Al-Alaq announces the launch of the era of digital transformation in Iraqi banks
Al-Alaq said in his speech during the fourth annual international scientific conference, entitled (Digital Financial Services - Challenges of Reality and Foresight of the Future): “The conference was organized in partnership between the Financial and Accounting Center and a number of universities and academic institutions, which gives an image that aims to discuss developments in the field of financial and digital services and the challenges they face, in addition to foreseeing the future of this vital sector.”
He added, "Since the late eighteenth century, the world has witnessed four inventions that changed its face: the first was the invention of the steam engine, the second was the electric engine and mass production, the third occurred in the middle of the twentieth century in the revolution of electronics and information technology, and the fourth began in the year 2000 and focused on artificial intelligence, the Internet, robotics, and big data."
He explained that "the Central Bank has paid great attention to digital transformation as one of its objectives within its third strategic plan for the years 2014 to 2026 to enhance the efficiency of banking work, improve financial performance, and meet customer needs in light of rapid technological development."
He continued: "The Central Bank has taken great strides to support digital transformation by rotating the technical infrastructure and issuing regulations and instructions that contribute to enhancing financial inclusion," noting "the launch of strategic projects, including the instant payments project, local cards and unified payment gateways, in addition to issuing controls to license digital banks in Iraq, taking into account cybersecurity requirements and the risks associated with this transformation."
He pointed out that "the conference's objectives, which include identifying current challenges for digital financial services, anticipating future trends, and enhancing innovation and cooperation with relevant parties, reflect the urgent need for joint action."
He stressed that "cybersecurity is one of the most important challenges facing us today, so the Central Bank launched projects to enhance cybersecurity by developing the tools and systems of the Cybersecurity Management Center, and adopting an advanced approach to enhance the cybersecurity of the Central Bank and the banking sector."
He added, "Artificial intelligence and its role in digitizing financial services has become a topic that cannot be ignored as it opens new horizons for innovation and improvement of services. We at the Central Bank of Iraq believe that financial technology completes the future of the financial sector, which requires enhancing efforts to prepare national cadres capable of absorbing and developing these technologies," stressing "the Central Bank's commitment to continuing its efforts to achieve financial digital transformation and enhance innovation and sustainability in the financial sector."
Parliamentary Finance: Digital transformation in financial services is necessary to achieve economic renaissance in Iraq
The head of the Parliamentary Finance Committee, Atwan Al-Atwani, said in a speech during the fourth annual international scientific conference, entitled (Digital Financial Services - Challenges of Reality and Foresight of the Future): “This fourth annual international scientific conference focuses on a pivotal issue that affects our economic and social future, namely digital financial services,” noting that “the world today is experiencing an accelerating digital transformation that has begun to affect various sectors of life, especially the financial sector, represented by the use of electronic payment systems, digital payments and phone applications, as the era of the digital revolution and the fourth industrial revolution is witnessing a development in the financial technology industry and considers it a priority, as it contributes to enhancing welfare and social and economic progress.”
He added, “In light of this development, the challenges we face as a country seeking to build a solid economic system based on innovation and sustainability are increasing. Perhaps the most prominent of these challenges is the expansion of digital infrastructure, which is an indispensable foundation for enabling digital financial services, as it requires large investments and well-thought-out policies, as well as achieving financial inclusion, as we must ensure that these services reach all segments of society, including remote and marginalized areas, and cybersecurity, which represents a major challenge in light of the increasing digital threats, in addition to the legislative and regulatory framework, which needs to be developed to keep pace with the rapid changes in this sector.”
He pointed out that "there is a need for a comprehensive renaissance to develop new digital financial technologies, by supporting the creation and implementation of digital financial innovations, stimulating emerging digital companies, and encouraging all sectors to use digital financial technologies, as their impact on the public and private sectors leads to reducing costs, increasing profitability, and better adapting to market requirements," noting that "international experiences have proven that digital transformation in the financial sector and the use of digital payments and financial technology enhance performance efficiency, simplify financial transactions, reduce bureaucratic bottlenecks, accelerate the pace of trade, investment, and comprehensive economic activities, raise economic growth rates, provide new job opportunities, and contribute to improving the quality of services."
