Good news, Iraq and the US hold financial reform discussions in Baghdad.
This little meeting not reported in the mainstream news tells us the US may be ready to help Iraq move towards significant growth in its currency. At least we hope that's what this meeting is pointing to.
The Iraq prime minister discussed the cooperation between financial institutions in Iraq and the US Treasury Department with the US Assistant of the Secretary of the Treasury Department, Elizabeth Rosenberg.
The meeting addressed measures the Iraqi government took to reduce corruption. The Prim Minister indicated the government is advancing the banking sector reforms which are crucial for the economy's growth by adhering to international standards...
Rosenberg applauded the Iraqi government's outstanding efforts in implementing financial and banking reforms which would support Iraq's attempts to...expand its economy.
Al-Sudani heads to New York for United Nations General Assembly
Shafaq News / Iraqi Prime Minister Mohammed Shia Al-Sudani departed the capital, Baghdad, en route to New York to participate in the 78th session of the United Nations General Assembly.
This was announced in a brief statement from his media office. The Iraqi delegation to the UN General Assembly will be led by Prime Minister Al-Sudani and include Foreign Minister Fuad Hussein. They are expected to meet with several world leaders during their visit according to Foreign Ministry's spokesman Ahmed al-Sahhaf.
Foreign Minister Hussein arrived in New York last Friday to prepare for the Prime Minister's visit and the participation of the Iraqi delegation in the General Assembly. The assembly, scheduled to begin on the coming Tuesday, takes place amid significant geopolitical tensions, exacerbated by the conflict in Ukraine. It witnesses a rivalry between Russia and China on one side and the United States and Europe on the other to gain the support of non-aligned nations.
The agenda for this year's meetings prominently features concerns in the Southern Hemisphere, reflecting the increased interest of Western nations in securing the support of developing countries in their efforts to isolate Russia.
High-level meetings during the General Assembly will focus on the priorities of developing nations in Africa, Latin America, and Asia, including topics such as climate, health, development financing, and the alignment of "Sustainable Development Goals" on the right track.
Financial Innovation In Iraq: Shifting To A Cashless Payments Landscape
Mario Macari Economy News – Baghdad The business sector around the world is witnessing a real revolution as a result of the adoption of digital payment systems. This heralds many transformations in many countries such as Iraq, where monetary solutions have always dominated the financial system. Although Iraq has one of the lowest rates of access to financial services in the world, with only 19% of its adult population having bank accounts, the country has taken important steps to achieve financial inclusion[1].
The Central Bank of Iraq launched several initiatives in its second strategic plan for the years 2021-2023 in order to confront this challenge. We have witnessed the implementation of many important reforms, such as supporting digital financial services, mandating the use of direct points of sale in financial transactions, reducing commercial fees, imposing linking bank accounts, and providing incentives to encourage the use of direct points of sale.
These initiatives, as a whole, aim to accelerate the pace of transition to non-cash payments so that companies and individuals can achieve optimal benefits from them.
Given their ability to influence consumer purchasing habits, merchants are critical players in this trend. By shifting their payment models to digital platforms, merchants can transform their business as well as contribute to a significant change in the overall economy. Thanks to the availability of safety and transparency, merchants can encourage the adoption of financial reforms among the population, by adopting direct point of sale systems and adopting digital culture.
Unfortunately, many merchants face many challenges in terms of lack of awareness and financial education when creating and using digital payment systems. The lack of proper training in accepting these systems and financial education hinders merchants and consumers alike, often confining them to the traditional realm of cash transactions.
Perhaps the prosperity of the digital payment system will greatly help increase financial inclusion and enhance economic growth in emerging markets such as Iraq. Digital transactions are fast and easy to track, while giving merchants relevant insights into their future sales and budgets. These payments involve less risk compared to cash transactions. With the right infrastructure and local payment service providers, digital payments can provide merchants with an optimal platform to gradually grow their business.
The Iraqi government is fully aware of the importance of digital transformation to enhance viable and prosperous economies. Recently issued policies by the Central Bank of Iraq and the government to support digital payments are scheduled to be implemented this year.
Moreover, according to Statista, a company specialized in market studies and statistics, the total value of transactions in the digital payments market is expected to reach $10 billion in 2023[2].
There are many digital payment platforms operating in the country, as the Central Bank of Iraq has issued 17 licenses of this type so far[3]. FinTech companies are collaborating with telecommunications service providers in Iraq to provide consumers with a seamless and secure digital experience to facilitate digital payments.
Visa collaborated with its partners last year to launch a variety of payment products to serve Iraq’s underbanked population.
The future seems to be increasingly moving towards cashless solutions, as technology continues to penetrate every aspect of our lives. As the world continues to evolve to keep pace with the digital age, financial education and the implementation of the strictest digital security measures will play a critical role in facilitating the transition to a cashless economy more smoothly.
This transformation promises to increase the efficiency of the financial system and provide comprehensive access to financial services, especially for residents who do not have bank accounts or have accounts but do not use them.
There is no doubt that enhancing financial culture plays an essential role in completing this transformation and ensuring that individuals fully benefit from the benefits of digital financial solutions. To support financial education efforts in the market, we have selected two of our partners to collaborate with in order to provide content that can help build knowledge and help individuals improve their understanding of financial concepts and services.
