Economy News – Baghdad
The Central Bank of Iraq has formally entered into a banking agreement with Emirates Islamic Bank, aimed at fostering the exchange of national expertise in the Islamic banking sector. This announcement was made on Thursday.
According to the statement from the Central Bank, Emirates Islamic Bank is classified as a top-tier institution, receiving an (A+) rating from the International Fitch Agency. This collaboration represents a significant milestone in the strengthening of banking relations cultivated by the Central Bank of Iraq with leading regional and global banks in recent years.
The agreement encompasses various areas of cooperation, notably the sharing of expertise to enhance the Islamic banking sector, the provision of payment services in the UAE dirham currency for Iraqi banks, and the expansion of their correspondent banking network.
Furthermore, the agreement facilitates collaboration between Iraqi banks and Emirates Islamic Bank, with oversight and support from the Central Bank of Iraq. This initiative is designed to create mechanisms that will enable clients of Iraqi banks to invest partially in Islamic bonds issued by Emirates Islamic Bank or comparable entities with similar credit ratings in the UAE.
It’s important to highlight that the Central Bank of Iraq initiated a new phase of external transfer operations in August of the previous year. This move is part of a broader strategy to enhance currency diversity and streamline international transfer operations. The announcement followed the establishment of protocols governing transactions involving currencies such as the euro, Chinese yuan, Indian rupee, UAE dirham, and other global currencies.
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