting that inflation in Iraq doesn’t raise concerns and is kept under control according to the policy of prices stability that helps maintaining reasonable rates of increasing.
“Reserves of hard currency allow Central Bank to curb inflation within minutes as soon as it reaches two decimal ranks,” Saleh uttered pointing up that Central Bank managed, in December 2010, to decrease inflation to 3%. Inflation increased back, last August, to reach 7% but dropped to 6% by the end of 2011, he concluded.
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