Iraq's central bank will be allowed to open a deposit with the Federal Reserve Bank of New York, which will earn it millions of dollars in vital interest income, a top US Treasury official has said.
US Treasury Under Secretary John Taylor
US Treasury Under Secretary John Taylor stated that President George W. Bush had issued an executive order last November granting Iraq the right to open the account.
"This enables the central bank to earn income on its reserves, of approximately $5 billion, that will be over $100 million a year. That can be used to improve infrastructure," Taylor told a news conference in Baghdad during a brief visit.
He said the dollars had been accumulated by the Iraqis since the creation of the new Iraqi dinar and not sold to them by Washington.
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