Expected rise in the dollar... "temporary shock" awaits the Iraqi market
The "Iraq Al-Mustaqbal" Foundation for Economic Studies and Consultations expected, today, Monday, December 23, 2024, an increase in the dollar exchange rate during the next few days, following the announcement by the Central Bank of Iraq to stop the currency transfer window platform.
The video for this blogpost is below here:
The head of the institution, Manar Al-Obaidi, said in a statement to "Baghdad Today", that "the suspension of the Central Bank's currency transfer platform, which was officially announced on 12/23/2024, will lead to a temporary rise in the dollar exchange rate in the market as a result of the prevailing state of fear, but things will return to normal with the beginning of the new year."
Al-Obaidi added, "This decision had been previously announced by the Central Bank, but such measures, when implemented, cause a shock to the market, leading to a temporary rise in the exchange rate, before the shock is gradually absorbed."
He explained that "the difference between the official and parallel markets will remain, but it will shrink as the situation stabilizes."
Economic expert Nasser Al-Tamimi warned, on Tuesday (December 17, 2024), of a rise in the dollar exchange rate in Iraq in the coming days.
Al-Tamimi told Baghdad Today, "There are real fears in the Iraqi market of the continued rise in the dollar exchange rate after the Central Bank of Iraq stopped working on the platform," indicating that "this matter will constitute a shock, especially at the beginning of implementing the decision and will lead to a rise in the dollar, to increase demand for it in the parallel market."
He added that "after the platform is stopped, most traders, especially small ones, will depend on the parallel market to finance their foreign trade, while continuing to finance trade with Iran and Turkey in dollars, through illegal means," noting that "this is what will lead to the rise, and therefore practical steps must be taken to prevent this by the country's monetary authority, and urgently."
The Central Bank of Iraq revealed on Wednesday (September 4, 2024) the mechanism for ending the electronic platform for foreign transfers, while indicating that the placement of foreign transfer operations and meeting requests for the dollar are on sound paths and consistent with international practices and standards.
Parliamentary Committee: Iraq is heading towards a major investment and economic boom
The Parliamentary Investment and Development Committee confirmed, today, Monday, December 23, 2024, that Iraq is heading towards a major investment and economic boom during the next stage.
Committee member Mohammed Radhi told Baghdad Today, "The stability achieved at the political, security and governmental levels will lead to important and large investment opportunities during the next phase, and this will generate great prosperity at the economic level, and this will lead to an important construction leap in various infrastructures."
Radhi added, "The Iraqi government has achieved successes in the investment file and strengthening the economic and financial conditions, and these successes have been positively reflected in the services, reconstruction and development file, and the next stage will show these successes more clearly through investment and economic prosperity at various levels."
In April 2024, the International Monetary Fund expected the Iraqi economy to grow by 1.4% in 2024 and 5.3% in 2025, and urged structural reforms and debt stabilization.
The Iraqi government also announced a decrease in unemployment from (16.5%) to (14.4%), a reduction in the poverty rate from (23%) to (17%), a decrease in the inflation rate from (6.1%) in 2021 to (2.5%), and an increase in non-oil revenues to (14%), after representing (7%) of the budget.
The Ministerial Council discusses the use of electronic payment for all economic activities in the country
The Ministerial Council for Economy discussed, on Monday, the use of electronic payment for all economic activities in the country.
The media office of the Ministerial Council for the Economy stated in a statement, which was reviewed by "Economy News", that "Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein chaired the thirty-ninth session of the Ministerial Council for the Economy, which was held in the Council building, in the presence of the Deputy Prime Minister and Minister of Planning, the Ministers of Finance, Agriculture, Trade, Labor and Social Affairs, the Secretary-General of the Council of Ministers, the Governor of the Central Bank of Iraq, the Deputy Chairman of the National Investment Commission, and the Prime Minister's Advisors for Economic and Legal Affairs."
The statement added that "the Council discussed the items on its agenda and took the necessary decisions regarding them."
