Iraq's Central Bank Denies New Restrictions on Bank Transfers in Foreign Currencies

After fears of restricting Iraqi banks from dealing in dollars, the Governor of the Central Bank Ali Al-Alaq reassures the markets, confirming that no new restrictions will be imposed. 

The governor reassured local banks regarding the accusations they face regarding transfers in foreign currencies, confirming - in a press conference Wednesday - that there are no new restrictions that will affect Iraqi banks, and that there is praise and a positive position from international bodies regarding the cash sale of the dollar.

Al-Alaq added that 20 Iraqi banks are conducting direct transfers between them and correspondents abroad in 8 foreign currencies, while work is underway to rehabilitate the remaining banks so that they can complete transfers in foreign currencies again.

Last year, the Central Bank of Iraq banned 8 banks from dealing in dollars, while Reuters reported a few days ago that the ban would be extended to 5 other local banks after meetings held in Dubai last week between bank officials and officials from the US Treasury and the US Federal Reserve. 

Meantime, Iraq's central bank governor said the bank is planning to issue its own digital currency to gradually replace local paper notes.