Exiting from chapter VII makes Iraqi dinar stronger

After the exit of Chapter VII sanctions on Iraq, international banking organizations are looking to invest in Iraq. The Iraqi central bank has recently declared that presently Iraq possesses high volume of foreign reserves, which is around 76 billion dollars and in addition to that bank owes 30tons gold bullon.

Treasury Adviser Helal Al Ta’an, stated that this reserve will help raise the value of the Iraqi currency, compared with foreign exchange and thus contribute to the reduction of prices of goods and commodities.

The currency reserves of the Central Bank is supporting the Iraqi currency in and out of Iraq, and increased oil imports might contribute directly to increasing the reserve and give more support to the Iraqi currency.

Economist Majid Al Souri remarked, “The investment of surplus reserve is a deliberate economic policy of the country.” the parliamentary Financial Committee member Ahmed Al Masari criticized laws and banking regulations followed in Iraq, confirmed that the Parliament is determined to enact laws regulating banking in the future.

The central bank declared that earlier the foreign reserves and gold were used to be managed in global banks. But after the exit of Chapter VII, the bank got more freedom and thus liberal decisions of the bank will bring future economic successes.