Lik to the site: Iraq – United States Department of State
Their words not mine. Please check it out. I clipped out the most interesting part for you.
6. Financial Sector
FOREIGN EXCHANGE AND REMITTANCES
Foreign Exchange
The currency of Iraq is the dinar (IQD). The Central Bank of Iraq devalued the IQD, by 22.7 percent at the end of Dec 2020, to avoid a liquidity crisis. This came as part of the reform plan put in place by the Prime Minister after the country was simultaneously impacted by COVID -19 and the significant drop in oil prices at that time.
Iraqi authorities confirm that in practice, there are no restrictions on current and capital transactions involving currency exchange if valid documentation supports underlying transactions. The Investment Law allows investors to repatriate capital brought into Iraq, along with proceeds. Funds can be associated with any form of investment and freely converted into any world currency. The Investment Law also allows investors to maintain accounts at banks licensed to operate in Iraq and transfer capital inside or outside of the country.
The GOI’s monetary policy since 2003 has focused on ensuring price stability primarily by maintaining a de facto peg between the IQD and the U.S. dollar, while seeking exchange rate predictability by supplying U.S. dollars to the Iraqi market. In December 2020, the GOI announced that it would officially devalue the dinar’s peg to the U.S. dollar by 22 percent. Banks may engage in spot transactions in any currency; however, they are not allowed to engage in forward transactions in Iraqi dinars for speculative purposes. There are no taxes or subsidies on purchases or sales of foreign exchange.
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