Iraqi PM relieves CBI governor of his post
The Iraqi Prime Minister Mohammed Shia Al-Sudani and the governor of the Central Bank of Iraq Mustafa Ghaleb. Photo: Iraqi News Agency
Baghdad (IraqiNews.com) – The Iraqi Prime Minister, Mohammed Shia Al-Sudani, relieved on Monday the governor of the Central Bank of Iraq (CBI), Mustafa Ghaleb, of his post, the state news agency (INA) reported.
A government source stated that Al-Sudani relieved Ghaleb of his post at his request, and assigned Ali Mohsen Al-Alaq as a governor of the CBI, INA mentioned.
The value of the Iraqi currency has fallen by up to 10 percent against the U.S. dollar, as tight controls were imposed on international transactions in dollars.
A few days ago, U.S. and Iraqi officials said that the New York Federal Reserve System began enforcing tighter controls on international dollar transactions by commercial Iraqi banks in November in a move to curtail money laundering and the illegal siphoning of dollars to Iran and other heavily sanctioned Middle East countries, the Wall Street Journal reported.
U.S. officials said that Iraq was used as a haven for money laundering for Tehran and Damascus, as money in dollars was transferred based on fraudulent invoices to unknown persons, the Wall Street Journal mentioned.
Cash transfer controls in Iraq are intended to prevent smuggling to Tehran, according to U.S. officials.
The exchange rate of the U.S. dollar against the local currency recently reached 1610 dinars per dollar, while the official exchange rate remained 1459 dinars per dollar, with a gap between the two exchange rates of more than 10 percent.