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The Central Bank of Iraq reveals the mechanism for terminating the electronic platform
September 04, 2024
The electronic platform for external transfers managed by the Central Bank of Iraq began at the beginning of 2023 AD as a first stage to reorganize financial transfers in a way that ensures proactive control over them instead of subsequent control through the Federal Reserve auditing daily transfers.
This was an exceptional measure as the Federal Reserve does not usually undertake to do this.
A gradual shift towards building direct relationships between banks in Iraq and accredited foreign correspondent banks has been planned, with an international auditing company mediating this to pre-screen remittances before they are implemented by the correspondent banks.
During the year 2024 and until now, 95% of the transfer process has been achieved from the electronic platform to the direct correspondent banking mechanism between it and the Iraqi banks.
This means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan..
Thus, some expectations about possible effects on the exchange rate and transfer operations are unfounded,
because the process will not happen suddenly or in one go at the end of this year,
but rather it was already achieved during the past period with effort and careful follow-up, except for what remains of a small percentage that will be completed during the period. The next few.
The Central Bank of Iraq confirms that trade with the United Arab Emirates, Turkey, India, and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transferring the currencies of the euro, the Chinese yuan, the Indian rupee, and the Emirati dirham, via Correspondent banks are accredited in those countries,
and (13) Iraqi banks have already begun conducting transfer operations with a pre-audit mechanism that has been agreed upon and approved, in addition to transfers in the dollar currency.
With the provision of channels for personal transfers for legitimate purposes and foreign purchases through electronic payment channels and international money transfer companies, cash sales to travelers, and payment of cash dollars for incoming transfers to the destinations and purposes specified in the Central Bank’s published instructions.
The Central Bank of Iraq stresses that it has placed external transfer operations and meeting requests for the dollar on sound paths and consistent with international practices and standards and the law on combating money laundering and the financing of terrorism.
He explains that providing the aforementioned channels for all purposes with the official price of the dollar makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation,
and any other price that is traded outside of those channels is considered an abnormal price that those who practice non-fundamental or illegal practices resort to.
Those who stay away from official channels in their dealings and bear the additional costs alone by purchasing at a higher price than the official price in order to deceive others about the difference between the official price and others.
Central Bank of Iraq
https://cbi.iq/news/view/2664
September 04, 2024
The electronic platform for external transfers managed by the Central Bank of Iraq began at the beginning of 2023 AD as a first stage to reorganize financial transfers in a way that ensures proactive control over them instead of subsequent control through the Federal Reserve auditing daily transfers.
This was an exceptional measure as the Federal Reserve does not usually undertake to do this.
A gradual shift towards building direct relationships between banks in Iraq and accredited foreign correspondent banks has been planned, with an international auditing company mediating this to pre-screen remittances before they are implemented by the correspondent banks.
During the year 2024 and until now, 95% of the transfer process has been achieved from the electronic platform to the direct correspondent banking mechanism between it and the Iraqi banks.
This means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan..
Thus, some expectations about possible effects on the exchange rate and transfer operations are unfounded,
because the process will not happen suddenly or in one go at the end of this year,
but rather it was already achieved during the past period with effort and careful follow-up, except for what remains of a small percentage that will be completed during the period. The next few.
The Central Bank of Iraq confirms that trade with the United Arab Emirates, Turkey, India, and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transferring the currencies of the euro, the Chinese yuan, the Indian rupee, and the Emirati dirham, via Correspondent banks are accredited in those countries,
and (13) Iraqi banks have already begun conducting transfer operations with a pre-audit mechanism that has been agreed upon and approved, in addition to transfers in the dollar currency.
With the provision of channels for personal transfers for legitimate purposes and foreign purchases through electronic payment channels and international money transfer companies, cash sales to travelers, and payment of cash dollars for incoming transfers to the destinations and purposes specified in the Central Bank’s published instructions.
The Central Bank of Iraq stresses that it has placed external transfer operations and meeting requests for the dollar on sound paths and consistent with international practices and standards and the law on combating money laundering and the financing of terrorism.
He explains that providing the aforementioned channels for all purposes with the official price of the dollar makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation,
and any other price that is traded outside of those channels is considered an abnormal price that those who practice non-fundamental or illegal practices resort to.
Those who stay away from official channels in their dealings and bear the additional costs alone by purchasing at a higher price than the official price in order to deceive others about the difference between the official price and others.
Central Bank of Iraq
https://cbi.iq/news/view/2664
