The Central Bank of Iraq has warned that some people are misusing the electronic payment cards it makes available to meet the legitimate natural needs of citizens.
The bank stressed its commitment to implementing strict measures to limit this phenomenon, protect the financial system, and ward off risks from it, indicating that it will include the names of bank card holders whose misuse or smuggling is caught on black lists and take legal measures against this group.
The bank noted that they will be deprived of issuing other cards and all financial products, and that all necessary measures will be taken against violators, based on the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015 and the instructions and controls issued pursuant thereto.
CHINA AND SAUDI ARABIA HAVE SIGNED A LOCAL-CURRENCY SWAP AGREEMENT WORTH AROUND $7 BILLION, DEEPENING THEIR TIES AS NATIONS THROUGHOUT THE MIDDLE EAST AIM TO DIVERSIFY MORE OF THEIR NON-OIL TRADE AWAY FROM THE DOLLAR.
Experts: The Central Bank’s actions need media promotion
Economic 11/20/2023 Baghdad: Shukran Al-Fatlawi Financial and economic experts called for the need to intensify the promotion of the new mechanisms adopted by the Central Bank, including (Visa Direct) to assist citizens and merchants with the financial transfer process, in addition to developing more serious solutions to reduce the exchange rate in the parallel market by regulating banking business.
Economist Dr. Mustafa Hantoush told “Al-Sabah”:
The recently launched “Visa Direct” service did not gain public support in terms of financial transfers, as it is not known yet, even though the Central Bank and the competent authorities have begun the process of focusing on this. Mechanism.
He explained that the matter is not bad in terms of the transfer amount and the mechanism used, indicating that daily transfers may reach approximately three thousand dollars via the “Visa” issued by the banks.
Hantoush added that the transferred amount, although small, is suitable for small merchants, stressing that this process is subject to compliance and money laundering standards by knowing the reasons for the transfer and who is entitled to it, and this service is easier than going to banking companies, (Zain Cash) or (Western Union).
He pointed out that this service is easy in terms of transfer, wondering at the same time about the possibility of transferring the Iraqi dinar to the Emirates or Turkey, and whether the withdrawals are in the Emirati dirham, the Turkish lira, or the dollar, since the basis of the problem is the smuggling of the dollar to the banned countries.
He noted that this issue may contribute to somewhat balancing the exchange rate or decreasing it slightly, but it does not contribute to solving the problem, due to the need for more serious steps, including a platform for selling the dollar and stopping smuggling. Hantoush pointed out that
the First Bank of Iraq, which follows this mechanism, is specialized in banking operations via telephone and Internet means, and
it was implemented in the year 2020 and provided a set of services that did not reach the required level and circulation among the banking public due to the weakness of the marketing process.
For his part, Imad Al-Muhammadawi, who is interested in economic affairs, said during his interview with “Al-Sabah” that the (Visa Direct) service It works to facilitate the movement of money globally, explaining that the country is far behind in this aspect.
He stated that what the Central Bank did in this regard was an attempt to control the dollar, pointing out the need for solid and well-known banks to adopt this mechanism to prevent manipulation.
It is noteworthy that the advisor to the Prime Minister, Fadi Al-Shammari, praised the (Visa Direct) service for transferring money abroad and considered it a successful step to facilitate the work of small merchants, stressing that
it contributes to reducing the exchange rate in the parallel market and
its procedures take only 5 minutes,
expressing his hope that the citizen will interact with this. Banking service that cuts off black market speculators. https://alsabaah.iq/87551-.html
Association Of Banks: The Dollar Exchange Rate In The Parallel Market Will Decrease After The Government’s Measures
Economy| 11/21/2023 Mawazine News - Baghdad Today, Tuesday, the Iraqi Private Banks Association expressed its support for government efforts aimed at reducing the dollar exchange rate in the parallel market, while noting that
Prime Minister Muhammad Shiaa Al-Sudani’s movement to support the private sector represents the beginning of reforming the Iraqi economy.
The head of the association, Wadih Al-Handal, said, “The recent measures of the Central Bank of Iraq and the government, regarding facilitating trade financing using new currencies, represented by the euro, the dirham, the Chinese yuan, and the Indian rupee, are a step that contributes to reducing the exchange rate of the dollar in the parallel market,” noting that
“regulating trade financing “What the government and the central bank are doing by introducing other goods to the platform will lead to an increase in trade financing.” He stressed that
"private banks are taking great steps in expanding international relations with international banks, which facilitates the financing of Iraqi trade with countries around the world," explaining that
"the Prime Minister's great support for the private sector is considered the beginning of reforming the Iraqi economy, especially since the private sector is an important partner." To the government, in providing services and jobs and reducing poverty.”
