BAGHDAD | Mon Jul 11, 2011 12:46pm EDT
BAGHDAD (Reuters) – Iraq will open accounts at three European central banks to protect oil revenue from claims by commercial creditors when immunity at the U.S. Federal Reserve runs out, a senior central bank official said on Monday.
Iraq holds the bulk of proceeds from its oil export sales in the Development Fund of Iraq (DFI) account at the New York Fed but will lose legal immunity on that account next May.
It plans to move at least part of that money to central banks in Britain, France and the Netherlands where the money would be protected.
“The funds in these banks enjoy legal immunity. Besides that, the policy of these banks is independent. These banks consider the funds of its counterpart central banks are used for political stability, not for commercial purposes,” Iraqi central bank adviser Mudher Kasim told Reuters in an interview.