Iraq’s Central Bank injects millions of euros to facilitate trade with Turkey

BAGHDAD, December 5 — The Central Bank of Iraq (CBI) has reportedly injected millions of euros into local banks to cover trade-related payments with Turkey, according to a government source.

The source, who spoke on condition of anonymity, confirmed to the Iraqi News Agency that the move was done in accordance with banking arrangements agreed upon with Turkey last week. The CBI “has been reinforcing” tens of millions of euros since December 3 for initial payments, the source said.

“This move aims to cover retail traders’ imports from Turkey, with Iraqi traders paying in Iraqi dinars and the Central Bank reinforcing in euros for settlement with Turkish traders in Turkish lira,” the source added.