CBI Intel Call = Going International : The Shift Toward Digital Banking in Iraq, 16 MARCH

 CBI Intel Call = Going International

The Shift Toward Digital Banking in Iraq

Introduction

The conversation surrounding the evolution of banking in Iraq significantly underscores the country’s transition towards a digital economy.

 This chapter illustrates the details of a recent discourse involving representatives from the Central Bank of Iraq (CBI), with pivotal insights shared by Goldilocks, a figure actively involved in the discussions.

 The overarching theme of this content is the emerging digital banking landscape in Iraq, which acknowledges the increasing adoption of debit cards, credit cards, and point-of-sale systems. 

Understanding this transformation is vital for grasping the future financial ecosystem of the region, as it not only impacts how consumers interact with financial services but also the broader implications for economic growth and modernization.

The Context of Digital Transition in Iraq

• Historical Background: Iraq has been slowly moving towards modern financial systems, but significant changes have accelerated this year.
• Digital Transition Declaration: The CBI announced that Iraq recognized itself as a digital country in March-April 2023, marking a substantial milestone in its banking narrative.
• Consumer Adoption: CBI indicated that Iraqis are increasingly utilizing digital banking solutions, which suggests a shift in consumer behavior towards technology-influenced financial transactions.

The Call and Insights from CBI

• On October 14, a conference call was held involving Goldilocks and the CBI, emphasizing the growing collaboration between financial entities.
• Participants in the Call: Goldilocks expressed gratitude for the opportunity to engage with CBI, highlighting the longstanding relationship they have maintained.
• Key Developments Discussed:
  • The adoption of debit and credit cards is set to increase as infrastructure improves.
  • An anticipated widespread implementation of point-of-sale systems, which will facilitate easier transactions at retail and service locations.

Importance of the Shift to Digital Banking

• Benefits of Digital Banking:
  • Promotes financial inclusion by giving unbanked populations access to banking services.
  • Encourages transparency and reduces corruption, often a concern in cash-heavy economies.
• Economic Implications: The movement towards digital banking aligns with broader economic goals, suggesting that digital transactions could lead to increased tax revenues and enhanced regulatory oversight.

Challenges Facing Digital Banking in Iraq

• Infrastructure Needs:
  • The transition is not without challenges, as it requires significant investment in technological infrastructure.
  • There is also a need for education and awareness campaigns to ensure that average citizens can navigate the digital banking landscape effectively.
• Security Concerns : As digital banking grows, so does the need to address issues related to cybersecurity and fraud, critical for maintaining trust in these new systems.

Real-World Examples and Case Studies

• Case Study: The successful implementation of digital banking in nearby regions such as the Gulf Cooperation Council (GCC) countries provides a blueprint for Iraq’s initiatives. These nations have demonstrated embracing technology leads to increased financial efficiency and consumer engagement.
• Statistical Evidence: In other countries that have transitioned to digital banking, reports indicated that corresponding economic growth rates improved due to enhanced consumer spending capabilities facilitated by digital transactions.

Perspectives on Future Directions

• Goldilocks emphasized the optimistic outlook on Iraq’s financial future due to these developments. The call with the CBI indicates a positive shift in institutional mindsets aimed at embracing technology.
• The role of institutions committed to digital banking is crucial. These entities need to work collaboratively to create a favorable regulatory environment and market incentives.

Conclusion

The advances in digital banking in Iraq signify a pivotal moment in its economic evolution. As outlined through the dialogue with the CBI, the government’s recognition of a digital identity marks the beginning of significant changes in how financial transactions are conducted. The adoption of technology in banking not only aids in modernizing the system but also fosters economic growth and enhances financial inclusion.

Overall, the implications of advancing towards a digital banking system can greatly influence Iraq’s economic landscape, encouraging other nations with similar challenges to consider their digital transformations as vital for long-term societal advancement. In conclusion, for Iraq, the journey towards embracing a digital economy appears promising, yet the execution of supporting measures—educational initiatives, infrastructure investment, and collaborative partnerships—will ultimately determine the success of this transformation.

