FINANCIAL INCLUSION IN IRAQ: A SUCCESS STORY THAT DEFIES THE ODDS
In the wake of the American invasion of Iraq in 2003, the financial system collapsed and the phenomenon of hoarding money spread, as a result of the loss of confidence in the banking sector after the closure of most branches of foreign banks operating in Iraq, and the faltering of some local banks.
To address this crisis, the Iraqi Deposit Insurance Company began establishment procedures in 2008 with the aim of protecting depositors’ funds and enhancing their confidence in the banking system, which is vital for achieving sustainable economic development.
The company has achieved remarkable success in its mission, as it has witnessed a significant increase in the number of bank accounts and the size of deposits since its establishment. In 2009, total deposits in Iraqi banks amounted to $8.05 billion, and this number rose to $76.5 billion in 2021. This significant increase is largely due to the company’s efforts to enhance confidence in the banking system and encourage citizens to save.
This significant increase in deposits clearly reflects the effective role played by the company in stimulating the culture of savings and encouraging citizens to deposit their money in banks instead of keeping it at home. These numbers indicate that the Iraqi Deposit Insurance Company is on the right track towards achieving its strategic goals, which are enhancing financial stability and reducing the phenomenon of hoarding, and thus contributing to advancing economic growth in Iraq.
Iraq...when ready, they will drop the three zeros and give the citizens so many days to turn them in the old three zero notes for exchange of the new lower currency denominations. This exchange will most likely be electronic. It will be a 1:1 exchange but not like many think...
I DO NOT mean one dollar for one dinar. I mean, for instance, a 25k note for a new 25 note. This is the 1:1 the CBI has talked about many times. Yes, the dinar may revalue first in-country to just over a dollar, but this is still not what the CBI meant by 1:1 in the past...the VALUE of the dinar has always been there...only when they drop the three zeros it becomes more manageable and nominal.The VALUE is still the same.
The electronic systems are taking hold...This will allow the shrinkage/withdrawal of the tangible currency notes from the market that is needed in the process to Delete the Zeros...a critical part of it...
I can remember hearing as far back as 2010 from Dr Shabibi the importance of the electronic banking effort and its advantages to the process. Yes, they MUST shrink down the currency mass...if you shrink down the monetary mass than what is left will be worth more.
INTECH IN IRAQ: HOW IS IRAQ RESHAPING ITS FINANCIAL FUTURE?
Financial technology (FinTech) has become a major driver of innovation in the global banking sector, providing innovative solutions to facilitate financial services and increase their efficiency.
In Iraq, banks have begun to adopt these technologies, which has contributed to improving customer experience and expanding the scope of financial services provided. The Iraqi Deposit Insurance Company plays an important role in supporting this trend, as it is a pillar of financial stability, by encouraging banks to adopt financial technology and providing a regulatory environment supportive of innovation.
Financial technology has demonstrated its ability to enhance financial inclusion in Iraq, as it can provide affordable and accessible financial services to wide segments of society, especially in remote and rural areas. Through mobile applications and online banking, individuals and businesses can access a variety of financial services, such as money transfers, paying bills, and obtaining loans, without having to visit bank branches.
The Iraqi Deposit Insurance Company is working to enhance the use of financial technology in Iraq, through cooperation with banks and financial technology companies to develop innovative solutions that meet the needs of the Iraqi market. The company is also working to provide the necessary regulatory framework to ensure the security and safety of digital financial services, and to protect consumer rights.
[via PDK] “The United Nations development program has issued a 49 page report on investment opportunities in line with Iraq’s sustainable goals” These are things to develop a very robust Iraq economy.
“The UN sees progress in Iraq’s anti corruption efforts and lists recommendations..” The UN seems pretty happy with all the efforts you have made Iraq …here’s you “atta boy”...This is actually important to see all the sanctions going away and Iraq being free and clear to change values on the world stage.
... Sudani signed a cooperation agreement with the trade bank of Iraq and the German export credit corporation. If everybody thought nothing was going to happen in Iraq -then they would not be signing these extremely high level deals. You are watching them become a major player on the international stage.
I found this one encouraging. One of the things they are going to need to be taken seriously on the world stage is the value of their currency. Vietnam is also running into that problem right now. They need to revalue up.
