Thursday, January 2, 2025
Arab Bank Group Gains Approval To Relaunch Operations In Iraq Starting 2024, 2 JAN
Arab Bank Group Gains Approval To Relaunch Operations In Iraq Starting 2024
Business Iraq Jawad Al-Samarraie December 30, 2024
Arab Bank Group Relaunch In Iraq Baghdad (IraqiNews.com) – Arab Bank Group has received final approval from the Iraqi Central Bank on December 24, 2024, to relaunch its banking operations in Iraq.
The bank is set to begin its official activities in the new year, marking a significant development in the Iraqi financial landscape.
This move highlights Arab Bank’s ambition to expand its footprint in the Arab region and strengthen external investments, making Iraq a pivotal market in its broader strategy.
Arab Bank’s History And Legacy
Arab Bank’s approval to operate in Iraq brings back an institution that has a rich legacy in the country.
The bank previously operated four branches in Iraq from 1945 to 1964, serving as a cornerstone for Iraq’s financial development during that time.
Arab Bank was founded in 1930 by Abdul Hameed Shoman in Jerusalem, Palestine, with an initial capital of £15,000 and seven shareholders.
Following the events of 1948, the bank moved its headquarters to Amman, Jordan, where it became a publicly traded company.
During the 1940s and 1950s, Arab Bank expanded rapidly, establishing 43 branches across the Arab world and beyond.
In 1961, the bank achieved another milestone by becoming the first Arab financial institution to establish a presence in Switzerland.
Today, Arab Bank operates over 500 branches worldwide, making it one of the most influential financial institutions in the region.
A Promising Step For Iraq’s Banking Sector
The re-entry of Arab Bank into Iraq signifies the increasing appeal of Iraq’s financial market to international and regional investors.
The bank’s presence is expected to enhance the Iraqi banking sector by introducing modern financial practices and fostering increased economic activity.
This development not only strengthens Iraq’s financial infrastructure but also provides a gateway for other Arab and global institutions to invest in the country.
Looking Ahead
Arab Bank’s return to Iraq marks a promising step forward for the country’s banking and economic development.
As Iraq continues to rebuild and attract foreign investment, Arab Bank’s role will be critical in fostering financial collaboration and regional integration.
https://www.iraqinews.com/business/arab-bank-relaunches-iraq-2024/
JON DOWLING: Get ready to be blessed so that you can be a blessing, 2 JAN
Jon Dowling
Time to throw out the past and welcome in the new life and future we will all get to experience. We have a golden opportunity like never before. If you have a pulse then you have a purpose!
Get ready to be blessed so that you can be a blessing.
I’m happy for all of us going forward as we will be legends in our families and for the Kingdom of heaven respectively.🙏🙏🙏✅
Iraq Ends Dollar Auction Platform: Economic Transformation And New Challenges, 2 JAN
Iraq Ends Dollar Auction Platform: Economic Transformation And New Challenges
Jawad Al-Samarraie December 30, 2024 Packs of US dollars and Iraqi dinars. Photo: Pukmedia
Baghdad (IraqiNews.com) – As Iraq steps into 2025, a pivotal change is set to reshape its financial landscape.
The Central Bank of Iraq has announced the termination of its electronic platform for monitoring foreign currency movements and transfers.
While experts have hailed this decision as a “bold step” with significant economic and regulatory implications,
the move also raises concerns about potential challenges that could disrupt the country’s financial stability.
Why End The Dollar Platform?
The electronic platform, established in early 2023, served as a mechanism to monitor foreign currency transactions, ensuring compliance with international standards.
However, the Central Bank of Iraq intends to decentralize currency transfers by allowing local banks to engage directly with correspondent banks abroad.
This shift aims to streamline operations, enhance transparency, and reduce dependency on intermediary systems like the Federal Reserve’s oversight.
According to Kadhim Al-Shammari, a member of Iraq’s Parliamentary Economic Committee,
the platform was a temporary solution to manage the economic chaos and legal loopholes that plagued Iraq’s financial system. Al-Shammari emphasized that
while the Central Bank’s core role is to preserve monetary reserves and stabilize exchange rates, selling dollars should remain the purview of private banks.
