A Kinder, Gentler CBI?

By Mark DeWeaver.

On October 16, Prime Minister Maliki removed the head of the central bank, Sinan al-Shabibi, accusing him of mismanagement and currency manipulation. (There’s more on this story here, here, and here.) This move was widely seen as a power grab by the prime minister and a grave threat to the CBI’s independence. Nevertheless, his removal may actually prove to be a positive development for the listed banks.

In recent years, the CBI has implemented two prudential supervision policies that seem to me to have been entirely misguided

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