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announced Central bank A few days ago its reserves reached the highest levels in the history of the country, estimated at over 87 billion dollars; Because of the high oil prices.
There is also between $ 15 and $ 20 billion in excess of the spending schedule due to the absence of financial balanceWhich makes these funds a golden opportunity to make financial gains and move the investment wheel.
The new government and the fate of money
With the start of consultations to form the new government led by Muhammed Shiaa Al-SudaniThere has been talk of how to benefit from these funds to obtain the greatest financial returns and stimulate the paralyzed economy in recent months due to the political crisis and the struggles of the parties for the government.
This was confirmed on the website by the adviser to the Iraqi prime minister for economic affairs, Mazhar Muhammad "Sky News Arabia"That "Foreign reserves of Iraqit could reach $ 90 billion by the end of this year, and more than one percent of those reserves go to the Central Bank as a cash hedge for the Iraqi dinar.".
He described the central bank’s foreign currency investment portfolio, like "Sovereign Fund or half-box".
He also called for the establishment of what he described as"Generation Fund"He added: “The foundation is one of the savings of the general budget, which could reach 15-20 billion dollars by the end of this year. It must be invested after having legally adapted the issue, through the Reconstruction Council, especially in infrastructure projects. and productive activities to bring about a renaissance of the economy “. Iraqi economy.
urgent projects
Iraqi economists prefer to accelerate the benefit of the new abundance in dealing with the effects of the virus crisis "crown"The decline in the exchange rate of the dinar against the dollar and the rise in prices, in particular to alleviate low income.
In this, said a member of the committee on economics and investments in the former parliament, Nada Shaker"Sky News Arabia"That "The economic situation now calls for short and mid-level treatments, such as relaunching factories to employ the workforce, restoring infrastructure and power plants, andAgricultural development Raising the standard of living of the population".
Regarding the long-term level of establishment of sovereign wealth funds "It may be well advanced".
The former MP attributed this to the fact that "Conditions are now not favorable to move towards long-term investments due to the urgency to rescue groups plagued by poverty, frustration and despair".
And optimistic "The current government is determined to make progress in this area, through better investment of existing resources and diversification Economy".
And the government of Prime Minister Mustafa Al-Kazemi, when it was formed in 2020, had already announced that it was going to establish Sovereign Fund for Iraqsimilar to well-known experiences in some countries of the world, but the project did not see the light due to the subsequent crises that hit the country.
The areas in which these funds invest are diverse, in particular real estate, hedge funds, investment funds in the financial markets, bonds, stocks, futures contracts and commodities.
And last week two crises involving the shaky formation of the government and the election of a president for the country months ago were removed from Iraq, after the election of the Parliament. Abdul Latif Rashid As President of the Republic of Iraq, he in turn instructed Muhammad Shiaa Al-Sudani to form the government; What gives full-time hopes of paying attention to the economy and development.
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announced Central bank A few days ago its reserves reached the highest levels in the history of the country, estimated at over 87 billion dollars; Because of the high oil prices.
There is also between $ 15 and $ 20 billion in excess of the spending schedule due to the absence of financial balanceWhich makes these funds a golden opportunity to make financial gains and move the investment wheel.
The new government and the fate of money
With the start of consultations to form the new government led by Muhammed Shiaa Al-SudaniThere has been talk of how to benefit from these funds to obtain the greatest financial returns and stimulate the paralyzed economy in recent months due to the political crisis and the struggles of the parties for the government.
The adviser to the Iraqi prime minister for economic affairs, Mazhar Muhammad, confirms to “Sky News Arabia” that “Foreign reserves of IraqIt could reach $ 90 billion by the end of this year, and more than one percent of those reserves are for the Central Bank, as a cash backing for the Iraqi dinar.
He described the central bank’s foreign currency investment portfolio as “Sovereign Fund or half-box.
He also called for the establishment of what he described as the “Generation Fund”, adding: The institution is one of the savings made in the general budget, which could reach 15-20 billion dollars by the end of this year, which must be invested after having legally adapted the issue, through the Reconstruction Council, especially in infrastructure projects and production activities to achieve a renaissance in Iraqi economy.
urgent projects
Iraqi economists prefer to accelerate the benefit of the new abundance in dealing with the effects of the “Coronavirus” crisis, the depreciation of the dinar against the dollar and the rise in prices, especially to relieve low-income people.
In this, a member of the former parliament’s economy and investment committee, Nada Shaker, told “Sky News Arabia”, “The economic situation now needs short and medium level care, such as reviving factories. to employ manpower, rehabilitate infrastructure and power plants, eAgricultural development to raise the standard of living of the population.
As for the long-term level of SWF creation, “it can be done at an advanced stage”.
The former MP attributed this to the fact that “conditions are not favorable now to move towards long-term investments due to the urgency to save groups plagued by poverty, frustration and despair”.
He is optimistic that “the current government is determined to make progress in this area, through better investment of existing resources and diversification. Economy“.
And the government of Prime Minister Mustafa Al-Kazemi, when it was formed in 2020, had already announced that it was going to establish Sovereign Fund for Iraqsimilar to well-known experiences in some countries of the world, but the project did not see the light due to the subsequent crises that hit the country.
The areas in which these funds invest are diverse, in particular real estate, hedge funds, investment funds in the financial markets, bonds, stocks, futures contracts and commodities.
And last week two crises involving the shaky formation of the government and the election of a president for the country months ago were removed from Iraq, after the election of the Parliament. Abdul Latif Rashid As President of the Republic of Iraq, he in turn instructed Muhammad Shiaa Al-Sudani to form the government; What gives full-time hopes of paying attention to the economy and development.