Month, month and a half there's been quite a bit of positive news coming out of Iraq. Let's hope they stay out of trouble and continue working on doing what it takes to regain their sovereignty. They're taking all the right steps to do what it takes to appreciate the Iraqi dinar which all of us are happy about. You still got people out there...swearing up and down that means there's going to be a reinstatement of the $3.22 rate.
I'm going to continue to tell you no it isn't. I still believe the Iraqi dinar is going to go up in increments. It's not going to jump up to $3.22 right off the get-go. It'll get there fairly quick but it's not going to happen overnight. As long as they stay in the good graces of the Untied States everything should be fine...
In the news we see Iraq is involved in another currency swap...The fact they're now starting to prepare themselves to do currency swaps with UAE is big news. The more they do that with other countries the stronger the Iraqi dinar becomes. Think supply and demand. In order for you to do a currency swap you have to take in their currencies and they have to take in yours...
Article: "Changes in business dealings...Iraq replaces the dollar with other currencies to stabilize the dinar"
All this is good news but it's going to take a little time for some of this to be implemented. What I'm looking forward to is seeing how Iraq does in the first quarter of next year because by then all the kinks should have been worked out of these programs implemented and we should start to see the results in the first quarter of 2024.
Iraq Restricts Commercial Transactions to Iraqi Dinar: What it Means for the Economy
Shafaq News/A spokesperson of the Iraqi government on Wednesday condemned airstrikes carried out by the United States in the country on Tuesday, calling them a "violation of sovereignty."
In a statement, government spokesman Basem al-Awwadi said that the airstrikes, which targeted a convoy of al-Hashd al-Shaabi (Popular Mobilization Forces-PMF) in the Jurf al-Nasr area, were conducted without the knowledge of Iraqi authorities.
"The Iraqi government is concerned about the recent escalation in the country, which includes the US airstrikes," al-Awwadi said. "We condemn the attack on Jurf al-Nasr, which was an flagrant violation of sovereignty and an attempt to disrupt the stable security situation in Iraq."
Al-Awwadi stressed that the Iraqi government is the only entity responsible for implementing the law and holding violators accountable.
"The presence of the US-led coalition in Iraq is to support the Iraqi armed forces," he said. "The airstrikes are a clear violation of the coalition's mandate to fight ISIS in Iraq. The coalition is called upon to refrain from acting unilaterally and to respect Iraqi sovereignty."
"Any armed activity carried out outside the military establishment is condemned and is a threat to the national interest," al-Awwadi said. "The government will take the necessary measures to defend Iraq's interests."
Prime Minister Mohammad Shia al-Sudani, who is also the commander-in-chief of the armed forces, has ordered the military and security forces to carry out their duties and enforce the law.
"The security of Iraq and its stability have been achieved through the sacrifices of thousands of martyrs," al-Awwadi concluded. "It is the responsibility of all to preserve them."
US jets carried out airstrikes in Iraq early on 22 November, targeting what the US Central Command (CENTCOM) claims were "Iran-linked" facilities south of the capital, Baghdad.
A US official told ABC News that the "strikes were conducted against a Kataib Hezbollah operations center and a Kataib Hezbollah Command and Control node."
The US attack, which targeted the town of Jurf al-Nasr (formerly known as Jurf al-Sakhr), reportedly killing eight people. Kataib Hezbollah announced that five of its members were among those killed.
Wednesday's airstrikes came in response to daily attacks against US forces in Iraq and Syria. This is the fourth round of airstrikes carried out by Washington in response to the surge in attacks against its troops.
The Iraqi resistance announced on 21 November it had targeted the Ain al-Assad base in Iraq twice, as well as the Al-Shaddadi base in Hasakah, northeastern Syria.
The bases were struck "with appropriate weapons," which "directly hit" all their targets.
The Ain al-Assad base was hit with close-range ballistic missiles, resulting in eight injuries and material damage, according to two US officials.
US bases in Iraq and Syria have come under almost daily fire by the Islamic Resistance of Iraq, a coalition of Iraqi armed factions that banded together last month to confront US forces in rejection of Washington's support for Israel.
The attacks are launched "in response to the crimes committed by the enemy against our people in Gaza."
"US forces have been attacked approximately 66 times since October 17. Thirty-two separate times in Iraq, and 34 separate times in Syria," the Pentagon announced on Tuesday evening. At least 60 US soldiers have suffered traumatic brain injuries and other injuries.