MNT GOAT: How will this...the digital dinar... impact the dinar paper we HAVE? #iraq

 

CENTRAL BANK: DIGITAL CURRENCY REDUCES CASH FLOW OUTSIDE BANKS, 26 MARCH

CENTRAL BANK: DIGITAL CURRENCY REDUCES CASH FLOW OUTSIDE BANKS

On Thursday, March 20, 2025, the Governor of the Central Bank of Iraq, Ali Al-Alaq, described digital currency as “limiting the flow of cash outside banks.” He also spoke of a plan to establish a data center that would serve as a foundation for digital transformation.

The Iraqi government faces challenges in managing dinar liquidity, as it suffers from a chronic shortage of this currency, affecting its ability to meet its financial obligations to pay employee salaries, repay debts, and finance projects.

Al-Alaq said in a press statement followed by Al-Jabal, “Financial technologies are developing rapidly, in line with the requirements of the financial and banking sector in terms of speed, accuracy, and economic efficiency, in addition to transparency and oversight. The reality of the digital revolution is imposing itself on all sectors, including the financial and banking sector, which stands to benefit most from the major transformations taking place.”

He added, “Digital currency can serve many purposes, limiting the flow of cash outside banks and achieving a high degree of transparency, as funds can be tracked, whether in consumption, investment, savings, or even in legitimate and illegitimate businesses. It also provides important databases for analytical purposes, not just for the movement of paper money. In addition, digital currency offers economies of scal e, including the ability to print and track currency.”

Al-Alaq explained, “We have begun taking steps in coordination with international organizations to review initial experiments in the digital currency file, which we do not wish to delay.” He noted, “There are existing experiments in some countries in the region, and we are also following up with the Arab Monetary Fund to develop appropriate steps in this direction, and what is required is infrastructure.”

He continued, “The Central Bank possesses advanced infrastructure. The new bank building houses a sophisticated data center, and we are working to establish a data center that will represent a successful foundation for digital transformation.”

The Central Bank of Iraq previously announced its move to issue a digital currency as an alternative to paper currency, a shift that could reshape the payments landscape and the national economy entirely.

This move comes in response to “increasing challenges in managing traditional cash,” amid a global trend toward financial digitization.

Al-Alaq said, “The financial and banking system will witness fundamental transformations, including the decline of paper currencies and their replacement by digital payments by central banks.” He explained that “the Central Bank is moving to create its own digital currency to gradually replace paper transactions, as is happening at some central banks around the world.

MNT GOAT : "RAFIDAIN BANK DEPLOYS ATMS AT 5 STATIONS IN BAGHDAD" - "CENTRAL BANK: DIGITAL CURRENCY REDUCES CASH FLOW OUTSIDE BANKS", 26 MRCH

 MNT GOAT

"RAFIDAIN BANK DEPLOYS ATMS AT 5 STATIONS IN BAGHDAD" - "CENTRAL BANK: DIGITAL CURRENCY REDUCES CASH FLOW OUTSIDE BANKS"

(Full articles in the articles section) "Rafidain Bank announced today, Friday, the deployment of ATMs at five stations in Baghdad". "This step comes as part of a strategy to expand the scope of digital banking services, contributing to the integration of more individuals into the banking system and enabling them to benefit from modern financial solutions without the need to visit traditional

branches." On Thursday, March 20, 2025, the Governor of the Central Bank of Iraq, Ali Al-Alaq, described digital currency as "limiting the flow of cash outside banks." He also spoke of a plan to

establish a data center that would serve as a foundation for digital transformation. In this period of news from Iraq we find that paper cash dinars will coincide with the digital dinar on a limited basis. It appears the digital dinar is mainly for international transactions of imports for now. This move is hoped to get the dinar readily accepted by all Central Banks outside Iraq. They also told us this will end the parallel market. Is this not what we need for a

reinstatement? Yes, stability of the currency at this level.

Let's explore all this today and more.... Choo... Choo...Choo... Choo...

Their words not mine.....

HOW IRAQ IS PLANNING TO ELIMINATE THE PARALLEL MARKET BY 2025? @DINARREVALUATION #iraqidinar

 

SUDANESE ADVISOR: DIGITAL TRANSFORMATION OF THE NATIONAL CURRENCY IS A STEP TOWARDS FINANCIAL SYSTEM STABILITY., 26 MARCH

 SUDANESE ADVISOR: DIGITAL TRANSFORMATION OF THE NATIONAL CURRENCY IS A STEP TOWARDS FINANCIAL SYSTEM STABILITY.

The Prime Minister’s Advisor, Mazhar Mohammed Saleh, stated on Thursday that the digital transformation of the national currency is an important step towards enhancing the stability of the national financial system.

In a statement to Al-Sa’a Network, Saleh stated that “the digital transformation of the national currency represents a stable and transparent payment instrument that contributes to improving the efficiency of the national economic system .”

He explained that “digital currency differs from paper currency only in terms of improved transaction speed and system quality, which reduces costs and provides greater control over payment flows .”

