Central Bank of Iraq, the Department of Financial Operations and Debt Management, controls the first phase of the project (transfer of liquidity between banks

Introduction: In order to maintain the stability and stability of the financial system in general and the banking system in particular in Iraq, especially after the stability of the exchange rate of the Iraqi dinar against the dollar in the markets and the decline of the price gap of the local currency, and to continue to provide new financial products help all banks and motivate them to deal with Achieves the objective of monetary policy in the use of quantitative tools to control the supply of money on the one hand, and opening new avenues for investment of surplus funds in some banks On the other hand, the project of liquidity transfers between banks, and this project is the first brick of the In order to activate the exchange market between the banks in the future, especially that any risks, although very low resulting from the mechanism of work transfers will be borne by the accounts of the transfer process and the Central Bank of Iraq as the body that will adopt the transfer process in the first phase of the carrier. Based on the provisions of Articles 3 and 4 - Article (28) of the Central Bank of Iraq Law No. 56 of 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 and in order to complete the efforts in The implementation of the project of the implementation of the project liquidity liquidity between March 19, 2019. The two systems include banking (Islamic) 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 market 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 to the project of transfers of liquidity between banks. Glossary: ​​- In terms of the following terms meanings of each of them and where mentioned in the controls above. • The bank is a bank or a bank under the provisions of Article (1) of the Banking Law No. (94) for the year 2004. 1997 Amendment " Salami: - The founding bank in accordance with the provisions of the Companies Law No. (21) of 1997 and the Public Companies Law No. (22) of 1997 and the Banking Law No. (94) of 2004



2) The establishment of its internal system is a commitment to carry out the banking activities that are permitted without interest and in accordance with the terms of the banking transactions that do not contradict with the provisions of the Islamic Shari'a both in the field of accepting deposits and providing other banking services or in the field of finance and investment. Islamic banks No. (43) for the year 2015. The transfer of liquidity between banks: - a process of transferring liquidity from banks with surplus to banks with disabilities, through the intervention and supervision of the Central Bank of Iraq to exercise its functions in support of stability of the banking sector, The banks have the ability to finance temporary shortfalls in liquidity in banks with deficits, and therefore all operations carried out in the process of transferring to the CBI will be subject to deficit. The banks of the surplus: - Which banks have a surplus of liquidity, which invest these surpluses in the securities issued by the Central Bank and Treasury transfers. Guarantees: Financial guarantees (all types of government securities and securities issued by the Central Bank of Iraq), and the guarantees are either inside the system or outside the system as follows: - The financial guarantees (all types of government securities and securities issued by the Central Bank of Iraq) (A) Guarantees within the system include all securities issued through the Central Depository System (CSD). B. Collateral guarantees include all government securities issued outside the Central Depository System (CSD). The implementation of the liquidity ratio between conventional and Islamic banks: A - The Central Bank of Iraq at this stage is the decision to grant liquidity after being authorized by the banks (traditional and Islamic) under the relevant contracts. B - will be approved guarantees provided by banks that suffer from Temporary liquidity shortage. - The banks with temporary deficit in liquidity request financing which includes the amount of liquidity required and the duration of payment with the attachment of a copy of the budget on the date of the request, and therefore the Division of Credit Sufficiency Department of financial operations and debt management study and analysis of the status of the bank, (B) In the event that the bank fails to meet one of the five approved criteria, obtaining the approval of the General Manager of the Financial Operations Department and the Director of the Banking Control Department will require the award decision or not. More than one criterion, the governor's approval of the grant decision and the liquidity transfer mechanism between the banks will be obtained







3 - The field inspections are carried out by the Banking Control Department to verify the accuracy of the data provided by the bank, which is reviewed in light of the status of the bank on the request of the Department of Financial Operations and Debt Management. F. After the approval of the Credit Sufficiency Analysis Division in the Department of Financial Operations and Debt Management, 1. Take the necessary measures regarding the implementation of liquidity transfers and will have the options listed below for the guarantees they have: 1- Guarantees outside the system: - The Central Bank will transfer the amount requested to the bank account requesting liquidity and open to the Accounting Department, (A week prior to the maturity of the guarantees) Giving the bank a request for liquidity indicating a near maturity date. 2. Guarantees within the system: - Credit risk for the CSD system for two years. The CBI system is being processed. The bank accounts will be separated for Islamic banks and traditional banks to avoid mixing the nation. The bank accounts will be separated from the banks and the banks. Al-Taa'aali Saa'iakoon Al-Maa'aah Al-Masa'arif Al-Mu'awarif Group A group of Al-Ala'i and Al-Ta'a'ilat Al-Saa'ilat Al-Saa'ilat Al-Saa'a'ilat Al-Saa'a'alat Al-Saa'a'ilat Al-Saa'a'ilat Al-Saa'ilat Al-Saa'ilat




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