The Central Bank of Iraq’s recent decision to close its electronic platform for foreign transfers has sparked divergent views, yet many experts agree that it is a necessary step to bolster Iraq’s financial stability. By shifting from the Central Bank-managed platform to direct relationships between local banks and their foreign correspondents, this measure seeks to reduce pressure on the country’s reserves, enhance transparency in financial transactions, and ensure compliance with international standards. Crucially, the authorities stress that regular remittance operations will remain intact, as the platform accounted for less than 7 percent of total sales.

Under the new system, Iraqi banks can directly process foreign transfers with correspondent banks, thereby minimizing the Central Bank’s direct intervention in daily currency operations. The goal is to tighten regulatory oversight, combat money laundering, and expand the use of other currencies, such as the Euro and the Chinese Yuan, for import needs. These adjustments also allow local banks to serve merchants directly at the official exchange rate, thereby helping reduce inflationary pressures, curbing reliance on unofficial markets, and ultimately stabilizing the local currency environment.

https://alsabaah.iq/108660-.html

From the perspective of a potential currency revaluation, these reforms could create a more favorable climate for strengthening the Iraqi Dinar in the long run. By establishing a transparent system and diversifying currency channels, Iraq stands to reinforce international confidence in its monetary framework, which is a key factor in any future revaluation of the Dinar. Experts suggest that fostering competition among local banks, introducing stronger auditing measures, and channeling foreign exchange through well-regulated platforms can collectively pave the way for a more stable exchange rate—potentially positioning Iraq for an eventual upward valuation of its currency.

@MelaniastasiaRomanov✅