US Treasury shows flexibility in assisting Iraq for exchange rate stability

SULAIMANI, Kurdistan Region — The Iraqi Central Bank (CBI) Governor, Ali al-Allaq, held a crucial meeting with Brian Nelson, the Under Secretary for Terrorism and Financial Intelligence at the US Department of the Treasury, according to a statement from the CBI.

The discussions revolved around streamlining the Central Bank of Iraq’s financial transfer procedures, with the US Treasury displaying remarkable flexibility and eagerness to support the Central Bank of Iraq in its pursuit of exchange rate stability.

Allaq has affirmed the agreement with the Assistant Secretary of the US Treasury to enhance communication between their technical teams, in order to swiftly implement the mutually agreed-upon steps to facilitate financial procedures.

The CBI’s latest efforts are aimed at tackling the ongoing devaluation of the Iraqi dinar. This has been affected by the high demand for US dollars on Iraqi markets. The limited foreign currency supply provided by the US Treasury during the high flow of US dollars out of Iraq has caused this demand to increase.

In recent months, the CBI has introduced several packages of measures to address the issue. The latest package is expected to help stabilize the currency and facilitate foreign trade, while providing much-needed support for the country’s economy.

The Iraqi dinar has been on a winning streak in recent weeks, gaining significant value against the US dollar. This development has sparked attention among currency traders and economists, as the Iraqi dinar’s strengthening performance marks a notable shift in the foreign exchange market.

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