FIREFLY: Iraq will have a digital transformation in the financial sector. On a program rate?

 

FRANK26: "THIS MAY BE TRUE BECAUSE IT COMES FROM SALEH", 16 MARCH

 KTFA

FRANK26: "THIS MAY BE TRUE BECAUSE IT COMES FROM SALEH"...........F26

Important details about the 2025 budget schedules and the date for submitting them to Parliament were revealed.

 

3/12/2025

  

The Prime Minister's financial advisor, Mazhar Mohammed Salih, revealed important details about the 2025 budget schedule.

 

Saleh said in a press statement: "The budget is based on two main wings: the first is the operational wing, which constitutes between 68 and 70% of total public spending, and covers the salaries of employees, retirees, and social care, while the second wing is allocated to investment in development and service projects.
Saleh pointed out that the budget will operate according to spending ceilings estimated at about (200) trillion dinars, with a hypothetical deficit of (64) trillion dinars. This deficit will be financed from internal sources in the event that the average price of a barrel of oil falls below (70) dollars or oil exports fall below (3.4) million barrels per day.
He stressed that the government is committed to guaranteeing the salaries of employees and retirees, pointing out that approximately (8) million citizens receive government income, which contributes to the indirect support of approximately (40) million people. He added that implementing service projects, such as water, electricity, schools, and hospitals, will be a parallel priority to securing salaries.

For its part, the Parliamentary Finance Committee confirmed that the discussion of the 2025 budget will be resolved after it reaches Parliament.

Committee member Jamal Koujar explained that the committee will hold a session to discuss the budget once the schedules are received by the parliament, and will submit a report on the matter to the parliament's presidency.

(TRILLIONS CAN BECOME BILLIONS AT THE FLIP OF A SWITCH -F26)

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NEWS ROOM WITH CHELLA : Chapter Summary: Iraq’s Gold Reserves and Economic Diversification, 16 MARCH

 NEWS ROOM WITH CHELLA : 

Chapter Summary: Iraq’s Gold Reserves and Economic Diversification

Introduction

The topic of gold reserves holds significant importance in the context of national economies and wealth stability. In this chapter, we focus on Iraq, which possesses one of the highest gold reserves in the Arab world, estimated at 162 tons. The Central Bank of Iraq, led by Governor Ali Alot, emphasizes the critical need for diversification of assets to mitigate economic risks. Iraq ranks as the fourth largest holder of gold reserves among Arab countries, a position that presents both opportunities and challenges for the nation’s economic strategy.

Importance of Gold Reserves

• Definition of Gold Reserves: Gold reserves constitute the amount of gold held by a government or central bank, which can be used to back the value of currency, as well as a strategic asset in economic planning.
• Role in Economic Stability: Gold is traditionally viewed as a safe-haven asset; it can provide security against inflation, currency fluctuations, and geopolitical uncertainties.
• Risk Diversification: The Central Bank underscores that having a diversified portfolio—including gold—can mitigate risks associated with volatility in other asset classes and bolster financial stability.

Overview of Iraq’s Gold Holdings

• Quantity of Gold Reserves: Iraq’s total gold reserves are reported to be 162 tons, positioning it as a substantial player among Arab nations.
• Global Context: While Iraq is ranked fourth in the Arab world for gold holdings, this statistic must be contextualized within a broader global framework where countries like the United States and Germany hold significantly larger reserves.
• Comparison with Other Nations: Assessments indicate that other regional players, such as Saudi Arabia and the UAE, hold even greater reserves, indicating a competitive landscape in gold asset management.

Statement from the Central Bank of Iraq

• Ali Alot’s Perspective: The assertion made by Central Bank Governor Ali Alotthat “diversification is critical to avoid risk” highlights a proactive approach to economic management.
• Funding Mechanism: The statement suggests that gold reserves could serve as a backing for economic ventures, thereby enhancing national creditworthiness and investor confidence.
• Recommendation for Policy: Financial strategies proposed include bolstering gold reserves to act both as a fiscal cushion and as an investment vehicle during economic downturns.