These partnerships will play a pivotal role in developing a comprehensive digital payments system that enables the Iraqi economy to flourish and develop in the digital age. Written by Mario Macari, Visa’s Levant General Manager Added 09/17/2023 – https://economy-news.net/content.php?id=36388
[CBI put out a RFP-Request for Proposal tender] SHANGDODDLE: It appears to be the government of Iraq is seeking contractor bids for the purchase of machines used to count, sort and packet currency. IMO that would be for the new currency in the lower denominations in the new small category notes... FRANK: This is fantastic. Then an article comes out and says, "This tender will be accomplished by October 22, 2023". October 22nd is simply the time limit parameters of this tender...You think it's going to take until October the 22nd? No.
Why would Iran be at the CBI governor's office dealing with international issues? I think you know why. They can't steal anymore. The floor is spotless. It's dinner time. Something is about to happen.
Iraq boots-on-the-ground report] FIREFLY: We see Austria is back here in Iraq. They are reopening their embassy here. Their ambassador says due to the security and stability here it leads them to trust and reopen. FRANK: Hey, Sudani how clean is the floor of the CBI bro!?
The CBI had a meeting with the United States Treasury...The CBI got their butts chewed out in front of Sudani. In less than 24 hours all the nonsense they were complaining about has been wiped out...
You have Iraq, Iran, the CBI official, US Treasury all in one room that doesn't make any senseunless you have have interest in changing the exchange rate and adding value to the Iraqi currency because there's security and stability in Iraq and it's all because Iran finally conceded, 'we give up'.
[Iraq boots-on-the-ground report] FIREFLY: USA Treasury was threatening us about sanctions on more banks here if not addressed on misuse of the American dollar that the US Treasury is seeing all over Iraq. I don't know what they're talking about, we can't find the dollar anywhere. FRANK: Don't let that bother you. The US Treasury is simply trying to get Sudani and the board of directors to move.
Speculators And Analysts Manipulate The Price Of The Dollar Through “False Assumptions”
The first 09/17/2023 Baghdad: Huda Al-Azzawi A “false hypothesis” claiming that visits by US Treasury officials to the capital, Baghdad, aimed at increasing sanctions on banks, has gained currency in the local market and was the main reason for the rise in the dollar exchange rate over the past few days. Specialists in economic affairs have shown that these hypotheses unleashed by beneficiary speculators are supported and promoted by many economic or political analysts for several reasons.
The economic affairs analyst, Nabil Jabbar Al-Tamimi, stated in an interview with “Al-Sabah” that “there is a link between the rise in the exchange rate of the dollar and the sanctions imposed on banks, and this link came as a result of traders and some people benefiting from the economic analysis,” stressing that “there is no relationship to the rise in...
The exchange rate when imposing sanctions on four banks in November 2022, as well as when imposing sanctions on 14 banks after that date,” explaining that “these assumptions are economically illogical, because the (14) banks had an entry rate of about 8% in the currency auction and can be covered.” By other banks.
He pointed out that "these hypotheses are unleashed by some economic analysts for the purpose of benefiting from them, especially since some of them have political leanings against the current government, and try to distort the facts by promoting such (false hypotheses) or have a connection with currency traders, and this is what The authorities alerted him,” and Al-Tamimi expected that some of these economic analysts would be “arrested” in the next few days.
He pointed out that "the Communications and Media Commission stressed the importance of avoiding misleading information on more than one occasion, which causes an increase in exchange rates. This information must be addressed by government authorities to refute it and hold accountable everyone who promotes false information that causes an increase in the exchange rate."
For his part, the professor and analyst in economic affairs, Dr. Jaafar Alloush, indicated in an exclusive interview with “Al-Sabah” that “the incorrect reading of the visits of treasury officials is what gives general impressions that compliance with international standards has not been achieved, and thus creates pessimistic expectations that help raise the dollar exchange rate.” While the Central Bank’s data explaining its policies confirms progress in accordance with those policies Standards".
Alloush considered the unstable rise in the exchange rate “an economically unjustified rise, but it is linked to the abundance and expansion of the volume of internal exchanges in the dollar currency, supported by the increasing types and volume of imported goods that are financed in dollars,” and explained that “the demand for the dollar is multi-faceted and depends on the volume of transactions (which It constitutes a growing demand), as the rise in the exchange rate of the dollar is directly proportional to the volume of internal trading in it,
and with there being only one source for supplying the dollar, which is the central bank (the window for selling the currency) and through the mediations of commercial banks that finance these exchanges, especially foreign trade, in exchange for the limited supply of this supply.
“The problem remains in the form of a real gap between the increasing demand for dollar transactions and the limited supply.”
He pointed out, “Here lies the danger of lowering the exchange rate by the central bank and losing its effectiveness unless the means of financing trade are legalized and the volume of local dollar exchanges is reduced.”
Regarding the repeated visits of US Treasury officials to Baghdad, Alloush stated that “those visits come to ensure the application of these international standards, and they are also periodic visits that have occurred for a long time, and there are financial relations linking the Central Bank of Iraq with the Federal Reserve and the American Treasury, and meetings are held.” "A regular period between the two parties to review many issues."
He explained, "These days, the visits of American officials to Baghdad are being exploited in the media to inject more waves of pessimism that are directed towards creating a supportive climate for the instability of the dollar exchange rate, knowing that this rise has become a financial resource for many speculators, some of whom control the parallel exchange market, because Dollar trading has expanded its base, and this expansion creates additional difficulties for the monetary authorities and the central bank in controlling the gap in the parallel rate with the official rate.