Cabinet agrees to convert the purchase amount of the dinar to the dollar at the Central Bank

 Cabinet agrees to convert the purchase amount of the dinar to the dollar at the Central Bank


03-09-2013-17: 41

Alsumaria Mobile Version economics and business
Alsumaria news/Baghdad

The Council of Ministers approved Tuesday, to convert the purchase amount of the local currency to the US dollar at the official rate of Exchange by the Central Bank of Iraq.

And the General Secretariat of the Council of Ministers in a statement received "alsumaria news", "Council of Ministers held today, thirty-eighth regular session in Baghdad headed by Prime Minister Nouri al-Maliki."

The Secretariat explained that "the Council has agreed to convert the purchase amount of the currency of Iraqi dinar to US dollar currency exchange rate by the Central Bank of Iraq", indicating that the payment will be "under a documentary credit is opened in a bank in the country of purchase in case of direct purchase from abroad when absolutely necessary".

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I have read several versions of this over the last few days. Something must be getting lost in translation, cause I don't get it.

Increasing the powers of the direct purchase of medicines and emergency supplies to 500,000,000 five hundred million Iraqi dinars , or the equivalent to the U.S. dollar from inside and outside Iraq.

The font is all screwed up, but I gather that they are in need of making purchases outside of Iraq that do not accept IQD - now.  So they will open accounts in the country of purchase and pay in USD.  The bank will make the conversion and forward the funds to be paid through the in-country bank. (less wait time). 

IMO - it could be the beginning of the testing of their Iraqi banking systems - currently with the USD as the backing currency.  The "exchange rate" can be tested during this time, and how accurate and amount of time.  I think we may finally be getting some major progress in the right direction.

Thanks IQD4US. I was having difficulty making heads or tales of it. Now when I re read it, it makes sense. I agree that this is a step towards progress.