The Central Bank announces expected decisions to support the Iraqi dinar
The Central Bank of Iraq revealed, on Friday, measures and decisions expected to support the dinar and maintain its strength against other currencies, and other measures that will positively affect the exchange rate, while noting that it has taken measures in the field of phasing out the electronic platform.
The assistant director general of the investment department at the Central Bank of Iraq, Mohammed Younis, told the official agency, that “the Central Bank will monitor and follow up all banks, and customer complaints that come back to it in case banks are forced to transfer customer accounts to US dollars,” stressing that “this subject is easy to follow and monitor, and banks that do not comply with this decision will be held accountable.”
Younis added, “This decision and the decisions that will follow in the coming days are all in the interest of supporting the Iraqi dinar and increasing confidence in it,” noting that “what confirms the strength of the dinar and the public’s confidence in it is the continuation of the Central Bank of Iraq and its failure to perform any need of various sectors, as it is now funding the sectors of commerce, electronic payment, travel and other sectors.”
He pointed out that “the coming days will be more measures in the field of meeting all the needs of the market, supporting the Iraqi dinar and maintaining its strength against other currencies,” noting that “the Central Bank, within its new procedures, prevented banks from automatic transfer of customer accounts in dollar to Iraqi dinars, without the consent of the customer, and allowed customers to open accounts in different currencies.”
“What is new in updating the procedures is that it allowed companies that have contracts with the state to receive their incoming remittances, including the salaries of workers, as well as ongoing contracts on grants and loans in accordance with the Council of Ministers,” Younis noted, “The other point is also in this new decision, is to allow banks to agree with their customers to bring their incoming remittances in cash to Iraq.”
He stressed that “these measures will positively affect the exchange rate in the market, and will increase the supply of the dollar, and contribute to serving and supporting important sectors in the economy, including the sectors of exporters and the sector of companies operating in the government field and in the field of infrastructure development and strategic projects, in addition to supporting civil society organizations that contribute to the humanitarian and charitable field in Iraq.”
Younis explained, “The main goal behind this update or these instructions is to expand the largest possible segment of obtaining the cash dollar by meeting its current needs of this dollar, as these instructions were expanded from the beneficiaries of the cash dollar, including civil society organizations, and these measures supported an important segment of the economy, the exporters sector, as it allowed them to obtain 40 percent of the remittances received as a result of their exports and receipt in cash.”
He pointed out that “the decision clearly specified the mechanisms for its implementation by banks, and focused on the subject of incoming transfers, as it allows the receipt of some categories of their incoming remittances in cash,” explaining that “this decision is related to the incoming remittances and not the cash sale of dollars for travelers, as the cash sale to travelers will continue as it is now, in addition to meeting the needs of customers and companies through this decision, and therefore will reflect positively on the exchange rate in the coming days.”
Younis stressed that “there are no restrictions applied to banks in the field of money transfer, because there are procedures in the field of phasing out the Central Bank of Iraq platform by supporting interests to open accounts in foreign banks abroad, and the role of the Central Bank is short to enhance these balances and to follow up on transfers.”
He concluded, “There are no restrictions on the transfer of funds in various currencies within the foreign currency banking system, but this decision is related to the cash dollar (cash withdrawal).”
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