Central Bank of Iraq exempts four categories for dollar withdrawal

BAGHDAD, January 1 — The Central Bank, Sunday, specified four categories eligible to receive their external transfers in cash in US dollars during the year 2024. These include diplomatic missions, organizations, government contracts payable in dollars, and 40% of the transfers received by Iraqi exporters.

The Central Bank issued the following statement:

In line with the monetary policy objectives and to enable banks to meet the foreign currency needs of their clients, the Central Bank of Iraq has identified the entities eligible to receive their external transfers in cash in US dollars, effective from January 2, 2024, as follows:

1. Diplomatic missions, international organizations, and agencies operating in Iraq.
2. Non-governmental civil society organizations registered with the General Secretariat of the Council of Ministers, in case the foreign donor specifies the payment of external transfers in US dollars within Iraq.
3. Effective government contracts in US dollars, ongoing contracts for grants, loans, and external agreements.
4. 40% of transfers received by Iraqi exporters resulting from their exports abroad.
Apart from the above, banks are allowed to deliver their clients’ transfer amounts received from abroad in cash, using the bank’s own resources and based on an agreement between the bank and the customer.

The Central Bank of Iraq emphasizes that banks will continue to open foreign currency accounts for clients, offering interest or returns. Clients have the right to withdraw deposits and interest/returns in cash.

The Central Bank of Iraq further notes that banks are not permitted to automatically convert clients’ funds received from outside Iraq in US dollars to Iraqi dinars without the customer’s consent. This underscores the Cabinet’s decisions to prohibit domestic transactions in foreign currency and strengthen confidence in the Iraqi dinar.