Official: CBI News 02/22/2023

[rvmydinar]

Just wonder , why would Iraq trade with china using " Yuan ( China currency )" instead of " Iraq Dinar "?? Has " Yuan ( 1 Yuan= 0.15 USD ) " already become internationally recognized currency yet ? We all know that Iraq Dinar ( 1 IQD = 0.00076 USD ) isn't internationally recognized currency until now. Or is it because Yuan is higher than IQD , therefore Iraq trade with China using " Yuan "??

[screwball]

5 minutes ago, rvmydinar said:

Just wonder , why would Iraq trade with china using " Yuan ( China currency )" instead of " Iraq Dinar "?? Has " Yuan ( 1 Yuan= 0.15 USD ) " already become internationally recognized currency yet ? We all know that Iraq Dinar ( 1 IQD = 0.00076 USD ) isn't internationally recognized currency until now. Or is it because Yuan is higher than IQD , therefore Iraq trade with China using " Yuan "??

Maybe things to come? Not sure but good pick up 👍🤷‍♂️

[rvmydinar]

10 minutes ago, screwball said:

Maybe things to come? Not sure but good pick up 👍🤷‍♂️

For example , let's say if Kuwait trade with China , which currency will Kuwait use? Kuwaiti dinar or Yuan? We all know Kuwaiti dinar has the highest rate not only in the middle east , but also in the world.

[Longtimelurker]

3 hours ago, Retiredofficer said:

Coming out of left field…what is the name of the machine banks use to validate currency?  2nd question…Thinking we can add JP Morgan to the list of banking/investing institutions that will exchange our dinar.

 

Da la rue machine I believe 

[yota691]

The Central Bank announces the second package of facilities to obtain foreign currency

 

  

February 22, 2023

 

---

---

In addition to what was announced in the first package of facilities provided by the Central Bank to stabilize exchange rates, the second package will include the following:

1- The financing of foreign trade will be organized directly from China and in the Chinese yuan currency, through two options:

A) The first option: strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese Yuan currency.
b) The second option: strengthening the balances of Iraqi banks through the accounts of the central bank to the final beneficiary in the Chinese yuan currency through our accounts with the Bank (JP Morgan) and the Development Bank in Singapore.

2- Facilities for financial transfers to the United States and Europe will be provided by the same mechanism later.
3- The documents required for submission for the aforementioned external financial transfers will be: a commercial list (invoice) only, or initial documentary credit, provided that the customer later provides the bank with proof of entry of the goods.
4- Detailed instructions will be issued that include the aforementioned.
5- Organizing financial settlements for agents of money transfer companies (Western Union and MoneyGram) through Class A exchange companies through an Iraqi bank with one settlement account for all those companies.
6- Citizens can transfer the amounts allowed to be transferred up to a maximum of ( 7500 ) dollars per month through the agents of money transfer companies (Western Union and Money Gram) at the official rate ( 1320) .) dinars/dollars, and the Central Bank consolidates the accounts of these agents through the window for buying and selling foreign currency.
7- A table will be published containing the names of authorized agents and their locations, and citizens who wish to transfer personal amounts for various uses (such as family subsidies or simple commercial uses) will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by the Central Bank or It will be licensed later), for transfer at an exchange rate of ( 1320 ) dinars / dollars.
8- New uses will be added for the sale of cash dollars, which contributes to expanding the sale base for citizens to facilitate the payment of their obligations in US dollars, and in a manner that does not contradict our generalizations, and the directives issued by the government previously in this regard.
9- Allowing government and private banks and exchange companies of categories A and B to expand outlets for selling dollar cash in any of their branches, provided that this is exclusively through the FITR platform, while notifying us of the need to increase and diversify the geographical distribution of these outlets.

 

Central Bank of Iraq

information Office

2023/2/22

[yota691]

The Central Bank announces the second package of facilities to obtain foreign currency

2023.02.22 - 11:54

 

 

Baghdad - Nas  

The Central Bank of Iraq announced, on Wednesday, the second package of facilities to obtain foreign currency.  

