Monday, March 10, 2025
Al-Alaq: We will witness a comprehensive digital transformation in the financial sector, 10 MARCH
Al-Alaq: We will witness a comprehensive digital transformation in the financial sector
3/8/2025 Baghdad
The Governor of the Central Bank, Ali Al-Alaq, announced on Saturday that banks are close to being converted into smart platforms using artificial intelligence, noting that Iraq will witness a comprehensive digital transformation in the financial sector.
Al-Alaq said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "despite the great strides that have been made to activate electronic payment methods, which are a fundamental step in the digital transformation, we will soon put this stage behind us, because even the current electronic payment methods and tools are being changed and developed very quickly."
He pointed out that "soon we will notice a big difference in the tasks and functions of banks, and we will see many banks changing the nature of their work, and there will be a digital financial identity for every citizen through which he can conduct many operations in his accounts or check his balances or even invest inside and outside Iraq," stressing that "banks will soon turn into smart platforms that organize financial operations and benefit from technologies and artificial intelligence."
He added that "this great work is accompanied by the work of the Central Bank, like other central banks, in thinking about having a digital currency under the supervision of the Central Bank. We are not talking about encrypted currencies that are outside the framework of central banks, but rather about a digital currency issued by the Central Bank, and this is a major work being done in the Central Bank in coordination with international and Arab organizations and specialized bodies, and directly with the Arab Monetary Fund."
He continued: "We believe that this trend will be the one that will be imposed in the near future, and this represents solutions to major economic, financial and social problems, and will also establish a strict framework for monitoring funds and limiting corruption, money laundering and financing terrorism, because all financial movements will be within a strict and transparent system that can monitor all financial operations, and at the same time facilitates its holders to conduct extensive operations even in other countries of the world."
He added: "We expect that young people will benefit, through the tools and human resources that we have, from these tools. Indeed, we are following that many young people are investing through these portfolios and tools in various fields outside Iraq, but some need to be careful and cautious because there is a lot of fraud that occurs, and we are working to prevent citizens from falling victim to any fraud." LINK
DINAR IRAQ STATUS HIGHLIGHTS, 10 MARCH
DINAR IRAQ STATUS HIGHLIGHTS
Highlights
- 🌍 US Treasury’s Role: Increased involvement of the U.S. Treasury is crucial for Iraq’s financial future, particularly regarding sanctions.
- 💰 Need for Economic Reform: Iraq must diversify its economy away from oil dependency to achieve long-term financial stability.
- 📈 Floating Exchange Rate: A managed floating exchange rate could provide more stability for the Iraqi dinar.
- 🏦 Digital Banking Adoption: Iraq is rapidly modernizing its banking system through digital transformation, facilitating smoother international integration.
- ⏳ Anticipated Changes: Bond payouts and potential shifts in exchange rates are expected, indicating possible economic movement.
- 🔍 Corruption Challenges: Corruption and political struggles remain significant hurdles hindering Iraq’s financial progress.
- 🚀 Future Outlook: There is a sense of impending change, with substantial developments expected in the coming weeks.
Key Insights
🌐 US Treasury’s Involvement: The U.S. Treasury’s engagement in Iraq’s economic affairs signifies a serious attempt to stabilize and reform the financial system. Their role is critical in negotiating the lifting of sanctions on Iraqi banks, which have hindered international financial activities. This involvement may lead to a more robust framework for economic reform, aligning Iraq with global standards, ultimately fostering a healthier financial ecosystem.
📊 Economic Diversification Necessity: Iraq’s heavy reliance on oil exports makes its economy vulnerable to fluctuations in global oil prices. Diversifying its economic activities into sectors such as agriculture, manufacturing, and services is essential for sustainable growth. This shift would not only stabilize the economy but also create job opportunities and reduce unemployment rates, fostering a more resilient economic environment.
🔄 Managed Floating Exchange Rate: Transitioning to a managed floating exchange rate allows the Central Bank of Iraq (CBI) to intervene as needed to stabilize the currency without completely relying on market forces. This approach could help mitigate the risks associated with sudden market fluctuations while still giving the dinar room to appreciate based on supply and demand dynamics.
💳 Digital Banking Transformation: The National Bank of Iraq’s adoption of advanced digital banking technology is a significant step towards modernizing the financial sector. This shift will enhance financial transparency, facilitate compliance with international banking standards, and attract foreign investments. As Iraq integrates more digital banking solutions, it will be better positioned to engage with global financial markets.
