Iraq agrees with the UAE to launch financial transfers and trade financing between both countries

Shafaq News / The Central Bank of Iraq (CBI) announced today, Wednesday, its agreement with the Abu Dhabi First Bank Group in the United Arab Emirates to initiate financial transfers, trade finance, and imports between the two countries using the Emirati dirham currency.

A statement issued by CBI indicated that the Governor, Ali Mohsen Al-Alaq, met with the President of Abu Dhabi First Bank Group, Hana Al-Rostamani, in Dubai. During the meeting, they agreed to commence financial transfers, trade finance, and imports between Iraq and the United Arab Emirates in Emirati dirhams through Abu Dhabi First Bank.

The statement highlighted that the dirham-denominated financial transfers began today, Wednesday, December 13, marking the initial phase of this agreement involving five Iraqi banks, with a gradual increase planned.

According to the statement, this step aims to empower Iraqi banks in establishing relationships with reputable international banks. It aims to reduce reliance on electronic financial transfer platforms and adhere to internationally accepted practices to enhance the balances of Iraqi banks for trade financing purposes.

The statement further noted that Abu Dhabi First Bank offered contributions to fund clean energy projects in Iraq.

It is noteworthy that Abu Dhabi First Bank is among the world's largest and strongest financial institutions, holding a credit rating of AA, with total assets amounting to approximately $300 billion.