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Central Bank of Iraq Mobilizes Over 13 Trillion Dinars for Renewable Energy Initiatives
The Governor of the Central Bank of Iraq, Ali Al-Alaq, revealed on January 28, 2025, that the institution has allocated more than 13 trillion dinars towards renewable energy since the launch of these initiatives in 2015-2016. His remarks were made during the Iraq Energy Conference, which focused on “The Role of the Iraqi Bank in Supporting the Transformation to a Green Economy and Energy Investments” held in Baghdad.
Al-Alaq emphasized that these initiatives are designed to promote the adoption of solar energy systems among citizens and businesses. He outlined three principal benefits: the promotion of “clean energy,” alleviating demand on the national grid, and offering economic efficiency in energy use. He further remarked that “the central bank’s initiatives across various sectors have been a primary catalyst for sustaining economic activity and stimulating growth.”
Redefining the Role of the Central Bank
Al-Alaq expressed optimism that citizens would come to understand that “the central bank serves a role beyond merely managing monetary transactions.” He articulated the institution’s commitment to infrastructure development and fostering a robust industrial and agricultural future for Iraq. The governor highlighted an ongoing roadmap for sustainable finance, spanning 2023 to 2029, which is being implemented in collaboration with the World Bank. This comprehensive plan incorporates environmental, social, and governance aspects to ensure standards are met in funded projects.
Addressing Liquidity Concerns
Responding to concerns about liquidity, Al-Alaq reassured citizens that “the central bank is well-positioned to supply adequate local currency to meet demand,” leveraging the country’s foreign reserves. In addressing inquiries regarding the bank’s support for projects in the Kurdistan region, he clarified, “We consider Iraq as a unified entity, and our monetary policies and programs are inclusive of all regions.” He noted that the Central Bank has a branch in the Kurdistan region, which is responsible for regulating and supervising the regional banking system, ensuring alignment with the central directives from Baghdad.