13:55
“We will only print the dinar with conditions”
Baghdad – 964
The Governor of the Central Bank, Ali Al-Alaq, gave a detailed presentation on Wednesday on the exchange rate crisis, and the critical balance between the supply of the dollar and demand for it, and while stressing that all Iraqis’ financial transactions and purchases are subject to strict control, he explained that the international bodies are “surprised by the intelligence of Iraqis and their circumvention of financial restrictions.”
Al-Alaq said, in the presence of a number of representatives of media institutions, that international financial authorities have investigated “strange imports,” including large amounts of Indomie, and even the US Federal Bank asked about the fact that “Iraqis love Indomie so much.”
Al-Alaq ruled out the central bank’s resort to printing the dinar to secure the budget need, “unless we get what a foreign equivalent currency.”Relationship: The US Federal Reserve asks us about the truth of the “Andomi”. Do you like him that much?
Statements by the Governor of the Central Bank during a media meeting, attended by the correspondent of the 964 network:
Some of the things that go out to the media entail external positions and conditions we face with organizations and others (…) cite clips and media statements that embarrass us, and some international banks even turned their face away from Iraq because of what is happening.
The new thing that has happened in recent years is the fight against money laundering and the financing of terrorism and the issuance of sanctions against some countries.
The measures have become tight due to US sanctions on some countries, because they have sovereignty over their dollar currency, and this has created a kind of restriction.
The local currency is covered by the reserve, which is subject to foreign balance protection.
The balance is limited to a ceiling, but the use of several accounts affected the situation (…) We were covering $4 million per month, and in one day it jumped to 100 million.
People don’t know it’s monitored, especially card purchases. Smugglers are only smuggling the small part of the card money at airports, and the international observer said that the Iraqi people are smart, because they circumvent all measures.
Iraq’s gold reserves are 132 tons, and the future of the currency reserve is tied with the yellow metal (…) personally I support this vision.
The sale of dollars and foreign transfers has become highly transparent, and we have made tremendous strides in combating money laundering and terrorist financing.
All parties have become mobilized, and scrutinize before passing any transaction, so as not to pose any danger to Iraq.
The daily bulletin does not mean that all sales executed, some of which are pending or rejected.
International committees have begun investigating strange imports into Iraq. For example, the Indomie, they ask us about the reality of imported large quantities, is it the fact (…) we tell them that the new generation is addicted to it.
The scrutiny of the platform has led to negative effects, due to traders’ reluctance to it.
It is not possible to float the dinar in Iraq, because we do not have various sources of foreign currency.
The central bank should oversee monetary policy and move away from a crisis that has taken up so much of its energy and time.
We oppose the arrest of traders, I informed the Prime Minister of this, and the solution lies in addressing the crisis from the roots, by stopping the collection of dollars and delivering it to speculators.
The central bank has not specified a specific stake for banks, any bank that can enter the window of selling the currency in any amount.
Previously, we set the ceiling, and the goal was to encourage as many banks as possible to handle the window.
Banks that committed and agreed with a respectable intermediary bank whose transfers became easier (…) and that’s why I was focusing with banks on the need to find a network of correspondent banks abroad.
The amounts withdrawn by the government are illogical, because they depend on the guarantee of the price of oil, the latter was not stable, and it will not be, and the solution is to make calculations “month by month”, not annually.
We will not print more dinars, unless we get equivalent foreign currency, withdraw the damaged to avoid inflation (…) and link the balance allocations to the balance is incorrect.
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