American Institute: The United States is putting pressure on Iraq economically
American Institute: The United States is putting pressure on Iraq economically
2-22-2023
Information/translation.
A report by the American Atlantic Council Institute confirmed that the American pressure on Iraq to implement the financial measures of the Federal Bank related to the external payments of the Central Bank of Iraq had a detrimental effect on the daily currency selling quantities window known as the dollar auction.
The report, which was translated by the information agency, stated that “the decline in the dollar auction as a result of US pressure against the continued high demand for the US dollar led to an imbalance in supply and demand, and thus to a decrease in the price of the Iraqi dinar against the US dollar, as this ignited a storm of controversy.”
He added, “The US Federal Bank, under the pretext of smuggling dollars, restricted Iraq’s use of its oil revenues, but the Iraqi government and the Central Bank of Iraq then introduced a series of measures to create local demand for the Iraqi dinar and accelerate the adoption of banking services in the economy – which are decisive measures to remove the dollar from the economy and accelerate its development.” Far from the dominance of criticism.
And the report indicated that “the devaluation of the Iraqi currency against the dollar, which leads to increases in local prices by amplifying the effects of the upcoming expansionary budget of the government, and moreover, it will have significant long-term effects on the financial situation of Iraq, which may lead to an exacerbation of structural imbalances, and thus exposure to external shocks.
The report stated that “US federal treasury measures, unlike the old ones, require the central bank to fully disclose details of cross-border payments, including those of the final beneficiary and sender, before the payment takes place. The Central Bank of Iraq in US dollars.
And he stated, “The 63 percent decrease in average daily transfer volumes – consisting of wire transfers and letters of credit – was only the result of most wire transfers being rejected by the new procedural requirements of the US Treasury.”
The report pointed to three main important factors to get rid of this process, which are the modernization of outdated bureaucratic, paper-based government processes; increasing the adoption of banking in the economy by accelerating its development away from the dominance of cash; And strengthening new government measures to remove the dollar from the economy.”
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