According to a government source, the Central Bank of Iraq has agreed with the American side to increase the advance balance of five Iraqi banks in dollars.
According to the official news agency, “In the past few days, intensive meetings took place between a delegation from the Central Bank of Iraq and the American side responsible for foreign transfer operations to cover imports, and the negotiations culminated in a number of decisions and mechanisms that contribute to facilitating the special procedures.” Foreign transfers for imports are made through the foreign currency sales window.
Accounts with Jordanian banks and transfers through (JP Morgan),” stating, “The concerns associated with the denied transfers were handled, and it was agreed that transfer denial should be based on compelling reasons.”
He goes on to say, “There were also other meetings that brought together one of the Emirati banks, the Central Bank of Iraq, and the American side, to implement the mechanism for enhancing balances in the Emirati dirham for Iraqi banks (UAE Dirham pilot),” saying, “Things are going well in this aspect, as all the details have been resolved.” Technical issues are being addressed, and it is envisaged that the procedure for improving balances in the UAE dirham will commence in the coming days.”
The source confirmed, “There are serious negotiations that have reached their final stages to enhance the balances of some Iraqi banks in euros with UBAF Bank to finance trade with the European Union,” noting, “An increase in the number of banks whose balances are being strengthened in Chinese yuan through the Singapore Development Bank.” “.
He went on to say, “Accounts have been opened for 6 Iraqi banks in this bank, and during the coming period 7 more banks will be added to finance Iraqi trade and imports from China, as these imports are estimated at about 12 billion dollars annually.”
The source went on to say: “We have also begun opening bank accounts in the Indian rupee for a number of Iraqi banks at the same correspondent, the Singapore Development Bank (New Delhi branch), and operations to strengthen the balance of two Iraqi banks have actually been completed as a first stage, and it is expected that this mechanism will contribute to financing Iraq’s imports from India.” Specifically, medications and food, which are anticipated to cost $3 billion.”