al Bank Announces the Second Package of Facilities to Obtain the Foreign Currency
Further to what was announced in the first package of the facilities provided by the Central Bank to stabilize the exchange rates, hence, the second package will include the following:
1-The financing of foreign trade from China will be organized directly, in the Chinese Yuan currency, through two options:
A) The first option: reinforcing the assets of Iraqi banks that have accounts in Chinese banks in the Chinese Yuan currency.
b) The second one: enhancing the assets of Iraqi banks through the accounts of the central bank to the final beneficiary in the Chinese yuan currency via our accounts in the (JP Morgan) Bank and the Development Bank in Singapore.
2- Facilities for financial transfers to the United States and Europe will be provided by the same mechanism later.
3- The documents required for the submission regarding the aforementioned external financial transfers will be as follows: only a commercial list (invoice) or letter of credit documents, on that the customer shall provide that bank later with a proof about the entry of the goods.
4- Detailed instructions will be issued that include the aforementioned.
5- Organizing financial settlements for agents of money transfer companies (Western Union and Money Gram) through Class (A) exchange companies via an Iraqi bank with one settlement account for all of those companies.
6- Citizens can transfer up to a monthly maximum amount of ($7500) through agents of money transfer companies of (Western Union and Money Gram) at the official rate (IQD 1320) per a dollar, and the Central Bank reinforces the accounts of these agents through the buying and selling foreign currency window.
7- A table will be published containing the names of authorized agents and their locations. Thus, the citizens, who wish to transfer personal amounts for various uses (such as family subsidies, or simple commercial uses), will be able to go directly to these agents (banks, exchange companies, or any other entities licensed by the Central Bank, or those who will be licensed later), for transfer at an exchange rate of (IQD1320) per a dollar.
8- New uses will be added for the sale of cash dollars, which contributes in expanding the sale base for the citizens, for the purpose of facilitating the payment of their obligations in US dollar, in a manner that does not contradict with our circulars and directives that previously issued by the government in this regard.
9- Allowing government and private banks, and exchange companies of categories (A), and (B), to expand outlets for selling the cash dollar through any of their branches, on that the selling should be exclusively occurred through the FITR platform, and notifying us concerning the necessity of increasing and diversifying the geographical distribution of these outlets.
Central Bank of Iraq
Media Office
22/2/2023
