Iraqi Central Bank Allows Dollar Imports Amid Exchange Rate Concerns
The Central Bank of Iraq has granted formal permissions to three private banks to import US dollars in amounts reaching up to $100 million to meet customer needs. One shipment of these amounts has already arrived in Iraq, and several other requests are on their way. In addition, the Trade Bank of Iraq (TBI) is in discussions with several international companies to transfer amounts up to $120 million, expected to be completed in the coming days.
Government Measures to Address Exchange Rate Difference
In an attempt to address the exchange rate difference, the Iraqi government has approved a series of measures. These include streamlining the import process, simplifying account opening and deposit operations, and initiating negotiations with Iran to regulate trade between the two nations. The government is also keen on developing electronic payment systems to reduce dependence on cash transactions.
Dollar Availability and Impact on Iraqi Tourism
Additional talks are underway to facilitate the import of dollars and make them available through banks and exchange companies. This initiative aims to meet the needs of Iraqi tourists and pilgrims traveling to countries where the dollar is not readily available. The selling price of the dollar in Baghdad and Erbil has dropped to 156500 Iraqi dinars for 100 dollars, thus impacting the tourism economy.
US Sanction Exemptions and Their Implications
The US has renewed an exemption from sanctions that allows Iraq to pay Iran for electricity. This exemption enables Iraq to use its funds to pay for Iranian electricity imports via restricted Iranian accounts in Iraq. However, concerns are growing over the possibility of extending Baghdad’s exemption from US sanctions, allowing Iran to access $10 billion of its frozen assets in Iraq. This concern stems from Iran’s role in backing armed Palestinian groups, leading to increased pressure on Washington to adopt more stringent policies against Tehran.
No comments:
Post a Comment