Iraq: US Did Not Impose Conditions over Dollar Crisis

Arab World

February 21st, 8:57am

Baghdad - Asharq Al-Awsat

Foreign Minister Fuad Hussein speaks at a press conference in Baghdad on Monday. (INA)

Iraq denied claims that the US had imposed conditions on its delegation, which recently visited Washington, regarding the dollar exchange issue. An Iraqi delegation, headed by Foreign Minister Fuad Hussein, had visited Washington and met with Secretary of the State Antony Blinken earlier this month. During a press conference in Baghdad on Monday, Hussein denied that conditions were imposed on the delegation, noting that the electronic platform launched by the Central Bank of Iraq (CBI) would determine benefit from the dollars and help end smuggling. He explained that the delegation included officials from various sectors, including senior officials from the financial and banking industries. He added that the visit addressed political issues, but mainly focused on the economy, fighting corruption, and combating ISIS terrorism. He assured the Iraqi people "the financial and oil cover proves that the Iraqi currency is strong," adding that the dollar crisis occurred because of the electronic financing system. Moreover, he revealed that the SWIFT platform had uncovered many manipulations and counterfeit bills. It will help stop and prevent dollar smuggling and determine the number of dollar bills in the market. Hussein indicated that Iraq is a "consumer society" and imports many of its needs, which requires the availability of dollars, noting that Iraqi reserves exceeded $100 billion. He added that it is only a matter of time before the exchange rate stabilizes. The minister also denied reports that Iraq was seeking to normalize relations with Israel, asserting that it was not discussed with the US officials or any political blocs. Meanwhile, the US Treasury announced that Iraq's possession of US bonds rose to more than $40 billion. The Treasury said Iraq's possession of US Treasury bonds surpassed $40 billion, rising from $39.717 billion in October 2022. This marked an increase of 81.4 percent compared to the same month in 2021. Iraqi bonds, including long-term guarantees, amounted to $28.239 billion, and short-term guarantees amounted to $12.575 billion, representing 0.55 percent of the world's bonds.

from Asharq AL-awsat https://english.aawsat.com/home/article/4170891/iraq-us-did-not-impose-conditions-over-dollar-crisis