(MENAFN) In a historic move to fortify financial ties between Iraq and the United Arab Emirates (UAE), the Central Bank of Iraq and the First Abu Dhabi Bank have jointly announced a groundbreaking agreement. The accord, formalized during a meeting in Dubai between the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, and the Chairman of the First Abu Dhabi Bank Group, Hana Al Rostamani, signifies a significant step toward enhanced financial collaboration.
As outlined in the statement released by the Central Bank of Iraq, the agreement encompasses the initiation of financial transfer operations and the facilitation of trade and imports between Iraq and the UAE, utilizing the UAE dirham. The First Abu Dhabi Bank will play a pivotal role in facilitating these operations, with the first phase witnessing the launch of transfer operations in UAE dirhams. It is anticipated that the participation of Iraqi banks in these operations will progressively expand in subsequent phases.
This strategic move is embedded in broader efforts to strengthen the financial relations between Iraq and the UAE, fostering a more resilient and stable financial environment. The agreement also carries the objective of empowering Iraqi banks to establish robust connections with global financial institutions, aiming to decrease reliance on electronic platforms for financial transfers. By embracing international best practices in the realm of trade finance, the collaboration seeks to contribute to the overarching goal of reducing dependency on electronic platforms and promoting secure and globally recognized financial processes. The significance of this cooperative effort lies in its potential to open new avenues for economic and financial collaboration between Iraq and the UAE, creating a foundation for sustained and mutually beneficial cooperation.
MENAFN14122023000045015682ID1107596180
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.