 

  

  

The media office of the Central Bank said in a statement, which “NAS” received a copy of, (February 22, 2023), that “in addition to what was announced in the first package of facilities provided by the Central Bank to achieve stability in exchange rates, the second package will include the following:  

  

1- The financing of foreign trade will be organized directly from China and in the Chinese yuan currency, through two options:  

  

A) The first option: strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese Yuan currency.  

  

b) The second option: strengthening the balances of Iraqi banks through the accounts of the central bank to the final beneficiary in the Chinese yuan currency through our accounts with the Bank (JP Morgan) and the Development Bank in Singapore.  

  

2- Facilities for financial transfers to the United States and Europe will be provided by the same mechanism later.  

  

3- The documents required for submission for the aforementioned external financial transfers will be: a commercial list (invoice) only, or initial documentary credit, provided that the customer later provides the bank with proof of entry of the goods.  

  

4- Detailed instructions will be issued that include the aforementioned.  

  

5- Organizing financial settlements for agents of money transfer companies (Western Union and MoneyGram) through Class A exchange companies through an Iraqi bank with one settlement account for all those companies.  

  

6- Citizens can transfer the amounts allowed to be transferred up to a maximum of (7,500) dollars per month through the agents of money transfer companies (Western Union and Money Gram) at the official rate (1320) dinars / dollars, and the Central Bank strengthens the accounts of these agents through a window Buying and selling foreign currency.  

  

7- A table will be published containing the names of authorized agents and their locations, and citizens who wish to transfer personal amounts for various uses (such as family subsidies or simple commercial uses) will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by the Central Bank or It will be licensed later), for transfer at an exchange rate of (1320) dinars / dollars.  

  

8- New uses will be added to the sale of cash dollars, which contributes to expanding the sale base for citizens to facilitate the payment of their obligations in US dollars, and in a manner that does not contradict our circulars, and the directives issued by the government previously in this regard.  

  

9- Allowing government and private banks and exchange companies of categories A and B to expand outlets for selling dollar cash in any of their branches, provided that this is exclusively through the FITR platform, while notifying us of the need to increase and diversify the geographical distribution of these outlets.  

[yota691]

The parliamentary economy hosts the governor of the central bank.. The exchange rate is on the table

2023.02.22 - 13:12

 

Baghdad - Nas   

Today, Wednesday, the Parliamentary Economy, Industry and Investment Committee hosted the Governor of the Central Bank, Ali Al-Alaq, to discuss the exchange rate of the dollar.  

  

  

  

Committee member Kazem Al-Shammari said in a statement to the official agency, followed by “NAS” (February 22, 2023), that “the committee hosted the governor of the Central Bank, Ali Al-Alaq, to discuss the exchange rate of the dollar and the stability of the market.”  

  

He added, "The committee also discussed the results of the Iraqi delegation's visit to Washington, in addition to a number of other files."  

  

Earlier, the Central Bank of Iraq announced the second package of facilities to obtain foreign currency.  

  

The media office of the Central Bank said in a statement, which “NAS” received a copy of, (February 22, 2023), that “in addition to what was announced in the first package of facilities provided by the Central Bank to achieve stability in exchange rates, the second package will include the following:      

  

1- The financing of foreign trade will be organized directly from China and in the Chinese yuan currency, through two options:      

  

A) The first option: strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese Yuan currency.      

  

b) The second option: strengthening the balances of Iraqi banks through the accounts of the central bank to the final beneficiary in the Chinese yuan currency through our accounts with the Bank (JP Morgan) and the Development Bank in Singapore.      

  

2- Facilities for financial transfers to the United States and Europe will be provided by the same mechanism later.      

  

3- The documents required for submission for the aforementioned external financial transfers will be: a commercial list (invoice) only, or initial documentary credit, provided that the customer later provides the bank with proof of entry of the goods.      

  

4- Detailed instructions will be issued that include the aforementioned.      

  

5- Organizing financial settlements for agents of money transfer companies (Western Union and MoneyGram) through Class A exchange companies through an Iraqi bank with one settlement account for all those companies.      

