Iraq to issue new regulations for organising exchange offices (07/11/05

The Iraqi Central Bank has stressed that the new regulations that would organise the work of banking offices in Iraq and develop them in a manner that resembles the globally applied regulations shall be issued soon.

The bank will have new regulations

The bank pointed out that it has assigned a committee of financial and banking experts for preparing this law, which totally differs from the old ones, which intended to imposing limitations on such companies and linking them to entities that benefit certain figures and close entities to the former regime.

It clarified that the central bank is continuing in offering licenses for exchange companies and offices, which have currently reached more than 930 offices and companies all over Iraq, in addition to the old offices that were granted licenses during the period before the fall of the bygone regime.

He pointed out that among the most significant changes in the new regulations are the reduction of the percentage of security paid by the exchange companies and offices to the bank, which were estimated on basis of the total capital. In the past, it was paid as 40-60 per cent of the capital as security and has currently reached 20 per cent of the capital.

For the purpose of developing the reality of these companies, the bank stressed the necessity of offering anything that might encourage their works, including allowing these companies and offices to enter the official auction for selling currencies, which is held on a daily basis at the bank headquarters after they used to enter or get the hard currencies through governmental and private banks, after deducting 1-2 per cent of the bid as benefits.

It confirmed that on the short and long run the bank is seeking to create a developed banking system that does not depend on the state in any form, including securing hard currencies, as such a role can never be given to the central bank.

Source: Iraq Directory