Baghdad The Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed that relying on the central bank to cover the general budget deficit is a very dangerous phenomenon and threatens monetary stability in Iraq.

Al-Alaq said in a speech during the Sulaymaniyah Forum, issued in a statement by the Central Bank: “The monetary policy includes two basic goals: maintaining the general level of prices, i.e. the strength of the currency locally, and the exchange rate, which represents the strength of the currency externally.”

He added: “The phenomenon of relying on the central bank to cover the deficit of the state’s general budget is a very dangerous phenomenon, and the dependence of some governments on the central bank for financing threatens monetary stability.”/ End

Source: National Iraqi News Agency