On Tuesday, Ahmed Brehi, a member of the Central Bank’s Board of Directors, disputed that the Central Bank has a problem with its foreign currency balance or income, claiming that the issue of a cash liquidity shortfall is contrived owing to illiteracy in central banking.
Berhi told Al-Maalouma that “it is wrong to accuse the Central Bank of its inability to overcome the crisis of the rise in the exchange rate of the US dollar against the Iraqi dinar.”
He went on to say, “The Central Bank does not have any problem with revenues or its foreign currency balance, but the real problem lies in the restrictions imposed by the US Treasury.”
Berihi went on to say that “raising the issue of a shortage of cash liquidity is fabricated due to ignorance in central banking, and the central bank can print the local currency without any cover because this matter has been overcome internationally since 1971.”
It is worth noting that the sanctions imposed by US financial authorities on 14 Iraqi banks caused the dollar to surge in value since these institutions are involved in the process of funding the local market with hard cash.