Regarding the dollar... The Association of Banks indicates the reasons behind the new central bank mechanisms

[RJG]

Regarding the dollar... The Association of Banks indicates the reasons behind the new central bank mechanisms

 

 

Sweeteners

   

 

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Economy News - Baghdad

 

The advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, explained today, Tuesday, the extent of the bank’s ability to deliver customer deposits or transfers of US dollars in Iraqi dinars without his approval, while touching on the real reasons for the Central Bank regarding the new mechanisms for incoming transfers in US dollars.

 

Al-Nusairi said, “The real reasons for the Central Bank’s recent statement on December 31, 2023, in which it explained the new mechanisms for incoming cash transfers in US dollars from abroad, and its aim is to implement the basic objectives of monetary policy and enable Iraqi banks to meet the needs of their customers with cash dollars received from external transfers.” ".

 

He added, "The Central Bank has determined the entities that are allowed to receive incoming remittances in dollars, which are diplomatic missions, organizations, companies, as well as non-governmental civil society organizations. It specifies 40% of Iraqi exporters' remittances in dollars, and government contracts concluded and in force whose amounts are denominated in American currency."

 

The advisor to the Iraqi Private Banks Association explained that “the goal is to control the cash dollar in the cash market in Iraq, and to create flexibility for Iraqi banks to meet the needs of their customers for transfers and deposits by agreement between the bank and the customer, so that the bank does not have the right to hand over to the customer his deposits and transfers of US dollars in Iraqi dinars.” Unless the customer agrees.”

 

He pointed out that "banks that do not own the dollar were allowed by the Central Bank to import foreign currency within specific controls."

 

Samir Al-Nusairi stressed that “the citizen has the right to open an account in dollars with any Iraqi bank (governmental or private), and he has the right to withdraw it at the time he sees fit.”

 

He pointed out that "the Council of Ministers' procedures regarding supporting the dinar will be followed seriously and continuously in the year 2024 in order to implement the decisions, because the US dollar is not allowed to be circulated inside Iraq, and it is restricted exclusively to external transfers."

 

He warned that "what is important is what will be achieved in 2024 to stabilize the exchange rate of the Iraqi dinar," adding that "the current year is a year of achievements, as announced by the Prime Minister, and the Central Bank of Iraq will work within the implementation of its monetary policy, which is allowing our banks to open more bank accounts with correspondent banks than they already have." It was opened in 2023, and now there are approximately 40 accounts opened for twenty banks, and the bank hopes to complete the procedures and open other foreign currencies such as the Chinese yuan, the Turkish lira, the euro, and the Emirati dirham.”

 

The advisor to the Iraqi Private Banks Association revealed that “procedures are ongoing to finalize arrangements and understandings with the Indian side to agree on the Indian rupee.”

 

He continued: “There is another basic goal shared between the government and the central bank, which is the transition from a cash economy to a digital one.”

 

As of Tuesday (January 2, 2024), the entities that can receive their foreign remittances in cash in dollars will be “diplomatic missions, organizations and all international agencies operating in Iraq, and 40% of the remittances received by Iraqi exporters resulting from their exports abroad.”

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Added 01/02/2024 - 12:22 PM

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    https://economy-news.net/content.php?id=39080

[edbeach]

The above article states" He pointed out that the Council of Ministers procedures regarding supporting the dinar will be followed seriously and continuously in the year 2024 in order to implement the decisions because the US dollar is not allowed to be circulated inside Iraq, and it is restricted exclusively to external transfer."

 

Hope this answers some questions of the dollar  in Iraq. Article provided by RJG

 

[gregp]

We wait.