The central bank clarifies about news of the printing of the currency

2020-03-29

The

Today, Sunday, the Central Bank of Iraq issued a clarification regarding the news circulating about the possibility of printing an Iraqi currency to "avoid" economic problems.

He said, "An authorized source" in the bank, according to a statement, "The printing of Iraqi banknotesis a routine technical procedure practiced by the central bank according to the requirements of cash circulation, and that the printing of banknotes is a completely separate process from the cash issuance process."

The statement added, "No party can withdraw banknotes from the central bank unless there are balances in their accounts that cover the amount to be withdrawn. Therefore, saying the dinar does not mean any meaning other than strengthening the central bank’s treasures in accordance with the cash management policy, and not for any other purpose or purpose. .. The Central Bank Law and Monetary Policy do not allow the issuance of cash in favor of an account without balance. "

He pointed out that "when the Ministry of Finance wishes to finance spending on the various spending units and salaries, it requests the central bank to strengthen its account in Iraqi dinars in exchange for withdrawing from its account in dollars .. No amount is deposited into the finance account in dinars unless there is a corresponding withdrawal from its dollar account."

He continued, "The Central Bank Law does not allow him to lend to the government, whether by printing currency or any other way, direct or indirect, and he is entitled to deduct treasury transfers, if they are present in the secondary trading market, as it is one of the tools of monetary policy, if he deems it based On accurate objective data serving the objectives of monetary policy. "

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