The Advisor to the Association of Banks praises the Prime Minister's support for the strategy of the Central Bank and private banks in achieving banking reform, 29 FEB

 The Advisor to the Association of Banks praises the Prime Minister's support for the strategy of the Central Bank and private banks in achieving banking reform

2/28/2024    Baghdad

Advisor to the Iraqi Association of Private Banks, Samir Al-Nusairi, praised Prime Minister Muhammad Shiaa Al-Sudani’s support for the procedures of the Central Bank and private banks to achieve banking reform, and his constant and continuous confirmation that support will remain a major goal until the banking sector overcomes all the challenges and obstacles it suffers from, both local and external, indicating that this Paying attention to the measures that the Central Bank launched in 2023 and that it will launch in 2024 has enabled the economy to recover and achieve good growth rates.

Samir Al-Nusairi said: Since assuming responsibility, the government has implemented policies and mechanisms in cooperation and coordination with the Central Bank and has developed a detailed road map to address the lack of methodology, the previous dispersion in financial policies, the chaos in managing the economy, and the imbalance that occurred as a result of the lack of coordination between financial and monetary policies.

He added, “The map included diagnosing the deficiencies and developing solutions, accompanied by the Central Bank reconsidering the tools and applications of monetary policy and focusing its plans on achieving priorities that are based on achieving financial and banking reform first.”

He continued, "These steps resulted in the issuance of reform decisions to enable the economy to grow at good rates, which were confirmed by international organizations, especially the recent reports of the World Bank and the International Monetary Fund, and their acknowledgment that the Iraqi economy in 2023 left fragility to gradually recover and achieved an inflation rate at an annual rate of 3.7%, which is the lowest rate in comparison." By 7%, in January 2023.”

He stressed that “this rate is the lowest compared to the inflation rates in the Arab and regional countries for the same period, and this is one of the goals of monetary policy by reducing inflation and maintaining the general level of prices despite the fluctuation in the exchange rate on the black market. In addition to that, the expectation of achieving growth in Non-oil GDP by 5%.”

Al-Nusairi explained, “The measures also included organizing the financing of foreign trade, regulating the global banking system, moving banks to build trust relations with global correspondent banks, obtaining their approval to open accounts for our banks with them, allowing direct commercial and banking dealings with them, gradually leaving the electronic platform, and introducing new foreign currencies into dealing.” For the purposes of foreign trade with China, the Emirates, Turkey and India, in addition to the US dollar, which will help stabilize the exchange rate in the trading market.”

Al-Nusairi pointed out that “the measures were also supported by the serious approach of the government and the Central Bank to move and transform from the cash economy to the digital economy and focus on developing electronic payment systems and securing the infrastructure for that, establishing a national company for payment systems, reconsidering the structure of banking financing, and preparing to launch the national lending strategy and establishing a Riyada Bank.” To finance small and medium enterprises and to reconsider the structural, regulatory and supervisory structure of the bank’s specialized departments.”

He added, “The important and basic priority that the Central Bank is working on includes preparing to launch the financial inclusion strategy, as the number of accounts opened in banks has grown by an increase of 25%, to reach more than 10.5 million accounts, while the number of credit cards issued has reached more than 18.5 million.” Card increased by 19%. The financial inclusion rate reached 41%, up from 33.5%.”

He pointed out that “all these reform measures were completed under difficult and complex circumstances during 2023, and with continuous communication, support, harmony, cooperation, support and supervision between the Prime Minister, Muhammad Shiaa Al-Sudani, and the Governor of the Central Bank, Ali Mohsen Al-Alaq, which enabled the economy to recover and advance, and the problems and obstacles to banking work will inevitably be overcome.” "The current situation is supported by wisdom, effective government intervention, and the banks' determination to move forward towards implementing the reform approach to the banking sector in the next stage."   LINK