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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    The Central Bank issues a new statement regarding dealing in dollars and the exchange rate

    Rocky
    Rocky
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    rate - The Central Bank issues a new statement regarding dealing in dollars and the exchange rate Empty The Central Bank issues a new statement regarding dealing in dollars and the exchange rate

    Post by Rocky Thu 03 Aug 2023, 6:45 am

    The Central Bank issues a new statement regarding dealing in dollars and the exchange rate
    • Time: 08/03/2023 13:30:49
       
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    {Economic: Al Furat News} Today, Thursday, the Central Bank of Iraq issued an expanded statement regarding the dollar, its circulation in the market, and ways to address its rise.
    The bank said in its statement, which {Euphrates News} received a copy of, that "following up on the recent developments in the local markets, especially with regard to trading an unofficial exchange rate in the platforms and daily transactions and its unreal and artificial fluctuations, requires us to clarify the basic facts related to the trading of foreign currency (the US dollar). ) in the local markets, and the role of the Central Bank of Iraq in providing foreign currency through its official sources, which included all transactions permitted by law, and preventing other illegal transactions, and the need for all relevant parties to unite and cooperate in order to achieve the main general goals, including the stability of the exchange rate in The presence of sufficient foreign reserves to meet the legitimate needs of citizens, merchants and investors in foreign currency.
    He explained, "The source of the US dollar circulating in the local markets is the Central Bank of Iraq, which offers it through banks, exchange and mediation companies, at the official rate set (1320) dinars for one dollar. Accordingly, what is called the {parallel market} has no reality, as it is called That description is when the market has its own sources of foreign currency, through private sector exports and local tourism, remittances of residents abroad and others, as is the case in other countries, and then the role of the central bank is to work to achieve balance in the exchange rate, so it is a seller or buyer of the currency foreign market.
    He continued, "As for Iraq, the main source of foreign currency is the central bank, and based on that, the exchange market in which the dollar is traded is a speculative market in a currency with a fixed price and purposes, and it is illegal trading, and it is not possible to legalize it, or announce exchange rates fabricated by speculators, The competent authorities should stop the platforms and websites that announce exchange rates for a fixed-price currency, which the Central Bank of Iraq is required to trade at its prescribed price, as long as it is its only source.
    And he noted that "in order to achieve the goal of controlling the movement of funds and foreign trade, and in implementation of the law against money laundering and terrorist financing, and in order to enhance the application of international standards, the new system is based on the implementation of all foreign transfers and documentary credits through the electronic platform, in which all operations are pre-checked by All aspects, and verification of the final beneficiary, which protects the banking sector, non-bank financial institutions and all parties to these operations from the risks they face locally and internationally, and the electronic platform allows all legitimate transfers to be made without limits or restrictions, and the Central Bank does not set ceilings for banks authorized to conduct the transfer, Rather, it depends on the bank's ability to attract customers, the validity and accuracy of operations, and the number of its accredited correspondents abroad.
    Carrying out personal transfers abroad, such as wages for studies, treatment, purchasing personal needs, residents’ transfers, pensions for residents abroad, and others, through international money transfer companies, such as “Western Union and Money Gram.” Citizens are also allowed to use electronic payment cards to be used to purchase goods and services abroad. And all these operations and others are covered by the Central Bank at the official established exchange rate.
    And the Central Bank stated that “providing cash dollars to travelers at the official rate set, through banks and exchange and mediation companies, and these operations are carried out through an electronic platform to verify the safety of operations, and the validity of the use of those amounts for traveling citizens, and that platform is currently being developed to tighten verification procedures and limit its use for the specific purpose.” and at the prescribed price.