He added, "From this standpoint, Iraq's adoption of digital financial services is a necessity, not an option, and we must all work together as legislative and executive bodies, private and academic institutions to achieve it, enhance digital financial culture and encourage its use, and increase the volume of investment directed towards the financial technology sector," indicating that "the Parliamentary Finance Committee affirms its keenness and commitment to supporting legislation and policies that contribute to enhancing digital transformation in the financial sector, encouraging innovation, and ensuring the protection of the rights of dealers. We also call for enhancing cooperation between the public and private sectors, and benefiting from the successful experiences of other countries."
Al-Atwani explained that “this conference represents an important platform for exchanging ideas, visions and experiences, and we hope that its sessions and recommendations will produce innovative and tangible solutions to confront challenges and envision a bright future for digital financial services in Iraq.”
Central Bank of Iran: Economic growth in Iran has fallen by almost half
New data from the Central Bank of Iran on the state of the Iranian economy shows that GDP growth in the first half of this year has halved compared to the same period last year.
According to the Central Bank's statistics, the country's economic growth in the first half of last year was 5.3%, but it fell to 2.9% in the first six months of this year.
The details of these statistics indicate that economic growth in the summer of this year was lower than in the spring, reaching about 2.7% including oil and 2.3% excluding oil.
What is interesting about the Central Bank's statistics is that the country's economic growth in the past two years has been mainly the result of growth in oil exports, and not in sectors such as services, industry, agriculture, and other sectors that directly relate to people's livelihoods.
According to the Central Bank's estimates, the Iranian economy grew by 5% overall last year, and the main driver was the growth in the added value of the oil sector by 18.8%. In the first half of this year, the growth of the oil sector was 9.3%, which led to an increase in the overall growth of the national economy.
Statistics from commercial intelligence firm Kepler, along with tanker-tracking companies such as Wartexa, show that Iranian oil exports this year are up 34% compared to last year, and about 100% compared to the year before.
Iran exports 40% of the oil and gas condensates it produces and 7% of the gas produced.
The decline in Iran’s economic growth in the spring and summer of this year comes at a time when Kepler and Wartexa statistics indicate that Iranian oil exports in the fall of this year have decreased by 500,000 barrels (about a third) compared to the summer, which increases the possibility of a further decline in the country’s economic growth in the fall.
The slowdown in economic growth comes at a time when the government is targeting “an annual economic growth of 8%” in its seventh development program, which will last for five years starting this year.
While the International Monetary Fund estimates that Iran's economic growth rate will witness a continuous decline from this year until the next five years, where it is expected to fall to 2%.
Iraq Stock Exchange first in trading volume among Arab markets
The Securities Commission stated today, Tuesday, that the Iraq Stock Exchange recorded significant progress according to a report issued by the Arab Monetary Fund, as it achieved a growth in trading volumes of 131.24% during the month of November 2024 compared to the previous month, thus topping the Arab financial markets in terms of growth rates.
The Chairman of the Securities Commission, Faisal Al-Haimus, said in a statement seen by Al-Eqtisad News: “This progress comes as a result of the ongoing efforts to develop the Iraqi Stock Exchange and enhance the investment environment in it,” adding, “We are proud of this performance, which reflects the confidence of investors and the effectiveness of the plans we are working to implement to enhance the role of the market in supporting the national economy.”
The Arab Monetary Fund report indicated that other Arab financial markets that witnessed remarkable growth included the Damascus Stock Exchange, which achieved a growth rate of 87.83%, followed by the Bahrain Stock Exchange with a growth rate of 68.22%. Other markets such as Egypt and Casablanca also recorded growth rates ranging between 54.25% and 19.08%.
Al-Haims added, "The report issued by the Arab Monetary Fund enhances the position of the Iraqi Stock Exchange among regional markets," indicating that "we will work to invest this progress to strengthen strategic partnerships and attract more local and international investments."
The Chairman of the Authority stressed that the Authority is committed to continuing to develop the market’s infrastructure and improve regulatory procedures to increase its attractiveness, which contributes to enhancing its role as a major driver of economic growth.
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Al-Fath: Washington exploited the "strategic framework" and Baghdad does not know about the movements of the American bases - Urgent
Al-Fatah Alliance leader Adi Abdul Hadi said today, Tuesday (December 24, 2024), that Washington exploited the strategic framework agreement with Baghdad to pass its agenda in the region.
Abdul Hadi said in an interview with Baghdad Today that “the strategic framework agreement between Baghdad and Washington included many points related to economic, security and commercial dimensions, but the truth is that America exploited the agreement to pass its agenda by transferring forces inside Iraq and the region without any restrictions to the point that Baghdad does not know what is happening in the bases, whether Ain al-Assad or Harir in Erbil.”
