Iraq’s Central Bank enhances balances of 5 Iraqi banks in UAE dirham
The Central Bank of Iraq. Photo: AFP
Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) finished on Saturday the arrangements for an agreement aiming to enhance the balances of five Iraqi banks in the UAE dirham.
A source in the Iraqi banking sector said that the CBI completed the required arrangements related to an agreement with the UAE’s First Abu Dhabi Bank, according to the Iraqi News Agency (INA).
“The implementation of the agreement to enhance the balances of the Iraqi banks in UAE currency will most probably start next week,” the source told INA.
A source in the CBI revealed last Wednesday that it reinforced the balance of 13 banks in the Chinese currency.
Merchants and importers can now import their goods from China at the official exchange rate that will be provided by banks dealing in the Chinese currency instead of obtaining the funds they need for their trade from the parallel market, according to the source.
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.
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 agreement is part of the CBI’s several measures taken recently to reduce the US dollar exchange rate.