Central Bank of Iraq collaborates with Turkish banks, opening euro accounts to boost external transfers

The Central Bank of Iraq (CBI) has entered into an agreement with Turkish banks to establish accounts for Iraqi banks in euros, aimed at enhancing external transfers.

The accord was disclosed by an insider at the CBI on Wednesday, following a meeting attended by key figures such as CBI Governor Ali Al-Alaq, the Turkish Ambassador to Iraq, the Chairman of the Turkish Business Council, and managers of Turkish banks operating in Iraq.

Sources reveal that discussions on additional proposals will take place between CBI officials and representatives of Iraqi banks in Istanbul at the close of November.

The primary objective of this collaborative effort is to streamline trade between Iraq and Turkey, especially given the substantial volume of commerce between the two nations. The initiative is expected to expand external transfer options for importers, particularly in the euro currency.

Notably, this agreement aligns with the CBI’s recent measures to mitigate the US dollar exchange rate. As part of this strategy, the CBI plans to transition from using an electronic platform for transfers to leveraging the services of Turkish banks engaged with Iraqi financial institutions.

This move is anticipated to augment channels for external transfers and contribute to the broader economic objectives of both nations.