He added, "The increase in American forces in Ain al-Assad or Harir must be subject to Baghdad's approval, but the truth is that Washington does everything and announces it suddenly through the media, pointing out that "America exploits what it calls the fight against terrorism to move military units without any restrictions, and there are convoys moving from Iraq to Syria and vice versa without any inspection."
Abdul Hadi pointed out that "America does not want to leave Iraq under any circumstances and its agenda is to stay and maintain its presence in Syria, and this explains the recent transfer of hundreds of soldiers to the Hasakah bases, stressing that "Baghdad must move and pressure towards the withdrawal of those forces in response to a parliamentary and popular decision because the presence of those forces means more instability in the region."
An informed source revealed, on Friday (December 20, 2024), the transfer of a large military convoy from Ain al-Assad to American bases in Syria .
The source said in an interview with " Baghdad Today " , "A military convoy of American forces moved from Ain al-Assad, west of Anbar, to American bases located in the Syrian countryside of Hasakah, as part of measures to strengthen Washington's influence in a country witnessing a state similar to chaos following the fall of the Assad regime after a rule that lasted more than half a century ."
He added that "other forces coming from Al-Hareer in Erbil joined the force through the Al-Waleed border crossing towards Al-Hasakah in light of the presence of more than one American base stationed in geographical areas that control main transportation lines within the Syrian geography ."
He pointed out that "Washington's strengthening of its military bases in Syria shows that it is anticipating developments that may occur at any moment in light of the rapidly occurring changes and fears that they will lead to direct repercussions on the security of its bases, which prompted it to increase security reinforcements, especially the transfer of heavy military equipment ."
In a related matter, Syrian sources confirmed, on Wednesday (December 18, 2024), that American special forces began to be stationed in four locations near Al-Hawl camp in Syria .
The sources told Baghdad Today, "US Special Operations forces coming from Ain al-Assad, western Iraq, arrived this afternoon and began deploying in 4 locations near the Syrian al-Hawl camp ."
She added, "The deployment, which is the first of its kind in years, comes to support the allied Kurdish forces that are in charge of managing Al-Hawl camp, to prevent the escape of thousands of families inside it, most of whom belong to ISIS and are of different nationalities ."
She pointed out that "Washington is concerned about the developments of the armed clash between Ankara and its allies and the Kurdish forces in affecting prisons that hold hardened terrorists in addition to the Al-Hawl camp, which means adding another tension to an area that is already experiencing tension with the activity of ISIS cells in the Deir Ezzor and Homs deserts in the past few days ."
The collapse of Bashar al-Assad's regime in Syria has raised concerns about the fate of about 50,000 former ISIS fighters detained in camps in the north of the country, especially with the spread of chaos in the region and growing concern about the opening of these detention centers, which portends the return of the terrorist ISIS in the region .
On December 10, the Pentagon announced that its aircraft had struck more than 75 ISIS targets in Syria “in order to prevent the terrorist organization from carrying out external operations and to ensure that it does not seek to take advantage of the current situation to reconstitute itself in central Syria .”
Finance: We have achieved great progress in digital transformation, electronic payment and automation of customs procedures
The Ministry of Finance announced today, Tuesday, that it has made great strides in digital transformation and electronic payment, indicating progress in the field of automating customs procedures to ensure financial sustainability and economic diversification.
The representative of the Minister of Finance / Undersecretary of the Ministry, Rebaz Muhammad Hamdan, said in a press conference followed by “Al-Daie News”, that “the ministry has made great strides in digital transformation, including money transfers, electronic payment, online loans and mobile banking services, which has increased the efficiency of accelerating financial transactions, reducing the need for cash transactions and providing services to people who cannot access traditional banking services.”
She pointed out that “innovation and development have been enhanced in this field and ways of cooperation between relevant parties in the field of financial technology have been discussed, and the most prominent solutions related to cybersecurity and future risks in this sector have been reviewed and how to take precautions against these risks.”
He continued that “the ministry has made progress in the field of automating customs procedures to ensure financial sustainability and economic diversification in accordance with the principle of integrity, transparency and combating corruption, and implementing programs in the Financial and Accounting Training Center to train employees on the use of new digital systems with the aim of enhancing digital skills in the ministry, improving financial performance and enhancing confidence in the financial system.”
Stopping the electronic platform.. Will it save the dollar or ignite the parallel market?
