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The Central Bank of Iraq issued a statement regarding depriving some Iraqi banks from dealing in dollars
July 20, 2023
Preventing Iraqi banks from dealing in dollars came against the backdrop of checking bank transfers for the past year (2022), before the application of the electronic platform, and before the formation of the current government as well.
Banks that are deprived of dealing in US dollars enjoy full freedom in dealing in Iraqi dinars with various services within the Iraqi banking system, in addition to their right to deal internationally in currencies other than the US dollar.
The application of the electronic platform for external transfer ensures the safety and accuracy of transfer transactions from all aspects, in accordance with international standards and practices, and the law against money laundering and terrorist financing. with an accredited international auditor.
What the Central Bank of Iraq has achieved in expanding transfer channels and approved correspondent banks makes transfers available and secure, and that
the number of local banks that do this is able to cover all transfer requests, with the ability of the Central Bank of Iraq to cover them without restrictions or ceilings, as long as they involve Legitimate operations, noting that
the banks banned from the dollar, their requests constitute only 8% of the total external transfers.
The announced exchange rate in the market is based on cash dollars granted by the Central Bank of Iraq to cover citizens’ requests for travel and other things, and
because of the citizen’s need for the national currency, some merchants and others withdraw dollars for trade or other purposes, away from the platform and away from the fundamental transfer contexts,
which It leads to raising the exchange rate on the black market, which is not a parallel market, as long as the source of the dollar is the central bank and not from within the market.
In order to address this phenomenon,
we call on the esteemed government to establish a mechanism to link imports, and to
prove the existence of a fundamental financial transfer corresponding to its value in order to prevent the use of illegal means to pay its values that constitute unjustified pressure on the cash dollar, and on the other hand,
it helps in controlling manipulation and smuggling of imports..
Central Bank of Iraq
information Office
20 - July – 2023
https://cbi.iq/news/view/2386
July 20, 2023
Preventing Iraqi banks from dealing in dollars came against the backdrop of checking bank transfers for the past year (2022), before the application of the electronic platform, and before the formation of the current government as well.
Banks that are deprived of dealing in US dollars enjoy full freedom in dealing in Iraqi dinars with various services within the Iraqi banking system, in addition to their right to deal internationally in currencies other than the US dollar.
The application of the electronic platform for external transfer ensures the safety and accuracy of transfer transactions from all aspects, in accordance with international standards and practices, and the law against money laundering and terrorist financing. with an accredited international auditor.
What the Central Bank of Iraq has achieved in expanding transfer channels and approved correspondent banks makes transfers available and secure, and that
the number of local banks that do this is able to cover all transfer requests, with the ability of the Central Bank of Iraq to cover them without restrictions or ceilings, as long as they involve Legitimate operations, noting that
the banks banned from the dollar, their requests constitute only 8% of the total external transfers.
The announced exchange rate in the market is based on cash dollars granted by the Central Bank of Iraq to cover citizens’ requests for travel and other things, and
because of the citizen’s need for the national currency, some merchants and others withdraw dollars for trade or other purposes, away from the platform and away from the fundamental transfer contexts,
which It leads to raising the exchange rate on the black market, which is not a parallel market, as long as the source of the dollar is the central bank and not from within the market.
In order to address this phenomenon,
we call on the esteemed government to establish a mechanism to link imports, and to
prove the existence of a fundamental financial transfer corresponding to its value in order to prevent the use of illegal means to pay its values that constitute unjustified pressure on the cash dollar, and on the other hand,
it helps in controlling manipulation and smuggling of imports..
Central Bank of Iraq
information Office
20 - July – 2023
https://cbi.iq/news/view/2386
