Germany's Gesellschaft für Internationale Zusammenarbeit (GIZ) (German Agency for International Cooperation) has joined forces with the Iraqi Private Banks League (IPBL) to work on more inclusive financial services.
"Together, we can harness the unique strengths from both the private sector and the public sector and make a significant contribution to financial inclusion in Iraq", said Lutz Zimmermann, GIZ Iraq's Country Director, during the kick-off event.
GIZ and IPBL signed an agreement that marks the official start of the collaboration of two major activities, the IN4FI advisory program, which supports Iraqi financial service providers in developing inclusive financial services or products, as well as the financial literacy application "Masrafi".
"In the next phase, financial inclusion is not only a goal but also a tool that will enable the Central Bank to support monetary stability in Iraq", highlighted Adnan Asaad, Director General Payments and IT Department at the Central Bank of Iraq (CBI).
This activity is part of the Financial Inclusion for Economic Restart and Integration (FI) Project, co-funded by Germany's Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU).
Article: "Alaq says the rise in the exchange rate in his time and the project to delete the zeros still exists" When was that? July 26, 2023. The plan is still underway, hasn't changed. It's a dynamic and fluid circumstance. We had the Bank of International Settlements come out and talk about highly complex financial transactions ...shocks, warning people...we can see there's some fireworks going on...in the background.
We're hoping Iraq will show us they have Article VIII compliance any time now. Let's see what happens...
Article [via MeetMeOnline] quote:
"Easing of global commodity prices, the revaluation of the dinar, the continued price subsidies are projected to keep inflation in check..."
This is coming from the World Bank...price subsidies are projected to keep inflation in check because of why? Because of the revaluation of the dinar...The World Bank are the ones talking about the revaluation of the dinar and the revaluation will help facilitate [many things]...
The Central Bank of Iraq has warned that some people are misusing the electronic payment cards it makes available to meet the legitimate natural needs of citizens.
The bank stressed its commitment to implementing strict measures to limit this phenomenon, protect the financial system, and ward off risks from it, indicating that it will include the names of bank card holders whose misuse or smuggling is caught on black lists and take legal measures against this group.
The bank noted that they will be deprived of issuing other cards and all financial products, and that all necessary measures will be taken against violators, based on the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015 and the instructions and controls issued pursuant thereto.
CHINA AND SAUDI ARABIA HAVE SIGNED A LOCAL-CURRENCY SWAP AGREEMENT WORTH AROUND $7 BILLION, DEEPENING THEIR TIES AS NATIONS THROUGHOUT THE MIDDLE EAST AIM TO DIVERSIFY MORE OF THEIR NON-OIL TRADE AWAY FROM THE DOLLAR.
Experts: The Central Bank’s actions need media promotion
Economic 11/20/2023 Baghdad: Shukran Al-Fatlawi Financial and economic experts called for the need to intensify the promotion of the new mechanisms adopted by the Central Bank, including (Visa Direct) to assist citizens and merchants with the financial transfer process, in addition to developing more serious solutions to reduce the exchange rate in the parallel market by regulating banking business.
Economist Dr. Mustafa Hantoush told “Al-Sabah”:
The recently launched “Visa Direct” service did not gain public support in terms of financial transfers, as it is not known yet, even though the Central Bank and the competent authorities have begun the process of focusing on this. Mechanism.
He explained that the matter is not bad in terms of the transfer amount and the mechanism used, indicating that daily transfers may reach approximately three thousand dollars via the “Visa” issued by the banks.
Hantoush added that the transferred amount, although small, is suitable for small merchants, stressing that this process is subject to compliance and money laundering standards by knowing the reasons for the transfer and who is entitled to it, and this service is easier than going to banking companies, (Zain Cash) or (Western Union).
He pointed out that this service is easy in terms of transfer, wondering at the same time about the possibility of transferring the Iraqi dinar to the Emirates or Turkey, and whether the withdrawals are in the Emirati dirham, the Turkish lira, or the dollar, since the basis of the problem is the smuggling of the dollar to the banned countries.
He noted that this issue may contribute to somewhat balancing the exchange rate or decreasing it slightly, but it does not contribute to solving the problem, due to the need for more serious steps, including a platform for selling the dollar and stopping smuggling. Hantoush pointed out that
the First Bank of Iraq, which follows this mechanism, is specialized in banking operations via telephone and Internet means, and
it was implemented in the year 2020 and provided a set of services that did not reach the required level and circulation among the banking public due to the weakness of the marketing process.
For his part, Imad Al-Muhammadawi, who is interested in economic affairs, said during his interview with “Al-Sabah” that the (Visa Direct) service It works to facilitate the movement of money globally, explaining that the country is far behind in this aspect.
He stated that what the Central Bank did in this regard was an attempt to control the dollar, pointing out the need for solid and well-known banks to adopt this mechanism to prevent manipulation.
It is noteworthy that the advisor to the Prime Minister, Fadi Al-Shammari, praised the (Visa Direct) service for transferring money abroad and considered it a successful step to facilitate the work of small merchants, stressing that
it contributes to reducing the exchange rate in the parallel market and
its procedures take only 5 minutes,
expressing his hope that the citizen will interact with this. Banking service that cuts off black market speculators. https://alsabaah.iq/87551-.html
Association Of Banks: The Dollar Exchange Rate In The Parallel Market Will Decrease After The Government’s Measures
Economy| 11/21/2023 Mawazine News - Baghdad Today, Tuesday, the Iraqi Private Banks Association expressed its support for government efforts aimed at reducing the dollar exchange rate in the parallel market, while noting that
Prime Minister Muhammad Shiaa Al-Sudani’s movement to support the private sector represents the beginning of reforming the Iraqi economy.
The head of the association, Wadih Al-Handal, said, “The recent measures of the Central Bank of Iraq and the government, regarding facilitating trade financing using new currencies, represented by the euro, the dirham, the Chinese yuan, and the Indian rupee, are a step that contributes to reducing the exchange rate of the dollar in the parallel market,” noting that
“regulating trade financing “What the government and the central bank are doing by introducing other goods to the platform will lead to an increase in trade financing.” He stressed that
"private banks are taking great steps in expanding international relations with international banks, which facilitates the financing of Iraqi trade with countries around the world," explaining that
"the Prime Minister's great support for the private sector is considered the beginning of reforming the Iraqi economy, especially since the private sector is an important partner." To the government, in providing services and jobs and reducing poverty.”