It continued, "The Council hosted the Director General of Payments at the Central Bank of Iraq to discuss and evaluate the mechanisms for implementing the Cabinet's decision to move towards using electronic payment instead of cash for all state institutions and the public and private sectors, and to study and expand this experience to include all economic activities throughout Iraq."
The statement indicated that "the Council also discussed the working paper submitted by some members of the Council on the financial and monetary policy in Iraq, and the means to develop the economy, maximize revenues, and take the necessary measures to confront economic challenges, in light of the political changes witnessed by the region, by diversifying sources of income and not relying entirely on oil imports, for the sake of stability and sustainability of the economy in Iraq."
Details and figures about warnings of an impending economic collapse.. How much is Iraq's external and internal debt?
The issue of internal and external debts is one of the most prominent economic issues facing the Iraqi government, as these debts constitute a challenge that requires careful management and a vision to ensure the stability of the national economy in the future.
Although the external debt is not a large figure according to the government’s narrative, the internal debt, which exceeds $45 billion, represents a different burden as it is linked to local government institutions such as banks and the central bank.
With the government committed to paying off a large portion of these debts during the current year, questions remain about the impact of this file on economic growth, investments, and the country’s ability to achieve a balance between fulfilling its financial obligations and driving the wheel of development.
Iraq's debts reached $65 billion
A previous statement by the International Monetary Fund stated that “Iraq’s internal imbalances have been exacerbated by the large fiscal expansion and the decline in oil prices,” noting that “Iraq needs to gradually correct the public finances to achieve debt stability in the medium term and rebuild financial reserves.”
The Fund also recently urged Iraq to increase capital spending and non-oil revenues, through reforming the electricity sector, levies, imposing new taxes, and others.
A senior government source close to the Prime Minister told the Al-Jabal platform that “Iraq’s external debt constitutes less than 30% of the gross domestic product,” noting that “this is a very good percentage and is low according to the standard and safe percentage set at 60% according to European Union standards.”
According to the source, the Iraqi government is working according to a strict plan to pay off these debts, as nearly a third of the external debt will be paid off during the year 2024. He explained that the internal debt exceeds $45 billion, and represents the largest part of the total debt.
The source, who requested anonymity, indicated that “98% of the internal debt is debt between the government, government and private banks, the Central Bank of Iraq, and the Ministry of Finance,” adding that “the government is focusing in particular on the external debt, given its importance in international economic relations, and is committed to paying it according to a specific timetable.”
The source confirmed at the same time that "the government has developed future plans, within the framework of its government program to settle internal and external debts, in a way that does not constitute any burden on the national economy in the coming years," indicating that "these policies reflect Iraq's commitment to managing the debt file with high efficiency, in a way that enhances its financial stability and supports sustainable development."
Earlier this year, the Cabinet approved the recommendation of the Ministerial Council for the Economy (24207) for the year 2024, which included the approval of the recommendation of the Diwani Order Committee 23942, related to foreign debts. The recommendation included several decisions, most notably the cancellation of defaulted loans worth $1.05 billion, and the completion of important projects from government funding sources.
The decisions also included canceling borrowing requests worth $5.8 billion for the Basra desalination and suspended train projects. The first project will be financed from the regional development budget, and the second project will be offered for investment. In addition to reducing the current external public debt of $10.5 billion to $8.9 billion.
Iraq is able to pay its debts
Member of the Parliamentary Finance Committee in the House of Representatives, Jamal Kojer, also revealed earlier that Parliament has information indicating that “the current foreign debt is a ‘dead debt’ related to the Gulf War, and these debts date back more than 30 years and countries are not demanding them, so they are not real debts,” noting that “if the Iraqi state demands their cancellation, they will be cancelled.”
Economic expert Abdul Rahman Al-Shaikhli says, “Iraq’s financial situation is currently stable,” indicating that “the current external debt does not exceed $20 billion, while the internal debt amounts to about $50 billion, which constitutes a percentage ranging between 30% and 35% of the gross domestic product.”
In an interview with Al-Jabal platform, Al-Sheikhly said, “Iraq’s external creditors are limited to donor countries that provide future investments, while Iraq’s debts to the International Monetary Fund and the World Bank amount to less than two billion dollars.”
According to Al-Shaikhli, "Iraq does not suffer from any accumulation of debts, as they are organized according to pre-planned and studied spending plans," stressing that Iraq's financial reserves cover these debts in full.
Al-Sheikhly also denied the existence of any political or economic restrictions on Iraq due to debts, and pointed out that "creditor parties are fully aware of the country's ability to fulfill its obligations thanks to the strength of its reserves and financial stability."
The economic expert concluded his speech by saying, "These data reflect the flexibility of the Iraqi economy in facing financial challenges and enhance confidence in the country's ability to attract investments and drive development."
In the middle of this year, the Iraqi government spokesman, Bassem Al-Awadi, revealed that the external debt had decreased to about 9 billion during the current year, indicating that the government had taken a series of executive measures and adopted a package of financial decisions, which resulted in reducing the external public debt by more than 50%, so that the debt decreased from 19.729 billion dollars at the end of 2022, to 15.976 billion dollars in 2023, reaching approximately 8.9 billion dollars this year.
Stopping the dollar transfer platform... a calculated step or a risky adventure?
The Central Bank of Iraq is set to abandon the electronic platform for dollar transfers abroad by the end of this year, which has raised questions about whether this decision indicates that the Central Bank of Iraq and the US Federal Reserve are abandoning mechanisms to monitor the movement of the dollar, or whether it is a step towards adopting a new system that may contribute to reducing sharp fluctuations in the exchange rate, and returning it to its normal levels that are consistent with the requirements of the local market and the national economy.
The electronic platform was launched in early 2023 as a new mechanism aimed at auditing dollar transfers before they were executed, replacing the previous system that relied on auditing by the US Federal Reserve after the transfers were completed, which was considered a step to enhance transparency, improve monitoring of the movement of funds, and ensure compliance with financial laws.
At that time, banks, companies and merchants in Iraq faced significant challenges in adapting to the new mechanism, as it took time to understand the working mechanisms and ensure compliance with the requirements.
However, these entities were able to gradually adapt, especially after bank employees underwent intensive training courses on using the electronic platform, which contributed to achieving full compatibility with the new work procedures and ensuring the smooth flow of financial operations.
According to the new transfer mechanism, banking operations in dollars will be limited to banks that have international banking relations, or what are known as “correspondent banks.”
Concern and reassurance
: Both the Central Bank of Iraq and the US Federal Reserve believe that this step will contribute to enhancing the control of transfers in a more accurate and specialized manner, by limiting transactions to a limited number of banks that enjoy high banking standards and the ability to cooperate with international banks, which aims to reduce financial risks and ensure compliance with international controls.
In turn, Mustafa Akram, a researcher in financial and banking affairs, said that stopping the electronic platform (FITR) and limiting dollar transfers to a limited number of foreign banks may pose challenges to the local banking system, noting that “this step may raise concerns about the concentration of dollar transactions in a limited scope, which may lead to effects on the stability of the exchange rate.”
Akram added to the Iraq Observer that “there is a need for a deeper study of the impact of these measures on competitiveness in the Iraqi banking sector, while stressing the importance of preserving banking sovereignty and enhancing balance in the local market.”
Possible repercussions
In light of these moves, news has been raised about a move towards a new adjustment to the exchange rate, which has raised economists’ concerns about the potential impact of this move on the economic process in general.
Experts have stressed that sudden changes in monetary policy may create additional confusion in the markets and undermine confidence in the financial system.
For his part, economic expert Adi Al-Alawi stressed that “the biggest mistake the government can make is to manipulate the dollar exchange rate through sudden decisions, because that has a direct impact on the national economy and shakes investors’ confidence in the financial system.”
