Private banks: agreement to finance imports from Turkey in Iraqi dinars

[6ly410]

Private banks: agreement to finance imports from Turkey in Iraqi dinars

Naba3 hours ago

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Private banks: agreement to finance imports from Turkey in Iraqi dinars – First News Agency (awla.news)

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The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed that the coming days will witness continuous communication between Iraq and Turkey based on the Iraqi government's directive, to implement the recent agreement on financing foreign trade, pointing out that imports will be financed in Iraqi dinars.

Al-Handal told the official agency (Al-Oula News): "The visit of the Iraqi delegation to Turkey during the past days resulted in the formation of an Iraqi-Turkish committee, aimed at implementing banking cooperation and financing trade between the two countries."

He added, "The Turkish side has shown very great flexibility in financing trade by paying in Iraqi dinars and paying the supplier in Turkish lira, and we see that the dollar exchange rate will witness a decline in the parallel market, due to Iraqi agreements with neighboring countries to finance foreign trade."
"Small Iraqi importers from Turkey are in an organization process with private banks to finance their imports in Iraqi dinars," al-Handal said.

In the meantime, a government source said in his interview (Al-Oula News) that "in light of the positive developments in the exchange market in the interest of economic stability, Prime Minister Muhammad Shia Al-Sudani directed the formation of a joint committee (Iraqi - Turkish) representing market forces and from Iraqi and Turkish economic organizations between the two countries and includes from the Iraqi side the Iraqi Private Banks Association, the Iraqi-Turkish Business Council, the Federation of Iraqi Chambers of Commerce and the Iraqi Contractors Union, and the corresponding Turkish side, and the committee meets semi-annually and provides reports to the Prime Minister, in order to serve the strategic partnership between the two neighboring countries.

He added, "The Prime Minister also directed to open a direct dialogue on the subject of (equivalent deal) through direct negotiations with the Turkish Exporters Union and the Turkish Central Bank in coordination with the Central Bank of Iraq because there is a high desire on the Turkish side to pay in local currency, to finance part of the four baskets supporting prices (food, pharmaceutical, construction, spare parts) proposed by the Prime Minister in his policy to defend price stability in Iraq."

[6ly410]

17 minutes ago, 6ly410 said:

confirmed that the coming days will witness continuous communication between Iraq and Turkey based on the Iraqi government's directive, to implement the recent agreement on financing foreign trade, pointing out that imports will be financed in Iraqi dinars.

 

[gregp]

PM Advisor: The first step to regulate trade relationship between Iraq and Turkey

 politics

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INA - BAGHDAD

The Prime Minister's Advisor for Financial Affairs, Mudher Muhammed Salih, confirmed on Monday, the beginning of the first step to organize the trade relationship between Iraq and Turkey using the two countries' currencies and with solid mechanisms.

“Turkey is one of the three major trading partners from whose Iraqi markets get imported goods and services. The volume of imports from it reaches $14 billion annually. Iraq currently occupies advanced ranks in Turkey’s exports to the world, where it does not advance only by the United States, Germany, and Italy," said Salih to the Iraqi News Agency - INA.

He added, "Unfortunately, it was noted that the regulation of foreign trade financing and settlements between the two countries was mostly carried out through the parallel exchange markets. This matter has two negative repercussions. The first is the noise caused by this irregular and illegal parallel market on the stability of the exchange rate. Its operations are also rare, subject to the risk of money laundering, which is categorically rejected by law in both countries, due to the unacceptable problems it causes that are rejected by the official authorities.”

"The first step in regulating the relationship between the regular markets of the two neighboring countries began through the desire of both parties to improve the means of commercial and economic transparency in a way that serves opportunities for stability and joint investment, as well as to build vital and important strategic bridges between the two countries, including the start of the Development Road project that was announced by PM Muhammed S. Al-Sudani, which links the economies of Asia and the Gulf with Turkey and Europe together, in addition to what Iraq’s important geostrategic role represents in this major development project," he explained.

Salih stressed, "Based on the desire of the Turkish Exporters Union to find relations of understanding and build stable policies between market organizations in the two countries, the joint Iraqi-Turkish committee concerned with market forces has been formed, which will draw positive milestones on the path to stability and development of long-term economic relations, especially in the areas of contracting, trade and investment."

"The two countries' national currencies will be a tool for direct exchange between the two countries, and via solid and stable mechanisms that the Central Bank of Iraq will draw up measures for, including the draft equal deal that supports the stability of commodity supply in Iraq, which the government statement mentioned in this regard," he highlighted.

•  Yesterday, 19:58
  https://ina.iq/eng/30573-pm-advisor-the-first-step-to-regulate-trade-relationship-between-iraq-and-turkey.html
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[gregp]

10 hours ago, 6ly410 said:

 

Let the float starts soon!