Greens Deputy Leader, Adam Bandt, has called for an inquiry into the Reserve Bank of Australia following disturbing new claims of illegal approaches to Saddam Hussein's regime, as well as demanding ASIC explain why it is turning a blind eye to the RBA's corporate activities.

"Most Australians would be shocked to know their central bank was using their money to line up dirty deals with Saddam Hussein," said Mr Bandt.

"The stench surrounding the Reserve Bank gets worse and a full inquiry is needed to clear the air."

After a full day's inquiry, the Reserve Bank has still failed to satisfactorily explain why the Federal Police were never called in to investigate corruption concerns, Greens Deputy Leader and banking spokesperson Adam Bandt MP said today.

"I commend the willingness of the Governor and the bank to give evidence and share documentation with the committee, but we still don't have a satisfactory explanation as to why the police weren't called until the scandal hit the newspapers," Mr Bandt said.

Greens Deputy Leader Adam Bandt MP says new revelations in the Reserve Bank bribery scandal mean the Treasurer must establish a full judicial inquiry into the affair.

Mr Bandt says allegations, aired on 730, that current Assistant RBA Governor Frank Campbell was aware of payments to a Malaysian arms dealer after he had been sacked by a Reserve Bank subsidiary further reinforce the need for an inquiry.

Mr Bandt has written to the Treasurer requesting an inquiry and has a motion before the House of Representatives for the establishment of a Royal Commission.

Greens Deputy Leader and banking spokesperson Adam Bandt announced today that he will move in parliament for an inquiry into the growing RBA banknote bribery scandal.

The case for a full independent inquiry into what the RBA knew and did about this growing scandal is now overwhelming, he said.

"I will move in Parliament for the establishment of a full independent inquiry into the banknote bribery scandal. The inquiry should have the powers of a Royal Commission," Mr Bandt said.

Greens MP and banking spokesperson Adam Bandt says new revelations of possible illegality by senior RBA officials and businesses in relation to the note bribery scandal means a judicial inquiry is needed. Mr Bandt says only a full and independent inquiry will be capable of clearing the shadow that hangs over the RBA.

"The accumulating scandal can no longer be ignored by the Treasurer," Mr Bandt said.