IRAQI CABINET PUSHES FOR STATE CONTRACTS IN DINARS
As part of financial and economic reforms, the Iraqi Cabinet has endorsed recommendations to conduct all state contracts within Iraq in Iraqi dinars.
(Yes, the CBI is moving ahead with the financial (currency) reforms. This is all super fantastic news.)
There will be exceptions for ongoing external grants, loans, and agreements, and new contracts involving foreign grants, loans, and agreements may adhere to agreed-upon foreign currency terms, as specified in the Ministry of Finance’s April 27, 2023 circular.
Additionally, beneficiaries can open documentary credits for importing project materials and transfer foreign currency for salaries, wages, and company dues, subject to Central Bank of Iraq (CBI) controls.
