ERBIL — Iraq and the United States have reached an agreement to expand the number of Iraqi banks receiving US dollars directly, a government source said on Sunday.
Following recent discussions between the central bank and the US, this number will increase to 10 banks. Citibank will handle payments for five banks, while JP Morgan will manage the remaining five, the source told state media Iraqi News Agency.
Meanwhile, the number of banks handling Chinese yuan through the Singapore Development Bank is set to rise to 13, the source noted.
Speaking to BasNews, Khalil Ghazi, a member of the Iraqi Parliament's Finance Committee, pointed out that the agreement is expected to impact the dollar's price and contribute to market stability.
Despite the central bank's official exchange rate of 132,000 dinars per 100 dollars, the market rate has reached 160,000 dinars, rising to 170,000 dinars by the end of the previous week. The central bank recently imposed restrictions on dollar withdrawals to align with the official rate.