The US Federal Reserve’s policy towards Iraq, expecting the dollar to rise against the dinar, which will put great pressure on the Iraqi banking system.
Al-Hashemi told Alsumaria News that “some information from within the corridors of the Central Bank of Iraq indicates that the US Federal Reserve has adopted a strategy different from its previous strategies towards the Iraqi economy,” indicating that “this strategy will be more stringent and will depend on three axes:
-The first axis: The continuation of the punishment of the previous banks, and there is no lifting of the sanctions on them, meaning that the ban on those banks trading in dollars will continue indefinitely.
The second axis: closing banks that continue to violate federal controls related to money laundering, dollar smuggling, and supporting sanctioned entities and countries.
The third axis: Preventing the Iraqi government from interfering in the dollar file, and for this file to be in the hands of the Central Bank of Iraq only.
He stressed that “the last axis explains that the Federal Bank has detected political influences from the Iraqi government,” noting that “the Iraqi Central Bank is today in a very embarrassing situation and is almost in trouble due to internal pressures on it to obtain a larger space for the dollar and its circulation.”
He stressed that “the Central Bank will only be able to delay and postpone federal procedures for the longest possible period of time, while achieving temporary protection for the Iraqi banking system and the Iraqi dinar.”
He stated that “the US Federal Reserve will not be able to wait forever, and it is expected that there will be federal measures that may occur at any moment, and there will be a sudden and large demand for the dollar, which will lead to a decrease in the value of the Iraqi dinar against the dollar, which will generate great pressure on the Iraqi banking system, the Iraqi economy and the official political system.”
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