Economic Implications of Gold Reserve Diversification

• Risk Mitigation Strategies: Economic diversification can reduce reliance on oil revenue, historically the backbone of Iraq’s economy, which is subject to price fluctuations.
• Formulating a Balanced Portfolio: Incorporating gold into Iraq’s Central Bank strategies is part of a broader recommendation to create a balanced financial portfolio that includes various asset classes.
• Long-Term Sustainability: Enhanced reserve policies can contribute to the sustainability of Iraq’s economic development over the long term, augmenting its ability to face both domestic constraints and international pressures.

Real-World Examples of Gold Reserves in Economic Strategy

• Comparative Analysis: Venezuela, another nation rich in oil, faced economic turmoil partly due to over-reliance on oil revenues. The contrast is drawn to Iraq’s planning to utilize gold as a stabilizing asset, potentially preventing similar issues.
• Investment Attraction: Countries with robust gold reserves often attract foreign investments, as they signal financial strength and stability. A stronger gold reserve could bolster Iraq’s attractiveness to international investors.
• Regional Trends: Other Arab nations, particularly in the Gulf Cooperation Council (GCC), are increasingly recognizing the importance of gold reserves, prompting discussions on regional cooperation in enhancing gold asset strategies.

Conclusion

In summary, Iraq’s significant gold reserves of 162 tons underscore the country’s potential to leverage these assets effectively for economic diversification and risk management. The emphasis by Ali Alot, the Central Bank Governor, on the importance of diversification hints at a roadmap aimed at enhancing economic resilience amid global volatility.

As Iraq continues to navigate its complex economic landscape, the strategic management of gold assets will be crucial—a factor that can lead to sustainable economic growth and enhanced stability. Moving forward, attention must be focused on not just accumulating gold but integrating it into a diverse and balanced economic strategy that embraces innovation and prudent financial practices. The narrative supports a broader understanding of how resource management can define the economic future of a nation with rich historical assets yet complex modern challenges.

HENING: Trump ...may issue 'unusual' sanctions on Iraq, but in 'doses similar to chemotherapy! #iqd

 

FRANK26: "WHAT DID I TELL YOU FAMILY... DO YOU RECALL?", 16 MARCH

 KTFA

FRANK26: "WHAT DID I TELL YOU FAMILY... DO YOU RECALL?".......F26

Iran may lose Iraq." Trump and the possibility of exploiting "fear" in nuclear negotiations.

 

3/12/2025

 

The American magazine "Foreign Affairs" reported that the Trump administration has an opportunity to expel Iran from Iraq, not through military action, but rather through "firm diplomacy, the threat of sanctions, and intelligence operations," giving the Americans greater leverage at the negotiating table with the Iranians .

After the American report, translated by Shafaq News Agency, pointed to the success of Iran's strategy since 1979, establishing a network of "agents and friends" across the Middle East, which has given Tehran influence in Iraq, Lebanon, and Syria, the report said that the events of the past year have upended this regional order, with Israel's destruction of Hezbollah in Lebanon and the control of Sunni forces supported by Türkiye over Syria.

He added that Iran is "terrified of another domino falling," with Iraq considered the most likely place for this to happen, as Tehran's allies in Baghdad are already on edge.

Sudanese concessions

According to the report, Iraqi politicians appear more eager than usual to appease the United States, noting that Prime Minister Mohammed Shia al-Sudani's team made three concessions to American officials in late January: the cancellation of an arrest warrant for US President Donald Trump for ordering the killing of Abu Mahdi al-Muhandis, deputy head of the Iraqi Popular Mobilization Forces, and General Qassem Soleimani, commander of Iran's Quds Force, in an airstrike on January 3, 2020, near Baghdad International Airport during his first presidential term.

The second concession, he noted, was agreeing to work toward the release of Israeli researcher Elizabeth Tsurkov, as well as approving a significant budget amendment long sought by the Kurds, whom the report described as "the segment of Iraqi society most closely connected to Trump."

While the report viewed these concessions as an indication that Iran's allies in Iraq feel "weak," it noted that Washington must exploit this moment to permanently limit Iranian influence in Iraq. It added that this should not be achieved through extensive military action, but rather through assertive diplomacy, the threat of sanctions, and intelligence operations.

