On Wednesday, Moeen Al-Kadhimi, a member of the Parliamentary Finance Committee, accused the US Federal Reserve of dodging the Central Bank of Iraq’s queries over international transfers and the dollar, following reports that the two sides will shortly meet again.
“The goal of holding repeated meetings between the Central Bank of Iraq, the Federal Bank, and the US Treasury Department is to facilitate the release of external transfers from the Federal Bank, which are estimated at 10 billion dollars monthly and remain locked up with the US Federal Reserve, and there must be agreement to release these amounts within External transfers to the Central Bank of Iraq,” Al-Kadhimi told Shafaq News Agency.
He added, “In the previous stage, there was an intentional failure to return 50% of foreign remittances sold at the foreign currency buying and selling window, and it is one of the basic matters that were raised in the repeated meetings between the Central Bank and the Federal Bank and questions about the reasons for the disruption and rejection of remittances that lead to the disruption of economic activity.” in the country”.
According to Al-Kadhimi, “the Iraqi merchant submits official papers to the Central Bank to buy the dollar at the official price and pays billions of dinars to the Central Bank in exchange for receiving the dollar abroad, and after a month, the merchant is surprised by the rejection of his application.”
A member of the Committee on Finance stated, “Officials at the US Federal Bank evade answering the questions and inquiries raised by the management of the Central Bank of Iraq about the reasons for rejecting foreign transfers, and every now and then they say this will be addressed during the coming period without result.”
According to the American daily “The Wall Street Journal,” Washington denied Iraq’s request for one billion dollars in cash from the Federal Reserve Bank on the grounds that it would clash with their attempts to limit Baghdad’s usage of the currency and block illicit financial flows to Iran. According to American authorities reported in the publication, “the banknotes are between… “Iraqis’ hands have become a rich source of illegal funds.
The Central Bank of Iraq verified in early October that dollar shipments provided by the US Federal Reserve were following a certain timetable and timeframe agreed upon by the two monetary institutions.