The Iraqi courts have already ruled that the Central Bank of Iraq is under the jurisdiction of the Iraq government specifically the Prime Minister’s Cabinet. Prime Minister Maliki is attempting to reshape the Central Bank of Iraq starting with upper management. The hard currency in Iraq which is the U.S. dollar is appreciating against the local currency as merchants are continuing to buy and sell in U.S. dollars.
Governor Shabibi is negotiating his departure from the Central Bank of Iraq along with other senior members of the CBI. We will see departures in the management of the CBI by the end of the year. It is rumored that they will be leaving the country.
The Iraqi dinar is being seriously undermined by Iran and Syria who are in need of U.S. Dollars to skirt the international sanctions. You will see a continued weaken Iraq dinar in the months ahead.
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