  

6- Citizens can transfer the amounts allowed to be transferred up to a maximum of (7,500) dollars per month through the agents of money transfer companies (Western Union and Money Gram) at the official rate (1320) dinars / dollars, and the Central Bank strengthens the accounts of these agents through a window Buying and selling foreign currency.      

  

7- A table will be published containing the names of authorized agents and their locations, and citizens who wish to transfer personal amounts for various uses (such as family subsidies or simple commercial uses) will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by the Central Bank or It will be licensed later), for transfer at an exchange rate of (1320) dinars / dollars.      

  

8- New uses will be added to the sale of cash dollars, which contributes to expanding the sale base for citizens to facilitate the payment of their obligations in US dollars, and in a manner that does not contradict our circulars, and the directives issued by the government previously in this regard.      

  

9- Allowing government and private banks and exchange companies of categories A and B to expand outlets for selling dollar cash in any of their branches, provided that this is exclusively through the FITR platform, while notifying us of the need to increase and diversify the geographical distribution of these outlets.      

[yota691]

The central bank clarifies the mechanism of compensating citizens for exchange at the market price

2023.02.22 - 15:03

 

Baghdad - Nas  

The Governor of the Central Bank, Ali Al-Alaq, announced, on Wednesday, the mechanism by which citizens can be compensated in the event that they are paid by exchange companies or banks at the market price.  

  

 

  

  

And a member of the Parliamentary Economic Committee, Soran Omar Saeed, stated in a post followed by “NAS” (February 22, 2023), that “the governor of the Central Bank, during a special session with the Committee on Economy, Industry and Trade in the Iraqi Parliament, informed us that citizens can bring the bill that was exchanged from Before the banking companies or banks, and in the event that it is given at the market price, we compensate it and cut it off from the company and the bank.”  

  

Earlier, the Parliamentary Economy, Industry and Investment Committee hosted the Governor of the Central Bank, Ali Al-Alaq, to discuss the exchange rate of the dollar.  

  

Committee member Kazem Al-Shammari said in a statement to the official agency, followed by “NAS” (February 22, 2023), that “the committee hosted the governor of the Central Bank, Ali Al-Alaq, to discuss the exchange rate of the dollar and the stability of the market.”    

  

He added, "The committee also discussed the results of the Iraqi delegation's visit to Washington, in addition to a number of other files."   

[yota691]

The outputs of Ali Al-Alaq's meeting with the parliamentary economy regarding the dollar crisis

2023.02.22 - 15:29

 

Baghdad - people  

Representative Soran Omar revealed, on Wednesday, the outputs of the Parliamentary Economic Committee meeting with the Governor of the Central Bank of Iraq, Ali Al-Alaq, regarding the exchange rate of the dollar.  

  

  

Omar stated in a statement to "NAS" (February 22, 2023), that "the results of the meeting were as follows":  

  

Exchange companies must expedite the process of entering the electronic system and merge five companies together to participate in receiving the dollar at the official rate.  

  

For small businesses that need dollars or citizens for foreign remittances, the Western Union remittance company can be used, with which the central bank has signed an agreement.  

  

On the results of the Central Bank's meetings with the United States, he (the governor) said: They focused on transfers, money laundering, and taking dollars. There was consensus on this new electronic system and they are monitoring the process.  

  

Anyone exchanging dollars at the market value of any bank or exchange company must bring the receipt to the central bank.  

  

It will take time for all merchants, companies and factories to enter the new electronic system, and then the difference in the dollar exchange rate in the central bank and the market will be controlled.  

  

-Currently, 92 trillion dinars are available per month, and we did not allow money to be printed. Previously, 45 trillion dinars were available per month.  

  

Gradually, when we control the export of dollars, we will increase the supply of dollars to the country.  

  

We are trying to solve the problem of business taxes that are afraid to enter the electronic system.  

  

Border crossings and customs represent a major problem in exporting dollars, and the government must solve the problem of border crossings and entry of goods.  

