The Embassy of The Republic of Iraq has included the below decision for Cash Withdrawals in US dollars. This is for the purpose of informing investors and private sector entities, including unions and non-governmental organizations wishing to work in Iraq, in order to review the decisions of the Central Bank of Iraq regarding covering foreign currency within local markets.
In executing monetary policy objectives and facilitating banks in fulfilling their clients' requirements for foreign currency, the Iraqi Central Bank has decided the following:
1. Banks continue to open bank accounts for customers in foreign currencies accepted by this bank, in exchange for fees in the same account currency in accordance with the bank’s policy. The customer has the right to withdraw deposits and interest in cash.
2. Banks are not allowed to automatically transfer customer fund received from outside Iraq in the US dollar currency into the Iraqi dinar currency except with the customer’s approval.
3. The Central Bank of Iraq fulfils banks' requests for cash withdrawals in US dollars for incoming transfers for the benefit of its customers in the cases mentioned below, provided that the amounts of these transfers are deposited in one of this bank's accounts abroad.
a. Requests from diplomatic missions, organizations and all international agencies operating in Iraq, such as requests for salaries and other uses inside Iraq.
b. Requests from civil society non-governmental organizations registered in the General Secretariat of the Council of Ministers Department of Non-Governmental Organizations, if the foreign donor stipulates that they be paid in the dollar currency inside Iraq, provided that the organization submits documents that support the following:
i. Use these funds exclusively for humanitarian or service purposes inside Iraq
ii. The ultimate beneficiaries of these funds
c. Government contracts in force in the US dollar, including wages and salaries of workers in companies contracting with ministries and entities not affiliated with a ministry.
d. Continuing contracts for foreign grants and loans and agreements in accordance with the agreements signed with the federal government, and with the support of the Ministry of Planning
e. 40% of Iraqi exporters' incoming remittances result from their exports abroad.
4. Except for what was stated in Paragraph (Third) above, banks are allowed to deliver to their customers the amounts of their transfers received from outside Iraq in cash, from the internal sources available to the bank (including withdrawing foreign currency from their accounts abroad), and according to the agreement between the bank and the customer.
5. The Council of Ministers' decisions prohibiting internal transactions in foreign currency and enhancing confidence in the Iraqi dinar are considered, including Resolution No. (23026) of 2023, amended by Resolutions (23639) and (23684) of 2023.
6. The above decision will be implemented as of 01/02/2024.
In conclusion, we encourage you to consider this matter and stay informed.
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