The Central Bank Governor, Ali Al-Alaq, stated today, Saturday, that the bank is studying the adoption of the currencies of India, the Emirates, and Turkey in foreign transfers, while also confirming that the 14 banks sanctioned by the US are responding and complying with the specified standards.
The Central Bank announces the end of external transfers: We’ll adopt…
The Central Bank has announced the abolition of external transfers: we shall rely on regulated banks.
Al-Alaq in an official news agency interview, followed by Network 964:
The Central Bank considers the exchange rate to be closely tied to the overall level of prices in the country, and it believes that the bank has been successful in meeting the demands of importers.
Monetary policy succeeded in preserving the overall level of prices by lowering the most important indices of inflation, and this is the major issue that the Central Bank concentrates on in determining the effectiveness of its monetary policy.
Maintaining the overall level of prices and low inflation show monetary policy success, particularly when genuine merchants engaged in the conversion process at the official price, which provided comfort in the conduct of international commerce.
The electronic platform encountered numerous challenges at the start of its operation, which caused some individuals to be hesitant to use it, suggesting that the implementation rate in the electronic platform has since improved from 20% to 95%, providing comfort.
Entering the electronic platform during the external transfer procedure protects all parties from any local and international sanctions. We caution against those vendors who cannot function in an orderly environment and seek turmoil. The Central Bank is working with the government to contain this threat by besieging these entities that are being… Diagnosis and treatment.
The Central Bank’s sales are running smoothly and at the official price (1320), but the difficulty is in the cash side, which accounts for 10% of internal daily sales.
The ten percent rate is adequate to fulfill the demands of passengers, but others are attempting to gain control by withdrawing the amount allotted to travelers, causing pressure and an increase in the cash price, and these parties have been identified as carrying out unlawful and criminal operations.
Al-Alaq revealed the development process for the cash sales system allocated to the traveler within a system prepared by exchange companies, and it is being developed to fill the gaps, and does not accept repetition and the unreal traveler,” denying that there is a trend to stop selling cash dollars to travelers and claiming that the Central Bank has no problem covering requests. The correct and legal ones are classified as (travelers – study – treatment – private transports).
Direct transfer: As the Central Bank has reduced the 60 percent that does not pass through the platform and instead is a direct transfer, the electronic platform is now gradually transitioning to direct transfer between the Iraqi Bank and the correspondent bank, mediated by an international auditing company.
The Central Bank will cease to be an intermediary in the process permanently next year, and the electronic platform will be phased out in favor of direct transfer operations, as internationally permitted. This is a significant adjustment that will put everything back on track, speed up transfer processes, and strengthen ties with foreign banks.
The truth about Iraq’s 27 trillion dollar loss:
The notion that the exchange rate is linked to filling the general budget deficit is incorrect, and the central bank is responsible for defining monetary policy, deciding the exchange rate within its current indicators, and attaining the monetary policy aim.
The calculation method used by those who claim that Iraq lost 27 trillion dollars due to exchange rate fluctuations is incorrect, and 30 percent of oil revenues do not enter the Central Bank because the Ministry of Finance uses them for external payments, while the second part is that the exchange rate should not be linked to achieving balance. Within the budget.
US Treasury: During her visit to Iraq, the US Assistant Secretary of the Treasury praised the Central Bank’s efforts to organize the external transfer process, implement compliance rules, combat money laundering and terrorist financing, and direct coordination between the Central Bank, the US Treasury, and the Federal Bank, expressing great American satisfaction in this regard.
Bank sanctions: The Central Bank is conducting a review and audit process to diagnose violations against the 14 banks that were subjected to restrictions and denial of access to the dollar, “as the Central Bank indicated the presence of a response and compliance from the 14 banks to the specified standards.”
The American side does not limit dollar demand, and cash shipments are coordinated by an annual agreement on the volume of shipments and their dates.
The Central Bank prefers to use non-cash payment tools such as cards (Visa and MasterCard), which have seen a significant increase in recent months, and this is a good indicator that reduces the emphasis on the use of cash and the hassle of checking with companies to obtain cash dollars.”
Regulating commerce with Iran: Discussions are continuing to regulate the import process from the Iranian side so that it does not expose Iraq to complications by breaking sanctions and agreements.
The Central Bank will develop a precise formula for regulating commerce, especially because some of it is done through barter.
There is an agreement to cover Iraq’s obligations accumulated as a result of Iranian gas imports using a new mode of payment.
Adoption of new currencies: Work is being done to adopt the UAE dirham, Turkish lira, Indian rupee, and euro as part of the process of easing foreign transfers by providing direct outlets in the currencies of the nations with whom we do business.
The trade balance with India is $3 billion, while imports from the UAE and Turkey are also significant.
The Central Bank has advanced stages of understanding in adopting these nations’ currencies, which will simplify foreign transfers.
Dinar support campaign: The Iraqi dinar support campaign is multifaceted and multi-party. Its purpose is to replace foreign currencies with local currencies in internal transactions, which are limited. Within the Prime Minister’s instruction, there is a gradual transition process to limit internal dealing in Iraqi dinars and compel enterprises to do so, to which a high majority replied.
Housing loans and industrial initiative:
The industrial initiative has not been suspended, but the funds allocated for it have been depleted, with the total volume of loaned projects totaling more than 13 trillion dinars.
The Central Bank upped the interest rate on the housing initiative to 2%, a low rate in comparison to other countries.
The stated interest does not include complexes that have previously received payments, but it does include new complexes.