Iraq started its journey as an independent bank in 2004 with the major responsibilities of price stability, exchange rate policies, monetary policies and auction of different currencies of the world. Since then central bank of Iraq is facing few big challenges, one of them is the exchange rate. The exchange rate is the major issue and one of the big challenges for Iraq. Central bank of Iraq is responsible to stabilize the exchange rate of dinar for internal and external trade.
Central bank of Iraq introduced dual exchange rate policy to control the inflation rate in the country that caused the huge criticism on central bank of Iraq and the economists all over the world. The government of Iraq and the finance committee of Iraq pressurized the central bank of Iraq to change its policies for exchange rate and auction sales. Looking this World Bank warned government of Iraq and the finance committee of Iraq for useless criticism on central bank of Iraq. World Bank in its official statement said that Iraq will be blacklisted if it does not stop its policy against central bank. It can also face sanctions for this continuous criticism.