Baghdad/ Iraq TradeLink: Central Bank of Iraq sources reported that the Iraqi cash flow reached to
88 trillion dinars, last year.
Governor Ali al-Alaq pointed that the selling of the dollar is one of the main duties of the central banks around the world.
He pointed that the governmental expenditures were increased from 31 trillion dinars in 2004 to more than 100 trillion in the last few years.
"This led to the increase of the cash flow, which 4% is accepted as a ratio, but in Iraq it reached to more than 22%", he confirmed.
In addition, he pointed that the local production capabilities were not increased, as well as those of the public sector, which depended on governmental funding, Al-Alaq added.
He confessed that the deficit of the last year in the Iraqi budget was supposed to be covered by internal and external bonds and loans, but nothing was achieved.
"The CBI was obliged to interfere to cover this shortage", he confirmed.
Source: Iraq TradeLink