Iraqi banks are permitted to disburse their customers’ dollar deposits in cash
The Central Bank of Iraq has issued a new directive to all banks, allowing the disbursement of deposits and incoming transfers in US dollars in cash, according to a document obtained by Shafaq News Agency. News
According to the document, the decision comes in implementation of the objectives of monetary policy, and to enable banks to meet the legitimate needs of their customers in US dollars, and in line with the directives of the government and the Central Bank to enhance confidence in the Iraqi dinar, digital transformation and reducing cash transactions.
The document explained that the instructions included allowing banks to open bank accounts for customers in foreign currencies acceptable to the bank, with the possibility of withdrawing funds deposited in cash or transferred to those accounts in US dollars, according to each bank’s policy.
The directive clarified that the Central Bank will fulfill the private banks’ requests for cash withdrawals of incoming dollar transfers, provided that the amounts of those transfers are deposited into one of the bank’s accounts with its correspondents abroad. These transfers shall include government contracts financed by grants or foreign loans and agreements signed with the federal government, in addition to 40% of the transfers received by Iraqi banks resulting from their exports abroad.
The document stipulated the suspension of the previous circular No. (8587) issued on January 31, 2023, with the decision to be implemented starting from July 15, 2026.
It is worth noting that an informed source revealed to Shafaq News Agency last week that the Central Bank of Iraq issued new directives to reduce the share of foreign currency (dollars) for travelers to 2,000 US dollars instead of 3,000 dollars, within the approved mechanism to meet travel requests.
Shafaq.com