The Central Bank of Iraq has set next year as the deadline for restricting domestic commercial and other transactions to Iraqi dinars rather than dollars.
In a statement received by Al-Sumaria News on Sunday, the Governor of the Central Bank, Ali Mohsen Al-Alaq, stated that “the bank is proceeding to dispense with external transfers next year and to rely on correspondent banks in correspondent banks in external transfer operations, as transfers through correspondent banks have reached 60%.” of total transfers (outside the Central Bank’s electronic platform), while the implementation rate of verified transfers has reached 80%.
During the meeting with the heads of boards and authorized directors of the banks licensed in Iraq, he emphasized that “the Central Bank’s endeavor to open direct channels of communication for Iraqi banks with their foreign counterparts in correspondence, commercial exchange, and so on came in intensive stages, while what is currently underway is opening transfer channels in various currencies, including (UAE Dirham, Turkish Lira, Indian Rupee, and Euro).”
He said, “The coming year will witness the restriction of internal commercial transactions and other transactions to the Iraqi dinar instead of the dollar, except for those delivered to travelers.”
He noted that “the entry of most merchants into official transfer channels and the provision of the dollar at a price of (1,320) dinars was a direct reason for controlling the general level of prices and lowering the inflation rate, which is a basic indicator of the effectiveness of monetary policy, and that the black market price is not suitable as an indicator as it relates to the dollar.” Cash is used for non-essential transactions and is not meant for legitimate trade.”
According to Al-Alaq, “the new system of external transfer and sale of the dollar provides risk protection for all parties to the operations, enjoys international acceptance and praise, and is consistent with the law on combating money laundering and the financing of terrorism.”
The conference discussed “the mechanism for establishing Riyada Bank and the societal importance on which the bank will be established, particularly in light of the Prime Minister’s directives and vision.” The contributions of banks to the establishment of Riyada and the working mechanisms of this bank, which will be a window for those wishing to open small productive and commercial projects that contribute to… developing the local economy and lowering the unemployment rate with direct support from the Central Bank, were discussed.”