🚀 Technological Progress: The integration of a high-tech banking system signifies Iraq’s move towards modernization, allowing for efficient salary disbursement and financial management. This transition is pivotal for economic stability.
🌟 International Engagement: The HEEX 2024 expo highlights Iraq’s growing presence on the global stage, showcasing its potential to attract international investments and partnerships that can bolster the economy.
💰 Diversification Strategy: The Iraqi government’s focus on enhancing non-oil revenues indicates a strategic shift towards a more diversified economy, reducing dependence on oil and fostering sustainable growth.
🌐 Energy Exports: Iraq’s initiative to ship gas to Europe demonstrates its commitment to international trade and economic resilience, positioning itself as a vital player in global energy markets.
🧾 Audit Confidence: The involvement of reputable auditing firms increases transparency and builds trust in Iraq’s financial systems, essential for investor confidence and economic reform.
Exploring the Proposal to Replace SWIFT with International Banking Network Relations
In an evolving financial landscape, the proposal to cancel the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and replace it with relations within the international banking network has sparked significant debate. Established in 1973, SWIFT has long been the backbone of global financial messaging and transactions, facilitating cross-border payments and communications among financial institutions. However, recent geopolitical tensions and technological advancements have prompted discussions about alternatives.
Understanding SWIFT's Role and Challenges
SWIFT's Dominance
SWIFT has been instrumental in standardizing financial messaging, ensuring secure and efficient communication between banks worldwide. It has been the preferred system for high-value cross-border payments, with half of all such transactions utilizing the SWIFT network as of 2018.
Criticisms and Limitations
Despite its widespread use, SWIFT has faced criticisms for its high fees, slow transaction times, and lack of transparency. Moreover, its role as a central hub has raised concerns about systemic risk and vulnerability to cyber threats. Additionally, the exclusion of certain countries from the SWIFT network due to sanctions has highlighted its susceptibility to political influence.
The Shift to International Banking Network Relations
Emerging Alternatives
In response to SWIFT's limitations, countries like Russia and Iran have moved towards establishing direct interbank transfer mechanisms, bypassing the SWIFT system. These alternatives allow for trade in national currencies, reducing reliance on dominant global currencies like the dollar or euro.
Advantages of Alternative Systems
Alternative systems such as Russia's SPFS (System for Transfer of Financial Messages) offer a domestic payment system that facilitates financial messaging and transactions.
These systems aim to provide faster, more secure, and cost-effective transactions, potentially addressing the issues associated with SWIFT.
Challenges and Considerations
While alternative systems promise benefits, they also face challenges such as limited interoperability with existing financial networks and potential resistance from established financial institutions. Furthermore, the transition to a new system requires significant coordination and investment, presenting a barrier to widespread adoption.
The Future of International Banking Relations
The proposal to replace SWIFT with international banking network relations is indicative of a broader shift towards decentralized financial systems. As countries seek to assert more control over their financial transactions and mitigate geopolitical risks, the development of alternative payment systems is likely to continue.
Conclusion
The ongoing debate over the future of SWIFT reflects deeper concerns about the global financial system's structure and governance. While alternatives may offer potential improvements, the complexity of transitioning to new systems should not be underestimated. As the financial landscape evolves, the balance between innovation, security, and international cooperation will remain a critical consideration for policymakers and financial institutions alike.
Proposal to cancel SWIFT and replace it with relations with the international banking network
US Treasury praises Iraq's progress in monitoring transfers and selling dollars
The US Treasury Department praised the remarkable progress made by the Central Bank of Iraq in strengthening control procedures over foreign transfers and cash sales of the dollar, while considering that these steps contribute to strengthening financial and economic stability in the country .
Auditing companies
A statement by the bank received by (Al-Zaman) yesterday said that (a high-level negotiating delegation headed by Governor Ali Mohsen Al-Alaq held a series of intensive meetings in New York City, USA, which included discussions with the US Treasury Department and the Federal Reserve Bank, in addition to meetings with a group of companies, including international auditing companies, who praised the major transformations achieved by the Central Bank, represented by the remarkable progress in the procedures for monitoring foreign transfers and cash sales of the dollar currency).
Adding that (this led to improving systems, policies and procedures in accordance with international and local standards, enhancing transparency in covering foreign trade and providing protection for the banking and financial sector from the risks of money laundering, financing terrorism and financial crimes)
And pointed out that (a meeting will be held betweenbank officials and its international partners by the end of this year
regarding the major transformation in ending the work of the electronicplatform for foreign transfers and replacing it with direct bankingrelations between Iraqi banks and the network of internationalcorrespondent banks, according to the plan developed by this bank, andimplemented internationally, which will allow the Central Bank and the Federal Reserve Bank to exercise their supervisory roles Away from the executive procedures
This transformation will have important repercussions on the stability, fluidity and transparency of the country’s foreign trade financing operations,” he continued, adding that “this step will contribute to achieving the required stability in exchange rates, which in turn will lead to enhancing the efficiency of the financial system in Iraq.”
The statement stressed that “the meetings also addressed the mechanisms for expanding the network of international correspondent banks and qualifying Iraqi banks to meet the necessary requirements for opening their accounts with international correspondent banks, with the aim of enabling them to complete their financial transactions, whether through external transfers in US dollars or other foreign currencies .”
