Can Iraqi banks provide foreign currency directly?

[RJG]

Can Iraqi banks provide foreign currency directly?

 

 

money and business

   

 

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Economy News - Baghdad

 

Advisor to the Association of Private Banks, Qusay Safwan, confirmed today, Monday, that Iraqi banks can currently provide foreign currency directly, indicating that the bank does not have the right to receive dollar transfer amounts and give them in Iraqi dinars.

 

Qusay said, “The policy of the Central Bank has moved from providing the dollar through import by the Central Bank to Iraqi banks,” according to the Rudaw Media Network.

 

He added, "Iraqi banks, whether private or public, have a section of customers who obtain income through state partnerships or contracts, and the Central Bank has provided an opportunity for these banks to feed these accounts through banks that carry out the process of transferring funds directly," pointing out that "the banks Iraq is currently able to provide foreign currency directly, because the central bank allowed these banks to buy dollars at the parallel market price.”

 

He added: "It is also possible to enhance their accounts through the presence of non-oil exports by some companies and individuals and feeding these accounts with dollars. These banks can have a dollar balance on hand from which they can feed these accounts, and then carry out the import process so that the owner of this... Account in foreign currency on a regular basis.

 

Safwan explained that “a portion of the banks had dollar accounts for some customers that they disposed of. As you know, banks receive deposits and grant credit, and a portion of these banks had dollar products that were included in dollar financing. When the Central Bank converted the contract formula to the Iraqi dinar, The installments recovered from the parties granting credit have become dinar accounts.”

 

While he pointed out that “the Central Bank addressed this issue by allowing these banks to import dollars from abroad”; He noted that "gradually the Iraqi market will turn to the dinar," stressing that "the bank has no right to receive dollar transfer amounts and give them in Iraqi dinars."

 

The economist added, “The Central Bank now allows merchants to export and import foreign currency at a value of 40% of exports, and this percentage represents a large amount whose owner can withdraw foreign currency and resell it to the same bank at the parallel market price, so that there is a sustainable process of obtaining the dollar.”

 

Qusay pointed out that “there is supposed to be a legal system governing Iraqi banks, that the currency that enters the account is dollars, and therefore its owner has the right to withdraw this dollar currency at the same value and is not forced to convert it to another currency,” pointing out that “a portion of Iraqi banks It has dinar deposits and wants to have investment portfolios in different countries, to obtain returns from them through what was known as overnight investment.”

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Added 01/22/2024 - 12:50 PM

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    https://economy-news.net/content.php?id=39695

[Laid Back]

“The policy of the Central Bank has moved from providing the dollar through import by the Central Bank to Iraqi banks,”

“The banks Iraq is currently able to provide foreign currency directly, because the central bank allowed these banks to buy dollars at the parallel market price.”

 

Another Article pointing out to the end of the CBI Currency Window.

 

Go New monetary policy 

Go end of currency window

Go free market economy 

Go Stronger Dinar