The Central Bank's own record

FX-intermediation companies (category C) get until 31 March 2025 to merge into category A or B exchange companies.

Exchange companies (A, B) must place new head offices and branches in areas lacking exchange services, not in named saturated districts (in Baghdad: Zayouna/Rubaie St., Harthiya, Samawal St., Kifah St., Arasat, Karrada, Saadoun St.; Basra: Jazair St.; Maysan: the Grand Market). They may not move offices from the governorates into Baghdad, though moves out of Baghdad are allowed.

Cancels board decision 192 of 2023. Category A exchange companies with fewer than 10 branches (including HQ) may open new branches up to 10, and companies with 10 branches must raise capital by IQD 250 million for each new branch, however long they have been licensed.

Some exchange companies charged travellers IQD 50,000 per dollar purchase, against circular 8003/1/9 of 11 July 2024, which allows only IQD 25,000. Companies must comply or risk exclusion from the FX window.

Banks and exchange companies operating at airports charge an administrative commission of IQD 10,000 per transaction (instead of 15,000), and exchange companies charge IQD 15,000 per transaction.

Answers queries on domestic transfers and uploading their data to the FITR platform: the ceiling on domestic IQD transfers is set by Art. 13/Fourth/b of Regulations No. 1 of 2022 and may not exceed the company's capital.

Exchange (A, B) and intermediation (C) companies may upload their other transactions to the FITR platform at the end of each working day: FX trading outside the window, domestic transfers, and outward/inward transfers via Western Union and MoneyGram. Dollar sales to travelling citizens must still be registered in real time, one by one.

Sets 14 July 2024 as the final start date for the airport mechanism for selling cash dollars to travellers. Rafidain and Rasheed banks open outlets at Baghdad, Basra and Najaf airports, and Trade Bank of Iraq at Baghdad, Najaf, Basra, Sulaymaniyah and Erbil. Exchange companies must move their dealings to one of these banks by 11 July 2024, and the four exchange companies already at the airports continue.

Exchange and intermediation companies are responsible for customer due diligence and for daily-updated screening of customers against domestic and international prohibited lists, through their own electronic systems, for every service including window dollar sales. Violators bear all consequences, including exclusion from the window.

When an exchange or intermediation company moves its window dealings to another bank, the receiving bank e-mails the request to the FX window section (Investments & External Transfers Dept). Under Art. 12/Fourth/8 of the amended Regulations No. 1 of 2022, a company may not switch banks for window access within 3 months unless its bank has stopped entering the window.

Amends Art. 11/Third(t) of the amended Regulations No. 1 of 2022: exchange companies (A, B) may open a new branch if they raise capital by IQD 250 million per branch. Art. 11/Third applies to companies licensed for 3 years or more.

Under Art. 15/Fourth of Regulations No. 1 of 2022, exchange companies (A, B) must acquire and run an electronic information system covering daily customer sales and purchases, quarterly and annual accounts and other activities, linked electronically to all branches.

Banks must verify that the exchange companies they deal with meet CBI requirements, including specialised AML/CFT systems, policies and procedures under Law 39 of 2015 and CDD Instructions No. 1 of 2017.

Moves import financing onto the electronic platform. It lists eligible entities (registered companies; simple companies capped at USD 200,000 a month) and permitted transactions (imports, services, property abroad, study, medical, investor returns). Each request must name the final beneficiary, attach an invoice valid up to 6 months, carry AML and sanctions/OFAC screening pledges, and be backed by an IQD RTGS deposit 3 working days ahead; the bill of lading is the only document for post-audit. Bank margin is capped at IQD 10 per USD above the official rate, any transfer to a sanctioned party means permanent exclusion from the window, and the 2021 FX sale and purchase instructions are cancelled.

Under Art. 12/Fourth/15 of Regulations No. 1 of 2022, exchange and intermediation companies must sign a contract with another licensed company to carry out domestic or external transfers, notify the CBI, and get prior approval before doing external transfers through Western Union or MoneyGram. A model contract is attached.

Sets minimum capital at IQD 5 billion for category A exchange companies, 2.5 billion for category B and 500 million for category C intermediation companies. Companies need a bank guarantee, compliance, AML/CFT and audit units, an effective AML system with domestic and international name screening, and branch-opening conditions. Licences are cancelled for AML/CFT involvement or suspicion, deliberately misleading data or losing 75% of capital, and Instructions No. 1 of 2018 for intermediation companies are cancelled.

