On Monday, Kazem Al-Toki, a member of the House of Representatives, expressed his belief that the Central Bank’s measures were ineffective against the US Treasury’s decisions regarding the dollar. He also stated that Washington had enforced numerous financial policies on the Central Bank.
During an interview with the information agency, Al-Touki stated that the gap between the parallel and official dollar exchange rates is increasing beyond what the central bank can control. Al-Touki also mentioned that ongoing sanctions from the US Treasury will prevent any stabilization of local market exchange rates for the dollar.
He stated that the Central Bank was unable to regulate the rise in the value of the dollar in the domestic market, which currently exceeds the official rate it adheres to.He mentioned that the United States of America has imposed several financial policies on the Central Bank.
At the end of his speech, Al-Touki expressed his view that the Central Bank doesn’t have a strong hold on financial policy. He highlighted the reality of high dollar prices that have persisted for months, and stated that the measures taken by the Central Bank were not able to withstand the impact of decisions made by the US Treasury concerning the dollar.
Last week, the US Treasury made a decision to prevent 14 Iraqi banks from trading and selling hard currency. This resulted in an increase in the dollar’s exchange rates in the local markets.
Iraq is facing several issues, including the increase in dollar exchange rates caused by US sanctions on banks. Additionally, there is an electricity crisis preventing Iraq from paying gas fees and attracting effective foreign companies.