Today, Tuesday, economic expert Abdul Rahman Al-Mashhadani highlighted the decision of the Central Bank of Iraq to stop dealing with the electronic platform for dollar transfers abroad, noting that “this decision comes in the context of regulating financial transfer operations and strengthening relations with American banks in a way that ensures greater transparency.”
Al-Mashhadani added during his interview with “Al-Jarida” that “the Central Bank was previously working to enhance bank balances to meet the requirements of foreign trade, but reports from the US Federal Reserve and the US Treasury revealed the existence of unverified transfers, which led to the smuggling of funds and the financing of terrorism.”
He explained that "reports showed that one of the banks transferred about six billion dollars in six months, a number that greatly exceeds the actual volume of imports to Iraq according to data issued by government agencies and international trade centers."
Al-Mashhadani pointed out that “the Central Bank resorted to the electronic platform to audit transfers, in cooperation with the Treasury and American banks, which led to a reduction in illegal transfers, but it also affected the stability of the exchange rate in the parallel market due to traders’ reliance on this market to finance their operations with the sanctioned countries.”
He stressed that “the Central Bank has allowed local banks for years to form partnerships with American banks to facilitate transfer operations, and now banks that have partnerships with correspondent banks, such as Citibank, continue their operations according to the new mechanism,” adding that “the decision does not mean stopping transfers, but rather regulating them, with the possibility of using alternative currencies such as the Turkish lira, the euro, the Chinese yuan, and the Emirati dirham.”
Al-Mashhadani concluded his speech by pointing out that “the negative impact of the decision on the exchange rate in the parallel market may be temporary, and the picture is expected to become clearer in the coming days.”
Central Bank of Iraq launches strategic projects to support digital transformation
In a speech during the fourth annual international scientific conference, which was titled (Digital Financial Services - Challenges of Reality and Future Foresight), His Excellency the Governor stressed that "the Central Bank has paid great attention to digital transformation as one of its goals within its third strategic plan for the years from 2014 to 2026 to enhance the efficiency of banking work, improve financial performance, and meet customer needs in light of rapid technological development."
His Excellency noted that "the Central Bank has taken great steps to support digital transformation by developing the technical infrastructure and issuing regulations and instructions that contribute to enhancing financial inclusion," referring to "the start of launching strategic projects, including the instant payments project, local cards, and unified payment gateways, as well as issuing controls to license digital banks in Iraq, taking into account cybersecurity requirements and the risks associated with this transformation."
His Excellency added that "cybersecurity is one of the most important challenges facing us today, so the Central Bank has launched projects to enhance cybersecurity by developing the tools and systems of the Cybersecurity Management Center, and adopting an advanced approach to enhance the cybersecurity of the Central Bank and the banking sector."
His Excellency stressed "the Central Bank's commitment to continue its efforts to achieve financial digital transformation and enhance innovation and sustainability in the financial sector."
Media Office
December 24, 2024
Parliamentary Finance: The budget will be passed with integrity and fairness
Member of the Parliamentary Finance Committee, Hussein Al-Saabari, confirmed today, Tuesday, that the proposed tables in the draft budget law are under study, and it is expected that they will be finally passed.
Al-Saabari stressed in a statement to the Al-Maalouma Agency, “the necessity for the budget to be real and reflect everyone’s interests,” warning that “some amendments may benefit some parties at the expense of others, which is unacceptable.”
He explained that "the budget must be fair and just for all Iraqis, while ensuring that resources are distributed in a way that achieves the public interest without prejudice to the rights of any party."
He pointed out that "the draft budget law has not yet reached Parliament, and that the Council and its Finance Committee are ready to receive it as soon as it arrives."
It is noteworthy that the House of Representatives previously hosted Prime Minister Mohammed Shia Al-Sudani and his deputies, the Minister of Planning, the Minister of Foreign Affairs, and the Minister of Interior, where the amendments to the budget for next year 2025 were discussed .
What are Iraqis waiting for after the news of the "sudden suspension" of the dollar selling platform by the Central Bank?
Financial and banking expert Alaa Al-Fahd commented today, Tuesday (December 24, 2024), on the impact of the Central Bank’s suspension of the “platform” on the markets during the next stage.
Al-Fahd told Baghdad Today, "The Central Bank of Iraq worked during the previous period with a plan through a currency auction in the first phase, then establishing the electronic platform and intensive work to find correspondence methods between local banks and foreign banks with which we have commercial relations and their results in external transfers. Therefore, the bank announced some time ago that the platform will be stopped at the end of this year and there will be direct correspondent banks."
