Iraqi News Highlights Thursday Afternoon 8-3-23
Tlm724 Administrator Bondlady’s Corner
A Statement Issued By The Central Bank Of Iraq Regarding Dealing With Dollars And The Exchange Rate
August 03, 2023 Following the recent developments in the local markets, especially with regard to the circulation of an informal exchange rate in platforms and daily transactions and its unreal and fabricated fluctuations, imposes on us the clarification of the basic facts related to the trading of foreign currency (the US dollar) in the local markets, and the role of the Central Bank of Iraq in providing the currency Foreign through its official sources that included all the legally permitted transactions, and preventing other illegal transactions.
And the necessity of joining all the relevant authorities and their cooperation in order to achieve the main general goals, including the stability of the exchange rate in light of the existence of sufficient foreign reserves to meet the legitimate needs of citizens, merchants and investors from foreign currency.
Then we would like the following statement:
1- The source of the US dollar circulating in the local markets is the Central Bank of Iraq, which is presented through banks and exchange and mediation companies, at the official price scheduled (1320) dinars per dollar.
Accordingly, what is called the “parallel market” has no truth, as this description is launched when the market has its own sources of foreign currency, through exports of private sector and local tourism, transfers of residents abroad and others.
As is the case in other countries, at which time the central bank’s role is to achieve a balance in the exchange rate, so he is a seller or a buyer of foreign currency in the market.
In it is a speculative market with a currency specified in price and purposes, which is illegal trading, and it cannot be added to it, or the announcement of exchange rates created by speculators, and
the competent authorities should stop the platforms and sites that announce the exchange rates for a limited currency, the Central Bank of Iraq is obligated to circulate it at its price The headquarters, as long as it is its only source.
2- To achieve the aim of controlling the movement of funds and foreign trade, in implementation of the Anti-Money Laundering and Terrorist Financing Law, and to enhance the application of international standards, the new system is based on:
- Implementing all external transfers and documentary credits via the electronic platform, in which the pre-audit of all operations is made from all aspects, and verification of the final beneficiary, which protects the banking sector and non-banking financial institutions and the parties to all these operations from the risks they face locally and internationally, and
the electronic platform allows all Legitimate transfers without limits or restrictions, and
the Central Bank does not set a ceilings for banking banks to conduct the transfer.
Rather, this depends on the bank’s ability to attract customers, the validity and accuracy of operations, and the number of its credible correspondents abroad.
- Implementing personal transfers abroad, such as the fees of study, treatment, purchase of personal needs, residents’ transfers, and pension salaries for residents abroad and others, across international financial transfer companies, such as “Western Yunin and Moni Gram”, and citizens are also available to use electronic payment cards to use them in buying goods and services abroad And all of these and other operations covered by the central bank at the scheduled official exchange rate.
- Providing the monetary dollar to travelers at the official price scheduled, through banks, exchange and mediation companies, and these operations are carried out through an electronic platform to verify the safety of operations, and the validity of the use of those amounts for the traveled citizens.
This platform is currently being developed with the tightening of the verification procedures and its use of its use for the specified purpose and at the established price.
The aforementioned system, with its three dimensions, limits any practices that expose Iraq, its banking cutting and its financial institutions to the risks, and by providing these channels and opening them for legitimate purposes, it makes dealing with dollars outside it illegal practice that is subject to legal accountability towards the joint parties in its practice, as no party is entitled to Or a person trading in dollars from the Central Bank,
and it determines price, channels, borders and purposes for its use,
and that its circulation and trading it outside the licensed bodies is an activity forbidden under the law, as the Banking Law No. (94) of 2004 stipulated in Article (3) that no person has the right to be entitled to To practice the receipt of deposits, or other funds that can be paid from the public, without obtaining a license or permit issued by the Central Bank of Iraq.
3- The application of the system of external transfers, documentary credits and the cash sale of foreign currency involves achieving economic and legal and legal goals, including the following:
- Enhancing anti-money laundering and terrorist financing measures, and staving off the risks of local and international sanctions from all relevant parties.
- The introduction of Iraq’s imports on the channels of achieving the safety and transparency of operations, and providing important databases and information for the purposes of planning, organization and control.
- Achieving additional revenues for the state by subjecting all imports to comprehensive registration procedures for their details, and the consequent fees.
- Earn the confidence of the international banks approved, which expands the network of relations between the local and external banking sector, and increasing the number of Iraqi banks correspondents.
- Closing illegal external transfers, besieging the returns of crimes and corruption, and preventing them from finding a way to escape abroad.
- Not to download imported goods, the exchange rate difference resulting from paying a higher price when purchasing it at the informal price of the black market, which leads to high prices and the negative impact on the purchasing power of citizens.
