Association of Banks: The battle with dollar speculators has reached its final round
12/15/2023
The Iraqi Private Banks Association said today, Friday, that the battle with dollar speculators has reached its final round, and while it praised the Central Bank’s measures to regulate the movement of funds to achieve financial and bank reform, it confirmed that it will contribute to reclassifying banks, increasing their capital and raising the level of services provided. For citizens.
The economic and banking advisor to the association, Samir Al-Nusairi, told the Iraqi News Agency (INA): “The Central Bank’s measures and efforts that have been made since the beginning of 2023, with the support of the government, have yielded results and have begun to give results according to what was planned.” The so-called parallel (black) dollar has begun to die, and the speculators who deal with it have been besieged to harm the national economy, and currently the battle is with them in the final round.”
He added, “This is what was stated in detailed procedures and administrative, technical, and negotiating steps.” With the US Federal Bank and the US Department of the Treasury and the understandings related to regulating the financing of foreign trade by approving the opening of accounts for Iraqi banks in American, Chinese, Emirati and Turkish correspondent banks to deal directly with them for external transfers in the currencies of these countries, which include the dollar, euro, Chinese yuan, Indian rupee, Emirati dirham and Turkish lira, and leaving the electronic platform in The year is 2024
And the supply of dollars and foreign currencies into Iraq from Iraqi bank accounts at correspondent banks or abroad. Reaching agreements to open 40 accounts for Iraqi banks in correspondent banks for foreign trade,” noting that “the Central Bank’s new strategy to reform the banking sector will adopt the reclassification of banks and increase their capital to the ceiling set by the Central Bank in accordance with the specified time frames until the end of 2024
Which will lead to… Raising the capabilities of our banks to provide the best banking products and services to customers, which will reflect positively on the movement of the economy, investment, development and the transition to comprehensive digital transformation.” He added, “Since the beginning of the year 2023, financial policies have been reconsidered according to a new vision for banking reform that complies with the requirements of the global financial system, and a new strategy has begun to be implemented with mechanisms based on studying and diagnosing the causes of the imbalance and determining the road map and the executive steps and procedures that will be implemented.”
It has been and will be implemented at the level of the departments of the Central Bank, banks, bodies supporting banking work, and government agencies related to comprehensive economic reform, as the Central Bank has previously issued new instructions for external transfers for the year 2023 and three procedural packages to facilitate and control the circulation of foreign currency in the monetary and commercial market.
Al-Nusairi added, “In August of this year, the Central Bank issued its important statement in which it defined its new strategy for organizing the financing of foreign trade according to new foundations that move Iraq to the stage of regularity in the global financial system, and in which it explained the executive procedures to control the stability of the exchange rate.”
Among its most prominent items: adopting the electronic platform exclusively for foreign transfer transactions, controlling illicit trade through official and unofficial border crossings, stopping trading and transactions in dollars on the black market, preventing all websites and media television channels from publishing exchange rates on the black market due to their violation of the law, and importers proving that all Their imports were made through the platform and at the official price, and the Customs Authority and the General Tax Authority implemented proposals and procedures for small merchants to enter the platform in accordance with the rules, and this is consistent with the government’s initiative to launch the national project to control prohibited imports.
He continued, “And we In the last days of 2023, the Central Bank’s strategy for banking reform in all its axes became clear for the coming year 2024 and subsequent years, and it is an embodiment of what it specified in the road map that it clarified in cooperation with the government in accordance with what was stated in the government’s curriculum in Axis 12 (Financial and banking reform) and paragraph 7 thereof and special By developing and enabling banks to contribute to development and investment.”
He explained, “Here we can summarize the Central Bank’s plan, which it is currently working to implement accurately, as follows:-
First – Providing a stable financial system lies in accompanying financial electronic systems.
Secondly – Commitment to consolidating the rules of compliance, risk management, transparency and safety of financial operations.
Thirdly – The transition from the cash economy to the digital economy and what is called the fourth revolution and the accompanying measures that have achieved a shift. Quality of dealings between the government and the central bank.
Fourth – Implementing the financial and banking reform plan that is characterized by international standards keeping pace with global developments in the field of the financial digital economy.
Fifth – Working to strengthen international relations, including establishing a network Relations with foreign correspondent banks.
Sixth – Establishing Riyada Bank in line with the Prime Minister’s initiative and redirecting work on initiatives to finance small and medium enterprises in accordance with specific standards.
Seventh – Preparation Launching a strategy for financial inclusion and putting it into effect in coordination with relevant authorities.
Eighth – Launching the national lending strategy, relying on the banks’ own financial capabilities to attract deposits and invest them in providing the best banking products to customers and contributing to development. LINK