...there is contention as to whether the president has signed it [the budget] yet or not...And attempts by Maliki to delay things. Don’t panic- they are not allowing a delay and will push forward with the printing of the budget…and execution. Maybe we will see the printed budget by Saturday now...I’m still hearing positive things for the 7th through the 9th.
FRANK26:"THIS MEETING WILL EQUAL THE HCL!!!"............F26
Details of a meeting in Baghdad to resume the export of Kurdistan oil
6/9/2024
Baghdad - The head of the Kurdistan Regional Government Office, Omid Sabah, revealed today, Sunday,the details of a meeting held between a delegation from the regional government and the Ministry of Oil, in the capital, Baghdad, which is the first meeting of its kind to reach a comprehensive agreement regarding resuming the export of the region’s oil through the “Corporate Oil Company.” Sumo, National.----
Sabah said, in a statement received by Mawazine News Agency, that“the delegation discussed with Oil Minister Hayan Abdul Ghani and senior officials in the ministry the outstanding issues between the governments of Erbil and Baghdad and issues of common interest. He added that the meeting focused on the dues of oil companies operating in the region and the process of Resuming the export of Kurdistan oil, production costs, and mechanisms for addressing these issues, reaching a comprehensive and balanced agreement within the framework of the constitution, and
re-pumping through the Iraqi Oil Marketing Company “SOMO” as soon as possible.
Al-Sudani stated officially that "this year" Iraq will witness a tangible significant change for the Iraqi citizens.
Guess what?
This can not be accomplished without releasing the new exchange rate.
This can not be achieved without financing reconstruction projects.
This can not be attained without purchasing power for the national currency.
Iraq was just removed from the list of high-risk countries by the FATF.
Which means they have reached Security & Stability.
Period.----
International Monetary Fund mission: We expect growth in the Iraqi economy
The head of the International Monetary Fund mission in Iraq, Dr. Ghazi Shubaikat: There has been growth in the Iraqi economy in light of the reforms adopted by the government, at a time when he stressed that Iraq must work to achieve financial sustainability while having the elements to achieve this goal.
Al-Sabah met with the head of the mission and asked him the following questions:
*What does the Fund expect for the future of the Iraqi economy? - The Fund expects growth in the Iraqi macroeconomy, in conjunction with the reforms adopted by the government with the aim of creating realistic solutions to all economic problems, and we sensed seriousness from the Iraqi government in the field of achieving economic reforms that strengthen the relationship with the Fund, and this encourages the strengthening of cooperation in a way that serves the Iraqi economy, which is suffering. Chronic problems. * How does the Fund support the Iraqi economy and what is the source of support? The International Monetary Fund supports Iraqi reforms that achieve financial sustainability, keeping Iraq away from any crises affecting the oil market, which Iraq relies on to cover its annual expenses, especially since a country like Iraq needs large revenues to cover the needs of all sectors, and this needs to create Real financial sustainability through reviving the productive and service sectors and bringing the capital cycle into a local context.
*What do you advise regarding reducing unemployment rates? Iraq must focus on the labor market and create advantages in the private sector equivalent to what it obtains in the public sector, so that employment can be directed to the private sector, which must be activated within limits commensurate with Iraq’s economic capabilities.
*What does the Iraqi labor market need? It is necessary to work on training and qualifying human resources in all specializations in light of the presence of human wealth that can be employed in a way that serves Iraq, with the need to create skilled labor in all sectors and in a way that is consistent with the government’s reform policy.
*In your opinion, where are the strengths in the economy? - The private sector represents an economic force that can overcome challenges and gradually advance the national economy. It addresses many problems, especially since Iraq can achieve a diversity of revenues from sectors, some of which are distinguished by achieving sustainable revenues.
*What about the financial sector? Competitiveness in the financial sector can create a solid financial sector with advanced services and safe and transparent money paths that support the economy and the stages of development it seeks and works to achieve, and reaches the most important goals of financial sustainability. link
As US Treasury bonds are being sold around the world, we have a growing interest in Stablecoin use case scenarios designed to minimize the risk factors of a falling monetary system as it embraces a new digital asset based trading system.
The Core Banking System is the foundation of our Global Financial Markets.
