What are the objectives of expanding external transfer channels by the Central Bank of Iraq?
Baghdad Today – Baghdad
The specialist in economic affairs, Alaa Al-Fahd, revealed on Thursday (December 19, 2024), the Central Bank of Iraq’s goal of expanding external transfer channels for local banks.
Al-Fahd said, in an interview with Baghdad Today, that “within the central bank’s policy and its continuous attempts to control foreign remittances to finance trade, especially in dollars, there is a continuous effort to expand the basket of foreign currencies that are used in import, especially with countries where we have import transactions, the transfer is in the currencies of the countries, and there was an agreement on this with the Turkish side, as well as the UAE, with China and today with Jordan and Saudi Arabia.”
He pointed out that “this step reduces the demand for the dollar to finance foreign trade, as most of the demand for the dollar is to finance foreign trade, and with the expansion of the basket of currencies, the pressure in the parallel (black) market on the dollar decreases, and this reduces the exchange rate in the local market.”
He added that “this step will also allow many banks to deal with many countries according to the currencies of those countries and this strengthens a major role in developing the work of banks in terms of expertise, and its main goal is to control the dollar exchange rate and work to reduce it.”
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