The Central Bank of Iraq announced today, Wednesday, the beginning of the process of funding Iraqi imports from the UAE with Emirati dirhams.
The Central Bank of Iraq said in a statement obtained by the news outlet “Al-Sumaria News” , “The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, met in Dubai with the Chairman of the First Abu Dhabi Bank Group, Hana Al-Rustamani, and during the meeting it was agreed to launch financial transfer operations between the two countries and finance trade and imports between Iraq.” And the United Arab Emirates in UAE dirhams via the First Abu Dhabi Bank.
The bank stated that transfer activities in UAE dirham will commence today, Wednesday, December 13, and that the first part of this arrangement will begin today.
“This step comes within the framework of enabling Iraqi banks to establish relationships with reputable international banks, and it serves… “to reduce reliance on the electronic platform for financial transfers and working in accordance with the normal international practices adopted in strengthening Iraqi bank balances for the purposes of financing trade,” he said.
Iraq’s yearly imports from the UAE exceed more than 20 billion dollars, the majority of which are deemed re-exports of commodities from other nations. It amounts to $60 billion every year.
As a result, around 35% of Iraq’s yearly imports will no longer be made in dollars in the future.