It enables seamless currency exchanges, and it is the part of the banking system that coordinates risk management tools and digital networks to move virtual assets through the new QFS system on a Global scale. ----
Cross border international trading is made possible through this new digital banking system mechanism. It will allow foreign currency exchanges to move through the system.
The beauty of this new digital banking system that is the nuts and bolts of all transactions done in a bank lies in the fact that it is done.
THE IMPLEMENTATION OF THE COMPRENSIVE BANKING SYSTEM IN IRAQ
Al-Rafidain Bank announced, today, Tuesday, “the implementation of the comprehensive banking system in the White Palace branch in Baghdad, thus joining the branches in which the comprehensive system was activated in Baghdad, the governorates, and the branches of the border crossings.”
The bank stated in a statement received by Al-Mutala’ Agency that, “In line with the government program to move from paper to electronic transactions to provide the best services to citizens, the comprehensive banking system was implemented in the White Palace branch in Baghdad, thus joining the branches in which the comprehensive system was activated in Baghdad and the provinces.” The number of “28” branches is in addition to the branches of the border crossings (Zarbatieh – Safwan – Arar – Trebil), in an important step to strengthen the banking system, achieve its requirements, abandon paper work, and move completely to electronic systems.
He added, “The plan for digital transformation and adoption of the comprehensive banking system is proceeding according to the set timings to include all bank branches in implementing the system,
especially since one of the priorities and adoptions of the government program is electronic transformation in financial transactions, reducing episodes of red tape for citizens, reducing time, simplifying procedures, removing obstacles, and intensifying efforts to raise the level of… Services provided to customers and completion of their transactions.
(It is just a matter of time before ALL banks and branches implement this fully. Do we have to wait for this see the RV? I am told absolutely not, but how far must they progress? )
Hi MG, I read your example of the project to delete the zeros is supposedly to work, if I am reading what you describe correctly they will replace the 25K notes with 25 notes of equal value, essentially a LOP, and also from the exchange rate, but that does not solve the problem of current prices of goods, for example a loaf of bread let’s say is priced in the market for 25k for the sake of argument, if they make the 25k note equal to a 25 note, the price of the bread is still 25k, how do they plan to overcome this new difference?
Answer Mnt Goat:
Guten Tag clayrich. Hope you are fine today. I read you question and I have to say I am glad you asked it because you are a bit confused.
First of all, the IMF is not going “lop” the Iraqi dinar. A “lop” is a tool the IMF uses to restart a currency from massive inflation. A good example is the Zimbabwe dollar when in 2016 they gave the citizens weeks to turn in the 100 trillion notes for $25 US dollars each. After the deadline they were worthless. We also have articles for Iraq telling us they WILL NOT lop the dinar. They do not have massive inflation and so this tool of a lop is not necessary. That is why they call it the “project to delete the zeros” and not a ”lop”.
Iraq will be simply reducing the note count and are doing it now as I write this today, then when ready, they will drop the three zeros and give the citizens so many days to turn them in the old three zero notes for exchange of the new lower currency denominations. This exchange will most likely be electronic. It will be a 1:1 exchange but not like many think when I say one for one. Most think this is one dinar worth one dollar.----
I DO NOT mean one dollar for one dinar. I mean, for instance, a 25k note for a new 25 note. This is the 1:1 the CBI has talked about many times. Yes, the dinar may revalue first in-country to just over a dollar, but this is still not what the CBI meant by 1:1 in the past. Get it? I know it gets confusing.
If you just keep remembering that the VALUE of the dinar has always been there only when they drop the three zeros it becomes more manageable and nominal. The VALUE is still the same.
Of course, if you really read my explanation you would have read that this procedure is in-country ONLY. If you step outside of Iraq, when they finally do reinstate the dinar, the exchange of the three zero notes is different and will exchange to whatever the currency exchanges i.e. FOREX rate is at the time. You see they can’t just pop out a new rate on FOREX with first taking these prior steps in-country. Please go read my blog page again. Here is the LINK.
Secondly, about the bread. The pricing structure in Iraq- this will also change. How can it not? Don’t you think the stores will also drop the three zeros? Come’on use your head,….think, think, think ☹. Remember that they already swapped out Saddam Hussien notes for the three zero notes in 2004 and so now they will just reverse the process. Get it? This was actually a very silly question to ask. This is why the CBI plans a huge education campaign to take place prior to and during all this work. Get it? We have not yet seen this education yet. You will know it when we see it. I am told by my CBI contact there will be no doubt when it is taking place. It will be on the TVs and especially in news articles.
