Al-Kadhimi: US Federal Reserve's commitments to CBI are futile
Shafaq News / Mu’een Al-Kadhimi, a member of the Iraqi Parliamentary Finance Committee, accused the US Federal Reserve of evading inquiries from the Central Bank of Iraq (CBI) about foreign transfers and the dollar. He made these remarks following reports of an imminent meeting between the two sides.
Al-Kadhimi told Shafaq News Agency that the repeated meetings between CBI, the US Federal Reserve, and the US Treasury aim to facilitate the release of $10 billion monthly external transfers held by the US Federal Reserve. These funds remain withheld by the US Federal Reserve, and mutual agreement is necessary for their release to CBI.
He highlighted intentional delays in returning 50% of external transfers, sold via the foreign currency sale and purchase window, in previous stages. These concerns were a core focus in repeated meetings between CBI and the US Federal Reserve, questioning the reasons for the delays and refusals that obstruct the country's economic activity.
Moreover, Al-Kadhimi pointed out the predicament faced by Iraqi merchants, who officially submit documents to CBI for purchasing dollars at the official rate, pay billions of dinars to CBI, but later face refusals from the US Federal Reserve to fulfill their dollar purchase requests without understanding the reasons behind these refusals.
He criticized the US Federal Reserve officials for evading responses to inquiries from CBI about the reasons for rejecting external transfers, claiming that their repeated reassurances to address the issue in the near future have yielded no results.
It is noteworthy that Washington rejected Iraq's request for $1 billion in cash from the Federal Reserve, arguing that it contradicts efforts to restrain Baghdad's dollar use and halt unlawful cash flows to Iran, as reported by the Wall Street Journal. US officials stated that cash in Iraqi hands has become a lucrative source for illicit dollars flowing to corrupt militias, politicians, and Iran.
Additionally, CBI stated earlier in October that dollar shipments sent by the US Federal Reserve were following an agreed-upon schedule between the two monetary institutions.
