PM’s Economic Advisor: There is no problem with cash liquidity in the Iraqi currency

The advisor to Prime Minister Mohammed Shiaa al-Sudani for economic affairs, Mazhar Mohammed Salih, denied the existence of a problem with cash liquidity in the Iraqi currency. Mohammed Salih said, according to the Rudaw Media Network: "There is no problem with liquidity at all because it is covered by foreign currency," indicating that "the mechanism for obtaining cash liquidity is that oil sales are converted into US dollars, and when the government needs the dinar for internal exchange, it exchanges oil sales for dollars and goes to the issuing bank, which is the central bank, to give it the currency." He pointed out that "the central bank, in order to maintain market stability, sells foreign currency to the market through a window and currency auction, to withdraw liquidity again and repeat it again to achieve natural growth in the issued currency." Mohammed Salih noted that "in this case, when the government wants liquidity in the Iraqi dinar, the cash issuance increases, that is, instead of absorbin g it from the market, a new issuance occurs, which led to a jump in the issued currency, but there is no problem with that because it is 100% covered." Source : National Iraqi News Agency