He added, “The court reviewed the provisions of the Central Bank of Iraq Law No. (56) of 2004, which obligates the Central Bank of Iraq to possess and manage all foreign reserves for Iraq, and that this matter requires entering into the necessary agreements and memorandums of understanding with international monetary institutions to provide foreign reserves and properly manage its assets.” And effective with the aim of protecting and preserving those reserves, and giving it the authority to conclude agreements and treaties, especially with the Federal Reserve Bank, as it is the owner of the right to issue the US dollar currency and has the right to prohibit dealing in that currency for any country or international or local financial institution in a specific country.
The statement indicated that “the Federal Reserve Bank has the right to request the termination of supplying the US dollar currency to that entity that poses risks, and the Central Bank of Iraq stops supplying the US dollar currency to any direct or indirect recipient upon receiving a written request from the Federal Reserve Bank to do so.”
The Judicial Center pointed out, “As a result, a deprivation list for the Federal Reserve Bank was created, in which banks and non-bank financial institutions are listed, in cooperation with this bank, and this happens on a weekly basis, following ensuring compliance with this list by an international auditing company.”
