During a meeting on Thursday, a member of the Parliamentary Finance Committee expressed criticism towards the Central Bank of Iraq’s policies. He pointed out that the Central Bank has lost control of the parallel market and mentioned a project with the Federal Reserve that he deemed “dangerous”.
During a recent meeting, committee member Thamer Dhiban expressed concerns about the lack of a clear economic vision and policy for the central bank to control the parallel market. He pointed out that the parallel market is unofficial and illegal, causing obstacles and lack of facilities for some merchants, contractors and investors. This has prompted them to resort to the parallel market to purchase dollars.
He stated that the government and security services have taken measures to control the market and go after those who dispute currency and monopolize the dollar, but these measures have been ineffective. He also mentioned that the high demand for the dollar is a major factor contributing to the increase in the exchange rate.
During a recent interview, he raised concerns about a project between the Central Bank and the US Federal Bank. He stated that the project could potentially be very dangerous, and if the Central Bank were to proceed with it at the beginning of next year, it could potentially cause financial and economic instability. He emphasized the importance of conducting real financial and economic calculations to prevent market instability and avoid a potential economic crisis in the dollar.
According to his statement, the project between the Central Bank and the US Federal Bank in 2024 will not involve the use of dollars, except for official transactions with specific banks approved by the Central Bank.
