In the bustling heart of Erbil, a city that straddles both history and modernity, the Central Bank of Iraq (CBI) Governor Ali Al-Alaq took the podium at the inaugural Annual Banking Conference. His message was clear and urgent: stability in the exchange rate of the Iraqi Dinar against the US Dollar necessitates a comprehensive overhaul of the trade system and financial transactions. This call for change comes amidst a time of significant global market fluctuations, impacting economies worldwide.
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The Call for Stability
With the weight of his office behind him, Al-Alaq emphasized the importance of adherence to the principles outlined in the Anti-Money Laundering and Terrorism Financing Law. These principles, he stated, are indispensable to safeguard the integrity of Iraq’s financial system. Further, they are essential in protecting Iraq from serious risks, especially those associated with foreign exchange operations and the sale of the Dollar in various forms.
Al-Alaq underscored the link between the enforcement of these standards and the smoothness of transfer operations. He stressed the need for a commitment to these principles to ensure monetary stability and maintain exchange rate stability, crucial for the economic health of Iraq in an unpredictable global market. The governor also recognized the necessity of significant changes and restructuring within the Iraqi trade system and foreign transfer system to achieve this stability.
Revitalizing the Banking Sector
While the CBI focuses on exchange rate stability, the Iraqi government is also taking significant strides to revitalize the banking sector. Prime Minister Masrour Barzani of the Kurdistan Regional Government (KRG) outlined key initiatives aimed at transforming the banking sector at the same conference. These initiatives include direct deposit of pensions into bank accounts, online financial management for traders, online loan applications, and online money transfers. The government’s ambitious aim is to ensure that one million employees have bank accounts by the end of the following year, and to expand the presence of banks and ATM machines in the region.
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Barzani accentuated the need to cultivate healthy competition among banks in the Kurdistan Region and restore public trust in the banking sector. He acknowledged the societal hindrance created by an overreliance on cash, which has stifled economic growth and opened avenues for fraud and money laundering. The government, he affirmed, is committed to supporting banks in enhancing and expediting their services to meet the needs of citizens and businesses.
Steadying the Economic Ship
These concerted efforts by the CBI and the Iraqi government reflect a shared commitment to financial stability and economic development in Iraq. By focusing on exchange rate stability, improving the banking sector, and promoting transparency and integrity in financial operations, Iraq aims to create a conducive environment for economic growth and trade. Amidst the ebb and flow of the global market, Iraq’s economic ship is steadying its course, charting a path towards stability and prosperity.
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