CBI to Support Dinar Stability

CBI to Support Dinar Stability

By John Lee.

The Central Bank of Iraq (CBI) has issued a statement clarifying the objectives and functions of its Investment Department:

Objectives

To mitigate risks associated with the investment of foreign reserves whilst achieving acceptable returns thereon.

To support exchange rate stability through the provision of foreign currencies to meet the requisite requirements for financing balance of payments needs and to facilitate multiple channels for funding banks and financial institutions operating in Iraq.

To manage and reduce risks arising from the currency of receipt of Iraqi crude oil revenues, as the principal sovereign resource and primary source of foreign currency requirements in Iraq.

To maintain continuity of critical operations within the Department during crises and emergencies, with ongoing updates to contingency arrangements.

Functions

To manage, invest and execute transactions on foreign reserves through investment in liquid foreign assets and the implementation of investment operations thereon to achieve acceptable returns in accordance with the Central Bank of Iraq Law No. (56) of 2004, as amended.

To prepare reports on balances held with central banks, financial institutions and commercial banks on a daily, monthly, quarterly and annual basis.

To maximise the sole sovereign return through the management, notification and monitoring of Iraqi crude oil export credits.

To enhance banks' balances with our correspondent institutions abroad and to execute transfers on behalf of the Ministry of Finance.

To execute investment operations and conclude transactions on foreign reserves.

To prepare the annual plan and strategic plans pertaining to foreign reserves.

To execute all financial transactions through the SWIFT department in accordance with the standards and specialised language of the unified global system of the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

To undertake periodic and ongoing updates to the SWIFT system and to correspond with banks operating in Iraq regarding matters relating to the monitoring of procedures to be implemented by them.

(Source: Central Bank of Iraq)

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