    He pointed out that "the aforementioned system, with its three dimensions, limits any practices that would expose Iraq and its banking sector and financial institutions to risks, and by providing these channels and opening them for legitimate purposes, it makes dealing in dollars outside them an illegal practice that is subject to legal accountability towards the parties involved in its practice, as no Any party or person has the right to trade in dollars issued by the Central Bank, and it sets a price, channels, limits, and purposes for its use, and its circulation and trading outside the licensed authorities is considered a prohibited activity according to the law, as the Banking Law No. (94) of 2004 stipulates in Article (3) that it is not Any person has the right to engage in the business of receiving deposits, or other funds payable to the public, without obtaining a license or permit issued by the Central Bank of Iraq.
    The Central Bank affirmed that “the application of the system of foreign transfers, documentary credits, and cash sale of foreign currency involves achieving economic, regulatory and legal goals, including the following:
    1- Enhancing anti-money laundering and terrorist financing measures, and preventing the risks of local and international sanctions from all relevant parties.
    2- Bringing Iraq’s imports into channels that ensure the safety and transparency of operations, and providing important databases and information for planning, organizing and control purposes.
    3- Achieving additional revenues for the state by subjecting all imports to procedures for comprehensive registration of their details and the resulting fees.
    4- Gaining the trust of accredited international banks, which expands the network of relations between the local and foreign banking sector, and increases the number of Iraqi bank correspondents.
    5- Closing the outlets for illegal foreign transfers, besieging the proceeds of crime and corruption, and preventing them from finding a way to escape abroad.
    6- Not charging imported goods the exchange rate difference resulting from paying a higher price when buying it at the unofficial price on the black market, which leads to higher prices and a negative impact on the purchasing power of citizens.
    He noted that "the groups that buy the dollar from the market and create an opportunity for speculators and beneficiaries and trade in an unofficial exchange rate are:
    First: Importers who are merchants who do not follow the fundamental methods of external transfers (remittances and documentary credits) via the electronic platform, which is available to them at the official price, through attempts to collect cash dollars that are exclusively for citizens’ travel from the market, or by using electronic payment cards designated to pay citizens’ purchases and expenses. abroad, or for personal transfers for legitimate purposes.
    Second: Importers of prohibited or narcotic substances, such as drug dealers and others, or materials that do not pass through the official border crossings, to escape the requirements of the law or customs, such as importers of cigarettes and some importers of precision instruments, so they go to the market to buy dollars that are not allocated to them to pay their bills.
    Third: The category that generates returns from the proceeds of crimes, such as bribes, thefts, kidnapping, extortion, selling contraband, etc., and they transfer them abroad to hide them.
    Fourth: Citizens who pay for their purchases of goods and services inside Iraq in dollars, which drives them to buy dollars from the market, and since there is no allocation from the central bank’s sales of dollars for this purpose, then their purchase is from a share allocated for other purposes, especially travel.
    In order to address the aforementioned phenomena, and reduce the phenomenon of the illegal market, and a higher exchange rate than scheduled, the Central Bank revealed that “work is underway with the government and the relevant authorities to take the following measures:
    1- Merchants and importers use the channel prescribed for that, through the electronic platform, to achieve the objectives of this system and to prevent the use of cash dollars in the market for other than its purposes, and this requires obligating this category to provide evidence that the amount of their imports has been duly transferred when their goods enter Iraq at the official border crossings.
    2- Stimulating and supporting categories of merchants to enter the electronic platform by simplifying procedures, especially tax ones, and defining their ceilings in advance according to categories, and depositing them in the account of the General Tax Authority through its bank accounts.
    3- Tightening control over the official border crossings and closing the unofficial ones, and coordinating between the federal government and the regional government regarding organizing and unifying procedures for the entry of goods and the fees imposed on them, and preventing the entry of prohibited and legally prohibited materials.
    4- The competent authorities will strictly implement Cabinet Resolution No. (23026) for the year 2023, which includes limiting the sale and purchase of goods and services in Iraqi dinars inside Iraq.
    He called on the Central Bank “to provide official, popular and media national support in implementing the aforementioned, to achieve the aforementioned goals, in a manner that preserves the safety and health of the movement of money and foreign trade, and to ward off risks from the country and its banking sector and financial institutions, by adhering to the rules of the Anti-Money Laundering and Terrorist Financing Law.” and relevant international standards and practices.
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