Association of Banks: The dollar will continue to decline thanks to the actions of the Central Bank
Association of Banks: The dollar will continue to decline thanks to the actions of the Central Bank
29/12/2023
Today, Friday, the Association of Private Banks expected the exchange rate to continue to decline in the parallel market with the continued implementation of the Central Bank’s agreements with the Federal Bank and several countries to finance foreign trade.
The association’s advisor, Samir Al-Nusairi, said in a statement to the official agency, followed by NRT Arabia, that “the goals and tasks of the Central Bank focus on financial and banking reform, and they agree with the government’s approach, especially with regard to the transition from the cash economy to the digital economy through the development and deployment of electronic payment devices in directions that achieve The fourth global revolution by moving to a cashless society.
He added, “The Central Bank of Iraq and the government took a new strategy to manage monetary policy, due to the fluctuation that occurred in the Iraqi dinar exchange rate at the end of 2022, so there were new goals to control the exchange rate and ensure its stability.”
He continued, “Among the goals also included regulating the financing of foreign trade and regulating the Iraqi banking sector in accordance with the standards of the global financial system followed in most developed countries of the world in the banking aspect and completely ending the battle with speculators, who play a harmful role in the national economy by dealing in dollars on the black market.” For which he is held accountable in accordance with the law, in addition to reconsidering lending policies according to a new strategy called the National Lending Strategy, in which the executive aspects of bank financing in previous years were benefited from and the move towards a new strategy that will be implemented on a large scale.
He pointed out that “the Central Bank’s administrative, procedural and negotiating efforts, which continued for approximately 8 months with the US Treasury, the Federal Reserve Bank and international banks, resulted in allowing agreements, arrangements and understandings that allowed the entry of new currencies to deal with foreign transfers, including the Chinese yuan, the UAE dirham, the Indian rupee, the euro and the Turkish lira.” Pointing out, “These agreements were implemented successfully, which was reflected in the exchange rate and led to its decline.”
He continued, “Soon, an agreement was reached with Turkish banks to enhance the balances of Iraqi banks in Turkish lira and euros, and the Central Bank reinforced this with tens of millions of euros, in addition to an agreement with First Abu Dhabi Bank to deal in Emirati dirhams to finance Iraqis’ trade with the Emirates, and all of these… The measures will allow the exchange rate to continue to decline in the parallel market, which is currently declining continuously.”
nrttv.com
