CENTRAL BANK: THE USE OF INTERNATIONAL CARDS CONTINUES INSIDE AND OUTSIDE IRAQ WITHOUT CHANGE.
The Central Bank of Iraq issued a clarification today, Friday (July 4, 2025), regarding the use of international cards, confirming their continued use inside and outside Iraq without change.
The bank stated in a statement received by Baghdad Today that “the National Electronic Payment Card Project is an additional local option used exclusively within Iraq and in Iraqi dinars. It does not cancel or restrict existing international cards such as Visa and Mastercard.”
The statement added, “There are no plans to cancel these cards or ban dollar transactions outside Iraq. Holders can still use them inside and outside the country as is currently the case.”
According to the statement, the bank indicated that “this project aims to reduce payment costs, enhance financial inclusion, diversify options for the public, and provide national cards for all institutions and segments within Iraq,” indicating that “international cards remain the primary means of spending in dollars or other currencies outside Iraq and for purchases via global websites.”
EXCERPTS FROM MARKZ : Many are waiting on this new rate!!
Member: Anyone ever get the feeling Iraq doesn’t want to revalue their currency?
MZ: Many countries are positioning for Iraq being on the international stage. Including India and Kuwait. Many are waiting on this new rate. Of course it is happening
MZ: “American Magazine: Iraq quietly restores its role in International trade” Lots happening behind the scenes like the development road project.
MZ:
“The KRG (Kurdistan) has notified the US that they will only allow Baghdad 48 hours to make a decision regarding the issue of funding the Kurdistan regions cival servant employees salaries” This is 48 hours from yesterday afternoon. This should force a conclusion for the oil and gas law…hopefully this week. We should get a decision within 48 hours.
MZ: Lots of thigs appear to be aligning. We need to get off “stuck”
MZ: This one is showing up in my inbox from some panicked individuals. “ IMF comments on Iraq dinar exchange rate” It projects the average exchange rate of the dinar against the US dollar as 1300….the same as 2024. Just a reminder- A similar statement came out the week before and the day of the Kuwait revaluation.
THE END OF DOLLAR DEPENDENCE OR THE BEGINNING OF CENSORSHIP? THE NATIONAL PAYMENTS PROJECT RAISES THE QUESTION OF “FINANCIAL SOVEREIGNTY”
In a pivotal step toward internal monetary independence, the Central Bank of Iraq (CBI) issued an official circular to all banks and electronic payment service providers announcing the commencement of the implementation of the National Card Scheme project.
This is a local payment system managed through the national switchboard, completely separate from international platforms such as MasterCard and Visa.
The decision comes at a particularly sensitive time, following the Popular Mobilization Forces (PMF) salary crisis and sanctions imposed on several banks, amid indications that Iraq is shifting to a relatively closed monetary environment in the face of external pressures.
A national system excludes international companies.
According to a circular obtained by Baghdad Today , the Central Bank has ordered the launch of a local system for settling bank card payments within Iraq, without going through any international entity. The circular clarified the need to adopt national codes such as (BIN) and (AID) to identify payment cards and link them to the national switchboard, which implicitly means eliminating any reliance on global payment networks such as Visa and MasterCard in local transactions. The circular emphasized that this project is “exclusively local” and that it will be completed by the end of this year, in preparation for its official adoption starting early next year.
Motives behind the decision: From sanctions to mobilization. Banking expert and former Central Bank official Mahmoud Dagher told Baghdad Today that “the decision is partly linked to international sanctions and some pressure on Iraqi banks, so an alternative internal system is being considered.”
He added, “Iraq faces no legal or technical obstacles to establishing this type of system, and many countries have preceded us in this,” but he explained that “local systems remain limited and cannot be used outside the country’s borders.”
It’s worth noting that the decision came after the Popular Mobilization Forces’ salaries were frozen at some banks linked to international payment systems, opening a new door for the Central Bank to restructure its payments infrastructure away from international political influence.
Monetary shift or financial isolation? The new approach coincides with escalating tensions between Baghdad and Washington, and with the mounting pressure on major Iraqi banks accused of financing entities sanctioned by the US. In this context, the Central Bank appears to have decided to proceed with a project that protects the domestic market from any “potential political freeze.” However, this option, despite its importance in terms of sovereignty, raises questions:
Is it possible to actually dispense with global payment systems? Is Iraq structurally prepared to operate a closed system capable of meeting domestic demand?
Most importantly, does this project pave the way for a gradual financial decoupling from the dollar?
The National Card Scheme project is not merely a technical decision regarding banking infrastructure; it is a step with political, economic, and security dimensions. If completed by the end of the year as planned, Iraq will have taken its first steps toward “internal monetary independence.” However, this remains conditional on the state’s ability to ensure efficiency, prevent collapse, and build confidence in a system that has yet to be tested in a fragile economic reality.
FIREFLY:Television says Trump is imposing 30% traffics on us here in Iraq.
FRANK: All you have to do is just raise the value of your currency you knuckleheads...
Did you notice the tariffs he did put on you when he hit everybody else with tariffs was minuscule?
But he's sending out a bunch of letters now and you're on that list.
Why? Because you haven't raised the value of your currency...As soon as you're ready to come out and float and be part of the international world with some reality...and [Trump] will remove the 30%.
US ANGER AT IRAQ IF IT USES RUSSIA’S PAYMENT SYSTEM
Details from Ziad Al-Hashemi
Economic researcher Ziad Al-Hashemi said on Friday that the Central Bank of Iraq’s launch of the “National Card Scheme” system is a step towards strengthening financial sovereignty and reducing reliance on international payment networks. However, the similarity of this system to the Russian “Mir” system, which is subject to sanctions,
may expose Iraq to international accountability and raise American reservations. He pointed out that the lack of full commitment to security and compliance standards, and the lack of clarification of the nature of technical links with external systems,
represents a potential loophole that could be exploited for suspicious financial activities. He called for enhancing transparency and raising the level of caution to avoid any external escalation or suspicions related to the use of this system.
Al-Hashemi stated in a post on the X platform:
🔴 The Central Bank of Iraq has decided to assert its sovereignty over electronic financial transactions within the country by launching the “National Card Scheme.” This is a positive step, but it is not without loopholes that raise more than one question mark.
🔴 According to the bank’s statement, the new system will not be linked to the Visa and MasterCard systems, but will use the same technologies as the Europay-MasterCard-Visa systems to ensure compliance with international standards and enhance security and efficiency.
🔴 The new system is somewhat similar to the Russian MIR system, which enhances national monetary sovereignty and significantly reduces reliance on global payment networks such as Visa and Mastercard, but at the same time, it is linked to some external domestic systems.
🔴 However, the Central Bank did not clarify whether the new electronic card system will adhere to security and compliance regulations such as PCI-DSS, or whether these regulations will be imposed on card users.
🔴 The lack of clear and full compliance with these standards may create future loopholes that could be exploited for innovative fraudulent operations, as has happened in the past.
🔴 The Central Bank of Iraq is also called upon to enhance the transparency of this system and raise the level of prudence to ensure there is no intention to bypass the global financial system. These measures are essential to enhancing the reliability, safety, and security of the new domestic system.
🔴 In the absence of these measures, the new local system will be subject to international scrutiny and accountability, especially if suspicious local transactions or direct or indirect ties to sanctioned payment systems such as Russia’s Mir and Iran’s Shtab emerge.
