Iraq may establish free zone to provide imported goods in Iraqi dinar

Baghdad (IraqiNews.com) – Iraqi consumers stand to gain from competitive rates for goods as the country considers establishing a free zone.

The free zone would act as a center for the import of commodities and materials, which would then be sold to the private sector in local currency, according to the Iraqi News Agency (INA).

This step is part of a series of measures to address the currency rate discrepancy.

The Iraqi Prime Minister, Mohammed Shia Al-Sudani, asked the Trade Ministry to import necessary supplies and provide them in Iraqi dinars at stable rates.

Iraq also plans to streamline the import procedure while guaranteeing that the greatest number of importers and merchants will enter the foreign exchange sales platform.

The government intends to do this by streamlining the processes related to creating accounts, making deposits, and completing other tasks associated with providing the importer’s identification.

Additionally, several initiatives have been announced by the government to improve electronic payment methods and lessen reliance on cash.

The Iraqi government will soon make decisions about the incentives and prices for services that accept electronic payments.

Iraq declared last month that it will ban cash withdrawals in US dollars as of January 1, 2024, as part of its most recent effort to stop the abuse of its hard currency reserves in financial crimes and the defiance of US sanctions on Iran.