CBI deposits millions of euros to cover imports from Turkey
The Central Bank of Iraq (CBI). Photo: CBI press office
Baghdad (IraqiNews.com) – A government source revealed on Tuesday that the Central Bank of Iraq (CBI) deposited tens of millions of euros as an initial payment to cover imports from Turkey.
The source told the Iraqi News Agency (INA) that the CBI started depositing tens of millions of euros in Turkish banks last Sunday as a step to implement a banking agreement concluded with Turkey last week.
The step aims to cover the imports of Iraqi merchants from Turkey, as the merchants pay for their imports in Iraqi dinars and the Turkish merchants receive their payments in Turkish lira through the CBI’s deposits in euros, according to the source.
A source in the CBI revealed in mid-November that the bank agreed with Turkish banks to open accounts for Iraqi banks to enhance external transfers in the euro currency.
The agreement was reached during a meeting attended by the CBI Governor, Ali Al-Alaq, the Turkish Ambassador to Iraq, the Chairman of the Turkish Business Council, and the managers of Turkish banks in Iraq.
The agreement will facilitate trade exchange between Iraq and Turkey, particularly since the volume of trade between the two countries is very high. It will also expand external transfer outlets for importers in the euro currency.
Additionally, the agreement is part of the CBI’s several measures taken recently to reduce the US dollar exchange rate.
This arrangement is in line with the CBI’s plan to switch from using an electronic platform for transfers to using Turkish banks that do business with banks in Iraq. It will also increase channels for external transfers.