For almost like a good six, seven eight months there's all this hype, it's going to change tomorrow, it's going to change tomorrow because there was so much talk about the exchange rate. I keep telling people...that's not what's going to happen. There's still things that need to be done.
They have to do something about that parallel market. The reason why it's so successful is because people prefer to get the US dollars if they can. If businesses and travelers want to get more bang for their buck, they don't have a problem with selling the US dollars for more Iraqi dinars, more than the official exchange rate. It puts Iraq in a pickle..
.
Do they raise the rate of the Iraqi dinar or do they lower it?
Article: "The parallel market will be overturned.
Sources: Upcoming decisions from he central bank that will confuse the markets and raise exchange rate."
It's interesting they don't say which exchange rate... Quote: "He stated the decisions are likely to raise the dollar exchange rate in the parallel market..." When they say raise the dollar exchange rate, that's not good for us. That means the dollar is rising up against the dinar...On the black market people are getting 1505 dinars for every $1.00... which is much higher than the 1320 for every dollar, the official exchange rate...It's getting out of whack again. As it gets harder and harder to get the US dollar, you're going to see the black market really start to increase. I'm curious to see what kind of decisions the central bank is going to make...
New Card Distribution for Citizens in Iraq: 2024 Commercial ATM Bank Withdrawals
The recent television commercial airing in Iraq is creating a buzz around the country's financial landscape. This 5 to 6-minute long commercial focuses on the new cards that citizens will soon receive in the mail. These cards are set to revolutionize banking and ATM transactions, aiming to facilitate easier cash access and financial management for the Iraqi population.
Enhancing Access to Cash: ATMs and New Cards
The advertisement highlights the seamless process of withdrawing money from ATMs using these new cards. With the Visa logo prominently featured on the cards, they promise to be widely accepted across the country and even overseas. This move is expected to increase financial inclusion and reduce dependency on cash transactions, which have traditionally dominated in Iraq.
Iraq's Digital Payments Landscape
While digital payments have been slow to gain traction in Iraq, the introduction of these new cards signals a significant step towards modernizing the country's payment systems. The Central Bank of Iraq (CBI) has already issued licenses to 17 companies for operating digital wallets, aiming to enhance the digital payment infrastructure.
Challenges and Opportunities
Despite the push for digital payments, Iraq still faces challenges in convincing its citizens to adopt these new technologies. A deep-rooted trust in cash transactions remains prevalent. However, the widespread availability of ATMs and the convenience of using cards could gradually shift this preference. The new cards are poised to provide an alternative to traditional banking methods, potentially catalyzing a cultural shift towards more digital and card-based transactions.
FIREFLY: We are seeing a commercial on TV. It's 5 or 6 minutes long showing our new cards we are going to be receiving in the mail very shortly they tell us. They're showing the citizens going to banks and ATMs getting money out. They are showing us how to do this...This informational stage we are in is like Mr. Sammy [Bank friend] said, it will last for the rest of the year.
FRANK: The commercials are now starting because Alaq has returned...
International Conference on Payments and Banking Technologies: A Catalyst for Digital Transformation in Iraq 2024
The International Conference on Payments and Banking Technologies, held in Iraq in 2024, serves as a pivotal platform for accelerating digital transformation in the country's financial sector. As an advisor to the Association of Banks, this conference is seen as a crucial opportunity to foster innovation and modernization, aligning with global trends in finance and technology.
Importance of Digital Transformation in Iraq's Banking Sector
Digital transformation in Iraq's banking sector is not only a necessity but also a strategic imperative. By embracing digital technologies, banks can enhance operational efficiency, improve customer experience, and stay competitive in an increasingly digitalized global economy.
Key Themes at the Conference
The conference focuses on several key themes, including: Innovation in Payments: Highlighting advancements in payment systems, the conference explores how new technologies can streamline transactions and reduce costs. Regulatory Framework: Discussions on the evolving regulatory landscape, ensuring that digital transformation initiatives are compliant with national and international standards.Cybersecurity Measures: Addressing the critical issue of data protection, the conference delves into strategies for safeguarding financial information in the digital age. Financial Inclusion: Exploring how digital banking can reach underbanked populations, promoting financial inclusion and economic empowerment.
Global Digital Summit: A Parallel Event
In conjunction with the International Conference on Payments and Banking Technologies, the Global Digital Summit, organized by the World Bank, will also take place in Iraq. This summit will convene government officials, private sector leaders, and thought leaders to discuss digitalization's role in development.
Collaborations and Partnerships
The conference will feature collaborative efforts between the Iraqi Private Banks League and global technology companies. Huawei, for instance, will share its expertise in digital transformation, showcasing banking systems designed to enhance financial inclusion and efficiency.
Digital Transformation in Iraq: Challenges and Opportunities
The journey towards digital transformation in Iraq presents both challenges and opportunities. Corruption, lack of infrastructure, and resistance to change are some of the hurdles that need to be addressed. However, the potential for improved service delivery, job creation, and economic growth is significant.
The Advisor to the Association of Iraqi Private Banks, Samir Al-Nusiri, on Thursday, said that the International Conference on Payments and Banking Technologies, which will be held under the auspices of Engineer Mohammed Shia Al-Sudani, Prime Minister for September 14 and 15, and in joint cooperation between the Prime Minister’s Office, the Central Bank, the Association of Iraqi Private Banks and in the presence of governors of international banks and specialized companies to support and accelerate the transition to digital government and the transition from the monetary economy to the digital economy.
The conference will discuss 16 axes in which it focuses on the role of the government, the Central Bank and the Association of Banks on developing payments inside Iraq, using technology to improve financial inclusion, developing information technology, establishing digital banks, using artificial intelligence in banking services, using modern technologies in loans, compliance, risk management, combating money laundering, terrorist financing and combating bank fraud.
The results of the government role and the efforts exerted by the Central Bank, banks, electronic payment companies and supporting companies that have been achieved since the issuance of the decisions that
It was issued by the Council of Ministers in 2023 to activate, stimulate and support the digital transformation, and the results recorded a qualitative surge in the volume of transactions in electronic payment processes and the use of modern banking technologies.
Al-Nusairi said, in an interview with “Economy News”, that “the Central Bank of Iraq and the Association of Banks are working side by side in the implementation of the government program in the twelfth axis (financial and banking reform) and the direction of the Prime Minister in supporting electronic payment, and that the achieved so far confirms the rapid steps and joint cooperation to move to bridge the technical gap between Iraq and the countries of the world in this field. In 2023, the amounts processed through the national segment witnessed a significant increase, reflecting the development of infrastructure and the expansion of the use of electronic payment channels and the impact of the campaign launched by the Prime Minister to activate electronic payment operations in general, and in the government sector in particular.”
Al-Nusairi added that “these upward trends continued to develop in 2024, as the amounts processed in the national division systems reached more than (2) trillion Iraqi dinars in July alone, compared to (800) billion dinars in the same month of 2023, after which it became (1) trillion dinars in January 2024, and government payments also witnessed an additional rise, reaching (912) billion Iraqi dinars last July compared to (287) million dinars from the same month of 2023.”
He pointed out that “the payment operations at gas stations in Baghdad alone increased significantly, recording more than (44) billion dinars in July this year, compared to (183) million dinars in July of the year 2023 and (4.5) billion dinars in December 2023.”
He stressed: “A significant increase in the number of POS to reach more than (50) thousand points of sale this year compared to nearly (11) thousand pos at the beginning of 2023, and thousands of them in government institutions after it was zero before the launch of the campaign in June 2023.”