According to the Central Bank of Iraq, the citizens of Iraq have the guaranteed right to their deposits in US dollars in Iraqi banks.
The Central Bank stated that Reuters’ statements attributed to Mazen Sabah Ahmed, Director General of the Department of Investments and Foreign Transfers, contained inaccuracies in their reporting.
Ahmed states that the Central Bank ensures the safety of dollar deposits. Any Iraqi citizen who has deposited money in US dollars with a bank in the past or will do so by 2024 has the right to receive the same amount in cash and US dollars.
During a press interview, he stated there was no talk of the exchange rate reaching 1,700 and that the Central Bank has methods to decrease the gap between the two prices. There are no indications that the parallel market’s exchange rate will hit this level. Instead, efforts are being made to reduce the difference.
He highlighted that the Central Bank of Iraq’s reforms are aimed at achieving compliance with international standards of banking, which will prevent the dollar from reaching unauthorized parties or being used for speculation.
He clarified that the announcement stating that cash withdrawals will cease starting from 1/1/2024 only applies to transfers received from outside Iraq under specific arrangements that ensure business continuity. It does not affect citizens’ balances in US dollars in any way.