Experts: The Central Bank’s actions need media promotion , 22 NOV

 Experts: The Central Bank’s actions need media promotion

Economic 11/20/2023    Baghdad: Shukran Al-Fatlawi  Financial and economic experts called for the need to intensify the promotion of the new mechanisms adopted by the Central Bank, including (Visa Direct) to assist citizens and merchants with the financial transfer process, in addition to developing more serious solutions to reduce the exchange rate in the parallel market by regulating banking business.

Economist Dr. Mustafa Hantoush told “Al-Sabah”:

The recently launched “Visa Direct” service did not gain public support in terms of financial transfers, as it is not known yet, even though the Central Bank and the competent authorities have begun the process of focusing on this. Mechanism.

He explained that the matter is not bad in terms of the transfer amount and the mechanism used, indicating that daily transfers may reach approximately three thousand dollars via the “Visa” issued by the banks.

Hantoush added that the transferred amount, although small, is suitable for small merchants, stressing that  this process is subject to compliance and money laundering standards by knowing the reasons for the transfer and who is entitled to it, and this service is easier than going to banking companies, (Zain Cash) or (Western Union).

He pointed out that this service is easy in terms of transfer, wondering at the same time about the possibility of transferring the Iraqi dinar to the Emirates or Turkey, and whether the withdrawals are in the Emirati dirham, the Turkish lira, or the dollar, since the basis of the problem is the smuggling of the dollar to the banned countries. 

He noted that  this issue may contribute to somewhat balancing the exchange rate or decreasing it slightly, but it does not contribute to solving the problem, due to the need for more serious steps, including a platform for selling the dollar and stopping smuggling.  Hantoush pointed out that

the First Bank of Iraq, which follows this mechanism, is specialized in banking operations via telephone and Internet means, and

it was implemented in the year 2020 and provided a set of services that did not reach the required level and circulation among the banking public due to the weakness of the marketing process.

For his part, Imad Al-Muhammadawi, who is interested in economic affairs, said during his interview with “Al-Sabah” that the (Visa Direct) service It works to facilitate the movement of money globally, explaining that the country is far behind in this aspect.

He stated that what the Central Bank did in this regard was an attempt to control the dollar, pointing out the need for solid and well-known banks to adopt this mechanism to prevent manipulation.

It is noteworthy that the advisor to the Prime Minister, Fadi Al-Shammari, praised the (Visa Direct) service for transferring money abroad and considered it a successful step to facilitate the work of small merchants, stressing that

it contributes to reducing the exchange rate in the parallel market and

its procedures take only 5 minutes,

 expressing his hope that the citizen will interact with this. Banking service that cuts off black market speculators.   https://alsabaah.iq/87551-.html