He added that “this transformation provides the Central Bank with a greater opportunity to implement its regulatory and supervisory policies, while ensuring high confidentiality in citizens’ financial transactions.” He noted that “the digital currency will become part of global payment systems while maintaining its exchange value as paper currency,” in addition to its “role in settling payments and transferring funds into foreign currencies in a transparent manner .”

He stressed that “this step will contribute to enhancing financial inclusion, especially for the most vulnerable segments of society, by facilitating their access to the banking system, and that digital transformation contributes to combating financial crimes such as money laundering .”

He explained that “Iraq will gradually enter the era of digital financial technology, in cooperation with the global financial and technical community,” noting that “this process requires two basic conditions: a high level of digital monetary culture among the public, and an advanced infrastructure, both electronically and legally .”

He pointed out that “the exchange rate system in Iraq, for more than six decades, has been based on pegging the Iraqi dinar to the US dollar,” stressing that “the transition to the digital dinar will not affect the value of transactions or financial transfers .”

DINAR REVALUATION REPORT: WHY IRAQ MUST DO IMMEDIATE ACTIONS REGARDING NON OIL REVENUES INITIATIVES?: IRAQ NEEDS AN ECONOMY STABLE , 26 MARCH

Parliamentary Statement on the Repercussions of Delaying Non-Oil Revenue Generation on the Iraqi Economy

To: The Government of Iraq, Ministry of Finance, and Relevant Economic Authorities

Subject: Immediate Action Required to Address the Risks of Delaying Non-Oil Revenue Initiatives

Introduction:

The Iraqi economy has historically been overly reliant on oil revenues, which, though significant, have proven to be volatile and susceptible to fluctuations in global oil prices.

 This over-reliance has made Iraq vulnerable to economic shocks, as evidenced by the financial crises triggered by declining oil prices. In light of these challenges, it is crucial for Iraq to diversify its sources of revenue, particularly through robust non-oil revenue initiatives.

Warning:

The delay in developing and implementing non-oil revenue streams is a matter of urgent concern. The Iraqi Parliament hereby issues a warning regarding the severe repercussions this delay will have on the economic stability and growth of Iraq in the medium and long term.

1. Economic Dependence on Oil: The Iraqi economy's overwhelming reliance on oil has placed it at significant risk during times of price fluctuations. Failure to diversify revenue sources not only exposes the country to global market volatility but also undermines the long-term sustainability of public finances.

    A continued delay in the implementation of non-oil revenues will exacerbate this dependency and stifle the country’s ability to withstand future economic downturns.

2. Fiscal Deficits and Budget Shortfalls: With the continued volatility of global oil markets, the failure to generate alternative revenue streams will likely lead to increased fiscal deficits and growing budget shortfalls. This may force the government to resort to borrowing or print more money, potentially fueling inflation and devaluing the Iraqi dinar. Such financial instability is detrimental to the economic health of the nation.

3. Impact on Public Services and Infrastructure Development: Delays in non-oil revenue generation will further strain Iraq's public services, including education, healthcare, and infrastructure development. The lack of reliable revenue sources will hinder the government's ability to invest in vital public projects and meet the growing needs of the Iraqi population, particularly in areas impacted by conflict and underdevelopment.

4. Increased Unemployment and Economic Stagnation: A stagnant economy resulting from a lack of diversified revenue sources can exacerbate unemployment rates, especially among young people and graduates. The failure to stimulate the non-oil sectors, such as agriculture, industry, tourism, and technology, will continue to limit opportunities for job creation and hinder the overall development of a diversified economy.

5. Loss of Investor Confidence: Investors and international financial institutions closely monitor the diversification efforts of emerging economies. The lack of concrete measures to tap into non-oil revenue sources can negatively impact investor confidence in Iraq’s economic potential. This can lead to a reduction in foreign investment and hinder economic growth prospects.

Recommendations:

The Iraqi Parliament calls for the immediate adoption of a comprehensive strategy to develop and enhance non-oil revenue sources. This includes:

1. Strengthening Taxation Systems: Implementing reforms in the taxation system to increase non-oil tax revenues, such as income taxes, value-added taxes, and corporate taxes.

2. Developing the Private Sector: Encouraging investment in sectors outside of oil, including agriculture, manufacturing, and services, to create jobs and boost economic output.

3. Promoting Tourism and Heritage Sites: Developing Iraq's tourism sector by leveraging its rich history and cultural heritage, which can generate significant revenue if managed effectively.

4. Improving Trade and Customs Systems: Enhancing trade facilitation measures and improving customs administration to increase revenues from imports and exports.

5. Diversifying State-Owned Enterprises: Privatizing or restructuring state-owned enterprises to reduce inefficiency and improve their contribution to the economy.

Conclusion:

The Iraqi Parliament stresses that the economic stability of the country depends on timely action to reduce its reliance on oil revenues. 

Delaying efforts to generate non-oil revenues will only prolong Iraq's financial vulnerability, economic stagnation, and hinder the country's long-term growth prospects.

 The Parliament urges the government and relevant authorities to prioritize the swift implementation of non-oil revenue generation strategies in order to secure a sustainable and diversified economic future for Iraq.

Mnt Goat : Will cash paper dinar coincide with the digital dinar @DINARREVALUATION #iraqidinar