The Deputy Governor of the Central Bank of Iraq, Ammar Hamad Khalaf, said that the rise in oil prices will reflect positively on the country’s foreign reserves, which currently amount to more than 70 billion dollars.
He added in an interview with Al-Arabiya, on the sidelines of his participation in the annual meetings of the Islamic Development Bank Group in Sharm El-Sheikh, that if oil prices remain at the current level, the country’s foreign reserves will rise to about 80 to 90 billion dollars by the end of this year.
Regarding inflation, the Deputy Governor of the Central Bank said that the inflation rate is a global phenomenon, and in Iraq the inflation rate rose after the change in the official exchange rate at the end of 2020, and the repercussions of the Covid-19 crisis, the war of Russia and Ukraine and the food crisis, all of which affected Iraq because it is a major importer of foodstuffs.
He added that despite these factors, the inflation rate in Iraq is currently stable from 5 to 6%, which is a good rate compared to some countries.
Ammar Hamad Khalaf referred to the Central Bank of Iraq, which is trying to control the inflation rate by achieving stability in the exchange rate through direct intervention in the foreign exchange market, and implemented major initiatives that exceeded more than 15 trillion Iraqi dinars, approximately 11 billion dollars, representing financing on soft terms to support projects The small, medium and large private sector, which drives price stability and supports producers.