CBI Removes Requirement for Currency Auctions

By John Lee.

The Central Bank of Iraq (CBI) has taken a number of decisions with the intention of supporting and developing the Iraqi economy; the following list is taken directly from an announcement by Rabee Securities:

1. Approving appointment of a representative of the private banks in the Board of directors of the CBI;
2. Approving to cover the banks’ accounts abroad with the US dollar to meet clients’ imports and other necessities without the need to participate the currency auctions in the CBI. The CBI will control those operations through a simplified and transparent mechanism. The CBI will develop a plan to improve the capacities and capabilities to activate the letters of credit instead of the current method and coordination with banks;
3. Expediting the legislation of the Deposit Insurance Act;
4. Recommending the government and the state's institutions to accept checks issued by private banks as well as the receipt of taxes and fees for the government;
5. Forming a committee to restructure the interest ratio to expand the provision of credit and liquidity.

(Source: Rabee Securities)

(Iraqi dinar image via Shutterstock)