Earlier, the Iraq News Agency quoted a government source as saying "prime minister Mohamed Shiaa Al-Sudani He decided to relieve Central Bank Governor Mustafa Ghaleb Makhaif of his post, at his request"And"Ali Mohsen Al-Alaq was assigned to manage the Central Bank by proxy".
The announcement came amid a significant decline in the price of the Iraqi dinar, which recorded, on Friday, 1670 against the dollar, and the dinar lost 7 percent of its value since November; Which reverberated on the markets with a significant increase in the prices.
Prevent money laundering
The Iraqi economist, Hammam Al-Shamaa, explains other reasons for the decision, according to his point of view, saying:
• The decision to dismiss the bank’s governor came as a result of increasing indications that he was not positive in dealing with the current crisis.
• It allowed four banks owned by one person to acquire the largest percentage of the Central Bank’s transfers.
• The owner of the four banks transferred 90 percent of the transfers of the currency buying and selling window, and thus did not give an opportunity for the US Federal Reserve and the US Treasury to deal with flexibility and arrange operations to prevent money laundering.
• The US Federal Reserve decided to intervene directly to prevent remittances and prevent these four banks from dealing.
• The decision came at a time when US policy required more pressure on Iran due to the failure of the nuclear negotiations and the escalation of popular protests in Iran.
• The US Federal Bank and the US Treasury entered decisively to prevent money laundering operations, due to their limited confidence in the former governor.
• Ali Mohsen Al-Alaq, the new governor of the Central Bank, has a long history in managing the bank, and has the ability and flexibility that enables him to negotiate with the Americans to solve the problem.
positive repercussions
According to a professor of financial economics at the University of Baghdad, these changes have positive repercussions, as the exchange rate of the dollar has now begun to decline, and it is expected that the exchange rate of the dollar will return within a week to what it was, after the banks’ demand for currency buying and selling windows improves.
It is expected that things will improve as a result of negotiating the relationship with the US Federal Reserve, in order to conduct procedures to enter the currency buying and selling window, taking into account the commitment not to conduct money laundering operations.
comprehensive government action
The move to change the governor of the central bank comes within the framework of government moves to control the price of the dollar and combat corruption, according to the statements of the Iraqi prime minister.
These moves, according to previous statements by Muhammad Shiaa al-Sudani, include the completion of the budget law, the government’s continued support for the Central Bank to restore the dollar exchange rate to the official price, support the dinar, and combat corruption.
The government’s reform program also includes pursuing wanted persons, working to recover looted funds, and taking into consideration the budget’s objectives "Reducing endemic poverty in some environments and sectors".
The government has previously pointed out that the exchange rate did not rise as a result of a government decision, but rather because of the presence of those who took advantage of the temporary conditions and turmoil in the markets that are not yet accustomed to dealing with the new banking mechanisms, which will preserve the funds within the steps of economic reform.
The economist, Hammam Al-Shammaa, monitors the reasons for relieving Mustafa Ghaleb Makhaif from his post, and the link of the move to the American-Iranian conflict in the “Sky News Arabia” website. Iraq.
Earlier, the Iraq News Agency quoted a government source as saying, “The Prime Minister Mohamed Shiaa Al-Sudani He decided to relieve the Governor of the Central Bank, Mustafa Ghaleb Makhaif, from his post at his request, and assigned Ali Mohsen Al-Alaq to manage the Central Bank by proxy.
The announcement came amid a significant decline in the price of the Iraqi dinar, which recorded, on Friday, 1670 against the dollar, and the dinar lost 7 percent of its value since November; Which reverberated on the markets with a significant increase in the prices.
Prevent money laundering
The Iraqi economist, Hammam Al-Shamaa, explains other reasons for the decision, according to his point of view, saying:
• The decision to dismiss the bank’s governor came as a result of increasing indications that he was not positive in dealing with the current crisis.
• It allowed four banks owned by one person to acquire the largest percentage of the Central Bank’s transfers.
• The owner of the four banks transferred 90 percent of the transfers of the currency buying and selling window, and thus did not give an opportunity for the US Federal Reserve and the US Treasury to deal with flexibility and arrange operations to prevent money laundering.
• The US Federal Reserve decided to intervene directly to prevent remittances and prevent these four banks from dealing.
• The decision came at a time when US policy required more pressure on Iran due to the failure of the nuclear negotiations and the escalation of popular protests in Iran.
• The US Federal Bank and the US Treasury entered decisively to prevent money laundering operations, due to their limited confidence in the former governor.
• Ali Mohsen Al-Alaq, the new governor of the Central Bank, has a long history in managing the bank, and has the ability and flexibility that enables him to negotiate with the Americans to solve the problem.
positive repercussions
According to a professor of financial economics at the University of Baghdad, these changes have positive repercussions, as the exchange rate of the dollar has now begun to decline, and it is expected that the exchange rate of the dollar will return within a week to what it was, after the banks’ demand for currency buying and selling windows improves.
It is expected that things will improve as a result of negotiating the relationship with the US Federal Reserve, in order to conduct procedures to enter the currency buying and selling window, taking into account the commitment not to conduct money laundering operations.
comprehensive government action
The move to change the governor of the central bank comes within the framework of government moves to control the price of the dollar and combat corruption, according to the statements of the Iraqi prime minister.
These moves, according to previous statements by Muhammad Shiaa al-Sudani, include the completion of the budget law, the government’s continued support for the Central Bank to restore the dollar exchange rate to the official price, support the dinar, and combat corruption.
The government’s reform program also includes pursuing wanted persons, working to recover looted funds, and taking into account the budget’s objectives of “reducing endemic poverty in some environments and sectors.”
The government has previously pointed out that the exchange rate did not rise as a result of a government decision, but rather because of the presence of those who took advantage of the temporary conditions and turmoil in the markets that are not yet accustomed to dealing with the new banking mechanisms, which will preserve the funds within the steps of economic reform.