SULAIMANI, Kurdistan Region — The Iraqi Central Bank (CBI) has announced a new set of measures to address the high demand for US dollars and the resulting devaluation of the Iraqi dinar.
The CBI announced on Wednesday that foreign trade financing from China will be regulated directly, and transactions will be conducted in the Chinese Yuan. The same mechanism will be used to facilitate financial transfers to the United States and Europe in the future.
A commercial invoice or initial documentary credit will be required for foreign remittances, provided that customers provide proof of entry of goods.
Also, the CBI has arranged financial settlements for agents of money transfer companies like Western Union and MoneyGram, through a single settlement account at an Iraqi bank for the recognized companies.
Furthermore, the CBI intends to expand the sale of cash dollars in accordance with its existing circulars and government directives. In this move, US dollars will be made available to Iraqi citizens who are forced to pay in US dollars.
The CBI’s latest measures are aimed at tackling the ongoing devaluation of the Iraqi dinar, which has been affected by the high demand for US dollars. The limited foreign currency supply provided by the US Treasury during the high flow of US dollars out of Iraq has caused this demand to increase.
In recent months, the CBI has introduced several packages of measures to address the issue. The latest package is expected to help stabilize the currency and facilitate foreign trade, while providing much-needed support for the country’s economy.
This move by the CBI is expected to provide relief to businesses and consumers who have been struggling with the devaluation of the dinar, and to help boost economic growth in Iraq. The CBI will continue to monitor the situation and take appropriate measures as necessary to ensure the stability of the Iraqi dinar.
