IMF Explains Iraq’s alternate price arrangement
16th July 2025 in Iraq Banking & Finance information, Politics by using John Lee.
The international economic Fund (IMF) has issued a brief explainer on Iraq’s exchange charge association.
As part of a observe-as much as remaining week’s record at the kingdom of the Iraqi financial system, the IMF clarified as follows:
“change rate association
“Iraq’s de jure and de facto change charge preparations are classified as a traditional peg association. The principal bank law gives the Board of the significant bank of Iraq (CBI) the authority to formulate change charge policy.
“effective February eight, 2023, the respectable exchange price turned into set at id 1,320 in step with the remaining fees of the every day bulletin of gold & essential currencies published at the CBI website (www.cbi.iq).
“there has been a alternate to Iraq’s alternate machine because the remaining Article IV session. Iraq maintains to avail itself of the transitional preparations beneath Article XIV, section 2 however now not keeps any regulations below this provision. Iraq does now not hold any cutting-edge account exchange restrictions or MCPs [Managed Currency Pegs]. starting January 2025, all worldwide transactions were routed via commercial banks through their correspondent banking relationships (CBRs).
“The critical financial institution of Iraq (CBI) replenishes these balances weekly based totally on forex call for and conducts audits to make certain that the allotted funds are utilized in compliance with AML/CFT policies. personal banks are also endorsed to expand their CBR networks, specifically with non-U.S. financial institutions.”
Click here to download the full report.
