After a sudden rise, the Central Bank of Iraq reassures markets: The dinar is stable.
The Central Bank of Iraq confirmed on Monday that there is no intention to change the exchange rate of the Iraqi dinar against the US dollar, stressing its continued support for the stability of the exchange rate, and indicating that statements related to changing it aim to confuse the market, stir up speculation and affect the stability of the national economy.
The statement from the Central Bank of Iraq comes in conjunction with a sudden rise in the exchange rate of the dollar in Iraqi markets today, amid economic controversy over the reasons for the rise and its repercussions on the general budget and the local economy.
The bank said in a statement received by Shafaq News Agency that it has made tangible progress in its strategic objectives related to maintaining the stability of the general price level, noting that the inflation rate has fallen to historically low levels, the lowest in the region, thanks to monetary policies and well-considered measures despite the economic challenges.
The statement added that Bank Law No. (56) of 2004, and in particular Article 1/4/A, defines its basic tasks in formulating and implementing monetary policy, including exchange rate policy, stressing that there is no intention to amend the exchange rate of the dinar in line with its goal of ensuring price stability.
The bank noted its continued support for exchange rate stability thanks to ideal levels of foreign currency and gold reserves, while ensuring coverage of all banks’ requests for external reinforcement in US dollars and other foreign currencies such as the Chinese yuan, Turkish lira, Indian rupee, and UAE dirham.
He also confirmed that bank card settlements and personal transfers via MoneyGram and Western Union, as well as cash sales for travel purposes, are continuing, noting that there is no pressure on current reserves.
The statement reiterated that any external statements regarding changing the dinar exchange rate do not reflect the position of the Central Bank and represent opinions aimed at confusing the market and inciting speculation.
Shafaq News Agency published a report on Monday regarding the sudden rise of the dollar, addressing the challenges and concerns associated with the rise and its potential effects, amid differing expert opinions on government measures, with agreement on the need to adopt a comprehensive package of reforms instead of relying on a single tool.
Shafaq.com