Central Bank: It is difficult to apply dinar float in Iraq

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The governor of the Central Bank, Ali al-Alaq, that floating the dinar is difficult to apply in Iraq because the government monopolizes the dollar, indicating that the reserves of Iraq is 48 billion US dollars.
Al-Alak said in an interview with Al-Arabi African newspaper that “the oil countries usually rely on a fixed exchange rate, or fixed with flexibility, and do not resort to the float method, unless their reserves are controlled to a level that is insufficient, which did not happen either in Iraq or countries “Noting that” floating is difficult to apply in Iraq, considering that the government monopoly, de facto, the offer of the dollar and foreign currencies. ”
He added that “Iraq’s reserve of the dollar is 48 billion US dollars.”
He pointed out that “there is an understanding and coordination between the Central Bank and the government through the Ministry of Finance, and in this regard has formed a Higher Coordination Committee between the Ministry and the Central Bank; therefore, work together through the program of credit readiness with the IMF, as this program includes reforms and procedures related to Mainly economic, financial and monetary structures. ”
“At this stage, the Central Bank of Iraq is focused on achieving the concept of” financial inclusion “and its applications, where the circumstances of previous years did not help because of the security and financial instability, the Bank has developed a short-term and long-term plan to expand the application of this concept, That “the short-term plan aims to agree with the government to deposit salaries of all state employees in banks, which will add more than 3 million people to deal with banks, and long-term resettlement.”

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