  

- Iraq's reserves have reached 100 billion dollars, including 130 tons of gold and dollars.  

  

- Regarding awareness of dollar money from selling oil, he said we do not know where and how it returns to Iraq in the Kurdistan Region and how it is spent, which affects the price of the dollar.  

  

Residential projects registered as investments must submit their official documents to the central bank and enter the online platform to provide evidence that citizens owe money equal to the official dollar rate.  

  

Earlier today, the Parliamentary Economy, Industry and Investment Committee hosted the Governor of the Central Bank, Ali Al-Alaq, to discuss the exchange rate of the dollar.  

  

Committee member Kazem Al-Shammari said in a statement to the official agency, followed by “NAS” (February 22, 2023), that “the committee hosted the governor of the Central Bank, Ali Al-Alaq, to discuss the exchange rate of the dollar and the stability of the market.”    

  

He added, "The committee also discussed the results of the Iraqi delegation's visit to Washington, in addition to a number of other files."    

[yota691]

The Central Bank announces the second package of facilities to obtain the dollar

• Time: 02/22/2023 11:52:09
•  
• Read: 3,562 times

  

{Economic: Al Furat News} The Central Bank of Iraq announced its launch of the second package to achieve stability of exchange rates.

The second package includes the following:

1- The financing of foreign trade from China will be regulated directly and in the Chinese yuan currency through two options:
a) The first option: strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese yuan currency. 
b) The second option: strengthening the balances of Iraqi banks through the accounts of the Central Bank to the final beneficiary in the Chinese yuan currency through our accounts with the Bank (JP Morgan) and the Development Bank in Singapore.

2- Facilities for financial transfers to the United States and Europe will be provided by the same mechanism later.

3- The documents required for submission for the aforementioned external financial transfers will be: a commercial list (invoice) only, or initial documentary credit, provided that the customer later provides the bank with proof of entry of the goods.

4- Detailed instructions will be issued that include the aforementioned.

5- Organizing financial settlements for agents of money transfer companies (Western Union and MoneyGram) through Class A exchange companies through an Iraqi bank with one settlement account for all those companies. 

6- Citizens can transfer the amounts allowed to be transferred up to a maximum of (7,500) dollars per month through the agents of money transfer companies (Western Union and Money Gram) at the official rate (1320) dinars / dollars, and the Central Bank strengthens the accounts of these agents through a window Buying and selling foreign currency.

7- A table will be published containing the names of authorized agents and their locations, and citizens who wish to transfer personal amounts for various uses (such as family subsidies or simple commercial uses) will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by the Central Bank or It will be licensed later), for transfer at an exchange rate of (1320) dinars / dollars.

8- New uses will be added for the sale of cash dollars, which contributes to expanding the sale base for citizens to facilitate the payment of their obligations in US dollars, and in a manner that does not contradict our generalizations, and the directives issued by the government previously in this regard.

9- Allowing government and private banks and exchange companies of categories A and B to expand outlets for selling dollar cash in any of their branches, provided that this is exclusively through the FITR platform, while notifying us of the need to increase and diversify the geographical distribution of these outlets.

[yota691]

The Central Bank of Iraq announces the second package of facilities to obtain foreign currency

2023-02-22 03:53

 

 

Shafaq News/ The Central Bank of Iraq announced, on Wednesday, the second package of facilities to obtain foreign currency from banks.

"In addition to what was announced in the first package of facilities provided by the Central Bank to stabilize exchange rates, the second package will include organizing financing foreign trade directly from China and in the Chinese yuan currency through two options," the bank's media office said in a statement received by Shafaq News agency.

 

 

And he indicated that the first option is "strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese yuan currency, and the second option is strengthening the balances of Iraqi banks through the accounts of the Central Bank to the final beneficiary in the Chinese yuan currency through our accounts with the (GB Morgan) Bank and the Development Bank in Singapore".

 

He added, "Facility for financial transfers will be provided to the United States and Europe, using the same mechanism, later."

 

And he indicated that "the documents required for submission for the aforementioned external financial transfers will be: a commercial list (invoice) only, or documents of credit, provided that the customer later provides the bank with evidence of the entry of the goods."