New window instructions, effective 17 October 2021, cancelling all earlier related instructions and circulars. The CBI sells for external top-ups and cash at the official rate, with the bank's margin capped at IQD 10 per USD, and IQD must be deposited by RTGS 5 working days before execution. Exchange companies (A, B) take part through banks, and banks report sales monthly within 10 working days. All parties, including the final beneficiary, must be screened against sanctions lists (OFAC, terrorist-asset freezes), and any transfer to a sanctioned party means exclusion from the window.

Only CBI-licensed entities may act, with CBI approval, as principal agents (banks, category A exchange companies, e-payment providers) or secondary agents of foreign money-transfer providers such as Western Union and MoneyGram.

Creates three licence classes: category A (private joint-stock exchange companies), category B (limited exchange companies) and category C (FX-intermediation companies, IQD 500 million capital). Mergers of 10+ intermediation companies form a category A company and 5+ a category B company. Companies need an AML electronic system, provide a bank guarantee that is confiscated if the licence is withdrawn, and lose their licence for AML suspicion, 6 months' inactivity or losing 75% of capital.

Suspends paragraphs 2, 3 and 4 of letter 822/6/5 (29 March 2020). From 20 December 2020, incoming US-dollar transfers must be credited to customers' accounts in full and in the same currency.

Applies Art. 53 of Instructions No. 4 of 2010 with a new cap on a bank's total FX position of 20% of capital and sound reserves (instead of 40% of own funds), phased in at 40% by 31 August 2020, 30% by 31 October 2020 and 20% by 31 December 2020. Banks must appoint a treasury manager, and banks over the debit-position cap are suspended from the FX window until they close those positions.

Recalling banks' signed pledges to sell their cash-dollar allocations to travellers abroad, the CBI asks banks to report cash amounts bought through the window and not yet sold.

From 20 January 2019 the CBI stops charging banks a 2% commission on foreign cash deposits in USD 20 notes and below, cancelling letter 207/12 of 15 January 2009.

Plan for prepaid travel cards: citizens buy dollars on the card at IQD 1,200 per USD, and the CBI settles the cards for banks abroad by selling them dollars at IQD 1,190 through the window. The target is 1 million cards and USD 1 billion of spending abroad in the first phase, with a media campaign from 1 July 2019.

FX-intermediation companies' letter of guarantee falls to 10% of capital (from 50%) and their insurance deposit to IQD 50 million (from 100 million). Supervision fees fall to IQD 500,000 (from 1 million) and final-account audit fees to IQD 250,000 (from 500,000).

Adopts new FX sale and purchase instructions for 2017, with a list of transactions that may be financed from banks' balances abroad and new window entry forms, effective 1 August 2017. It cancels earlier instructions 233/9/1/9, 26/3/9, 19/3/9, 72/3/9 and 456/1/9 and all previous instructions.

Because some trading companies entered the FX window through several banks on the same date, each company's managing director must pledge not to do so. Any justified exception must be reported to the CBI in advance for approval.

Applications and deposits for the window session of Sunday 25 June 2017 move to Sunday 18 June 2017, with results announced Thursday 22 June 2017. This shows the one-week cycle between application and result.

Foreign bank branches in Iraq represent their head offices, and the IQD 70 billion the CBI requires of them is operating capital. Window access for all banks follows CBI criteria set with international audit firms, and branches that fail the criteria are excluded until they meet them.

After the first classification review of banks in the FX window, compliance (compliance, AML, risk) becomes the main condition for window access: banks must score over 50% of the compliance standard within one month or be suspended from the window, and over 65% for continued participation at the August 2017 review.

On the contracting of international audit firms under circular 237/4/1/9 (27 July 2016): these firms currently assess banks' financial position and asset quality, which Iraqi audit offices (alone or with international ones) will do later. Approved training in compliance, AML/CFT and risk must come from qualified institutions.

To avoid conflicting instructions, cancels all paragraphs of circulars 159/1/9, 88/3/9 and 208/1/9 (dates given as 21 June 2016, 28 April 2016 and 6 March 2016), except paragraph 3 of circular 159/1/9, which stays in force. The subjects of the cancelled circulars are not stated.

