US hasn’t interfered in the monetary policy of Iraq: United States Ambassador to Iraq
ERBIL (Kurdistan 24) – Ambassador Alina L. Romanowski, United States Ambassador to Iraq, in an interview with Al Taghier Channel on Tuesday, denied claims that the United States was interfering in the monetary policy of Iraq.
She said that the United States has no role in the determination of the exchange rate of the US dollar against the Iraqi dinar.
“The United States has tried to develop the Iraqi banking system and connect them to international banks,” the ambassador stated.
The ambassador also added that the US in cooperation with the central bank of Iraq tried to prevent money laundering and dollar smuggling.
Moreover, she explained that these measures, agreed to between the Federal Reserve System and the Central Bank of Iraq, have been followed by Iraqi banks two years ago.
Although the official exchange rate has been fixed at 1,470 dinars against the US dollar, the local currency was trading up to 1,600 to the greenback on local markets.
The instability in the value of the exchange rate has caused a public outcry, fearing the volatility will drive prices of commodities up, in an economy heavily dependent on imports.
However, economists argue the currency depreciation is due to the tightening measures on international transfers, some accuse Washington, particularly those backed by Iran, to have played a role in the roller coaster fluctuations.