Al-Alawi added, in a press comment, that “the government’s continued taking of ill-considered decisions regarding the exchange rate will lead to the erosion of international and local confidence in the Iraqi economy, which will weaken the ability to attract the investments necessary to improve the economic reality.”
Economists fear that some banks not covered by transfers may go to meet their customers’ demands in the parallel market, which could lead to the dollar rising again in Iraq.
Saudi Arabia and Iraq discuss enhancing digital partnership between the two brotherly countries
Abdullah bin Amer Al-Swaha, Minister of Communications and Information Technology in Saudi Arabia, discussed today, Monday, with the Minister of Communications Hiyam Al-Yasiri, who is currently visiting Saudi Arabia, enhancing the digital partnership between the two brotherly countries.
The Saudi Press Agency reported that Al-Swaha received, in his office today, the Minister of Communications in the Republic of Iraq Hiyam Al-Yasiri, to discuss enhancing the digital partnership between the two brotherly countries.
The meeting witnessed, according to the agency, extensive discussions on opening new horizons for joint investments between the two countries and enabling entrepreneurship, with the aim of supporting innovation and enhancing the growth of the digital economy.
The two sides discussed the importance of integrating efforts to develop the digital environment, and raising the level of cooperation in priority areas such as artificial intelligence, developing digital infrastructure, and enabling digital capabilities.
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Fitch: Iraq at “B-” amid weak governance and high political risks
Fitch Ratings has rated Iraq at “B-” , citing its high dependence on commodities, weak governance, and high levels of political risk .
The agency expected that oil production in Iraq will witness gradual growth as the authorities gradually remove production cuts. According to its estimates, production will reach 4.28 million barrels per day by 2025, and is expected to rise to 4.54 million barrels per day by 2026 .
Regarding the budget, the agency indicated expectations that the deficit will rise to 8.0% of GDP in 2024, compared to 2.0% in 2023. This widening of the deficit is attributed to a decline in revenues to 38.4% of GDP during the same year, as a result of a decline in oil revenues by two percentage points due to lower production and prices .
Iraq May Extend US Troop Presence, Baghdad More Receptive to Equipment Deployment
The Washington Post quoted a “senior Iraqi official” as saying that Baghdad may seriously consider submitting a request to extend the US military presence in Iraq, and that the final withdrawal date “may seem distant” in light of recent developments in Syria and the region. He added that there is a shift in the way senior Iraqi officials view the potential US withdrawal after recent developments in the region.
The newspaper indicated that the Iraqi Prime Minister, Mohammed Shia al-Sudani, expressed appreciation for the US deployment in the country during his recent meeting with US Secretary of State Anthony Blinken, according to an American official who attended the talks.
The official said, according to the newspaper, that Iraqi officials also expressed greater welcome than before to US requests to deploy reconnaissance equipment near the Iraqi border with Syria, although al-Sudani did not request an extension of the US military presence.
Central Bank's Harvest in 2024 and its Strategic Axes in 2025
As the year 2024 draws to a close, it is clear beyond doubt that the Central Bank’s measures and efforts since the beginning of 2023 until now, with the support and cooperation of the government, have borne fruit and are beginning to yield positive results according to what was planned. This is what was explained in detailed procedures and administrative, technical and negotiating steps with the US Federal Reserve and the US Treasury Department and understandings to regulate foreign trade financing with Arab and international banks by approving the opening of accounts for Iraqi banks in American, Chinese, European, Emirati, Indian and Turkish correspondent banks to deal directly with them for foreign transfers in the currencies of these countries, which are the dollar, euro, Chinese yuan, Indian rupee, Emirati dirham, Turkish lira, Jordanian dinar and Saudi riyal, and leaving the electronic platform in 2024 and allowing banks to supply dollars and foreign currencies into Iraq from their accounts with correspondent banks or abroad according to specific controls issued by the Central Bank, as well as reaching the opening of about 40 accounts for our banks in correspondent banks.
