Baghdad The Parliamentary Finance Committee has warned of government attempts to print sums of Iraqi currency to confront the current economic and financial crisis in the country.
Member of the committee, MP Jamal Kougar, said, in a statement to the National Iraqi News Agency (NINA), that “the absence of a financial cover from hard currency and gold will leave negative returns on the local market in the coming period.
He explained that “any cash printing process without a financial cover and a balance of hard currency or gold will have negative returns, especially with the high ceiling of the amounts that are printed by the government.”
He added that “the government resorted to such solutions during the height of the economic crisis in Iraq, and quantities of currency were printed within a specific ceiling, but we hope that this will not increase in the future,” noting that “a sum of money was printed from the Iraqi currency, but the ceiling of the government’s need for printed currency depends on oil prices in world markets, and with the rise in international prices, the government’s need to resort to this option will diminish.”
He continued, “Currently, oil prices in global markets are close to 70 dollars, and if they reach about 80 dollars per barrel of oil, we will overcome the current financial crisis in Iraq.”
Source: National Iraqi News Agency