At a steady pace, the Central Bank continues to implement the banking reform strategy, one of whose main objectives is to achieve the digital transformation in the banking sector, which was initiated by the Central Bank since 2017 with clear stages included in its first, second and third strategies.
During the past two years, cooperation between the government with the support and personal follow-up of the Prime Minister and the Central Bank was an essential step to activate and accelerate the transition to a digital government and the transition from the monetary economy to the digital economy, focusing on the development of payments within Iraq and the use of technology to improve financial inclusion, the development of information technology, the establishment of digital banks, the use of artificial intelligence in banking services, the use of modern technologies in loans, compliance, risk management, anti-money laundering, terrorist financing and combating bank fraud.
The results during 2023 and 2024 recorded a qualitative boom in the volume of transactions in electronic payments and the use of modern banking technologies
The percentage of digital transformation and electronic payment increased to 48.5% compared to 20% over the past years. It is an indicator that confirms the success of the approved plans and procedures to reach a major transformation with a distinguished national effort for digital transformation and electronic payment. This joint effort of the cadres of the Central Bank, the government, banks and electronic payment companies clearly contributed to having an advanced infrastructure for the implementation and absorption of electronic payment tools and multiple financial services.
Banking reform has now entered the transition phase to digital banks, which the Central Bank is currently examining and auditing 70 requests to approve new digital banks in accordance with the strict controls and conditions adopted by the Central Bank, which constitute a real and promising launch for technical banking development in Iraq to bridge the technical gap with the countries of the world in this field. This facilitates the provision of smart banking services, reduces the chances of fraud and corruption and provides important data on the nature of transactions, control and compliance.
Therefore, digital banks are a new stage of digital transformation and banking reform. We hope that the Central Bank will soon start the first step of approving digital banks, which show the results of examination, auditing and study that they are committed to the controls and conditions in force.
MarkZ Update – Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: TGIF……RV?
MZ: I do have 2 bank contacts planning on working this weekend.
MZ: There are some bond folks that will be meeting with paymasters this weekend to schedule things for next week….they are very hopeful….I hope this is it.
MZ: We do have a number of banks doing some upgrades through the rest of the month and through the first week of November. Many of you guys are also getting messages from your banks. Maybe this is it??
MZ: From Iraq: “Labor issues 15,000 Mastercard cards for full time appointees” Meaning Military and those getting pensions …moving forward with the humanitarian side of their budget.
Member: Best case scenario: Let’s say the funding for your bond folks do get funded….How does that impact us?
MZ: How is was explained to me many years ago: The bond holders would start to go en masse with real money…..then in the following days we would see fines and penalties, CMKX, Farm Claims and all of those go…..then days after that we would start getting our notifications and start going to the bank…They want to keep this quiet and out of the publics eyes. Then a week or two later they would publicly announce Nesara/Gesara. This was my understanding 15-20 years ago. It kinda feels like things are playing out that way.
Member: (From Dinar Guru) Mnt Goat Prime Minister Mohammed Shia al-Sudani confirmed from New York that the currency sale window will close at the end of this year, while revealing the government’s intention to establish a new bank that adopts the latest technologies. WOW! WOW! We have been waiting for this for decades. Now it Is reality. Finally!!
MZ: It’s close – no matter which way you look at it…whether it’s after the e******n or the first of the year….I personally think its sooner. We all have opinions.
Member: Looking forward to this being the weekend we have been waiting for. Fingers crossed.
Member: Have a blessed night everyone.
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY.
For decades, foreign intervention in Iraq has had a significant impact on the political, military, and economic landscape of the nation. External powers have repeatedly influenced Iraq’s sovereignty and decision-making, from colonial rule to recent military operations. This has led to long-running debates about the country’s independence and its future.
Iraq commemorated its independence from British mandate rule and its admission as a fully sovereign state to the League of Nations on its 92nd National Day on October 3.
In solidarity with Lebanon and Palestine, which are experiencing severe crises as a result of the Israeli aggression, Prime Minister Mohammed Shia Al-Sudani declared a public holiday but postponed official celebrations.
Legislators and observers of politics have criticized the celebration this year.
The British Mandate over Iraq, which began in 1920, was established under the pretext of assisting the country’s development, but it effectively limited Iraq’s sovereignty. This is the beginning of the modern history of foreign intervention in Iraq. Even though Iraq became officially independent in 1932 and joined the League of Nations, British influence persisted for decades, particularly in the country’s military and oil industry. Although the monarchy was overthrown in the 1958 revolution, foreign powers, particularly the United States and the Soviet Union, continued to compete for influence during the Cold War.
The 2003 US-led invasion of Iraq was the foreign intervention with the greatest impact. The invasion toppled the Baathist government and threw Iraq into chaos, despite being justified by the destruction of weapons of mass destruction and the end of Saddam Hussein’s regime. Insurgency, sectarian violence, and the rise of extremist groups like al-Qaeda and later ISIS were all made possible by the power vacuum that resulted.
Thousands of US troops were stationed in Iraq for years to combat insurgents and aid in the stabilization of the new Iraqi government. Although the United States officially ended its involvement in combat in 2011, it did not end. The United States continued to exert influence over Iraq’s political and military decisions through military advisers, airstrikes, and the international coalition fighting ISIS.