 

The bank stated that it "will issue detailed instructions that include the aforementioned."

The bank also drew attention to "organizing financial settlements for agents of money transfer companies (Western Union and Money Gram) through Class A exchange companies through an Iraqi bank with one settlement account for all those companies."

 

And the bank confirmed that "citizens can transfer the amounts allowed to be transferred up to a maximum of $7,500 per month through agents of money transfer companies (Western Union and MoneyGram) at the official rate of 1,320 dinars / dollars, and the Central Bank is strengthening the accounts of these agents through the currency sale window." foreigners and buy them.

 

The bank said that “a table will be published that includes the names of authorized agents and their locations, and citizens who wish to transfer personal amounts for various uses (such as family subsidies or simple commercial uses) will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by Central Bank or will be licensed later), for transfer at an exchange rate of 1320 dinars / dollars.

 

And he stressed that "new uses will be added to the sale of cash dollars, which contributes to expanding the sale base for citizens to facilitate the payment of their obligations in US dollars, in a manner that does not contradict our circulars, and the directives issued by the government previously in this regard."

 

He concluded by saying that "government and private banks and exchange companies of categories A and B will be allowed to expand outlets for selling dollar cash in any of their branches, provided that this is exclusively through the FITR platform, while notifying us of the need to increase and diversify the geographical distribution of these outlets."

[yota691]

"The dollar crisis will not be solved." An expert comments on the second package of the Central Bank of Iraq

2023-02-22 06:40

 

 

 

Shafaq News / The expert in economic affairs, Nabil Jabbar Al-Tamimi, commented on Wednesday, on the launch of the Central Bank of Iraq, the second package of facilities to obtain foreign currency.

 

 

Earlier in the day, the Central Bank of Iraq launched the second package of facilities to obtain foreign currency from banks, which it said would ensure the organization of financing foreign trade from China directly and in the Chinese yuan currency.

 

In this regard, Al-Tamimi explained to Shafaq News agency, "The second package of the Central Bank of Iraq will not bring anything new from the first package, except for the issue of dealing in the Chinese yuan, and the rest of the same issues were raised in the first package, so until now the local Iraqi market is facing a problem in passing Remittances, especially small remittances for merchants.

 

He added, "The second package of the Central Bank of Iraq will not solve the crisis of the high exchange rate of the dollar in the local market, especially since this package will not bring anything new until it is a solution to this crisis, and the continued increase in sales of the central bank continuously with the increase in the amount of remittances bodes well, but This rise must remain continuous, and the survival of this rise may solve the dollar crisis during the next two months.

[6ly410]

 

[rvmydinar]

14 minutes ago, yota691 said:

the survival of this rise may solve the dollar crisis during the next two months.

The next two months mean there will be a rate change in the month of April 2023??

[6ly410]

Al-Mandalawi and CBI Governor discuss the terms of the second package of monetary policy reforms

Al-Mandalawi and the Governor of the Central Bank discuss the terms of the second package of monetary policy reforms (economy-news.net)

 

Economy News - Baghdad

First Deputy Speaker of Parliament Mohsen Al-Mandalawi received on Wednesday Central Bank Governor Ali Mohsen Al-Alaq to discuss the terms of the second package of monetary policy reforms that will be adopted by the bank.

"The Central Bank, as a technical body concerned with drawing and implementing the country's monetary policy, must develop solid and stable plans aimed at addressing the risks facing the local currency and their negative repercussions on the citizen's livelihood," Mandalawi said, according to a statement by his office, stressing "the need for emergency measures to be relied upon in times of crises that occur in local or global markets."

According to the statement, during the meeting, "they discussed the importance of regulating the financing of foreign trade, tightening control over currency sales windows and developing solutions that serve the Iraqi citizen," and called on Al-Mandalawi to "open new outlets for the categories covered by the sale of dollars and increase the quota for the category of patients and scholarship students."

