The Central Bank denies expectations attributed to it indicating that the exchange rate has reached 170 thousand dinars for 100 dollars.

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The Central Bank denies expectations attributed to it indicating that the exchange rate has reached 170 thousand dinars for 100 dollars.

The Central Bank of Iraq clarified on Thursday that citizens’ deposits in US dollars in Iraqi banks are guaranteed.

The Central Bank issued a statement refuting the inaccurate reporting by Reuters attributed to Mazen Sabah Ahmed, Director General of the Department of Investments and Foreign Transfers.

According to Ahmed, the Central Bank provides a guarantee for dollar deposits. Any Iraqi citizen who deposited their money in US dollars with any local bank, whether past or by 2024, has the right to receive the deposited amount in cash and in US dollars.

During a press interview, he stated that there was no mention of the exchange rate reaching 1,700 and that the Central Bank has its tools to reduce the difference between the two prices. There are no indications that the exchange rate in the parallel market will rise to this level. On the contrary, measures are being taken to reduce the difference.

“The reforms carried out by the Central Bank of Iraq aim to ensure that the bank and the banking system as a whole comply with international regulations. This will prevent the dollar from falling into the hands of unauthorized parties or being used for speculative purposes.”

In reference to the cessation of cash withdrawals, it was clarified that the declaration of 1/1/2024 as the starting point only pertains to transfers received from outside Iraq under specific arrangements to ensure business continuity. It does not, in any way, affect the balances of citizens held in US dollars.