On Saturday, the Central Bank of Iraq announced that the joint Iraqi delegation had discussed matters in Turkey.
The bank released a statement saying that a joint Iraqi delegation, consisting of the government, the central bank, the Association of Iraqi Private Banks, and the banking sector represented by several private banks, completed discussions in Istanbul and returned to Baghdad the next day. The talks resulted in the following outcomes:
An agreement has been reached to establish banking arrangements between Iraqi and Turkish banks using intermediary banks. The objective is to facilitate trade exchange for major merchants and importers, as well as to make and pay remittances in the euro and Turkish lira currencies.
An agreement has been made to organize trade exchanges for small merchants and retailers. The exchange will be made between dinars, euros or Turkish lira under the supervision of a commercial organization that guarantees the entire commercial process cycle. This includes depositing dinars in Iraq, paying in euros or lira in Turkey, and shipping goods from Turkey to Iraq. This will make it easier for thousands of Iraqi traders to transfer goods externally, without having to use non-fundamental means. The aim of this agreement is to regulate trade and external transfers in accordance with sound practices and standards, as part of the Central Bank’s comprehensive plan to open multiple channels, outlets and currencies. This will help preserve the stability of the financial system, protect it from risks, and achieve general price stability by covering imports at the official price. This will also help control inflation rates.
