The Value Of Electronic Payment Exceeded 9 Trillion Dinars During 2023, 26 FEB

 The Value Of Electronic Payment Exceeded 9 Trillion Dinars During 2023

Economical 02/25/2024   Baghdad: Hussein Thaghb  There is a consensus from the public and private sectors on the necessity of regulating the reality of electronic collection in Iraq after the local market witnessed great interaction using electronic payment and the value of use increased remarkably in 2023 to exceed 9 trillion and 661 billion dinars through financial movements exceeding 15 million transactions.

Participants in the workshop on enhancing electronic government collection, organized by the Iraqi Private Banks Association with the support of the Prime Minister’s Office and sponsored by the Central Bank of Iraq,

described electronic payment as an important new stage that guarantees the paths of funds and makes them more transparent, but it is not without challenges that can be overcome in cooperation with the Central Bank and specialized companies.

Governor of the Central Bank of Iraq Dr. Ali Al-Alaq said:

The successes achieved in the field of electronic payment stem from the great support given by Prime Minister Muhammad Shiaa Al-Sudani to this important project.

We also value the efforts of the ministries that interacted with this project and gave it priority, pointing out that the launch of electronic collection comes as a translation of the Central Bank’s objectives in Adopting advanced technologies in electronic payment. 

Al-Alaq stressed that electronic collection contributes to strengthening government financial resources and operates in a transparent environment in light of the components provided by the Central Bank.

The project targets ministries and non-governmental institutions at the same time, and the citizen can now pay from anywhere and this is for the optimal use of cash.

Director General of Payments at the Central Bank, Adnan Asaad, indicated that the decisions of the Council of Ministers had a positive impact on activating electronic collection, especially in the second half of 2023, pointing out that the total collection from gas stations exceeded 10 billion dinars, and the number is expanding, as is the number of employee cards.

In localization services as of June 2023, it amounted to 8,653,310, and the total electronic collection through electronic payment gateways in the year 2023 exceeded 108 trillion through financial transactions exceeding one million transactions. 

Asaad pointed out that the commissions charged to citizens in electronic payments are “zero” and in the public and private sectors, and this issue requires expanding the citizen’s culture, and here is the responsibility of all concerned institutions.

Executive Director of the Association of Private Banks, Ali Tariq, said:

The workshop brought together most of the state institutions and the private sector with a large and qualitative presence that witnessed identifying all the problems facing the ministries in this important project, and working to solve them through coordination with the companies and institutions concerned.

Tariq stressed that the great cooperation shown by the team of the Central Bank of Iraq and specialized companies with the presence of the Association of Banks achieves smooth work and contains all the problems or challenges facing some institutions, pointing out the presence of financial expertise capable of mastering advanced technology and employing it in the correct manner, and that the training carried out in We have begun to see positive results in this aspect,

and we now have a developed work team in Iraq, where the Association has prepared continuous training programs for several years that enable human resources to use advanced technology.

As for the representative of the International Smart Card Company, Ghazi Al-Kanani, he pointed out that the reality of electronic payment has begun to expand significantly, and the citizen has begun to interact greatly with the electronic services that are provided, and this came after the citizen felt the positives provided by this project, pointing out that electronic payment was established with the aim of providing The best services and mechanisms that facilitated his daily life.

He stated that  electronic collection will follow the collected funds to their legal destination without tampering, and will enhance the federal budget with large revenues, pointing out that Iraq is facing a new phase that preserves the funds’ paths and takes their destination to the appropriate place.

As for Traffic Major General Adel Al-Araji, he said:

Electronic collection is a new experience and has faced several challenges due to the ramifications of revenues and the lack of educational campaigns.

 He pointed out that there are committees in the General Traffic Directorate that supervise electronic payment operations, noting that collection in the Karbala Traffic Directorate reached 100% and in Basra 60%. He emphasized the work to allocate one day each week for electronic payment, as  we have platforms that work exclusively on electronic payment.

As for the representative of the Ministry of Oil, Yasser Ammar, he confirmed that the Ministry had circulated the electronic collection experience from the first quarter of 2023.

There were challenges to completing the work, but we worked to overcome them, pointing out that  all 350 government stations operate with electronic payment.

As for the representative of the Minister of the Interior, he confirmed that the Minister of the Interior directed the adoption of electronic payment and that collection and collection be electronic from May 1, 2024, pointing out that

there are challenges that are being addressed in cooperation with the concerned authorities, and that the  Ministry believes in developing the performance of electronic payment and what rises to global performance.    https://alsabaah.iq/92335-.html

"RV UPDATE" BY SANDY INGRAM, 26 FEB

 Sandy Ingram

  The interest rate in Iraq averaged 6.17% from 2004 until 2024 reaching an all time high of  20% in December of 2007 and a record low of 4% in March of 2016.  6.17% is a high rate, yet they still are having trouble getting  the Iraqi people to put their money into the bank.  Iraq does have a bank deposit protection program similar to the US's FDIC. 

  [Dinar Guru NOTE:  For comparison the average US bank account  offers .47%.  You can find high yield savings accounts that offer  around 5%]    

 The problem for Iraqi dinar investors is no US banks and few banks worldwide will allow transactions using the Iraqi dinar. 

 Bankers turn their noses up when people ask about Iraqi dinar and this is one of the reasons the investment is called shady.

ANALYSIS OF IRAQ NEWS

 Iraq's tourism could easily increase to over 10 billion US dollars a year,  comparing it with Egypt's tourism. 

The problem for people in the United States is no bank in the US will do any transactions using the Iraqi dinar.  Until this changes we have to find other ways to pull our profit out of Iraq.  We can do this.  I found one way and will discuss it in a an upcoming [post]...   

 There is an organized effort in Iraq to never revalue or increase the value of the currency abasing the US dollar or to provide profits for people in the west...Between the different factions within Iraq, revaluing their currency, even when they can afford it, may not be on their agenda...

 Iraq is getting closer to a currency reset...Iraq's rail plans have investors worldwide watching carefully...The rail connection in Iraq from the Gulf to Europe will change Iraq's economy.  This same method of increasing the GDP was recently used by Mexico when they built a connecting rail system...Mexico's exchange rate increased against the US dollar and now Americans are spending more money to live in Mexico... This is one of the major paths that can lead to a higher GDP and a higher value in the currency.  The project is set to start in early 2025.

The International Monetary Fund has consistently recommended Iraq develop additional streams of income outside of the oil industry.  Iraq holds a significant amount of the world's history within its borders...What is  needed is security and safety for travelers.  Once safety issues are address and the Euphrates and Tigris Rivers are flowing again there will be substantial annual revenue to help boost Iraq's GDP. 

 "  Iraq's central bank revokes Iran's Bank Melli operating license"  This article tells us the US is serious about not allowing Iran to have access to US dollars.  It also tells us Iraq is serious about aligning with the US Treasury Department to maintain access to over one hundred billion US dollar of its money in the Federal Reserve.

 Vietnam is making major financial news.  Vietnam factory activity returns to growth status after the pandemic, tourist arrivals increased by 73.6% in January and retail sales are still growing for the 26th straight month.  The inflation rate is at a five month low of 3.7%.  Overall Vietnam has green lights on all growth patterns...Vietnam knows precisely what to do to bring the value of its currency back into the line of profit...

https://dinarevaluation.blogspot.com/2024/02/rv-update-by-sandy-ingram-12-feb_040016202.html

Needs investing Iraq?😭😭 by NADER FROM MID EAST

"THE GOAL IS RETURN TO THE VALUE OF 1980 DINAR" :" Ziad Al-Hashemi, a researcher in international economy (Cambridge/UK) writes to Iraq Observer: Is it time to delete ?zeros from the Iraqi dinar ", 26 FEB

KTFA:

Clare:  Ziad Al-Hashemi, a researcher in international economy (Cambridge/UK) writes to Iraq Observer: Is it time to delete ?zeros from the Iraqi dinar

February 24, 2024 Opinions / Iraq Observer

The dinar and its three zeros - is it time to symak the dinar and return to the dinar 1980 Since the beginning of 2010, the talk within the Iraqi economic community has expanded about the zeros that burdened the dinar for nearly two decades, and the need to deal with them, and to rid the dinar and free it of the burden of heavy zeros.

The goal is (return to the value of 1980 dinar), like the issues and topics discussed and interacted by Iraqis, opinions have varied and differed between an enthusiastic supporter of deleting zeros and a hesitant and rejecter, and the .state of disparity continues to this day

The process of deleting zeros is related to replacing the old currency with multiple zeros with a new currency free of zeros.

In the case of the Iraqi dinar, for example, the prevailing proposal is to replace every thousand dinars of the current currency with one dinar of the new currency, and as is traded among economists in general and cashians in particular, the deleting zeros can achieve many benefits, the most important of which is getting rid of high inflation pressures on the economy and restoring confidence in the national currency and the monetary system as a whole, facilitating accounting processes and cash exchange between citizens, and reducing the cost of managing and maintaining the monetary block by reducing its .volume under circulation

These and other benefits have encouraged some countries to adopt the process of deleting zeros from their zero-sweaden currencies, in an attempt to get rid of the burdens of inflation, or to start a new economic page, going beyond the mistakes of the past.