 

Views 1

Added 2023/02/22 - 7:03 PM

Update 2023/02/22 - 7:05 PM

[6ly410]

---

Al-Mandalawi calls for opening new outlets for the categories covered by the sale of dollars and increasing the share of two categories

•  Time : 2023/02/22 18:57:15
•  
•  Reading : 273 times
• Al-Mandalawi calls for opening new outlets for the categories covered by the sale of dollars and increasing the share of two categories - Al-Furat News (alforatnews.iq)

  

The First Deputy Speaker of the House of Representatives, Mohsen Al-Mandalawi, Governor of the Central Bank, called on Wednesday to open new outlets for the categories covered by the sale of dollars and increase the quota for patients and scholarship students.

 

A statement by his office, received by {Euphrates News} a copy of it, that: "Al-Mandalawi discussed during his meeting with the Governor of the Central Bank Ali Mohsen Al-Alaq, the terms of the second package of monetary policy reforms that will be adopted by the bank."

Al-Mandalawi explained that "the Central Bank, as a technical body concerned with drawing and implementing the country's monetary policy, must develop solid and stable plans aimed at addressing the risks facing the local currency and their negative repercussions on the citizen's livelihood," stressing "the need for emergency measures to be relied upon at times of crises that occur in local or global markets."

"During the meeting, they also discussed the importance of regulating foreign trade financing, tightening control over currency sales windows, and developing solutions that serve the Iraqi citizen," the statement said.

[6ly410]

They talked about emergency measures. Al-Mandalawi meets the Governor of the Central Bank

2023.02.22 - 19:12

They talked about emergency measures. Al-Mandalawi meets the Governor of the Central Bank (nasnews.com)

  

Baghdad - Nas  

Mohsen Al-Mandalawi, First Deputy Speaker of the House of Representatives, received on Wednesday Ali Al-Alaq, Governor of the Central Bank, to discuss the terms of the second package of monetary policy reforms that will be adopted by the bank.  

  

According to a statement by his media office, a copy of which was received by NAS (February 22, 2023), Al-Mandalawi explained that "the Central Bank, as a technical body concerned with drawing and implementing the country's monetary policy, must develop solid and stable plans aimed at addressing the risks facing the local currency and their negative repercussions on the citizen's livelihood," stressing "the need for emergency measures to be relied upon at times of crises that occur in local or global markets."  

  

During the meeting, they discussed "the importance of regulating foreign trade financing, tightening control over currency sales windows, and developing solutions that serve the Iraqi citizen, calling for opening new outlets for the categories covered by the sale of dollars, and increasing the quota prescribed for the category of patients and scholarship students."  

[6ly410]

The most prominent results of the meeting of the Parliamentary Economic Committee with the Governor of the Central Bank of Iraq Ali Al-Alaq

 

Economy ,  2023/02/22 19:18, 

Iraq Today (iraqtoday-com.translate.goog)

 

 

 

Baghdad - Iraq Today:
MP Soran Omar revealed, on Wednesday, the outputs of the meeting of the Parliamentary Economic Committee with the Governor of the Central Bank of Iraq Ali Al-Alaq.
Omar said in a press statement that "the results of the meeting were as follows":

- Exchange companies must speed up the process of entering the electronic system and merging five companies together to participate in receiving the dollar at the official rate.
For small businesses that need dollars or citizens for foreign remittances, Western Union can be used for remittances, with which the Central Bank has signed an agreement.
On the results of the Central Bank's meetings with the United States, the Governor said that they focused on remittances, money laundering and taking the dollar. There was consensus on this new electronic system and they are monitoring the process.

-Anyone exchanging dollars at the market value of any bank or exchange company must bring the receipt to the Central Bank.
It will take time for all traders, companies and factories to enter the new electronic system, and then the difference in the dollar exchange rate will be controlled in the central bank and the market.
Currently, 92 trillion dinars are available per month and we did not allow money printing, previously 45 trillion dinars are available per month.

Gradually, when we control the export of dollars, we will increase the supply of dollars to the country.
-We try to solve the problem of business taxes that fear access to the electronic system.
Border crossings and customs represent a major problem in the export of dollars and the government must solve the problem of border crossings and the entry of goods.

