Reuters: CBI instructs the private banks to close their branches in the Kurdistan region

Reuters: CBI instructs the private banks to close their branches in the Kurdistan region

2017/11/09 14:06

Reuters - CBI instructs the private banks to close their branches in the Kurdistan regionBaghdad today – follow-up

The Central Bank of Iraq has instructed banks to “close” their branches in the Kurdistan region, the Reuters news agency reported on Thursday.

“The Central Bank of Iraq issued orders to banks to close their branches in the Kurdistan region within a week to avoid a ban on the sale of the dollar,” the agency quoted unnamed banking sources as saying.

“The deadline set by the central bank to close the branches expires on November 14,” the sources said, adding that “all banks must respond by confirming the closure of their branches to avoid being sanctioned.”

Yesterday, the Central Bank of Iraq called on banks to suspend the work of their branches in the Kurdistan region within a week from its date and until further notice, on the basis of the decision of the House of Representatives No. 58 dated 12 October last.

“The decision was taken and circulated to banks today to stop all transfers of funds to their branches in the region, There are about 63 branches of banks within the region, dealing in dollars and foreign currencies.

According to the decision, which will enter into force after the week deadline, these branches are not entitled to transfer funds or deal in foreign currencies.

The situation between Baghdad and Erbil intensified after the Kurdistan region held a referendum on secession from Iraq on 25 September last, while the House of Representatives passed 13 resolutions against the region after the referendum.

Iraqi forces regained control of Kirkuk after its October 16 operation to impose security and redeployment in Kirkuk and disputed areas between Baghdad and Erbil.

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