Lawmaker lambasts CBI policies, raises concerns over a joint project with US federal reserve

Shafaq News/ A member of Iraq's parliamentary finance committee criticized the policies of the Central Bank of Iraq (CBI) on Thursday, warning of a "dangerous project" it is establishing with the US Federal Reserve.

In a statement to Shafaq News Agency, Lawmaker Thamer Dhayban said that the bank's current administration "lacks of a clear economic vision and policy to effectively control the parallel market."

"The parallel market is unofficial and unlawful, but due to the lack of facilitations provided by the Central Bank, some traders, contractors, investors were forced to purchase dollars from there."

"Despite the measures taken by the government and security agencies to pursue currency speculators and dollar hoarders, they have not been effective in controlling the market. That, in addition to the huge demand, contributes to the dinar's depreciation."

He also raised concerns about a project between the Central Bank and the U.S. Federal Reserve, describing it as highly" dangerous".

"If the Central Bank proceeds with this project at the beginning of the next year, it will be a huge risk. There must be genuine financial and economic considerations for what the bank is doing, given the instability in the market. It may lead to further depreciation and, ultimately, economic crisis in the country."

Dhayban explained that the nature of the project between the Central Bank and the U.S. Federal Reserve involves ceasing dollar transactions by 2024, restricting dollar dealings exclusively to official transactions with specified banks determined by the Central Bank.