The Central Bank calls on companies to mediate integration

Economy News _ Baghdad

The Central Bank of Iraq, on Tuesday, called on companies to broker the sale and purchase of foreign currencies to merge to form a single banking institution.

The bank said in a statement that it "calls on companies wishing to merge to form a single banking institution based on the Companies Law No. (21) for the year 1997 amended," noting that "the objective is to achieve financial and banking stability and create a working environment Competitive. "

"The formation of a larger entity covers wider services commensurate with the large size of the merged institution and thus obtaining greater financial services by the Central Bank commensurate with its size," the bank said. "This process will create strength for the merged institution, .

The bank said that "the merger will be in accordance with two categories, including A, which requires that the merger is not less than 10 companies, which will form a capital of not less than 5 billion dinars," pointing out that "this category will get a name exchange company instead of mediation and will enter the activity of mediation in the sale and purchase of currencies Foreign activities within one of the privileges that will be enjoyed, in addition to allowing them to carry out foreign remittances, as well as the opening of branches do not exceed 3 branches.

The bank said that "the second category, which is called B, where the integration of the number of not less than 5 companies, which will form a capital of not less than 2 billion and 500 million dinars and 500 million dinars each company," pointing out that "these companies will be granted privileges include naming The institution that will result in a merger (a money exchange company) and not mediating where the intervention activity will enter into the sale and purchase of foreign currencies within its activity as one of the privileges that will enjoy.

He pointed out that the third category includes category C, where this category will be granted to companies that do not wish to merge, which have not been granted any privileges as granted to the two categories above, except for the actions shown to keep the name of this group of companies mediating the sale and purchase of foreign currencies, which allows them to mediate and internal transfer only " .




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