Iraqi Central Bank Allows Cash Transfers up to $50,000

Iraqis are now officially allowed to transfer up to $50,000 [60 million Iraq dinars] per transaction in hard cash across the world, the Central Bank says.

According to a report from Azzaman, the decision follows restrictions on hard cash transfers under which Iraqi banks and exchange offices were obliged to declare to the tax authorities the names of individuals transferring more than $10,000 per transaction.

The decision had slashed transfers in hard cash from nearly $300 million a day to $3 million.

An adviser to the Central Bank, Mudher Mohammed, said the restrictions on transfers had an adverse impact on Iraqi financial markets.

“The monetary and financial balance that guided the markets was lost,” he said.

The decision to curtail transfers was taken 10 days ago. It demanded that banks and exchange houses provide lists of names of individuals transferring more than $10,000 in one transaction.

Yesterday, transfers in hard cash had surged to $80 million following a ruling that scrapped an earlier decision on hard cash transfer restrictions.

Banks are now only obliged to declare the names of individuals transferring more than $50,000 per transaction.

“The volume of transactions is bound to increase and reach its normal levels, restoring financial and monetary equilibrium to Iraqi markets,” Mohammed said.

He said the amount of transfer per transaction was raised for purposes of tourism, study abroad and healthcare.

(Source: Azzaman)

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