Iraq's reserves reached $100 billion, including 130 tons of gold and dollars.
Regarding the awareness of the dollar money from the sale of oil, he said we do not know where and how it returns to Iraq in the Kurdistan Region and how it is spent, which affects the price of the dollar.
Housing projects registered as investments must submit their official documents to the Central Bank and enter the electronic platform to provide proof that citizens owe money equivalent to the official rate of the dollar.

 

[6ly410]

 

[6ly410]

#العراق intends to organize the financing of foreign trade from #الصين directly in CNY

[6ly410]

Specialized website: Iraq explores non-oil trade links by adopting the yuan when paying for the purchase of imports from China

IQ News

Specialized website: Iraq explores non-oil trade links by adopting the yuan when paying for the purchase of imports from China

•  3 minutes ago
•  

plans to pay for private sector imports from China in yuan, and inject foreign currency into the financial system to help ease pressure on the dinar.

The central bank will provide the yuan to domestic lenders to deal with their counterparts in China, according to a statement published on Wednesday, and will also provide the Chinese currency to the ultimate beneficiaries via some of the central bank's own accounts.

Iraq, OPEC's second-largest oil producer, joins prominent Middle Eastern economies, such as Saudi Arabia and the United Arab Emirates, in exploring non-oil trade links, using currencies other than the U.S. dollar.

The central bank said in its statement that it would later aim to facilitate cash transfers to the United States and Europe in the same way as with China.

Mazhar Saleh, an economic adviser to the prime minister of Iraq, said that this measure will not extend its application to Iraq's oil trade, explaining: "This measure only covers private sector imports."

China encourages the use of the yuan in transactions with major countries in exporting energy and commodities, and Iraq was the most important source of its imports after Turkey last year, according to data compiled by Bloomberg.

The measure in Iraq is the latest attempt by the authorities to stabilize the national currency after it was revalued earlier this month at 1300,1460 dinars against the dollar instead of 1530,1700 dinars. The move helped raise the dinar exchange rate in the parallel market but did not completely close the gap with the official market rate.

On Wednesday, US dollars were available on the informal market at around 103,<> dinars, down from a peak of about <>,<> dinars earlier this year.

Iraq has experienced a dollar shortage after coming under pressure from the United States aimed at curbing the flow of money to neighboring Iran, and the Federal Reserve Bank of New York last November imposed stricter controls on the dollar transactions of Iraqi commercial banks.

As a result, approval of transfers slowed and eventually prompted traders to buy dollars from exchange offices.

Iraq's $<> billion foreign currency reserves are held by the U.S. Federal Reserve.

Bloomberg East

[6ly410]

Muhsin Mandalawi, the first deputy speaker of the Iraqi parliament, discussed with the governor of the Central Bank about the reforms and the policy of the Iraqi currency.

[6ly410]

Economist expects third package from the central bank to reduce the dollar

•  Time : 2023/02/23 13:59:48
•  Economist expects third package from the Central Bank to reduce the dollar - Al-Furat News (alforatnews.iq)

  

An economist expected the Central Bank of Iraq to launch a third package of facilities to obtain foreign currency {dollar} as the exchange rate continues to rise.

Bassem Jamil Antoine told Al-Furat News Agency that "the government has harnessed the financial capabilities it has to reduce the exchange rate, but there are currency mafias and speculators harnessing their capabilities to raise the price."
"I don't think these people will be able to resist and there will be a third package of decisions for the central bank to reach the parallel rate by 2% to be a reasonable ratio between the official and commercial rates," he said.
Antoine predicted that "the decline of the dollar will need a longer period because the rise is always fast, while the decline will face resistance from traders, speculators, importers of goods and stakeholders."