Iran, on the other hand, has emerged as one of the most significant regional players in Iraq since Saddam Hussein’s fall. Iran has been able to significantly influence Iraq’s political landscape through its close ties to Shiite political parties, military forces, and religious leaders. During the fight against ISIS, the Popular Mobilization Forces (PMF), many of which are backed or aligned with Iran, and the political group the Coordination Framework, which includes all Shiite parties but the Sadrist movement, exemplified Tehran’s influence. In both parliament and government, the Framework controls a majority.
Some Iraqis see Iran as a strategic ally, particularly in the fight against extremist groups, while others see Iran’s growing influence as a threat to Iraq’s sovereignty. It has been alleged that Iraqi forces backed by Iran undermine the nation’s unity and operate independently of the government.
Another significant regional player, Turkiye has repeatedly intervened in Iraq, primarily to target Kurdish militant groups like the PKK, which has bases in northern Iraq. Turkish airstrikes and military operations in the Kurdistan region are frequent, and Ankara explains that these actions are necessary for the country’s safety. Ankara and Baghdad’s relationship has been strained as a result of these operations, which Baghdad views as violations of its sovereignty.
The debate regarding Iraq’s sovereignty continues to be dominated by foreign interventions. With slogans calling for an end to both US and Iranian influence, protests in recent years, particularly those in 2019, highlighted the public’s dissatisfaction with foreign interference.
The country still faces difficulties, despite the fact that it has taken steps toward reclaiming its sovereignty, such as reducing the number of foreign troops present. The political landscape of Iraq continues to be shaped, particularly by US and Iranian influence. In addition, Iraq’s dependence on economic and military assistance from abroad makes it challenging for the nation to fully assert its independence.
“Sovereignty is a concept merely debated while violations from Turkiye, Iran, and the US continue,” Bassem Khashan, an independent MP, stated.
“External forces control Iraq’s fate,” Khashan added. Many of Iraq’s decisions lack true sovereignty because they are influenced by Saudi Arabia, Iran, or Turkiye.
According to Shafaq News, independent MP Yasser Al-Husseini, the ongoing violations of Iraq’s security, economy, and geography demonstrate that the government lacks control over the country’s sovereignty.
The holiday was also questioned by political analyst Abbas Al-Jubouri, who stated, “October 3, 1932, marks Iraq’s entry into the League of Nations, but this is not full independence.”
Al-Jubouri inquired about the current state of Iraq and asked, “Is Iraq sovereign today? No, Turkey, the United States, and other nations are occupying the country. American aircraft conduct airstrikes and control the skies over Baghdad. How can we celebrate sovereignty?
When Iraq is neither sovereign nor independent, why celebrate independence and sovereignty? Foreign states use the political forces in this area as instruments.
Others praised the recent accomplishments of the Iraqi government in spite of these opposed voices.
On the Right Path, Dr. Fadel Al-Hilali, a political researcher, argued that Iraq’s National Day is a significant occasion, stating, “The 1932 anniversary symbolizes Iraq’s full recognition as a sovereign state.”
According to Al-Hilali, “Iraq’s government is making efforts to strengthen these elements, though challenges remain.” Al-Hilali emphasized the significance of sovereignty’s political, legal, and economic dimensions.
Dr. Saadoun Al-Saadi, a professor of international relations, told Shafaq News Agency that sovereignty is more than just a celebration. He said, “while Iraq has international recognition, past conflicts have invited foreign interventions.”
He said that Iraq is “on the right path,” but that it still faces challenges in building its military capabilities and defense systems. He praised the current government for actions like ending the UNAMI mission and reducing the role of the International Coalition.
MZ: On the bond side there are more confirmations that they are expecting payments early next week…most are focused on Tuesday.
MZ: One bond trader swears that we should expect our announcements around Tuesday or Wednesday next week. We have to wait and see if this is accurate or not.
MZ: Seems to be a black out or brown out on the group side.
MZ: I now have 2 bankers/redemption folks who say they will be working this weekend. One of them said they are making new system software updates….while the other one says they are preparing for an influx of new wealth management clients this month.
Iraqi economist Nabil Al-Marsoumi predicted on Friday that oil prices could surpass $200 per barrel if the war spreads to the Gulf states and Iran closes the Strait of Hormuz, preventing the daily flow of approximately 20 million barrels to global markets.
Al-Marsoumi gave two possible outcomes for the approaching “oil war.” The first scenario has Israel targeting Iran’s most important hubs for oil exports, specifically Kharg Island, which is where 90 percent of Iran’s oil exports pass. Prices for a barrel of Iranian oil would rise to around $82 as a result of this attack, which would remove 1.5 million barrels from the market. “This would also cut off the most important source of Iranian funding,” he added, however.
“In such a scenario, OPEC+ may step in and remove voluntary and mandatory production limits to guarantee sufficient oil supplies to make up for the loss of Iranian oil. He stated, “This intervention may bring prices back down to approximately $70 per barrel.”
Al-Marsoumi suggested the second scenario: “The war could extend to include oil pumping and export stations in the Gulf, which would negatively impact Gulf oil exports, especially from Saudi Arabia, and push prices above $100 per barrel.”
“Iran has previously stated that if it is prevented from exporting its oil, it would block oil shipments through the Strait of Hormuz,” the economic expert added. “If Iran closes the Strait, it would halt approximately 20 million barrels of global oil supplies daily, driving prices to $200 per barrel and negatively affecting gas shipments passing through the Strait.”
“An Israeli strike would likely target oil installations, especially Iranian refineries, which would take 300,000 to 400,000 barrels of Iranian exports off the market,” Al-Marsoumi added. Despite this, he stated that this would have “minimal impact on global oil prices, especially with Libyan oil returning to previous levels.”
