The economic advisor, Ziad Al-Hashemi, confirmed on Sunday that the weakness of the central bank in defending exchange rates will lead to increased risks to financial stability and the Iraqi economy.
Al-Hashemi told “ Jarida ”, “Commercial markets and the business sector suffer greatly from instability and a weak ability to adapt to rising exchange rates.”
He added, “The Central Bank, for its part, has not yet been able to carry out a (successful intervention) that works to correct exchange rates and stabilize markets.”
He explained, “This indicates that the Iraqi Central Bank has reached the point of being unable to defend the targeted official exchange rates, and this weakness will naturally lead to increased risks to financial stability and the Iraqi economy.”