I also want to add that a major part of the inflation rate of what they do have today is due the inability of a merchant to make chance for a purchase since there are not now a series of lower denominations in circulation (5,10,25,50,100, ¼, ½ and the fils). For instance a loaf of bread costs $2 USD. The shopper gives the merchant a 10k note worth in this example $10. How can the merchant give change to the shopper? He will have to give $8 or 8 each of the 1000 notes (which are the equivalent of the $1). Now it gets real sticky since the 1000 note is not exactly worth $1 and is more like 85 cents so the change should be instead around $6.80 is $8.00. Do you see how cumbersome? Do I need to continue? This is also just another reason why they are going electronic, but certainly not one of the main reasons.
We must now buckle down and pray and pray like never before for the success of Al-Sudani and his agreements with Washington are implemented. Pray for the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country.
FRANK26: "IF I WAS SUDANI... I WOULD CELEBRATE WITH THE PRESS ALSO."........F26
Al-Lami chairs the meeting of the Supreme Committee for Press Day celebrations
6/8/2024
Today, Saturday, the head of the Iraqi Journalists Syndicate, Muayyad Al-Lami, chaired the meeting of the Supreme Committee for Press Day celebrations, while stressing the importance of showing the bright image of Iraq to the delegations that will visit Iraq.
The union stated, in a statement, a copy of which was received by {Al-Furat News}, that “Al-Lami chaired the meeting of the Supreme Committee charged with preparing for the celebrations of the National Day of the Iraqi Press on its 155th anniversary, reviewing before the members of the Supreme Committee
----
assigned by the Prime Minister the union’s procedures regarding the invitation Hosting delegations and personalities from various countries of the world, which include Arab and foreign ministers of culture and information, heads of Arab media institutions, and international organizations concerned with journalism and media. She added, "The meeting reviewed the preparation of all logistical and technical requirements for holding the celebrations, most notably the preparation for the central celebration that will be held in the Al-Zawraa Hall of the Al-Rashid Hotel on the morning of Sunday, June 30, under the auspices of the Prime Minister, the celebratory festival of the union’s branches in the governorates, which will be held in the gardens of Abu Nawas Street, and the public celebration in the center." Cultural and social activities, One Thousand and One Nights, as well as hosting meetings of the General Secretariat of the Arab Journalists Union.” The union continued,
“The meeting discussed the facilities that the supporting bodies represented by a number of ministries and other departments will provide to make this national celebration a success,” noting, “The meeting included representatives of the Ministries of Foreign Affairs, Interior, Culture, Transport, the Intelligence Service, the Baghdad Operations Command, the Baghdad Municipality, and the Iraqi Media Network, in addition to members.” Union Council. Al-Lami stressed "the importance of showing the bright image of Iraq and the major reconstruction campaign that the country is witnessing in front of the Arab and foreign media delegations that will participate with the journalistic family in its celebrations this year of the National Day of the Iraqi Press, which represent more than (50) countries around the world."
FRANK26: "74 MILLION DINARS... 80 TRILLION DINARS... IT IS A CONSTANT POLICING FOR THE MONETARY REFORM SUCCESS"...........F26
Watch the raid on a currency smuggling den and the arrest of two speculators in possession of 74 million dinars
6/8/2024
Baghdad –
Today, Saturday, the National Security Service raided dens of speculation and currency smuggling operations in Baghdad, arrested suspects, and seized more than a million dollars in their possession, and about 74 million dinars prepared for smuggling.
National Security Statement, a copy of which the 964 Network received:
As a continuation of the security operations carried out by the National Security Service against economic crime gangs and currency dealers, our detachments in Baghdad were able to arrest two defendants after raiding one of their hideouts in which speculation and currency smuggling operations were conducted. They were caught red-handed and in possession of more than a million dollars and approximately 74 million dinars prepared for smuggling after an intelligence effort and careful field follow-up.
They were referred, along with the seized items, to the competent judicial authorities to take the necessary measures against them in accordance with the law.
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