The Governor Of The Central Bank Told {Al-Sabah}: The Launch Of The “Riyada” Bank Is Near., 2 DEC

 The Governor Of The Central Bank Told {Al-Sabah}: The Launch Of The “Riyada” Bank Is Near.

 
Second and third 12/02/2024  Cairo: Esraa Khalifa  The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, revealed the imminent launch of the “Riyada” Bank to support small and micro projects, while

he expressed his optimism about the country’s monetary position despite the circumstances of the region, stressing that  it is “very excellent,” and that the  Central Bank is on its way to

     completing the digital transformation in parallel with its success in
     Implementing the external remittance plan in accordance with international standards.
 
Al-Alaq said in an exclusive interview with “Al-Sabah” on the sidelines of his participation in the activities of the Arab Week for Sustainable Development (fifth edition), which was held in Cairo recently, that
 
“Riyada Bank will be contributed by Iraqi banks and with the support of the Central Bank itself in order to diversify the production base and reduce unemployment levels.” Providing basic foundations for sustainable development with the support of specialized international organizations.”

Green Bank  

He added, “The Central Bank is adopting a financing initiative to purchase solar systems and license the (Green Bank) to be the first bank in the region to specialize in green financing and renewable energy projects as part of confronting the challenges of climate change.” He explained that
 
he announced this in a session on “The Role of Central Banks in Climate Change.”) which was held in Cairo.  He pointed out that “the
 
Central Bank adopts an unconventional  monetary policy, which is not based solely on achieving monetary stability using its traditional tools - although
 
this role has priority as it is a fundamental pillar in
 
     achieving economic stability and
     providing a stable and attractive environment for the business sector and foreign domestic investment - as the changes
 
The challenges facing the world and their effects on the national economy require a broader role and new tools to avoid risks and create appropriate and stable conditions, and
 
one of those challenges is climate change.” He stated that
 
“the Central Bank of Iraq agrees with the opinion that climate changes have direct effects.” In the economy, due to the decline in rates of economic growth, displacement, unemployment, and poverty caused by natural disasters, drought, and poverty, which calls for central banks to take a role in confronting the risks resulting from this, in order to maintain acceptable levels of sustainable development.”
 
Stability indicators 
 
The Governor of the Central Bank of Iraq added that he presented during the Cairo session;

He gave a detailed explanation of the development process in Iraq during the wars and unjust policies regarding Iraq’s resources and infrastructure, which led to serious declines in development indicators. He pointed out that  “with the decline of the last waves of terrorism in Iraq and the achievement of security stability, indicators of economic stability began to grow, and local and foreign investment began.”

It is on an upward path, and the Central Bank of Iraq has achieved several basic factors in general stability by
 
     combating and controlling inflation,
     maintaining high foreign reserves, as well as through its initiatives to
     stimulate economic sectors and
     provide a safe environment and freedom of movement. Investments. Al-Alaq stated that
 
“the experiences of countries have proven the pivotal role of small and medium enterprises, and  
therefore the Central Bank pays great attention to this issue,” pointing to
 
“the roles required and expected of central banks regarding the challenges of climate change, including ensuring financial stability by assessing the risks associated with climate change.”
 
Which requires 
     monitoring,
     developing tools to measure them,
     conducting climate stress tests that simulate the impact of climate events on the economy and the financial sector, and
     encouraging green financing by
     including environmental, social, and governance standards in lending and investment policies,” he explained.
 
“The Central Bank of Iraq is applying these standards in the banking sector with the support of the UNDP, as well as encouraging banks to finance environmentally friendly projects,” and noted that
 
“monetary policies can be modified to take into account the long-term impact of the climate, such as including grant-related securities within market operations.” "open".
 
Regarding his participation in the “Sustainable Development Conference” in Cairo, Al-Alaq said:
 
“It is an annual event held by the League of Arab States in cooperation with international and local partners.
 
The title of the held edition was (Sustainable Solutions for a Better Future), and 
one of its activities was the launch of the High-Level Regional Forum on Investment.” And sustainability, which is the first of its kind.
 
The forum aims to address the challenges and opportunities related to investment and sustainability in light of global economic trends, climate change and regional fragility.

It also aims to create a dialogue platform between governments, investors, banks and development agencies to enhance investment. Sustainable, and we participated with a working paper in the conference.”
 
Digital transformation
 
Regarding the digital transformation that the Central Bank of Iraq intends to implement, Al-Alaq said:

“There is a broad program, which takes on a great national dimension for us, and 

it is the digital transformation, which is one of the government’s priorities in cooperation with the Central Bank, and
 
we work together and with direct support from Prime Minister Muhammad Shiaa Al-Sudani. “To provide the requirements for this transformation, which constitutes an essential pillar of the digital economy in general.”  The Governor of the Central Bank affirmed that “the
 
government is moving to diversify production to advance the banking sector and financial policy, and
 
it is developing programs to reach the goal and 
taking into account the international, regional and local conditions - which are the keys to dealing with and presenting programs and plans that are compatible with all these conditions - and
 
there is diversification and strengthening of the national economy.”
 
In order for the banking sector to be active when there is a diversified production base,” Al-Alaq acknowledged,
 
“We as a country suffer from the fact that the main economic activity is the oil sector, and
 
what is linked to the transformation of oil resources into a sector trade primarily instead of employing it locally to serve development goals and diversify the production base, and
 
this calls for the necessity of activating the banking sector by providing the necessary financing to establish real projects in the basic economic sectors, especially in the industrial and agricultural sectors and other sectors,” indicating that
 
“this approach will lead to 
     Alleviating dependence on oil resources, as well as providing means of 
     real employment and growth.”