However, this transition must be accompanied by stringent regulations to ensure responsible currency distribution.
Potential benefits of ending the platform
Nawar Al-Saadi, an international economic expert, highlights the advantages of this decision:
1. Enhanced transparency: Decentralizing transactions could promote more straightforward and transparent dealings between local and correspondent banks.
2. Cost Reduction: Eliminating the platform’s maintenance expenses could save significant resources for the Central Bank.
3. Direct international compliance: By adhering to global banking standards, Iraq can reduce bureaucratic barriers and foster stronger financial relationships with foreign institutions.
4. Efficient financial operations: Simplified processes can reduce delays in currency transfers, benefiting traders and importers.
The Central Bank’s strategic shift also aligns with its efforts to diversify currency usage, facilitating trade with key partners like China, India, and the UAE using alternative currencies such as the euro, yuan, and rupee.
Challenges And Risks
Despite its merits, the decision to end the platform is fraught with challenges:
1. Increased black market activity: Economic experts warn that the absence of robust mechanisms could push traders towards unregulated markets, driving up exchange rates.
2. Limited bank participation: Only five out of Iraq’s 60-70 banks have the capacity to handle direct international transfers, which may create bottlenecks and operational delays.
3. Inflation risks: A rise in exchange rates could elevate import costs, triggering inflation and reducing purchasing power for Iraqi citizens.
4. Economic uncertainty: Traders reliant on the platform may face disruptions, potentially slowing commercial activity and increasing unemployment in import-dependent sectors.
Adil Al-Alawi, head of the Iraqi Economic Alliance, underscores the importance of implementing rapid regulatory measures and capacity-building initiatives to mitigate these risks.
The lack of effective oversight could exacerbate financial crimes, including money laundering and tax evasion, tarnishing Iraq’s global economic reputation.
Expert Recommendations
To ensure a smooth transition, financial analysts propose the following:
1. Gradual implementation: Phasing out the platform while providing adequate training and resources for local banks to adapt.
2. Enhanced oversight: Establishing strict regulatory frameworks to monitor dollar distribution and curb illicit activities.
3. Market stability measures: Increasing dollar availability through official channels to reduce reliance on parallel markets.
4. Public awareness campaigns: Educating traders and importers about the new system to minimize confusion and resistance.
Central Bank’s Roadmap
In a statement issued in September 2024, the Central Bank reassured stakeholders about its comprehensive plan to transition to the new system.
By the end of 2024, 95% of foreign currency transactions had already shifted from the platform to direct banking channels, with only 5% remaining to be integrated.
The Bank also introduced alternative mechanisms, such as facilitating personal transfers through electronic payment systems and ensuring dollar availability for legitimate purposes at official exchange rates.
Looking Ahead
Iraq’s decision to end the dollar platform marks a significant milestone in its economic reform journey.
While the move promises long-term benefits, its success hinges on meticulous execution, robust oversight, and proactive stakeholder engagement.
By addressing potential challenges and leveraging international banking best practices, Iraq can strengthen its financial resilience and pave the way for sustainable economic growth.
As 2025 unfolds, all eyes will be on Iraq’s financial sector to assess the real impact of this bold initiative.
The outcome will not only shape Iraq’s domestic economy but also influence its standing in the global financial arena. https://www.iraqinews.com/business/iraq-ends-dollar-auction-platform-economic-impact/
CHARITY I have epic news from Iraq!!!🙌🏻🙌🏻 : $1 IQD = $6 USD, 2 JAN
CHARITY
I have epic news from Iraq!!!🙌🏻🙌🏻
I have this friend who has been a soccer referee for 30y.
Yesterday he went to a New Year party, where all his soccer students he had over the years also came and he reconnected with one of them -a girl- who meanwhile married to this Iraqi guy, who’s parents still living in Iraq!!
My friend asked him if he talked to his parents recently and he said yes, 3 days ago, and then he asked how much is 1 IQD there and said 1IQD=$6 🤯
$6!!!!! I was shocked!!!
Chat!!!! $6🤯🙌🏻🙏🏻
I hope this makes your day and your year!🥳
Parliamentary Energy Reveals US Pressure to Pass Budget Amendment Law...and This is the Reason, 25 JAN
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