CLARE: “Iraq confronts economic crises with the digital dinar, 20 MARCH

 Clare 

Article:
“Iraq confronts economic crises with the digital dinar. The parallel market is threatened with extinction.”

Quote:
“The Central Bank of Iraq is preparing to launch the digital dinar…It is similar in value to the traditional dinar, but is traded electronically via digital wallets or approved financial applications. 

It facilitates instant money transfers within the country or across borders, reduces the logistical burden of issuing paper or metal currency, and enables broader segments of society to access digital financial services.”

“Regarding the digital dinar’s relationship to exchange rates, Al-Sudani’s advisor explained that the official exchange rate will be the prevailing and sole rate, the digital exchange rate adopted by monetary policy.

 The parallel market will disappear in its current form, as it is difficult to invent a secondary digital market whose operations operate outside the control of the digital monetary authority…He pointed out that the digital dinar will be fully backed by the central bank and have a relatively stable value, similar to paper currency. 

However, it will be traded electronically only through bank accounts and wallets, contributing to reducing the use of paper money, achieving financial inclusion, and reducing reliance on the dollar in daily transactions.”

Article:
“Iraq: Top 5 Arab economy in 2024″

Quote:
“Five Arab countries, including Iraq, accounted for 72% of the region’s GDP, which surpassed $3.6 trillion in 2024, according to a new report from the Arab Investment & Export Credit Guarantee Corporation (“Dhaman”) released on Sunday.”