[ltr]2023.02.04 - 11:08[/ltr]
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed, on Saturday, that the Central Bank's measures had positively affected the negotiations with the US Treasury, indicating that these measures would raise the value of the Iraqi dinar.
Salih said in a statement to the official agency, followed by "NAS", (February 4, 2023), that "the procedural package launched by the Central Bank of Iraq hours ago is a positive reflection of the success of negotiations between the Central Bank of Iraq and the US Treasury, and is a systematic easing of the imposed restrictions, by adopting banking tools." International channels as transparent channels for the transfer of funds, and in a more detailed way to conduct external transfers between Iraq and the world.
He added, "The instructions issued indicate a systematic liberalization of external transfers from the restrictions, instructions, and customs previously approved on the movements of the Iraqi balance of payments, which will rapidly raise the value of the Iraqi dinar."
Earlier, Central Bank Governor Ali Mohsen and his accompanying delegation concluded his meetings with US Treasury Assistant Secretary Brian Nelson and his accompanying delegation in Turkey.
During the meeting, according to a statement by the Central Bank, of which "NAS" received a copy (February 3, 2023), "they discussed prospects for cooperation and coordination between the two sides in a way that contributes to achieving stability of the exchange rate in Iraq and the mechanisms related to that."
The US Treasury affirmed, "its support for achieving economic stability in Iraq, in reference to strengthening what was discussed between the Iraqi Prime Minister and the US President in the phone call that took place between them yesterday, Thursday, in emphasizing the importance of Iraq's stability to the region."
It also expressed its readiness for the necessary flexibility to achieve common goals. It was agreed to continue coordination and cooperation during the meetings to be held in Washington DC before the middle of this month, according to the statement.
And the Central Bank of Iraq issued, earlier, the first package of facilities to meet the demand for dollars, on both sides of cash and foreign transfers.
According to a statement by the Central Bank, of which “NAS” received a copy (February 3, 2023), the facilities were as follows: “
1- Increasing the ceiling of cash sales for travel purposes to (7000) dollars per month (seven thousand dollars per month), and selling them to adults (18 years and over) exclusively.
2- The sale of the dollar for the purposes of personal transfers will be through the agents of money transfer companies (Western Union and Money Gram) at the official price (1470) dinars to the dollar, and the Central Bank of Iraq is responsible for strengthening the balances of these agents in dollars at the official rate.
3- Expanding the scope of transactions allowed to be financed in foreign currency to include:
a) Importing goods and commodities that are legally permitted to be imported.
b) Purchasing and supplying services permitted by law, including shipping services.
c) Financing the import part of the contracts of contractors with state departments.
d) Requests received by the Central Bank of Iraq from governmental and public institutions and self-financed entities for their needs for which there is no allocation in dollars within the federal general budget of the state, supported by official documents that support these requests.
e) Enhancing the balances of sub-accounts of banks and electronic payment companies opened with (GB Morgan) Bank, which has a major membership with international card companies (Visa, Master).
F) Enhancing the balances of the sub-accounts of the Iraqi financial institutions opened with Citibank, which has a major membership with international money transfer companies (Western Union, MoneyGram) in order to settle its obligations with those companies after submitting the required statements.
g) Transfers for legal transactions for the purchase of real estate abroad.
h) Treatment abroad, and the transfer is from the account of the customer or one of his relatives of the first or second degree to the account of the hospital abroad after submitting a medical report from the concerned hospital.
i) Payment of tuition fees abroad, and the transfer shall be from the account of the student or one of his relatives of the first or second degree to the account of the university in which he is studying or to the account of the student himself in the country of study after submitting proof of his registration in the study certified by the Iraqi Cultural Attaché in the country of study.
j) Transfers related to foreign investments in Iraq.
k) Transferring the proceeds of the sale of shares distributed inside Iraq to an Iraqi residing abroad or a foreigner (the original value plus its returns, if any) in the event of selling them, provided that support is provided by the Iraq Stock Exchange.
l) Compensation decided or approved by Iraqi official authorities for foreigners, or for Iraqis residing abroad.
m) Profits of shareholders in companies duly registered in Iraq.
n) Amounts of financial proceeds (sale of real estate or other assets or their returns) in Iraq to an Iraqi residing abroad, provided that the transfer is from his account or his agent’s account inside Iraq to his account or his company’s account abroad exclusively.
o) Due payments related to banking and credit facilities that the customer has associated with banks outside Iraq.
4- Expanding and facilitating external transfer procedures for the categories below, as a first stage, to be followed by other categories later, namely:
a) All types of companies registered with the Companies Registration Department at the Federal Ministry of Trade.
b) Projects registered with the Directorate General of Industrial Development at the Federal Ministry of Industry and Minerals.
C) Simple companies duly incorporated by the chambers of commerce (according to an incorporation contract certified by a notary public) with an amount not exceeding (200,000) dollars (two hundred thousand dollars per month).
d) Branches of foreign companies registered with the Companies Registration Department at the Federal Ministry of Trade.
e) Investment projects of all kinds licensed by investment commissions.
f) Agricultural and animal projects licensed by the Animal Wealth Department, the Agricultural Investments Department, or the Veterinary Department at the Federal Ministry of Agriculture.
g) Scientific offices duly licensed by the Syndicate of Pharmacists.
h) Distributors of international factories who are fixed to be appointed from those factories for the purpose of working in Iraq, and agents whose appointment is approved by the distributor to work in the Iraqi market and who are duly licensed to work in Iraq.
i) Agents of international companies registered in accordance with the commercial agency law in force.
j) All types of companies, factories, laboratories and projects licensed in the Kurdistan Region of Iraq after presenting proof of incorporation or licensing from the relevant sectoral authorities, translated into Arabic, legally.
5- The Central Bank is obligated to cover all requests for dollars in cash and foreign transfers for all legitimate purposes, and thus every sale at a price higher than the official price becomes an act aimed at speculation or to cover illegal activity, and the Central Bank of Iraq is obligated to compensate the beneficiaries (importers) the amount of the difference that exceeds the official price decided, and this difference is deducted from our offending bank account.
6- Another important package will be issued soon to achieve the stability of the exchange rate and the general level of prices.
7- The Central Bank of Iraq is studying various proposals and scenarios related to the official exchange rate.
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