4- The categories that buy the dollar from the market and cause an opportunity for speculators and beneficiaries and the circulation of an informal exchange rate, are:
- Importers from merchants who do not follow the fundamentalist methods in external transfer operations (transfers and documentary credits) through the electronic platform, available to them at the official price, through attempts to collect the cash dollar in exclusively for citizens’ travel from the market, or by using electronic payment cards allocated to pay the purchases and expenses of citizens abroad, Or for personal transfers for legitimate purposes.
- Importers of prohibited or narcotic drugs such as drug traffickers, etc., or materials that do not pass through the official border ports, to escape the requirements of the law or customs, such as cigarette importers and some importers of fine devices, so they intend to buy the dollar that is not assigned to them to pay its construction.
- The category that achieves returns from the proceeds of crimes, such as bribes, thefts, kidnappings, extortion, sale of contraband, etc., and they convert them abroad to hide them.
- Citizens who pay their purchases from goods and services inside Iraq in dollars, which leads them to buy the dollar from the market, and there is no allocation from the central bank sales from the dollar for this purpose, so their purchase will be from a dedicated share for other purposes, especially travel.
To address the mentioned phenomena, reduce the phenomenon of illegal market, and a higher exchange rate than the decision, work with the government and the relevant authorities in taking the following measures:
1- The use of merchants and importers, the scheduled channel for that, through the electronic platform, in order to achieve the goals of this system and prevent the use of the monetary dollar in the market for its purposes, and this requires that this category be obligated to provide what proves the transfer of the amount of their funds funded when their goods enter Iraq at the official border ports.
2- Motivating merchants and supporting them to enter the electronic platform by simplifying the procedures, especially the tax ones, and determining their ceilings in advance according to the categories, and depositing them in the account of the General Tax Authority through its accounts in banks.
3- Providing control of the official border outlets and closing the informal outlets, coordination between the federal government and the region’s government regarding the regulation of procedures for entering the goods and the fees imposed on and unifying them, and preventing the entry of prohibited and prohibited materials legally.
4- The competent authorities assumed the strict application of the decision of the Council of Ministers No. (23026) for the year 2023, which includes limiting sales and purchases for goods and services in Iraqi dinars inside Iraq.
We are invited to provide official national, popular and media support in the application of what was stated above, to achieve the goals referred to, in a manner that preserves the safety and health of funds and foreign trade, and to ward off the risks from the country, its banking cutting and its financial institutions, by adhering to the rules of the anti-money laundering and terrorist financing law, international standards and practices related to.
Management of the Central Bank of Iraq https://cbi.iq/news/view/2397
Al-Sudani: The Association Of Exchange Companies Pledged To Sell Foreign Currency At The Official Rate
Policy 2023-08-03 | 13,713 views Alsumaria News – The policy of the Prime Minister, Muhammad Shia’ al-Sudani, directed today, Thursday, all financial institutions, to adhere to work in accordance with what was stated in the Central Bank of Iraq Law No. 56 of 2004, while the Association of Exchange Companies pledged to sell foreign currency to citizens at the official rate.
The media office of the Prime Minister stated, in a statement received by Alsumaria News, that “in confirmation of the government’s approach to continue reforming the financial and banking sector, and to complement the efforts made by the regulatory agencies and financial institutions concerned with controlling transparency and integrity in this vital sector, Prime Minister Muhammad Shiya directed Al-Sudani, all concerned institutions, to adhere to work in accordance with what was stated in the Central Bank of Iraq Law No. 56 of 2004.
He pointed out that “the Central Bank of Iraq is the only body that has the authority to take all measures to regulate and control the work of banks and non-banking financial institutions to ensure their compliance.”
The statement added, “The Association of Exchange Companies took the initiative to pledge to work seven days a week to sell foreign currency to citizens at the approved official rate, according to the regulations and instructions of the Central Bank.”
In order to follow up on the work of companies and banks, the statement indicated that
“it was decided to form a permanent committee that includes representatives of the Central Bank, the Prime Minister’s Office, and the Association of Exchange Companies, to address the obstacles in the work of this sector.”
The Central Bank Is Working To Restore Suspended Exchange Companies Due To The Security Conditions Of The Hot Governorates
August 03, 2023 The Central Bank of Iraq announces the restoration of a large number of exchange companies previously deprived of dealing in the dollar currency in the governorates of (Nineveh, Anbar, Kirkuk, Salah al -Din), which has led security conditions and events after (ISIS) in those governorates to stop them.
The Central Bank shows that the re-work of these companies came after the relevant efforts made in cooperation with the security and security authorities, and that
the above decision would enhance the arrival of the dollar currency to these governorates to meet the legitimate demands, which in turn help to stabilize the exchange rate.
The Central Bank of Iraq information Office August 3, 2023 https://cbi.iq/news/view/2396
To read more current and reliable Iraqi news please visit BondLady’s Corner: