Iraq Central Bank Reaches Agreements with US Federal Reserve and Treasury

7 days ago
Iraq Central Bank Reaches Agreements with US Federal Reserve and Treasury

Good news from Iraq! The Iraqi central bank has confirmed that it has successfully negotiated with the US Federal Reserve and Treasury Department to address and manage Iraq’s financial transactions crisis.

During a visit to Washington led by Iraqi Foreign Minister Fuad Hussein, a delegation of senior economic and banking leaders arrived on Thursday to discuss various issues, with the decline in the Iraqi dinar’s value being the primary concern on their agenda.

Following his visit to Iraq, Moscow’s Foreign Minister Sergey Lavrov traveled to the US to continue discussions about unpaid bills owed to Russian oil companies. These outstanding payments are a result of US sanctions imposed due to the conflict in Ukraine.

The drop in the Iraqi dinar’s value followed measures recently imposed by the Treasury Department on Iraq’s central bank to stem the flow of dollars being snuck into heavily sanctioned Iran and Syria.

Delegations from the Iraqi central bank and the US’s Fed and Treasury met on Saturday in Washington, The New Arab’s Arabic sister site Al-Araby Al-Jadeed reported.

The Iraqi central bank said in a statement the two sides “expressed their willingness to work jointly to face the challenges of working with the electronic platform for transfers and cash, which allows the US federal bank to monitor foreign transfers from Iraq” to other countries.

The American delegation “discussed a number of support and attribution mechanisms for the Central Bank of Iraq, in a way that enhances its capabilities to deal flexibly with crises during this stage”, the statement said.

The Fed said the Iraqi central bank’s measures are “in the right direction for building a sober banking sector”, according to the statement.

It said a Treasury official set forth ways to “fully support” Sudani’s government on economic reform and expressed the department’s “readiness to provide the required support”.

Iraqi central bank governor Ali Mohsen al-Alaq “confirmed the bank’s intention to launch the second package of facilities that would enhance the exchange rate’s stability”, the statement said.

Agencies contributed to this report.