CBI News 09/22/2021

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Instructions for buying and selling foreign currency for the year 2021

 

  

 September 22, 2021

 

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Based on the amended Central Bank of Iraq Law No. (56) of 2004, and for the purpose of achieving the objectives of the Central Bank by strengthening the role of the banking system and non-bank financial institutions in securing foreign currency to the beneficiaries, which leads to maintaining the stability of the exchange rates of that currency on the one hand, and the commitment According to the requirements of the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015 on the other hand, and based on the requirements of the work interest in line with the reform trends of the banking sector in Iraq, which would develop banking work in accordance with international best practices, this bank decided to adopt ( Buying and Selling Instructions). Foreign currency for the year 2021 for all authorized banks and exchange and mediation companies authorized to sell and buy foreign currencies ) attached in connection with the new forms that will be approved in entering the subscription information in the foreign currency sale window, which will start working as of the date of 2021/ 10 / 17 , provided that all relevant instructions, controls and circulars are cancelled.

» To view the instructions .. Click here

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New instructions for buying and selling foreign currency for the year 2021 and the stability of the dinar exchange rate

 

The new Central Bank of Iraq building

Articles   Samir Al-Nusairi*  Central banks in the countries of the world mainly aim to achieve economic stability by achieving stability in the monetary system and the financial system through their programs and strategies that aim to maintain stability in the exchange of their local currencies against other foreign currencies and to build sufficient foreign cash reserves to cover their local currency in circulation.  In accordance with special international standards issued by the International Monetary Fund, banks are also evaluated based on other criteria related to facing crises, challenges, economic, political and security shocks, natural and epidemic disasters in their countries, controlling stable rates of inflation and interest rates, and applying internationally established regulations and rules for combating money laundering and terrorist financing. Therefore, the Central Bank of Iraq issued last week new instructions to banks and exchange companies and mediation in the sale and purchase of licensed foreign currencies. And externally, which leads to controlling and maintaining the stability of the exchange rate and compliance with the requirements of the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2021. The Governor discussed what was mentioned in the instructions with the heads of the boards of directors and the authorized managers in a specialized workshop in which he explained the objectives of issuing the instructions and the procedures required of banks to implement them as of 10/17/2021, with an emphasis on the need for banks to practice their real work as established in their Law No. 94 of the year 20034 and focus on banking finance and the many banking products that contribute to the transition of banking work from banking to contributing to development. The economic conditions and crises, the financial deficit and the decline in the financial position of the public finances, which led to a change in the exchange rate of the Iraqi dinar for the purpose of overcoming the above crises with the Central Bank taking many measures and initiatives to stimulate the economy and revitalize the economic cycle, which contributed to the passage of nine months after the exchange rate change that the rate of control is controlled Exchange in the trading market for about a month at the target rate of 1470 dinars against the US dollar. Therefore, the new instructions regulate the process of selling foreign currency in the currency window, through which it will be implemented to maintain the stability of the exchange rate, control the movement of foreign currency locally and internationally, and abide by international standards for compliance rules and combating money laundering and terrorist financing.  We do not forget here how the dollar devoured the local currencies of neighboring and regional countries, which suffered from a circumstance similar to that of Iraq, such as Iran, Turkey, Lebanon and Syria, where their local currency collapsed in very large proportions. While the Iraqi dinar exchange rate stabilized within the target rate of the Central Bank, despite the speculation in the market. In order for the economic analyzes to be accurate and not extreme of the reality of monetary stability in Iraq and the effects of the expected economic, epidemiological and expected shocks on the exchange rate of the Iraqi dinar. In order not to take the expectations of media intimidation and create a state of fear in the public and in the banking sector. I assert through an insightful economic and analytical view of the state of the monetary trading market and from a neutral and transparent point of view, we note that the steps, procedures and balanced financing initiatives of the Central Bank and the availability of foreign cash reserves at the rate and at the rate that Its sufficiency is determined to cover the monetary mass in circulation and to cover imports, as the foreign cash reserve is fully secured and Iraq ranks fourth in the Arab world. The Central Bank will make exceptional efforts in accordance with the monetary policy applications and to maintain the stability of the target rates of exchange rates.

