The Iraqi Central Bank has attributed the reasons behind the implementation of the new system adopted for the foreign currency selling procedures in order to manage and stabilize Iraqi dinar exchange rate against the U.S dollar. A statement issued by the Central Bank of Iraq indicated that the execution of new system in the foreign currency selling window operation in the CBI piloted to a significant amount of decline in the U.S dollar exchange rate against the Iraqi dinar currency. The statement further indicated that the new system has eliminated the middlemen and hackers after changing the requirements & actions. It would provide transparency and simplification in the operation of foreign currency sale window. This new system will offer a new competition between participating banks in the foreign currency sales auction at CBI on the basis of agreement magnitude with the rules in order to fight against money laundering and terrorist financing.
The CBI statement also mentioned that success of the new system is linked to the cooperation of the Iraqi banks. The Iraqi banks also admired in getting additional steps to cover the legal demand of the U.S dollar in the country. The CBI targeted by the implementation of new system, new standards and rules in order to monitor transparency & clearness of the operations. The statement also said that CBI has indicated these specific steps were taken in the light of economic & financial challenges and security conditions. The successful recorded monetary policy had absorbed a number of major shocks in the country. The statement stressed the need to increase the oil prices and the termination of Daesh terrorist organization would reflect positive impact to support the financial situation in the country. It would provide a significant amount of relief to decrease the pressure on the monetary policy in order to provide greater stability for monetary policy of the country.