Raghad Daham

 

[Charlie Echo]

https://www.zerohedge.com/economics/iraq-drop-dollar-yuan-trade-china

[yota691]

Central Bank Governor: Dealers evade the electronic system and resort to the market to buy dollars

Economical  2023/02/23

 

 

 Baghdad: morning

 

Yesterday, Wednesday, the Central Bank of Iraq launched a second package of facilities to obtain foreign currency from banks, while the bank’s governor, Ali Al-Alaq, explained that some merchants are trying to evade the electronic system and resort to the market to buy dollars, which causes an increase in the exchange rate.

 

Yesterday, the Parliamentary Economy, Trade and Development Committee hosted the Governor of the Central Bank, Ali Al-Alaq, and bank management officials, to discuss procedures for dealing with the dollar exchange rate, revenues from the daily currency auction, and monetary policy.

 

And the media office of the bank stated, in a statement received by “Al-Sabah”, that “in addition to what was announced in the first package of facilities provided by the Central Bank to achieve stability in exchange rates, the second package will include organizing financing foreign trade from China directly and in the Chinese yuan currency through two options.”

 

And he indicated that the first option is "strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese yuan currency, and the second option is strengthening the balances of Iraqi banks through the accounts of the central bank to the final beneficiary in the Chinese yuan currency through our accounts with the (GB Morgan) Bank and the Development Bank in Singapore".

 

He added that "facilities for financial transfers will be provided to the United States and Europe, using the same mechanism, later."

 

And he pointed out that "the documents required for submission for the aforementioned external financial transfers will be: a commercial list (invoice) only, or documents of credit, provided that the customer later provides the bank with evidence of the entry of the goods."

 

The bank stated that it will issue detailed instructions that include the aforementioned.

The bank also drew attention to "organizing financial settlements for agents of money transfer companies (Western Union and Money Gram) through Class A exchange companies through an Iraqi bank with a single settlement account for all those companies."

 

The bank confirmed that "citizens can transfer the amounts allowed to be transferred up to a maximum of $7,500 per month through agents of money transfer companies (Western Union and MoneyGram) at the official rate of 1,320 dinars/dollars, and the Central Bank is strengthening the accounts of these agents through the currency sale window." foreigners and buy them.

 

And the bank said: “A table will be published that includes the names of authorized agents and their locations, and citizens who wish to transfer personal sums for various uses (such as family subsidies or simple commercial uses) will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by before the Central Bank or will be licensed later), for conversion at an exchange rate of 1320 dinars / dollars.

 

And he stressed that "new uses will be added to the sale of cash dollars, which contributes to expanding the sale base for citizens to facilitate the payment of their obligations in US dollars, and in a manner that does not contradict our generalizations, and the directives previously issued by the government in this regard."

 

He concluded by saying: “Governmental and private banks and exchange companies of categories A and B will be allowed to expand outlets for selling dollar cash in any of their branches, provided that this is exclusively through the FITR platform, while notifying us of the need to increase and diversify the geographical distribution of these outlets.”

For his part, a member of the Parliamentary Economy Committee, Yasser Al-Husseini, stated that his committee discussed a number of important axes, most notably "the negatives and positives of the new electronic system approved by the bank's management, and the extent of its impact on the parallel dollar exchange rate, the market, and economic life."

 

And he indicated that "according to the words of the governor of the Central Bank, there are minor effects, but there are positive benefits that will contribute to the stability of the exchange rate and the prices of foodstuffs and consumer goods in the market."

He continued, "The hosting discussed controlling ports, taxes and customs to raise the state's financial revenue, reduce smuggling of dollars and not affect foreign trade."

Al-Husseini pointed out that "the bank's governor stressed that proceeding with the procedures will contribute to a decrease in the exchange rate of the parallel dollar and the need to adopt the official rate only in commercial transactions."

 

According to Al-Husseini, the governor of the bank stated that "some merchants are trying to evade the electronic system and resort to the market to buy dollars, which causes an increase in the exchange rate of the dollar."

 

Al-Husseini explained that "the governor of the Central Bank confirmed that approximately 25% of merchants relied on the system and the electronic platform to buy the dollar, but the rest are among those wary and afraid of entering the electronic system, and that the new electronic system limits the smuggling of the dollar abroad and contributes to the stability of the exchange rate." dollar in the market.