Iraq takes measures to control exchange rate of dinar, says central bank governor

Shafaq News/ On Thursday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, stated that Iraq is taking measures to control the exchange rate of the dinar and that the government is committed not to allowing the dollar exchange rate to reach countries that are prohibited from dealing in dollars by the United States.

Speaking n the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF,) Al-Alaq clarified that the US requirements for controlling transfers are not considered restrictions but rather the application of laws on money laundering and combating terrorism.

He added that the problem of the exchange rate is related to pre-audit procedures for external transfers of hard currency and is not linked to an internal financial crisis.

The governor also mentioned that the US Treasury agrees with Iraq on expanding external transfer channels.

Regarding the restructuring of banks, Al-Alaq said that the government and the central bank are in “harmony” to reform the banking sector, and all options are available for structuring the industry, including mergers.

The Iraqi delegation, led by Al-Alaq and Finance Minister Taif Sami, began meetings with the International Monetary Fund and the World Bank in Washington on Wednesday, and the US Treasury Department expressed its willingness to assist the Iraqi Central Bank in achieving stability in the exchange rate of the dollar against the dinar.