Banks no longer have to split their window top-up requests between outward transfers and letters of credit. The list of remitting customers and final beneficiaries is now sent monthly (within 7 days of month-end) instead of daily with each purchase request, and requests need only the customer (company) name and managing director.

Banks no longer need to submit SWIFT statements with window purchase requests; they keep them for on-site inspection.

To activate instructions 26/3/9 of 2015 on topping up banks' balances abroad, and to strengthen banks' own customer checks, banks stop submitting transfer invoices and import licences to the CBI and meet only the window requirements.

Extends the deadline for 2016 customs declarations to 31 March 2017 and allows analytical statements (customer/beneficiary lists, correspondent statements, invoices, SWIFT messages) instead. For 2017: dollar balance top-ups requested without invoices and judged by CBI classification criteria; customs declarations due 3 months after each transfer/LC; top-ups may not exceed customer purchase requests; banks that miss deadlines are suspended from the window, and banks that break the CBI price are barred from the window permanently.

To take part in the window, banks submit a declaration, a purchase request, a list of companies (transfer or LC), an IQD RTGS deposit (code 234) made 7 days before execution, and a dollar purchase form. From 15 January 2017 these go in a sealed envelope to the window box 7 days before execution, with a flash drive of traders' data in the new format.

The CBI says it does not intend to change the dinar/dollar rate, denies imposing fees or taxes on the dollar sale price, and says higher oil prices will let it pump more dollars into the market.

From 1 December 2015 the CBI buys USD at IQD 1,180 and sells at 1,182 for purchases from the Ministry of Finance and others, with no effect on cash sales or bank top-ups. From 1 January 2016 the cash sale and bank top-up rate is unified at IQD 1,182 plus IQD 8 commission, i.e. 1,190 per USD.

Banks must send their correspondent-account statements showing account movements within 15 days of each transfer, or be barred from topping up balances abroad through the CBI. They must also send such statements for past periods.

Reinstates the 2011 instructions on importing foreign currency: licensed banks may import FX cash only with prior CBI approval, stating the amount, a well-known international issuing bank, the reason, and that the notes are free of money-laundering suspicion and not withdrawn from circulation.

Individual decision (see bank_status_actions.csv): after Al-Marj International Money Transfer raised its capital to the required IQD 30 billion, the CBI lifted the penalty on it and readmitted it to the auction, under board session 1518 of 12 January 2015.

New licence applications for FX-intermediation companies had been frozen since 7 January 2015. To speed up licensing, companies still under incorporation are given one month from the letter to meet the stated conditions.

Banks, money-transfer companies and FX-intermediation companies must not carry out any transaction of any kind with their branches in areas controlled by ISIS; violators face licence withdrawal and legal action.

In line with an earlier CBI announcement, the IQD deposit period for outward transfers (para (b) of instructions 26/3/9 of 2015) is cut from 10 days to 5 days from 1 July 2015.

Following a Crisis Cell decision of 18 June 2015, the CBI stops deducting tax and customs deposits from amounts due on transfers made through the CBI, effective 18 June 2015; remaining deposits are to be settled.

Money-transfer and FX-intermediation companies that had been barred are readmitted to the CBI FX sale window from 22 June 2015, on condition that they comply with circular 203/2/9 of 18 June 2015.

From 18 June 2015 banks stop deducting tax and customs deposits on amounts due for dollar transfers made by the CBI; the customs and tax authorities collect their fees under the law.

Board session 1525 (18 May 2015) cut the period for depositing the IQD equivalent before an outward transfer (para (b) of instructions 26/3/9 of 2015) from 15 days to 10 days.

Licensed money-transfer companies may enter the currency auction and top up their balances abroad through licensed Iraqi banks, applying under instructions 26/3/9 of 2015 and bearing full responsibility for their requests. A copy of their agreement is required for the transfer to be approved.

The board raised the dollar sales quota for exchange and transfer companies and shortened the time for executing outward transfers. It also agreed steps for private banks short of liquidity, IQD 1 trillion for SME lending through private banks, and instructions for bank-loan guarantee companies.

