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Iraq Central Bank refused governmental bids aiming at borrowing money from the reserves of the Bank in order to face the budget deficit. The Central Bank considered this step illegal and said that it breaches the independence of the bank. The counselor of the Central Bank Mazhar Mohammad Saleh said that Iraq reserves covered the financial liquidity during the last years and thus it is now out of the government’s financial authority. To that he also called to adopt an alternative way to cover the deficit such as applying secondary market policies upon which it has been agreed with the government.