CBI reveals various proposals related to the official exchange rate

Baghdad-INA 

The Central Bank of Iraq revealed that it is studying various proposals related to the official exchange rate.

The Central Bank stated, in a statement received by the Iraqi News Agency (INA), that "the Central Bank of Iraq issues the first package of facilities to meet the demand for the dollar, on both sides of cash and foreign transfers, as follows:

1- Increasing the ceiling of cash sales for travel purposes to (7000) dollars.

2- The sale of dollars for personal transfers will be through agents of money transfer companies (Western Union and Money Gram) at the official price of ( 1470 ) dinars to the dollar, and the Central Bank of Iraq will promote The balances of these agents are in dollars at the official rate.

3- Expanding the scope of transactions that are 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 legally permitted services, 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 the 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 selling the shares distributed inside Iraq to the Iraqi residing abroad or the 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) Shareholders' profits in duly registered companies 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 submitting proof of incorporation or licensing from the relevant sectoral authorities translated into Arabic legal translation.

5- The Central Bank is obligated to cover all requests for dollars in cash and foreign transfers for all legitimate purposes Selling at a price higher than the official price, as 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 established price, and this difference is deducted from the account of the violating bank with us.

6- Another important package will be issued soon to achieve 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.