The CBI noticed that some banks and companies had stopped buying cash dollars from it, and that some companies' purchases were concentrated with particular (especially state) banks. It asks them to explain.

Press headlines: the CBI doubles exchange companies' dollar quota and lets Rafidain, Rasheed and Trade Bank of Iraq open dollar-sale windows for exchange companies and small importers.

Banks and companies were adding the equivalent of customs duties and income tax (about 8%) to their cash-dollar prices for non-commercial purposes. The CBI says cash dollars are only for the purposes in its instructions, not trade or imports (which go through transfers and LCs), and threatens to stop selling currency to violators and to open its own outlets to the public.

From 25 March 2015, banks must deduct from importers, on the IQD equivalent of the USD import value, deposits of 5% for customs duties and 3% for income tax, whether or not the goods are exempt. The Customs and Tax authorities settle them later.

Banks and money-transfer companies must use a new form for the monthly transfer statements under para (f) of instructions 26/3/9 of 2015, replacing the form attached to circular 48/3/9.

Amends para (c): a bank asks the DG of Investments in writing to top up its correspondent balance, attaching the IQD (type 216) account entry for the equivalent amount, and reports the use of the funds 15 days after the transfer. Amends para (f): banks send monthly statements of FX transfers to the DG of Banking Supervision.

The CBI tops up banks' correspondent balances abroad for legally permitted operations (per an attached list). Banks deposit the IQD equivalent in type-216 accounts 15 days ahead, apply in writing to the DG of Investments, apply KYC, keep correspondent statements and report how the funds were used. The top-up rate is IQD 1,187 per USD and the cash rate 1,190; cash sales continue through the window section, and sellers keep buyer lists instead of sending them.

Among other decisions, the CBI may top up banks' USD accounts abroad to cover customers' imports and other purposes without going through the FX sale window, under simplified and transparent CBI monitoring, and will prepare to move to documentary credits. The statement also adds a private-bank representative to the CBI board.

Standard declaration each bank signs with a window purchase request: the information is correct, the funds cover private-sector imports entering Iraq only, the customers are known to the bank (KYC) and hold valid import licences, invoices are genuine and not previously paid, customers are not fictitious, and their tax position is clear. The bank bears legal liability otherwise.

New instructions for FX-intermediation companies (approved at board session 1525, 18 to 19 May 2015): minimum capital IQD 500 million plus a bank guarantee of 10% of capital; FX trading for own account up to capital and reserves; bank credit up to 50% of capital and reserves. Art. 11 lets the board suspend a company or cancel its licence, for example for failing to start work, running the company through non-shareholders, not raising capital or providing the guarantee, deliberately misleading data, or losing 75% of capital.

From 16 November 2014 the CBI cuts its commission on dollars sold for letters of credit from IQD 18 to 16, so the LC dollar price becomes IQD 1,182 instead of 1,184, to encourage traders to open LCs.

The CBI board (session of 20 April 2014) allowed money-transfer companies to open direct IQD and USD accounts at the CBI to buy foreign currency, widening the currency auction.

Import transfers need the importer's statement (amount, purpose, beneficiary, correspondent, import licence) and contract, a bank AML declaration, and customs/tax proof of entry within 3 months; failure costs a 5% fine on the IQD purchase amount. Monthly sales to a bank are capped at 20% of its capital (in USD) until it reaches IQD 250 billion, cash sales may add at most IQD 10 per USD, and banks deposit the IQD a week ahead. Requests are executed a week after submission, banks are rated on their resale price and customer diversity, and the instructions apply from 16 February 2014.

All FX-intermediation companies must pledge to visit the CBI (Rashid St.) at least twice a week and provide their company e-mail and the name of the bank they deal with by 30 January 2014, or be excluded from the dollar sale window.

The Iraqi Private Banks League formally committed to its initiative (three banks at first) to sell dollars to the public below the announced prices: IQD 1,183 instead of 1,189 per USD for cash, and 1,178 instead of 1,184 for letters of credit.

Under board authority given to the acting Governor on 15 May 2013, the ceiling on the amount of a single transfer (para 2 of Third, instructions 72/3/9 of 2013) is cancelled. From that day requests are accepted according to the efficiency and soundness of each bank's and company's dealings.

