CBI permits 3 private banks to import US dollars

Baghdad (IraqiNews.com) – A government official revealed on Wednesday that three private banks in Iraq received official authorization from the Central Bank of Iraq (CBI) to import US dollars to meet the needs of their clients.

The source confirmed that the amounts go up to $100 million, indicating that one of the banks’ shipments had already arrived in Iraq, according to the Iraqi News Agency (INA).

The official illustrated that the CBI is studying additional requests submitted by other Iraqi banks to import US dollars.

“The Trade Bank of Iraq (TBI) is currently holding important discussions with several international companies to transfer amounts reaching $120 million, and they will be delivered to Iraq within the next few days,” the source told INA.

The CBI’s recent decision allowing private bank to import foreign currencies via commercial flights sparked controversy as Iraqi lawmakers and legal experts deemed it unconstitutional, according to The News Arab.

Officials from CBI held intensive meetings with US officials in Abu Dhabi recently to discuss external transfers to cover imports.

A source in the Iraqi government told INA that Iraq strengthened its balances in the yuan currency through the Singapore Development Bank to finance the country’s trade with China by about $12 billion annually.

Baghdad also increased its assets in UAE dirham and is negotiating to increase its balances in euros to finance trade with the European Union.

The CBI, during meetings with US officials, agreed to increase the balance of five Iraqi banks in Jordan through JP Morgan.

There are serious negotiations that have reached their final stages to enhance the balances of some Iraqi banks in euros with UBAF Bank to finance trade with the European Union, the source mentioned.

Bank accounts have been opened for six Iraqi banks in the Singapore Development Bank, and seven more banks will be added in the coming period to finance Iraq’s imports from China.