According to some statistics, dozens of countries have tended to delete zeros, including countries in South America, Iran, Turkey and other countries in Africa and East Asia, and in total, we have 70 deletions of currency .zeros since 1960 until today Returning to the Iraqi situation, the huge accumulations over the past decades were the main and direct reason for the loss of the dinar of its value that it enjoyed during the seventies and eighties of the last century.

Some statistics indicate that the Iraqi dinar lost by 400,000% of its value between the years 1990- 2007, meaning that the commodity that the citizen bought for 100 dinars in 1990 became buying it for 400 thousand dinars in 2007, and this is a huge huge increase, which cast a shadow on the Iraqi markets and the Iraqi commercial movement, increased the pressure on public money, and ate from the value of the citizens' cash savings, or in other words, greatly weakened the purchasing power of consumers

Accompanied by this Continuing to print the currency and increasing the cash mass in circulation, which until 1980 did not exceed 25 billion dinars, to rise in the 1990s to 40 billion, then the huge jump came in 2003 to reach the cash mass to 6 trillion dinars and exceed 27 trillion dinars in 2010 until we reached the level of more than 100 trillion dinars, and the number is able to increase, and the 25 dinars note was the largest banknote in 1990

But today we have the categories of .25,000 and 50,000 dinars Because of the achievement of a kind of security and economic stability in Iraq supported by a strong financial position due to the large oil revenues that generated huge reserves of hard currency, a group of financial and economic experts believe that it is time to start to scalate the dinar and delete its three zeros, where the process (in their opinion) will achieve a lot of positives that the Iraqi economy needs, the first of which is the return of the dinar as a store of value, restore confidence in the monetary system, reduce the demand for hard currency and get rid of the phenomenon of dollarization that has caused the economy and squandered huge financial wealth.

 With the process of of flining the dinar, the issued cash mass can be reduced from 100 trillion to 100 billion and this is a number that can be managed more Efficient and .less expensive Despite the validity and opponence of this opinion in many aspects, there are some issues that must be taken into account before making such a decision.

The process of deleting zeros will not provide a magic solution alone through which the Iraqi monetary system can get rid of inflation and cover behind a young currency without zeros. Experience has shown that many countries have not benefited sufficiently from the process of deleting zeros, as the value of currencies have deteriorated in some cases, and the new currencies have returned to accumulate zeros again, in an undoubted confirmation that the fight against inflation requires other more effective solutions that are applied in parallel with the process of deleting zeros

And from those experiences, the experience of Brazil Which has been deleting zeros seven times since 1930 and with a total of 18 zeros, and this country succeeded only in the attempt in 1993, when the process of deleting zeros was associated with an economic reform process targeting the roots and .causes of inflation

 With a quick look, we find that the Iraqi economy still suffers from serious structural and structural problems, including the issue of high rent, the fragility of the non-oil sectors and the deterioration of their domestic product, and the lack of sufficient discipline in monetary and financial policies and the ambiguous relationship between the two policies, not to mention the obsolescence of administrative and banking systems and the penetration of corruption all joints and sectors of the economy, and other negatives, and until the process of deleting zeros is achieved,

it is important to precede the implementation of an effective economic reform program that re-engineers and structures economic sectors, accompanied by a review and evaluation of both monetary and financial policies and adjusting the relationship between them, and developing appropriate plans to manage the transitional smoothly from an old currency burdened with zeros.

To a nascent currency that needs care and good management, so that the country can actually achieve the maximum benefit from the process of .deleting zeros and sinarg In addition, carefully choosing the appropriate timing for the implementation of the process of deleting zeros is one of the most important success factors that must not be absent from the monetary decision-maker.

 The wrong timing in implementation may negatively affect the behavior of consumers, confusing the markets (including financial markets), hitting the reputation of the new dinar, returning to the state of dollarization, fleeing capital, providing new ways and paths for money laundering operations, supporting irregular and illegal operations.

This may lead to further rises in prices and inflation rates, and this means complete failure of the dinar flighting process. This process is considered a double-edged weapon that requires a high level of carefulness, planning and good execution, away from speed In the implementation to search for rapid economic or political gains

So I say in conclusion, that Iraq still needs more time, effort and work to study this process in a deep and extensive manner and prepare the necessary conditions and tools that the country needs to reach the stage of the ability to implement the process of faltering the dinar effectively and successfully, and then reap its fruits and benefit from it according to the plans set, then we can say with reassuringly that Iraq has become a strong dinar that maintains its value, comparable to other strong currencies around the world, and may be even stronger .than the 1980 dinar.

-------

Henig:  The goal is (return to the value of 1980 dinar), like the issues and topics discussed and interacted by Iraqis, opinions have varied and differed between an enthusiastic supporter of deleting zeros and a hesitant and rejecter, and the .state of disparity continues to this day The process of deleting zeros is related to replacing the old currency with multiple zeros with a new currency free of zeros.

