In order to maintain the stability and stability of the financial system in general and the banking system in particular
Iraq, especially after the stability of the Iraqi dinar exchange rate against the dollar in the markets and the decline of the price gap for the local currency, and in order to continue to provide new financial products that help all banks and motivate them to deal in order to achieve the goal of monetary policy in the use of quantitative instruments to control the supply of money on one hand, A new project for the investment of surplus funds in some banks. On the other hand, the liquidity transfer project between banks has been activated. This project is considered the first building for the activation of the exchange market between banks in the future, especially since any risks, although very low, The mechanism of the transfer work will be borne by the accounts of the transfer process and the Central Bank of Iraq as the body that will adopt the process
Transportation in the first phase of the transfer based on the provisions of Articles 3 and 4 – paragraph e) and Article (28) of the Central Bank of Iraq Law No. (56) for the year 2004 and the Banking Law No. 94 of 2004 and the Islamic Banks Law No. (43) for the year 2015 and after approval of the liquidity transfer project pursuant to the decision of the Board of Directors of the Central Bank of Iraq No. (3) for the year 2019. New financial instruments to correct banking and diversification of financial instruments and stimulate banks to cooperate among themselves and to benefit from the cost of alternative opportunities have been Issuing liquidity controls between banks.
Scope of implementation:
The implementation of the draft liquidity transfer between banks as of March 2019 includes both banking systems (Islamic and traditional) and separately
Legal reference:
The Law of the Central Bank of Iraq No. (56) for the year 2004 and the Banking Law No. (94) of 2004 and the Law of Islamic Banks No. (43) for the year 2015 and instructions of the Stock Exchange and all laws related to the Republic of Iraq as well as the decisions of the Board of Directors of the Central Bank of Iraq and circulars Issued by the Governor of the Central Bank legal reference for the draft liquidity transfers between banks.