The Iraqi Central Bank Resolves The Controversy Over Reconsidering The Dollar Exchange Rates, 8 AUGUST

  August 7, 2024  Baghdad/Iraq Observer  The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Wednesday, that the  financial situation in Iraq is proceeding as planned, while noting that the 

controversy over the dollar exchange rates has been resolved.  

Al-Alaq said in a press interview followed by “Iraq Observer,” that “there are external and local challenges, but in general, the financial situation in Iraq is still proceeding within what is planned in the state’s general budget,” indicating that  “there is high coordination between the central bank and the president.”
 
The ministers and the Ministry of Finance are committed to ensuring the financial aspect of its continuity, stability and sustainability.”  

He added,  “We are currently working closely, almost daily, with the Ministry of Finance in order to implement the financial plan drawn up in the general budget, in a way that ensures coverage of its objectives, programs, and existing needs,” noting that
 
“for the first time, by virtue of the new Budget and Financial Management Law, allocations for governorates and ministries have been rotated.”
 
Therefore, there is broad coverage of the needs of the financial side, and for the first time, the size of the balances held by the ministries and governorates is large, enabling them to perform their role.”  He stated that
 
 “the Central Bank is undergoing a major transformation process in reorganizing foreign trade in a way that secures several goals at the same time, and among these goals is the transparency of external transfer operations that begin from the transfer process and the transferor to the final beneficiary and to the exporter through all data, documents and information that enhance And it matches reality,” he explained, explaining that
 
“this process is taking place for the first time in the history of Iraq and involves international auditing institutions that scrutinize the information before it reaches the implementation stage, as long as the process meets all the local conditions and standards represented by the Anti-Money Laundering and Terrorist Financing Law or international standards then.”
 
These transfers will proceed, but if there is any deficiency, defect, or suspicion, they will be immediately rejected and returned.”  He stated that
 
 “the previous audit process was taking place, but in a subsequent process, and
 
the audits may continue for years, but now the process does not proceed unless it is sound in all its aspects, parties, documentation, reinforcements, and facts on which it is based,” explaining that
 
“any transformation process requires time and understanding between all parties and also to acceptance.”  He stressed that
 
 “the level of acceptance of this new system has included large and medium importing companies, thus ensuring all their imports with high smoothness, and this matter is very necessary,” pointing out that
 
“the problem of small traders, some of whom have entered this process and others are still hesitant to enter or are looking for... Other means to cover his foreign trade, either to escape tax or customs accountability or the procedures required by the process of opening accounts.”

He stated that “what we are focusing on in the current and next stage is to make everyone involved in sound fundamentalist channels,” pointing out that
 
“the presence of these small traders outside the system puts pressure on the dollar monetary market and causes its rise.”  He pointed out that
 
“there are solutions that we are working on with international and financial institutions in order to organize the trade process of small merchants,” explaining that
 
“a meeting was held yesterday in this regard as a continuation of previous meetings, and
 
we need some time to organize this remaining process of foreign trade.”
 
Regarding other currencies, Al-Alaq confirmed that
 
“the Central Bank opened channels for the Chinese, Turkish, Indian and Emirati currencies, which are currencies that represent a large weight in foreign trade, as
 
there was a pause for a period due to a new regulation aimed at providing adequate control over these operations, because we discovered in the previous formula that there is some fraud in the use of currencies.”
 
These channels are either for unrealistic exporters or for returning sums from one country to another,” he explained, explaining that
 
“a new auditing mechanism has been put in place, carried out by an international company, and
 
we have finished organizing this process and it is now being launched again.”  He pointed out that
 
“all commercial external transfer operations are subject to review by the competent international company, which is an intermediary between the Iraqi banks and the correspondent bank, in order to reassure the correspondent bank that these operations are sound and audited,” pointing out that
 
“some banks have correspondent banks and others do not have correspondent banks.”
 
It is internationally accredited, and now it is seeking to do so, but it is long overdue, and the
 
Central Bank is constantly urging the opening of relationships with correspondent banks, because the Iraqi Bank without external correspondents is considered a local bank and cannot open to the world.”  

He stressed that   “after our banks got to know the banks and realized the importance of these relationships, they began to move against those banks, and the Central Bank, for its part, supports and helps this trend.”   
 
https://observeriraq.net/المركزي-العراقي-يحسم-جدل-إعادة-النظر-ب/