FRANK26: "YOU MUST MEAN THE LOWER NOTES... BECAUSE THE 3 ZERO NOTES ARE OVER 70% COLLECTED... UNDERSTAND KTFA?"....F26
Reassuring citizens, the Central Bank told NINA: We have ample cash liquidity.
3/15/2025
The Central Bank of Iraq (CBI) reassured the banking and community circles of ensuring the availability of cash liquidity to cover all local transactions in Iraqi dinars.
The Governor of the Central Bank, Ali Al-Alaq, said in a statement to the National Iraqi News Agency ( NINA ), that "the Central Bank is the last entity that can be without cash liquidity in Iraq."
He explained that "the Central Bank has wide scope to provide local currency to the extent that this currency is covered by foreign reserves, which currently far exceeds the level of local sufficiency, and more than we can finance."
He added, "There is frequent confusion between the position of the Central Bank, which is a completely different situation from the financial situation related to the financial policy in the country or the Ministry of Finance," indicating that "the Ministry of Finance's revenues are based in dollars through Iraqi oil sales in the global market."
Al-Alaq stressed that "the Central Bank deals in Iraqi dinars for all amounts it receives in dollars, and this is very available under any circumstances," calling for distinction and separation between the financial situation at the level of the government and the Ministry of Finance, and the availability of cash at the Central Bank of Iraq.
Article: "To reduce speculation, a Sudanese advisor reveals a new monetary strategy"
Quotes: "this strategy focuses on expanding the base of buying and selling foreign currency at fixed and stable rates, in line with the current monetary policy.";
"these steps coincide with enhancing the freedom of the foreign exchange process, with a high commitment to transparency and money governance in line with international standards."
Iraq confronts economic crises with the "digital dinar." The parallel market is threatened with "extinction."
The Central Bank of Iraq is preparing to launch the digital dinar, marking the transition to digital currency management.
The digital dinar is a digital currency issued by the central bank, officially part of a country's monetary system. It is similar in value to the traditional dinar, but is traded electronically via digital wallets or approved financial applications.
It facilitates instant money transfers within the country or across borders, reduces the logistical burden of issuing paper or metal currency, and enables broader segments of society to access digital financial services.
This project comes in light of the significant economic challenges facing Iraq, such as its heavy reliance on paper money and the phenomenon of hoarding. The digital dinar aims to address these challenges by providing a safe and effective digital alternative to paper money.
Central Bank Governor Ali Al-Alaq had previously stated during a speech he delivered at the Finance and Banking Conference and Exhibition that "the financial and banking system will witness fundamental transformations, including the decline of paper currencies and their replacement by digital payments for central banks."
He explained that "the Central Bank is moving to create its own digital currency, which will gradually replace paper transactions, as is the case with some central banks around the world."
Mazhar Saleh Mohammed, the Prime Minister's advisor for financial and banking affairs and former deputy governor of the Central Bank, highlighted the importance of the digital dinar and its relationship to the dollar exchange rate in local markets.
Speaking to Al-Eqtisad News, Mohammed emphasized that the digital dinar is a global trend in the development of payment systems, particularly in the description of monetary units that will acquire digital rights bearing the same legal acquittal force issued by the monetary authority as banknotes in acquitting debts, as they are units of account, exchange, and storage of value within the digital economic community and via a highly sophisticated, rapid, and accurate information system.
He added that these monetary units will be used with high transparency to cover various real transactions of goods and services, as well as to settle small and large obligations. He noted that all exchange transactions will be transparently recorded between traders, up to the point of purchasing a loaf of bread, under the supervision of the monetary authority, thus ending the ambiguous or illegal uses of money once and for all.
Regarding the digital dinar's relationship to exchange rates, Al-Sudani's advisor explained that the official exchange rate will be the prevailing and sole rate, the digital exchange rate adopted by monetary policy.
The parallel market will disappear in its current form, as it is difficult to invent a secondary digital market whose operations operate outside the control of the digital monetary authority. However, usurious digital markets may emerge among the same traders.
He pointed out that the digital cash system provides the banking system with sufficient digital cash liquidity to grant loans without the risk of liquidity risk within banking markets. This encourages investors to borrow easily, increases economic growth levels, and promotes sustainable development. It also facilitates access to global digital exchanges for global payments and settlements.
"Introducing digital currency requires two things," according to the Prime Minister's advisor. He explained that the first is a high level of public awareness of the digital monetary system, while the second is the availability of an advanced information, communications, and data technology infrastructure that evolves continuously over time
.
He pointed to the need for a legal infrastructure to protect digital currency transactions, particularly in protecting users' rights to their income and wealth, which cybersecurity provides against any dangerous digital breaches.
Many questions are being raised about the digital dinar and its differences from cryptocurrencies, which economic expert Ziad Al-Hashemi answers.
Al-Hashemi points to a "significant difference" between digital currencies and cryptocurrencies: "The former are issued and regulated by central banks, such as the digital dollar and the digital dirham, while cryptocurrencies such as Bitcoin are not subject to any official authority and their value depends on supply and demand, making them highly volatile."
He stated that if the Central Bank of Iraq issues the digital dinar, it will be the sole entity controlling the issuance and distribution of the digital currency, facilitating oversight and preventing financial crimes, unlike cryptocurrencies, which operate on a decentralized system that is difficult to control.
He pointed out that the digital dinar will be fully backed by the central bank and have a relatively stable value, similar to paper currency. However, it will be traded electronically only through bank accounts and wallets, contributing to reducing the use of paper money, achieving financial inclusion, and reducing reliance on the dollar in daily transactions.
Al-Hashemi noted that the primary goal of this step is to eliminate the phenomenon of cash hoarding, whereby citizens keep large sums of money outside banks due to lack of confidence in the banking system. This hinders the flow of funds and negatively impacts economic activity. If the project is implemented well, the digital dinar could help disburse hoarded liquidity and stimulate lending and credit. link
To Reduce Speculation, A Sudanese Advisor Reveals A New Monetary Strategy
Time: 2025/03/16 19:29:30 Reading: 720 times {Economic: Al Furat News} The Prime Minister's economic advisor, Mazhar Mohammed Saleh, revealed a new monetary strategy Sunday evening that seeks to reduce speculation.
Saleh said in a statement to Al-Furat News that: "A new monetary strategy aims to gradually attract foreign exchange transactions to the officially regulated banking system."
He explained that "this strategy focuses on expanding the base of buying and selling foreign currency at fixed and stable rates, in line with the current monetary policy."
Saleh emphasized that "these steps coincide with enhancing the freedom of the foreign exchange process, with a high commitment to transparency and money governance in line with international standards."
He pointed out that "this strategy is being implemented in an organized and precise manner by the Iraqi banking system, and specifically targets large transfers, especially those related to financing wholesale trade."
Saleh also pointed out "the importance of stimulating electronic banking transactions to reduce cash circulation, which contributes to feeding the parallel market with cash dollars, thus reducing speculative operations that take place outside the framework of the law." LINK
