Expert: Iraqi economy is stable despite changes in the dollar market
Economic expert Safwan Qusay confirmed today, Wednesday, that the Iraqi economy is stable despite the changes in the dollar market.
Qusay said in an interview, “The Central Bank of Iraq announced the termination of the electronic platform for banking transactions starting from the beginning of the new year, after notifying all Iraqi banks of the cancellation decision early on.”
He added that “13 Iraqi banks were able to adapt to this change, as they expanded their dealings with real merchants, so that the percentage of transfers and credits that take place through direct relations between Iraqi banks and supplier banks reached more than 95%.”
He explained that “these operations are carried out in accordance with strict compliance standards that ensure knowledge of suppliers and payment mechanisms.”
He continued, “As for the 5% of transfers that were made through the electronic platform, traders who wish to continue import operations at the official price can open bank accounts within these banks.”
He pointed out that “the Central Bank issued a circular on September 30th allowing traders to import directly after opening bank accounts, without the need for a waiting period that previously extended to six months.”
He explained that “the market may witness some fluctuations, but he ruled out the possibility of achieving large profits from importing irregular goods, in light of the Iraqi economy, which relies heavily on the dollar and its high value globally.”
He pointed out that “the Iraqi economy will not face major concerns as a result of this change, stressing the importance of adhering to banking procedures to ensure market stability and facilitate import operations.”
Central Bank announces major achievement in foreign transfers
The Central Bank of Iraq announced today, Wednesday, that it has achieved a major accomplishment in foreign transfers, while indicating that it will continue to follow modern methods in managing monetary policy in Iraq.
A statement by the bank stated that it “succeeded in adhering to its program related to the transition from foreign transfers via the electronic platform to the work of Iraqi banks through their foreign correspondent banks,” noting that “this transition took place through stages that the foreign transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for foreign transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year.”
He continued, “This achievement is a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and this work has received international support and praise throughout its implementation stages,” indicating that “the new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks. From this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in the US dollar, in addition to a group of other currencies, such as (the Indian rupee, the Chinese yuan, the euro, the UAE dirham, the Saudi riyal, and the Jordanian dinar).”
He added, “This achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq enter a new phase in its financial relations regionally and internationally and enhance the government’s orientations in expanding its economic relations and enhancing investment opportunities.”
He pointed out that “the efforts in this important achievement came through a series of ongoing detailed technical procedures and agreements, and great support from the Iraqi government, and that the bank will continue to follow modern methods in managing monetary policy in Iraq, in line with its essential role in achieving financial stability, and its position among central banks in the region and the world, which will be positively reflected in the confidence and support of the external financial sector of Iraq and international financial and economic organizations.”
He explained that “through this, the management of the Central Bank of Iraq seizes this important opportunity to express its thanks and appreciation to everyone who contributed to achieving this great accomplishment, first and foremost the cadres of the Central Bank of Iraq, the banking sector in Iraq, and all international partners.”
The statement concluded, “The Central Bank of Iraq expresses its full readiness to support all Iraqi banks that work to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that reflects positively on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.”
The Central Bank of Iraq announces the transition from the electronic platform to banks for external transfers
The Central Bank of Iraq announced on Wednesday its success in adhering to its program related to the transition from external transfers of the US dollar through the electronic platform to the work of Iraqi banks through their foreign correspondent banks.
The bank explained in a statement today that “this transition took place through stages that the external transfer process went through, starting with the foreign currency buying and selling window and moving to the stage of the electronic platform for external transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year.”
The statement added that “this achievement is a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and this work has received international support and praise throughout its implementation stages.”
The bank’s statement continued, saying, “The new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks.”
The bank also indicated that “from this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in the US dollar, in addition to a group of other currencies, such as (the Indian rupee, the Chinese yuan, the euro, the Emirati dirham, the Saudi riyal, and the Jordanian dinar).”
The statement stressed that “this achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq enter a new phase in its financial relations regionally and internationally and enhance the government’s orientations in expanding its economic relations and enhancing investment opportunities.”
Finally, the Central Bank of Iraq expressed its “full readiness to support all Iraqi banks that are working to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that positively reflects on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.”
It is noteworthy that the Central Bank of Iraq announced on September 4, 2024, the mechanism for ending the work of the electronic platform for foreign transfers of hard currency, while reassuring that there are no potential impacts on the exchange rate and transfer operations after the platform’s work is terminated.
More than $60 billion in Iraqi currency auction sales in 2024
The Central Bank of Iraq’s sales in the hard currency auction for the US dollar during the past year 2024 amounted to more than 60 billion dollars.
The economic correspondent of documented the data of the currency auction sales of the Central Bank of Iraq during the year 2024, as the statistics showed that the bank sold 60 billion, 154 million, 755 thousand, and 191 dollars in the days when the auction was opened to buy and sell the US dollar.
These sales increased by 47% compared to 2023 sales, which amounted to $40 billion, 925 million, 383 thousand, and 937 dollars.
He added that the average monthly sales for the year 2024 amounted to 5 billion, 12 million, and 383 thousand dollars per month.
These sales were distributed between transfers abroad to finance foreign trade, which amounted to 58 billion, 691 million, 5 thousand, and 191 dollars, and cash sales to banks, which amounted to one billion, 463 million, and 750 thousand.
The selling price of documentary credits and international settlements for electronic cards covered by the bank reached a basic exchange rate of 1310 dinars per dollar, and the same price per dollar for foreign transfers, and a price of 1305 dinars per dollar in cash.