The Central Bank's strategy implemented in 2024 to reform the banking sector depends on restructuring, developing and classifying banks and increasing their capital to the ceiling set by the Central Bank according to the specified timeframes. This will lead to raising the capabilities of our banks to provide the best banking products and services to customers, the economy, investment and development, and moving towards comprehensive digital transformation and compliance with international standards, and helps lift the restrictions imposed on our banks. Therefore, it can be said that one of the most prominent achievements in the banking reform process in 2024 is that 97% of foreign transfers are made at the official exchange rate, and work is underway to facilitate foreign transfers for small traders and to identify speculators' plans to harm the Iraqi economy. An annual inflation rate of 3.7% has also been maintained, while controlling the general price level and maintaining a foreign exchange reserve and 153 tons of gold at a rate of 140% to cover imports and local currency in circulation and provide the necessary liquidity to meet the needs of the Ministry of Finance to implement the government's operating budget.
In addition to the developmental measures for the technical, technological and administrative infrastructure of the Central Bank. This confirms that the Central Bank is accurately and comprehensively implementing its banking reform strategy in all its axes. It is an embodiment of what it has specified in the roadmap that it clarified in cooperation with the government according to what is stated in the government program in Axis 12 (Financial and Banking Reform) and Paragraph 7 thereof, which is concerned with developing and enabling banks to contribute to development and investment.
Here we can summarize the Central Bank’s plan in 2025 to complete its procedures, which it will work to implement with great precision, as follows:
Firstly, one of the Central Bank’s priorities is to achieve a stable financial system that is accompanied by electronic financial systems.
Second: Commitment to establishing the rules of compliance, risk management, transparency and integrity of financial operations.
Third: The transition from a cash economy to a digital economy and the accompanying cooperation and coordination measures have achieved a qualitative shift between the Iraqi government and the Central Bank of Iraq.
Fourth: Implementing the Central Bank’s plan for financial and banking reform by continuing cooperation with international consulting and auditing companies that are characterised by compliance with international standards that keep pace with global developments in the field of the financial digital economy.
Fifth: Working to strengthen international relations, including expanding the establishment of a network of relations with foreign correspondent banks and helping our banks to apply the standard criteria required of correspondent banks.
Sixth: Establishing the Riyada Bank and redirecting work in initiatives to finance small and medium enterprises according to new standards, and banks contribute to its capital and management, in line with the initiative of the Prime Minister (Riyada).
Seventh: Launching a financial inclusion strategy and putting it into effect in coordination with relevant authorities. Eighth: Implementing what is stated in the national strategy for bank lending by relying on the financial capabilities of banks and other entities in cooperation with GIZ in attracting and investing deposits and in providing the best banking products to customers and contributing to sustainable development.
Central Bank Policy in Light of Banking Compliance with International Standards between the Controversy of Expectations and Requirements
Dr. Haitham Hamid Mutlaq Al Mansour
The debate is raging about the steps taken by the Central Bank of Iraq towards the US Federal Reserve and the US Treasury, and doubts are raised that they are incorrect steps in managing monetary policy. Other opinions even went so far as to warn of a banking collapse as a result of these agreements and what will result from them at the beginning of next year in terms of the connection of Iraqi/Arab banks with correspondent American banks. These opinions described it as confusion and error in following monetary policies that are not appropriate for the current economic situation.
Therefore, we say in this regard and warn against the incorrectness of these opinions if we take them in good faith, as the aforementioned steps and procedures are nothing but a reflection of the Central Bank's policy to support the national economy in its orientation towards establishing relations with Arab and international correspondent banks and the gradual transition to operations to enhance the advance balance of the accounts of these banks. This is consistent with what the Central Bank of Iraq announced in 2023 in its plan to gradually reduce reliance on the electronic platform until it ends its work during 2024 and limit it to the operations of recording financial transfers for the purposes of control, auditing and analysis. The Governor of the Central Bank has confirmed in many places that the Central Bank is determined to support Iraqi banks, enhance their capabilities and prepare them to work in accordance with international practices and agreements that aim to build and enhance the capabilities of our banks internationally.
