عربي English Türkçe اردو فارسى
Logo
Latest News
Arab World

Iraq's Central Bank, US Federal Bank Address Electronic Platform Challenges

Iraqi Prime Minister Mohammad Shia al-Sudani chairs an economy in Baghdad (INA)
Iraqi Prime Minister Mohammad Shia al-Sudani chairs an economy in Baghdad (INA)
TT
TT

Iraq's Central Bank, US Federal Bank Address Electronic Platform Challenges

Iraqi Prime Minister Mohammad Shia al-Sudani chairs an economy in Baghdad (INA)
Iraqi Prime Minister Mohammad Shia al-Sudani chairs an economy in Baghdad (INA)

Officials from the Central Bank of Iraq, the US Federal Reserve Bank and the US Treasury have met in wake of the drop in the Iraqi dinar's value against the US dollar, creating severe fluctuations in the prices of most commodities and foodstuffs.

Economic sources said Washington gave Iraq an additional three months, provided that it adheres to the standards for moving funds and preventing smuggling.

A Central Bank of Iraq delegation met for several hours with the US Federal Reserve and US Treasury delegations in Washington.

The Iraqi Central Bank said in a statement that the two sides expressed their willingness to work jointly to face the challenges of working with the electronic platform for transfers and cash, which allows the US federal bank to monitor foreign transfers from Iraq to other countries.

The statement cited the measures recently imposed by the Treasury Department on Iraq's central bank to adopt an electronic platform for money transfers.

It added that the US delegation discussed several support and attribution mechanisms for the Central Bank of Iraq in a way that boosts its capabilities to deal flexibly with crises during this stage.

Iraqi Central Bank Governor Ali Mohsen al-Alaq confirmed the bank's intention to launch the second package of facilities to support the stability of the exchange rate.

The Fed said the Iraqi central bank's measures are "in the right direction for building a sober banking sector," according to the statement.

It added that a Treasury official set forth ways to "fully support" Prime Minister Mohammed Shia al-Sudani's government on economic reform and expressed the department's readiness to provide the required support.

Despite the Central Bank's decision to adjust the exchange rate to 1,300 dinars to the dollar from 1,470 dinars, confusion still prevails in the Iraqi markets. The exchange rates remain high despite the relative stability in the local stock exchange.

Most Viewed

 
 
Arab World

Italy Plans to Return Ambassador to Syria to Reflect New Diplomatic Developments, Minister Says

Italy's Foreign Minister Antonio Tajani speaks while meeting with members of the G7, on July 11, 2024, during the NATO summit in Washington. (AP)
Italy's Foreign Minister Antonio Tajani speaks while meeting with members of the G7, on July 11, 2024, during the NATO summit in Washington. (AP)
TT
TT

Italy Plans to Return Ambassador to Syria to Reflect New Diplomatic Developments, Minister Says

Italy's Foreign Minister Antonio Tajani speaks while meeting with members of the G7, on July 11, 2024, during the NATO summit in Washington. (AP)
Italy's Foreign Minister Antonio Tajani speaks while meeting with members of the G7, on July 11, 2024, during the NATO summit in Washington. (AP)

Italy plans to send an ambassador back to Syria after a decade-long absence, the country’s foreign minister said, in a diplomatic move that could spark divisions among European Union allies.

Foreign Minister Antonio Tajani, speaking in front of relevant parliamentary committees Thursday, announced Rome’s intention to re-establish diplomatic ties with Syria to prevent Russia from monopolizing diplomatic efforts in the Middle Eastern country.

Moscow is considered a key supporter of Syrian President Bashar Assad, who has remained in power despite widespread Western isolation and civilian casualties since the start of Syria’s civil war in March 2011.

Peaceful protests against the Assad government — part of the so-called “Arab Spring” popular uprisings that spread across some of the Middle East — were met by a brutal crackdown, and the uprising quickly spiraled into a full-blown civil war.

The conflict was further complicated by the intervention of foreign forces on all sides and a rising militancy, first by al-Qaida-linked groups and then the ISIS group until its defeat on the battlefield in 2019.

The war, which has killed nearly half a million people and displaced half the country’s pre-war population of 23 million, is now largely frozen, despite ongoing low-level fighting.

The country is effectively carved up into areas controlled by the Damascus-based government of Assad, various opposition groups and Syrian Kurdish forces.

In the early days of the conflict, many Western and Arab countries cut off relations with Syria, including Italy, which has since managed Syria-related diplomacy through its embassy in Beirut.

However, since Assad has regained control over most of the territory, neighboring Arab countries have gradually restored relations, with the most symbolically significant move coming last year when Syria was re-admitted to the Arab League.

Tajani said Thursday the EU’s policy in Syria should be adapted to the “development of the situation,” adding that Italy has received support from Austria, Croatia, Greece, the Czech Republic, Slovenia, Cyprus and Slovakia.

However, the US and allied countries in Europe have largely continued to hold firm in their stance against Assad’s government, due to concerns over human rights violations.