In the case of the Iraqi dinar, for example, the prevailing proposal is to replace every thousand dinars of the current currency with one dinar of the new currency, and as is traded among economists in general and cashians in particular, the deleting zeros can achieve many benefits, the most important of which is getting rid of high inflation pressures on the economy and restoring confidence in the national currency and the monetary system as a whole, facilitating accounting processes and cash exchange between citizens, and reducing the cost of managing and maintaining the monetary block by reducing its .volume under circulation

Henig:  THAT'S what I'm talkin' about!!!!   Outstanding find, Miss Clare!!! Well done!!!

DallasDude:  And furthermore the Iraqi Dinar in 1980,
1,980 dinars = $1.51 USD..IMO   Good stuff Claire..

"IRAQ BOOTS ON THE GROUND REOPORT" BY FIREFLY, 26 FEB

  Frank26

  [Iraq boots-on-the-ground report] 

 FIREFLY:  The entire city is uncomfortable and upset knowing the HCL is still not dealt with, knowing this is a key for us citizens.  Today they [parliament] all walked out.  They can't agree on the bill and they said we don't know when or if ever we will pass it.  FRANK:  That's a bunch of bull Ka-Ka.  What do you mean you don't know when you're going to pass it.  No one needs you to pass it!  

 FIREFLY: TV says the Baghdad dollar will see a huge drop beginning of week, however the exchange rate is stable?  We don't know what it means. 

 FRANK:  What is a Baghdad dollar?  It's the United States Dollar in Baghdad....That's the drop of the US dollar in the parallel market...Which means they'll try to get to 1 to 1...I'm not telling next we're going to have our blessing.  I'm telling that next week they're going to do what they're saying.

FIREFLY:  Sudani talked about going to Washington DC to meet and get all oil reserves and assets from oil held in U.S. Treasury.   FRANK:  Dang!  Like they don't have enough money!  Wow! 

FIREFLY:  Al Suandi is on TV news Channel One saying the best and the only way to improve the electronic payment system is the CBI should remove the three zeros, print the new currency and give us a one month period to exchange our currency.  This will show the power of the dinar over the dollar ...He also said this will get rid of citizen holding cash and any smugglers and money laundering. 

FRANK:  ...That's what they're about to introduce to you, your new exchange rate to match your lower notes...the lower notes will only work with a new exchange rate.  I can't believe they keep saying this to you constantly every day...You are within arms reach ...One month...I believe they'll give you longer than that.  Outside with us it should also be a longer time to exchange...

 FIREFLY: A guy comes on TV and he talks to us about how the end of the Untied Nations mission official has removed all sanctions from Iraq...

https://dinarevaluation.blogspot.com/2024/02/iraq-boots-on-ground-report-by-firefly_01039549117.html

 FIREFLY:  So far we are not seeing the lower notes but they talk to us about them every day.  They just talk to us about them and why we'll need them.

 FRANK:    They are talking to you about the lower notes and coins because they are about to show them to you next week or the week after.  I believe your bank friend will show you something in the sense of pictures...Take as many pictures as you can.

 FIREFLY: A representative from the CBI is talking to us in great detail about the new coins they will be giving us with the new currency notes...He said to us once again, the process to delete the zeros is in the process. 

 It made us smile.  He said this process is occurring because the lower notes will not be needed if the rate wasn't increasing.  He said if the CBI didn't come out with these lower notes the monetary reforms would be a disaster.  He said that's why we need a change in our rate... 

https://dinarevaluation.blogspot.com/2024/02/iraq-boots-on-ground-report-by-firefly_01427855001.html

Very good news Iqd decreasing Woow

The end of the second round of Baghdad and Washington negotiations for the withdrawal of the coalition. And Iraqi hopes for another, 26 FEB

The end of the second round of Baghdad and Washington negotiations for the withdrawal of the coalition. And Iraqi hopes for another

 Foreign Minister Fuad Hussein announced on Sunday the end of the second round of Baghdad and Washington negotiations on the presence of international coalition forces in Iraq.

Hussein said, in a press statement, that “negotiations are continuing and the second round is over and we hope to have other rounds,” without disclosing the results of the past two rounds.
 
There is also likely to be a round of discussions in Washington during Prime Minister Mohammad Shia’ al-Sudani’s visit to the United States, Hussein said.
 
On January 25, the State Department announced the success of the negotiations between the Iraqi and US governments that began in August 2023, to formulate a timetable that determines the duration of the presence of international coalition advisers in Iraq and end the military mission of the coalition against ISIS.

https://alforatnews.iq/news/انتهاء-ثاني-جولات-تفاوض-بغداد-وواشنطن-لانسحاب-التحالف-وآمال-عراقية-بأخرى