First time in 13 years, Iraqi central bank interferes to protect Dinar

The Iraqi central bank interfered for the first time since 13 years in the foreign exchange market for selling dollars from oil revenues in order to back the Dinar.

The top economist in the bank, Muddar Qasem, said that "this is one of the monetary tools we are using, the volume of our interference will increase with the passing of time." He indicated that the volume of interference is so far limited.

Bankers stressed that this step helped in supporting the Dinar exchange rate to reach 2000 dinars to one dollar during the last year of Saddam's rule in comparison with one dollar for 2200 in September.

The increase in the value of the Iraqi dinar will eleviate some of the disappointment of the Iraqis concerning the US running of the country whose economy drastically deteriorated after the fall of Saddam's regime.

Meantime, the central bank called on foreign banks to work in Iraq. However, local bankers said that the new changes are not enough for the investors to feel legal security. They added that the security condition in the country still constitutes an obstacle.

The central bank said it will open applications to win four licenses until November 26th.