All requests to buy dollars by transfer from banks, and from money-transfer companies through banks, are accepted for importing goods and services, up to USD 500,000 per transfer. The number of transfers is unlimited, and funds go to no more than two accounts at CBI-approved correspondent banks.

Rebutting an MP's claims (IQD 905 bn lost through the auction), the CBI lists the five largest buyers in 2012 and says audits had led to some banks being barred from the auction for set periods. Banks must now submit auction requests a week before the sale date (from Tuesday 19 February 2013). It says requests worth over USD 4 bn had been excluded since 15 October 2012 as suspect, and that private banks were told to sell to the public at no more than 10 units above the CBI sale price.

FX-intermediation companies must file final accounts by 30 June of the year after the activity year (for 2012, by 30 June 2013), or bear legal consequences.

Banks get weekly cash-dollar quotas (per an attached table). They sell at no more than IQD 10 above the CBI's announced cash price, under inspection by the DG of Banking Supervision.

To simplify FX purchases for transfers and letters of credit, banks now submit transfer requests and invoices to the executive committee weekly instead of daily, on a set timetable starting Tuesday 19 February 2013.

The CBI will finance documentary credits for Bank of Baghdad, Credit Bank and Mansour Bank first, then all licensed banks, while they keep using the window. Weekly auction quotas rise to USD 100,000 for exchange companies with IQD 500 million capital and USD 150,000 or 125,000 for money-transfer companies (IQD 15 bn or 10 bn capital). The Governor may cut the USD sale price from IQD 1,179.

Importers financing imports by transfer or LC through private banks in the auction must pay the rate of 1,189 (the statement says 'dollars per dinar', i.e. IQD per USD) after submitting proper import documents.

Rebuttal of a news report. Dollar sales to banks are described as a monetary-policy tool to absorb liquidity, sold to state, private and foreign-branch banks, with inspection teams enforcing CBI instructions to narrow the official/parallel rate gap on pain of sanctions.

After Rafidain and Rasheed opened cash-dollar outlets at official rates, a wide group of private banks will also sell cash dollars to the public through approved outlets at no more than IQD 1,189 per USD.

Banks must hand cash-FX quotas for money-transfer and exchange companies only to the company's managing director or deputy at the set time; powers of attorney and other staff are not accepted.

Rafidain Bank sells cash dollars to citizens at the CBI-set price (about IQD 1,189 per USD) for permitted purposes: travel, medical treatment, official trips, Hajj and Umrah.

Denies rumours that the CBI no longer accepts certified cheques from private banks for the currency auction; it accepts certified and ordinary cheques from all state and private banks for any amount.

The CBI keeps selling dollars through its window and will meet all requests under its instructions, provided banks disclose the customers asking to buy FX, under the instructions adopted on 1 February 2012 on using one certified cheque per customer for identification.

Asks the Ministry of Trade for the names and addresses of companies incorporated as FX-intermediation companies since 2000 without a CBI practice licence, and to tell them to raise capital to IQD 150 million and apply to the CBI. Stresses that an exchange company may not be incorporated without prior CBI approval in principle.

With the capital-increase deadline of 31 December 2010 (circular 1806/2/9) approaching and many exchange companies not renewing their letters of guarantee, companies must finish the capital increase with the Companies Registration Dept and renew their guarantees before expiry. This is a 'final warning' before action is taken.

Press statement: the CBI has begun launching an electronic interbank platform for FX and money-market trading, to build an organised electronic financial market.

Documents for buying dollars from the CBI: tuition abroad (Higher Education Ministry letter, student's foreign account, employer and university confirmations); treatment abroad (Health Ministry letter with a medical report approved by the central medical committee, and the amount); other humanitarian cases (request to the CBI window stating amount and reasons).

Early instructions under Art. 4(2) of the CBI Law (56 of 2004). Exchange companies need a CBI licence and minimum capital of IQD 50 million, may trade FX for their own account within capital and reserves, and may be suspended or lose their licence (for example for not starting work within six months, or for not raising capital or providing the required guarantee). Effective on board approval.

A category A licence (private joint-stock exchange company) requires a merger of at least 10 FX-intermediation companies, IQD 5 billion capital, a bank guarantee of 10% of capital, compliance, AML/CFT and audit units, and an adequate accounting system.