*Economic and banking consultant

Views 137   Date Added 09/30/2021

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This article title refers to the above...that about it. The content of the article is what the CBI covered ....GM DV

 

The central bank takes action to control the price of the dollar

 

 

 

PM:02:05:29/09/2021

836 views

 

 

The Central Bank of Iraq's sales of the "green currency" rose, on Wednesday, to record 219 million US dollars.

Today, during its auction for buying and selling US dollars, the Central Bank witnessed an increase in its sales by 4.78% to reach 219 million and 476 thousand and 461 US dollars covered by the bank at a base exchange rate of 1460 dinars per dollar, compared to last Monday, which sales amounted to 209 million And 196 thousand and 64 dollars.

The purchases amounting to 166 million and 896 thousand and 461 dollars went to strengthening the balances abroad in the form of remittances and credits, while the remaining amount of 52 million and 580 thousand dollars went in cash.

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target rate of 1470 dinars against the US dollar.

 

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Warning of a new rise in dollar prices.. Exchange offices hold the Iraqi Central responsible

 

 2021-10-03 05:19

 

Shafaq News/ Some owners of exchange offices in the Iraqi capital, Baghdad, warned on Sunday of a new rise in the exchange rates of the US dollar, blaming the Central Bank of Iraq for this rise due to the "new instructions" issued by it recently.  

 

The owner of the "Al-Mas" exchange office in the capital, Baghdad, told Shafak News Agency, "The new instructions and pledges announced by the Central Bank a few days ago to sell the dollar to banks raised exchange rates during the past two days," noting that "the banks will find it difficult to implement and implement these instructions."

 

He added that "these instructions, which will be applied on October 17, will push banks and merchants to the local market to obtain the dollar instead of obtaining it from the central bank through auction," expecting "the dollar exchange rates to rise more in the coming days."

 

In turn, the "Al-Fahd" exchange office in Baghdad told Shafaq News Agency, "The banks will find it difficult to implement the instructions regarding the purchase of dollars for foreign remittances to finance merchants for their imports," noting that "this money constitutes more than 80% of the purchases that take place." at the bank auction.

 

He pointed out that "these instructions will put great pressure on the local markets, as the merchant will go to these markets to obtain the dollar to compensate for the shortage."

 

It is noteworthy that the Central Bank issued on September 26 new instructions for buying and selling foreign currency to licensed banks and mediation companies, which will be applied as of October 17.

 

In a statement, the bank indicated that the goal behind this is to maintain the stability of currency exchange rates and to abide by the requirements of the Anti-Money Laundering and Terrorist Financing Law.

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Al-Kazemi’s advisor: The new Central Bank instructions regarding the sale of the dollar came to combat money laundering

 

 2021-10-14 05:35

 

Shafaq News/ The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed on Thursday that the new instructions of the Central Bank regarding the sale of foreign currency come within the framework of combating money laundering.

Saleh said in an interview with Shafaq News Agency; "The new instructions of the Central Bank regarding the sale of foreign currency come within the framework of combating money laundering, by increasing the procedures for checking and disposing of foreign currency," noting that "there is a lot of talk being said about the currency auction and the money that comes out of it."

Saleh added, "The Central Bank is keen on the foreign currency to go to the beneficiary that benefits the Iraqi economy through high governance and transparency, which is a global international context, not just Iraqi," noting that "there is no fear of these instructions as long as the transactions are sound and clean."

And he indicated that "the existing foreign currency in terms of reserves is high and large, and there is no problem in meeting the demand through the auction," noting that "these procedures in checking the currency's disposal is a measure to address illegal operations and is part of national security."

Saleh stressed that "there is no fear of the Central Bank's measures as long as this currency is going in the right way," noting that "the prior fear of this is unnecessary as long as the transactions presented for the purpose of buying the currency are clean."

A number of exchange offices expressed their fear of the rise in the dollar exchange rate after the new strict instructions of the Central Bank to sell foreign currency through its daily auction, which will be implemented on the 17th of October.

It is noteworthy that the Central Bank issued on September 26, new instructions for the sale and purchase of foreign currency for authorized banks and mediation companies, which will be applied as of October 17, indicating that the goal behind this is to maintain the stability of currency exchange rates and comply with the requirements of the Anti-Money Laundering and Terrorist Financing Law.