The governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed on Thursday that Iraq is on alert to control the dinar exchange rate, stressing the government’s commitment not to reach the dollar exchange rate to the countries with which the United States prohibits dealing in the US currency.
Al-Alaq said in a press statement on the sidelines of the World Bank and IMF meetings in Washington, reported by Bloomberg and seen by Shafaq News, that the US requirements for controlling remittances “we do not classify them as restrictions, but all that is required is the application of the Money Laundering and Anti-Terrorism Law.”
“We are on alert at the Central Bank to adjust the dinar exchange rate,” he continued, explaining that this problem “is not related to an internal financial crisis, but rather to the pre-auditing procedures for external transfers of hard currency.”
“External transfers through the platform” doubled very quickly, creating a balance in supply and demand for the dollar,” he added. “The US Treasury agrees with the need to expand external transfer channels,” he said.
“The new system does not aim to restrict the response to legitimate requests, as much as it aims to provide protection to the banking and financial system from illegal or suspicious operations, and supports the application of the Anti-Money Laundering and Terrorism Financing Law and related instructions,” he stressed.
With regard to the structuring of banks, the Governor of the Central Bank of Iraq Ali Al-Alaq pointed out that “the target of structuring banks are government banks that represent more than 80% of the sector, and the positive thing is that there is harmony between the government and the Central Bank to reform the banking sector,” revealing that all options are available for structuring and developing the sector “including mergers.”
The meetings of the Iraqi delegation with the IMF and the World Bank began yesterday, D.C. Washington, Wednesday, in the presence of Al-Alaq, and Finance Minister Taif Sami.
The U.S. Treasury Department expressed “great flexibility and willingness” to help the Central Bank of Iraq stabilize the dollar’s exchange rate against the dinar.