PM Advisor: The monetary enhancement mechanism will safeguard financial stability in the country

Baghdad – INA
 
The financial advisor to the Prime Minister, Mudher Mohammed Saleh, affirmed on Friday, that the Central Bank of Iraqi -CBI has adopted a monetary enhancement mechanism to meet the national banks’ demands for foreign currency. He noted that this mechanism will maintain financial stability in the country.

 
Speaking to the Iraqi News Agency (INA) on Friday, Saleh outlined the dual objectives of the Central Bank’s strategy. “The first priority is to supply national banks with foreign currency through their international correspondents, ensuring monetary stability,” he said. Saleh emphasized that the newly adopted mechanism will support the Central Bank’s sterilization policy, which controls domestic liquidity by exchanging foreign currency for Iraqi dinars.
 
The mechanism also aims to maintain a stable exchange rate of 1,320 dinars per 1 U.S. dollars, a cornerstone for stabilizing the external value of the Iraqi dinar. “By managing the growth of the money supply, the Central Bank seeks to achieve its monetary policy objectives—ranging from intermediate targets like exchange rate stability to long-term goals such as reducing inflation and stabilizing price levels,” Saleh added.
 
He further highlighted the second focus of the Central Bank’s efforts: ensuring a steady flow of essential goods and services into the domestic market by providing foreign currency to national banks’ international correspondents. This approach, Saleh noted, is designed to maintain a smooth supply chain while reinforcing compliance mechanisms.
 
“Currency oversight is being strengthened on two levels: domestically, through Iraq’s Anti-Money Laundering and Counter-Terrorism Financing Office, and internationally, via correspondent banks, which oversee compliance,” Saleh explained.