The report considered that such measures would deprive Iran of a vital source of funding, give the United States leverage in any negotiations with Iranian leaders, and, most importantly, lead to better governance for Iraqis who have suffered under the yoke of Iran.

"The cash cow"

The report spoke of a "cash cow" and how Iran and its proxies feed off the Iraqi economy, which is why Tehran is holding on tightly to Baghdad, just as the East India Company did, plundering India's wealth to finance the British Empire for centuries.

The report addressed some of the actions of the Iranian Revolutionary Guard Corps in this context in Iraq, such as transporting Iranian oil into Iraqi waters to be falsely labeled as Iraqi and exported to global markets. Meanwhile, Iranian-backed militias, such as Asaib Ahl al-Haq and Kata'ib Hezbollah, "steal" Iraqi oil directly from wells or by establishing "front companies" that unfairly receive subsidized fuel from the government.

The report also touched on the Popular Mobilization Forces (PMF), which are nominally under the control of the Iraqi government and receive approximately $3 billion in government funding. It also touched on the state-owned Al-Muhandis Company, which cooperates with Chinese and Revolutionary Guard-run companies to receive oil and construction contracts from the Iraqi government. The report noted that the Iranian government is under immense financial pressure, with the national currency collapsing, and commodity prices rising daily, with inflation averaging 32%. 

The loss of Lebanon and Syria

The report continued, stating that maintaining control over Iraq is vital for the Iranian regime after losing two Arab states, as this makes it appear vulnerable and boosts the morale of its opponents. It added that losing influence in another Arab state, namely Iraq, which is geographically and socially closer to Iran, would be devastating and could have negative repercussions domestically, as the regime in Tehran fears that if it loses control over its neighbor, it will likely lose control over its own people.

However, the report stated that "expelling Iran from Iraq is not an easy task," given its significant influence within the Iraqi government, far exceeding that of the United States. However, Washington must take steps to ensure that Iraqi leaders do not submit to Iranian demands by setting clear red lines that Iraqi leaders understand.

The report stated that Washington should hold exclusive meetings with Iraqis who serve Iraq's national interests and take a tougher stance against Iraqi elites who harm their country's interests through their alliance with Iran. It should impose sanctions on their assets, marginalize them diplomatically, and threaten the use of force against Iranian-backed "terrorists" and their financiers in Iraq.

In this context, the report noted two "steps in the right direction" taken by the Trump administration: the memorandum calling on the Treasury Department to "impose immediate sanctions or take appropriate enforcement action" against anyone violating sanctions on Iran, and Washington's refusal on March 7 to renew the sanctions waiver allowing Iraq to purchase electricity from Iran.

Although the report acknowledges that such steps may not dissuade all Iraqi leaders from coordinating with Iran, given that there is a small segment of elites who despise the United States, it states that the vast majority of Iraqis are neither loyal to Tehran nor to Washington, but are simply responding to incentives, which Iran has been adept at providing so far.

Strict diplomatic sanctions

Therefore, the report argues that sanctions and tough diplomacy could further help Washington strengthen its position with Iraq and may also help it gain an advantage over Iran during the nuclear talks.

He added that Iran fears losing its influence in Baghdad, and that the Trump administration could use this fear as leverage in negotiations. 

The report continued, saying that Trump may engage with Tehran while tightening the noose on its networks inside Iraq, which would encourage Iran to come to the negotiating table rather than evade or prolong the negotiations.

The report concluded by stating that "by removing Iran from Iraq, Washington will have an opportunity to limit Tehran's global influence and enhance the chances of reaching an agreement that halts its nuclear program at the same time. The Trump administration must seize this opportunity."

 

(AS WE HAVE BEEN TEACHING DR. SHABIBI WANTED SECURITY & STABILITY FOR THE NEW EXCHANGE RATE TO BE RELEASED... AND YOU FAMILY, AND TRUMP KNOW WHO TO REMOVE FOR THIS SECURITY & STABILITY. -F26)

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