By Alaa Al-Huwaijel
BAGHDAD, Aug 10 (KUNA) -- In spite of all the political, security and economic crises that Iraq endured in the past five years, the Central Bank of Iraq (CBI) has succeeded in maintaining a steady exchange rate for the national currency against the US Dollar.
At that period, Iraq lost land to the so-called Islamic State (IS) and what followed during operations to liberate occupied territories have drained the treasury of the central bank.
To add insult to injury, the recordable regression in oil prices was also a humongous challenge for the country rich in oil resources.
Though the situation was bleak, the Iraqi Dinar's exchange rate steadied at 1,190 against one dollar, while prices in the local market ranged between 1,200 and 1,250 Iraqi Dinar for one dollar.
The main reason for this stability was the steady production and exportation of Iraqi oil, which kept flowing in the world markets.
Oil production even achieved a noticeable increase from approximately 2.5 million barrels per day during 2014 to 3.5 million barrels per day last July, according to official data.
Speaking on this matter, Iraqi economic counselor Mohammed Mathhar said in statement to KUNA, that Iraqi economy was powered by strong financial flows that gave it a relative overflow, which reflected positively on the dinar.
"The other factor that led to this stability is the increase of the central bank's stockpiles of the dollar which went up from 41 billion dollars to 58 billion dollars within the last few months only, covering 15 months of importation whereas the world criterion determines 3 months of importation," he added. (end) ahh.mk.bb