📅 Impending Economic Changes: The anticipation of bond payouts and potential changes in the exchange rate could signal a critical turning point for Iraq’s economy. Observers are encouraged to remain vigilant, as these developments may lead to the long-awaited adjustments in the dinar’s valuation, impacting both local and international stakeholders.
⚖️ Corruption as a Barrier: Corruption and political manipulation within Iraq’s financial system continue to pose significant challenges. The ongoing influence of powerful individuals who exploit the Central Bank for personal gain hampers economic progress. Addressing these issues is paramount for achieving genuine reform and establishing a stable financial environment.
📈 Cautious Optimism for Future Developments: The speaker conveys a message of cautious optimism, indicating that while the path to reform is fraught with challenges, substantial changes are underway. The presence of international financial institutions in Iraq’s economic landscape suggests that the country is moving towards a restructured exchange rate, which could have far-reaching implications for its economic health and global standing.
US Ambassador to Iraq: Importing natural gas outside the sanctions system, 10 MARCH
US Ambassador to Iraq: Importing natural gas outside the sanctions system
Economy News _ Baghdad
The head of the Parliamentary Finance Committee, Atwan Al-Atwani, confirmed on Sunday that the Iraqi government is serious about achieving independence in the field of energy, while the Chargé d’affaires of the US Embassy to Iraq, Daniel Rubinstein, pointed out that the import of natural gas is outside the sanctions system.
A statement from the Finance Committee, received by “Economy News”, said that “the Chairman of the Finance Committee Atwan Al-Atwani, received on Sunday, the Chargé d’Affaires of the US Embassy to Iraq, Daniel Rubinstein and the accompanying delegation,” noting that “the meeting discussed ways to enhance joint cooperation between Iraq and the United States of America in terms of managing and developing the work of the financial and banking sector.”
He added that “the meeting focused on discussing the file of US sanctions and the extent of their impact on the electricity sector, especially in light of the talk of the expiration of the deadline for exempting Iraq from the import of Iranian gas.”
According to the statement, Al-Atwani stressed “the importance of this visit at this sensitive time, and stressed the need for permanent communication to correct the course of Iraqi-American relations,” carrying “the embassy d’affaires an important message to the government of his country that stopping the import of gas will be catastrophic consequences for the Iraqi people, especially in the summer, as it will cause the collapse of the national electricity system, because there are no alternatives at the moment.”
He pointed out that “the Iraqi government is serious about achieving independence in the field of energy through many promising projects with regard to the investment of associated gas, for the purpose of using it in the generation of electricity and in a way that achieves self-sufficiency, but these projects will enter service in the coming years.”
He called on “the US administration to review the policy of pressure exerted by the US Treasury on the financial and banking sector in Iraq by imposing continuous sanctions on local banks.”
He stated that “Iraq has achieved a paradigm shift in the policy of compliance and financial transfers, and yet we are surprised by collective sanctions targeting Iraqi banks without prior warning and without announced justification or even notifying the Central Bank of Iraq of this, and this created a big problem for us, and affected the work and activity of the banking sector.”
For his part, Rubinstein expressed his understanding of what Al-Atwani put forward during the meeting regarding the energy files and banking sanctions, and promised to convey these messages to his country’s government in the hope of finding permanent treatments and solutions in the interest of the two friendly peoples,” pointing out that “the import of natural gas is so far outside the sanctions system.”
DINAR EXCHANGE UPDATE: PROTEST MOVEMENTS WITHIN IRAQ FOR EARLY ELECTIONS, 10 MARCH
DINAR EXCHANGE UPDATE: PROTEST MOVEMENTS WITHIN IRAQ FOR EARLY ELECTIONS
As of early 2025, there has been growing speculation and calls from various political factions and protest movements within Iraq for early elections.
These calls stem from dissatisfaction with the current government, ongoing political instability, and economic challenges,
including issues surrounding corruption, poor public services, and economic hardship exacerbated by the declining value of the Iraqi dinar.
Subscribe to:
Comments (Atom)
HOLLY CELIANO & CHRIS UPDATES: Weekly Wrap Up & Latest Nesara Gesara Updates April 17th 2026
Read also: Bank appointment for Currency EXCHANGE Instructions/Checklist
