Adviser To The Prime Minister: The Electronic Payment System Will Raise The Value Of The Dinar Against The Dollar, 27 NOV

 Adviser To The Prime Minister: The Electronic Payment System Will Raise The Value Of The Dinar Against The Dollar

Time: 11/27/2023  Read: 2,158 times  {Economic: Al-Furat News} Mazhar Muhammad Saleh, financial advisor to Prime Minister Muhammad Shiaa al-Sudani, said that the electronic payment system will preserve the monetary supply of the Iraqi dinar and will raise its value against the dollar in later stages.

Saleh explained, in a press statement, that “the cash payments system is linked to a high degree of certainty whenever payments are made by electronic or digital means, which provides an accurate liquidity indicator for the banking system and reduces the degree of ambiguity and uncertainty in banking liquidity. The payments system also provides sufficient information.” The flow of cash into the banking system, the clarity of the amounts of paid and accumulated amounts, and a statement of their actual balances at all times during the banking working day.

He pointed out, "In light of monetary systems that rely on direct cash payments, bank liquidity management policies surround themselves with additional hedges of disrupted liquidity in order to anticipate liquidity risks, which disrupts part of banking and credit operations in particular."

He stated, “As electronic payments increase as a behavior in daily dealings, the management of the cash mass and its flow in the banking system will be subject to the rule of clarity in cash management, and then directing bank credit towards profitable areas, which provides efficient use of the cash mass, in addition to reducing the percentage of cash leakages outside Banks will decline, which means that a structural change in the behavior of cash demand among individuals and banks will lead to a decline, due to dealing with electronic payment systems that are linked to bank accounts.”

Saleh added, “Thus, the development of the payments environment and its transition from the direct cash environment or cash payment in payment and receipt operations to the use of electronic payment will, in all circumstances, restrict all local cash payment in currencies (other than the dinar) and spare the economy and distance its transactions from cash payment in foreign currency, because systems Digital payments do not allow transactions in the local economy in anything other than the national currency.”   LINK