The Central Bank clarifies the mechanism for delivering incoming remittances in the dollar currency
The Central Bank clarifies the mechanism for delivering incoming remittances in the dollar currency
2024-01-01
On Sunday, the Central Bank of Iraq clarified the mechanism for delivering incoming transfers in the US dollar currency, as it stated in its statement that, in implementation of the monetary policy objectives and to enable banks to meet the needs of their customers in foreign currency, the Central Bank of Iraq has specified the entities covered by receiving their external transfers in cash in the US dollar currency, As of January 2, 2024.
The statement continued, all diplomatic missions, organizations and international agencies operating in Iraq, and non-governmental civil society organizations registered in the General Secretariat of the Council of Ministers, in the event that the foreign donor party stipulates that the amounts of incoming foreign transfers be paid in the dollar currency inside Iraq.
He added, government contracts in force in the US dollar currency, ongoing contracts for grants, loans, and foreign agreements, and 40% of the remittances received by Iraqi exporters resulting from their exports abroad.
He stated that, except for what was mentioned above, banks are allowed to deliver to their customers the amounts of their transfers received from abroad in cash, from the bank’s own available resources, and according to the agreement between the bank and the customer.
The Central Bank confirmed that banks will continue to open bank accounts for customers in foreign currencies in exchange for (interest/returns), and that the customer has the right to withdraw deposits and interest/returns deposited in cash.
He pointed out that banks are not allowed to automatically transfer customer funds coming from outside Iraq in the US dollar currency into the dinar currency except with the customer’s approval,” stressing “the Council of Ministers’ decisions to prevent internal transactions in foreign currency and to strengthen confidence in the Iraqi dinar.”
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