He explained that "this is a natural matter, as all central banks in the world are tasked with maintaining monetary policy, not selling currency. There is no central bank in the world that sells currency and mediates in buying and selling currency. This work is the responsibility and responsibility of banks and exchange companies. This is true and is a major challenge until the relations are direct commercial banking under the supervision of the Central Bank of Iraq."
He added, "Stopping the platform will not affect the local markets in terms of the dollar exchange rate, but there are those who are trying to spread rumors that this step will change the exchange rate, as the same dollar that the Central Bank of Iraq was selling through the platform will be sold to banks and banks that have relations with foreign banks so that the transfer is direct according to electronic transactions and monitoring, and for this reason the situation is under control and there is no fear of the impact on the markets."
Yesterday, Monday, economic expert Ziad Al-Hashemi revealed that the Central Bank of Iraq had suddenly suspended the dollar transfer platform before the scheduled date, without an official announcement, and without taking into account the interests of Iraqi companies and markets, in a move that is, to say the least, far from professionalism and transparency.
Al-Hashemi said in a post on the social networking site "Facebook", which was followed by "Baghdad Today", that "stopping the platform without an official announcement by the Central Bank may indicate that there is uncertainty and fear of the consequences of stopping the platform on the dollar exchange rates, and the lack of announcement may give the Central Bank an opportunity to evade and evade the decision to stop the platform and return to operating the platform, even temporarily, in the event that the dollar begins to rise to high rates."
Parliamentary Finance Committee comments on the fluctuation of the dollar price and threatens to host the Governor of the Central Bank of Iraq
Again?
Member of the Parliamentary Finance Committee, Jamal Kocher, described on Wednesday the fluctuation of the dollar exchange rate in the parallel market as "temporary", while he indicated that if the rise continues, we will head to host the governor of the Central Bank of Iraq.
Kocher told Shafak News Agency, "The Parliamentary Finance Committee is closely following up with the Central Bank the dollar exchange rate in the parallel market, and that the rise and fall of the exchange rate is temporary and not fixed."
He added that "if the rise continues during the coming period, there will be another opinion from the House of Representatives," adding that "the Finance Committee, if the rise continues, will head to host the Governor of the Central Bank in the House of Representatives."
The Iraqi market witnessed a significant increase in the exchange rate of the dollar against the Iraqi dinar, as it exceeded 150 thousand dinars for every hundred dollars, despite the government measures taken to control its price in the parallel market.
It is noteworthy that since the beginning of 2023, Washington has intervened to limit the smuggling of dollars from Iraq, which led to its price rising in the local market to a record level of 170,000 dinars per 100 dollars, due to the decline in the Central Bank of Iraq’s sales of dollars, before it declined again and the Central Bank returned to selling dollars at auction.
It is worth noting that currency smuggling is ongoing, despite controls on banks, and is carried out via bags transported overland to Turkey and Iran, after withdrawing dollars from the local market and not through the official dollar selling window. Specialists have called it “black transfers,” and it has become a phenomenon that has not been controlled at the moment.
In addition to the "black transfers", Iraq witnessed other operations to withdraw the dollar at its official price and sell it at the parallel market price, by exploiting the dollar granted to travelers, returning to Iraq and selling it to achieve large profits. The name "sailors" was given to those who do this work, especially some travel and tourism companies.
Expert diagnoses two reasons behind the rise of the dollar against the dinar in Iraq
The economic and financial expert, Abdul Rahman Al-Mashhadani, attributed, on Wednesday, the reasons for the rise of the dollar against the Iraqi dinar to the rumor of the holidays and New Year's Day.
Al-Mashhadani said in an interview with Shafaq News Agency, "The promotion of stopping the platform is a major reason for the rise in the price of the dollar," indicating that "this rumor that spread showed that foreign transfers will stop."
He explained that "this rumor is false, as 97% of the transfers made through the window were transferred to banks that have correspondent banks in a way that enhances the balances. Also, the Christmas holiday is another reason for the demand for the dollar, as there is a lot of travel during these days."
Al-Mashhadani expected that "the situation will stabilize and the dollar will return to its normal status after the holiday."
The price of the dollar rose gradually in local markets, where it recorded 152,300 dinars for every 100 dollars in the Al-Kifah and Al-Harithiya stock exchanges, and 152,200 dinars for every 100 dollars in Erbil, the capital of the Kurdistan Region.
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