Parliament to host CBI Governor

Shafaq News / The Iraqi Parliamentary Finance Committee is set to host the Central Bank Governor, Ali Al-Alaq, to discuss the significant increase in the exchange rate of the US dollar against the Iraqi dinar.

A parliamentary source informed Shafaq News Agency that the meeting is scheduled for the afternoon and aims to address the steep rise in the dollar's exchange rate and the bank's measures and plans to tackle this surge.

Over the past two days, the exchange rates of the US dollar against the Iraqi dinar have witnessed a substantial increase in both Baghdad's markets and Erbil, the capital of the Kurdistan Region. This surge followed Washington's imposition of sanctions on 14 Iraqi banks.

In response to the situation, a member of the Parliamentary Finance Committee, Deputy Mueen Al-Kadhimi, revealed to Shafaq News Agency that "the government attempted to control the exchange rate by reducing the dollar from 145 to 130, and managed to provide remittances to countries that could receive them."

However, Al-Kadhimi stated, "There are other countries from which Iraqi traders import, but the US sanctions hinder sending these remittances, forcing these traders to obtain dollars from the parallel market. This, in turn, keeps the dollar rate high in this market. Additionally, the recent actions of the US Federal Reserve in refraining from dealing with several private banks have further contributed to the dollar's rise, reaching 155."

Regarding the actions of the Parliamentary Finance Committee concerning this matter, Al-Kadhimi emphasized, "There will be a hosting of the Central Bank Governor and the Ministry of Finance during the next week to identify the real reasons behind the inability to control the parallel market rate."

It is worth noting that the US Department of the Treasury imposed sanctions on 14 Iraqi banks last Wednesday as part of a campaign targeting Iran's dollar transactions.