A source had previously revealed an unannounced visit by the Central Bank to the United States of America to discuss developments in the Iraqi banking sector .
Banking sector
The source said in a statement yesterday that (a delegation from the Central Bank, led by Al-Alaq, and a number of general managers, visited the United States of America, since the 26th of last month, to discuss developments in the banking sector and the restrictions on the use of the dollar imposed on a large number of private banks)
And he continued that (the Central Bank delegation discussed canceling the platform at the beginning of next year, and relying on correspondent banks, which will increase the imposition of restrictions on Iraqi private banks, and completely eliminate competition in favor of Jordanian banks that have American correspondent banks), noting that (the Central Bank is close to signing a contract with Oliver Wyman, the consulting company for the Iraqi Development Road, to conduct a study on reforming the Iraqi banking sector, and in order for it to be approved by the bank as a roadmap for reforming the private banking sector ).
The dollar exchange rate rose slightly in the Baghdad and Erbil stock exchanges. Money exchange office owners said yesterday that “dollar prices rose with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 149,200 dinars for every hundred dollars.” They added that “selling prices in exchange offices in the local markets in Baghdad stabilized at a selling price of 150,000 dinars, while the purchase price reached 148,000 dinars for every hundred dollars. As for Erbil, the stock exchange does not trade on official holidays, but the dollar recorded a slight increase there .” link
A CONVERSATION WITH A BANK VICE PRESIDENT REVEALS INSIGHTS ABOUT THE IRAQI DINAR AND THE POTENTIAL RV
Summary
A conversation with a bank vice president reveals insights about foreign currencies, including the Iraqi dinar and the potential for currency revaluation.
Highlights
🤔 Discussed foreign currencies with a bank VP.
💵 Mentioned specific currencies: Iraqi dinar, Bolivar, Vietnamese dong.
🚫 Many consider these currencies a scam.
🏗️ Jamie Dimon is investing in Iraq, indicating potential.
🔔 VP hinted at readiness to act on currency notifications.
😊 Felt validated in discussing currencies with an expert.
📈 Signals of potential growth in foreign currency investments.
Key Insights
🌍 Foreign Currency Interest: The conversation highlights a growing interest in foreign currencies, particularly among investors seeking alternative assets.
💳 Currency Skepticism: The skepticism surrounding currencies like the Iraqi dinar reflects broader concerns about investment risks and scams in the marketplace.
🏦 Banking Involvement: The mention of a bank vice president signifies institutional interest and potential legitimacy in foreign currency investments.
🌐 Economic Development: Jamie Dimon’s involvement in Iraq suggests that major financial players see potential in the region’s economic growth.
🔍 Notification Readiness: The VP’s comment about waiting for a notification implies that significant changes in currency values may be imminent, raising investor interest.
✔️ Validation in Expertise: Finding someone knowledgeable in foreign currencies can provide reassurance to investors feeling uncertain about the market.
📊 Potential Growth Indicators: The conversation underscores the potential for growth in foreign currencies, encouraging investors to consider diversification strategies.
Iraq's Economic Future: Insights into the Dinar's Potential Revaluation
Iraq's Prime Minister, Al-Sudani, recently addressed the public in a live broadcast, shedding light on the country's economic landscape and the potential revaluation of the Iraqi dinar. The PM's statements have sparked interest and debate among investors, economists, and citizens alike. In this article, we will delve into the key insights and implications of the PM's announcement.
Central Bank's Pivotal Role
The PM emphasized that the Central Bank of Iraq plays a crucial role in determining the value of the dinar. This assertion highlights the importance of the Central Bank's policies in shaping the country's economic future and stability. The government's commitment to adhering to the Central Bank's decisions underscores a unified approach to economic management.
Economic Confidence and Global Trust
Iraq's improved global standing is a testament to increasing confidence among international investors and partners. The PM's emphasis on strengthening ties with the United States could provide Iraq with economic support and stability. This development is likely to have a positive impact on the country's economic recovery and currency appreciation.
Banking Reforms: A Key to Economic Recovery
The ongoing reforms in the banking sector are crucial for Iraq's economic recovery and currency appreciation. These reforms aim to enhance the value of the Iraqi dinar, making it more attractive to investors and stabilizing the market. The PM's commitment to these reforms signals a proactive approach to addressing economic concerns and improving market perceptions.
Market Sensitivity and the Need for Proactive Measures
The question of revaluation highlights market sensitivity and the need for proactive economic measures. The PM's live updates and transparency on economic concerns demonstrate a commitment to addressing citizen's worries and providing a clear direction for the country's economic future.
Key Takeaways
The Central Bank of Iraq plays a pivotal role in determining the value of the dinar.
Iraq's improved global standing reflects increasing confidence among international investors and partners.
Banking sector reforms are key to economic recovery and currency appreciation.
Strengthening ties with the United States could provide Iraq with economic support and stability.
The government's commitment to Central Bank policies indicates a unified approach to economic management.
In conclusion, the PM's announcement has provided valuable insights into Iraq's economic future and the potential revaluation of the dinar. While there are challenges ahead, the government's commitment to reforms and transparency suggests a positive trajectory for the country's economy. As the situation continues to unfold, it is essential to monitor developments and adjust strategies accordingly.
