When The Central Bank Abandons Its Basic Duties - Hussein Ismail Al-Taie

 When The Central Bank Abandons Its Basic Duties - Hussein Ismail Al-Taie

May 26, 2025   The Central Bank carries out its basic tasks, which are:

-Issuance of local currency

- Creating monetary balance

However, what is observed in Iraq during this period is that the Central Bank is unable to issue the local currency according to the requirements of the local market and monetary circulation. 

The reason is that influential parties are printing and issuing counterfeit local currency in India, as is available from circulating information, converting it to dollars and smuggling it to Iran. 

This threatens and prevents the Central Bank from carrying out one of its basic tasks, as flooding the local market with original and counterfeit local currency will result, firstly, in an increase in the monetary mass of the local currency and a decrease in its real value against foreign currency. 

Secondly, it will lead to the smuggling of dollars to Iran for the purpose of helping it activate its economic activities in the international trade market.

The result of this process is the inability of the Central Bank to perform its second task, which is to create a balance between the original and counterfeit local currency offered for circulation in the local market and the available foreign currency. This will lead to a decline in the real strength of the local currency.

Therefore, the financial and economic authorities are paralyzed and unable to perform their basic duties in leading the country's economic activity.   Professor of International Finance  LINK