CBI deposits millions of euros to cover imports from Turkey

CBI deposits millions of euros to cover imports from Turkey

A government source announced on Tuesday that the Central Bank of Iraq (CBI) has deposited tens of millions of euros as an initial payment to cover imports from Turkey.

The CBI began depositing tens of millions of euros in Turkish banks on Sunday to implement a banking agreement with Turkey.

The purpose of this step is to facilitate the imports of Iraqi merchants from Turkey. The merchants pay for their imports in Iraqi dinars, while the Turkish merchants receive their payments in Turkish lira through the Central Bank of Iraq’s deposits in euros. This information was provided by a reliable 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 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 attended a meeting where an agreement was reached.

The agreement will enhance trade between Iraq and Turkey, especially since the volume of trade between the two countries is already high. It will also expand external transfer outlets for importers in the euro currency.

As part of its recent measures to reduce the exchange rate of the US dollar, the agreement has been signed by the CBI.

This decision is in accordance with the CBI’s strategy to transition from an electronic platform for transfers to Turkish banks that have business relationships with banks in Iraq. Additionally, this move will expand the options for external transfers.