The monetary policy measures to link the six Iraqi and Arab banks with prestigious, capable and capable international banks is exactly right and consistent with the reality of international activity and practice in import operations, currency transfer and money movement through prestigious international banks. This is because the implementation of this measure is expected to contribute to the following:
Controlling money transfer operations and identifying the final destinations to which they will reach, and thus it will be a control joint in the pre-transfer stage instead of the post-control joint.
The aforementioned linkage supports a number of our qualified banks towards raising their banking status and increasing their acceptance and global penetration, especially since most Iraqi banks suffer from administrative and organizational problems at the operational and investment levels.
Reducing the number of banks that are on the blacklists that practice informal activities that revolve around smuggling or selling dollars at the parallel price, at the expense of practicing banking activity within the limits of lending and investment. And encouraging them to rebuild their activities within the limits of real banking work.
Based on the achievement of the above points and in light of the improvement in the international position of Iraqi banks after they adopted the policy of linkage and compliance and the resulting control and reduction of dollar smuggling and money laundering operations, it is expected to be the nucleus for attracting new financial investments that can work on the development paths of leading economic sectors, and stability will be generated in the cycle of demand for the dollar and from it, stability of price levels on the medium or long-term level.
There will inevitably be a price gap that will raise inflation levels, but it will soon disappear, provided that the procedures for linking and international transfer are scientifically implemented within the terms and instructions of compliance with international standards and the necessity of achieving the above points.
Therefore, in this context, we propose several requirements to raise the ability of Iraqi banks to adhere to compliance standards, stimulate their relations with correspondent banks, and enhance confidence in their performance, including:
Adherence to modern international compliance laws and legislations issued by international regulatory institutions and authorities, including the Basel Committee and the Financial Action Task Force (FATF), which issued its forty recommendations to combat money laundering and terrorist financing. In addition, the US decisions and laws issued by the Treasury Department represent basic conditions for compliance and constitute an ongoing state for the banking sector in the world, not just the Iraqi and Arab banking sector.
Our banks must invest in the necessary infrastructure for mega development projects such as the Development Road, and apply advanced technology that supports reaching international compliance levels.
Supporting everything that leads to deepening the effective contribution of our banks to development through issuing legal facilities and financial facilitation to support the cycle of banking capital towards foreign trade, industry and investment.
The principle of transparency in banking operations and financial reporting must be adopted to build sustainable trust with the international community, and a comprehensive national plan must be prepared to develop capabilities, training and qualification in the field of banking compliance by establishing a specialized administrative unit for this purpose.
Therefore, this linkage step is a strategic step for the monetary policy of the Central Bank of Iraq, as the size of the Iraqi banking sector’s deposits exceeds $100 billion, which is an incentive to activate the work of banks. In the same context, if we know that Iraq imports $70 billion worth of money, it would be more economically feasible to cover this money through a solid banking sector that opens credits and is linked to the global financial system and international institutions with efficiency and transparency.
It is concluded from the above and according to the importance of the linkage and compliance step, that the private sector must be ready to start developing and financing the national economy and achieving the desired growth. Especially after the American bank (JP Morgan) recently expressed its readiness to support Iraqi trade financing operations, which is the largest in size and solidity among global banks, and has a major role in correspondence operations between banks worldwide.
Europe 'displeased' with trade volume with Iraq
Al-Sudani is considering inviting American companies to work in the port of Faw
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To create a fixed gas platform
Prime Minister Mohammed Shia Al-Sudani discussed, today, Monday, with the Ministers of Oil and Electricity, in addition to specialized advisors and a number of undersecretaries in the two ministries, extending an invitation to specialized American companies to establish a fixed gas platform in the Grand Faw Port.
Prime Minister Mohammed Shia Al-Sudani chairs a meeting on energy projects.
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Prime Minister Mohammed Shia Al-Sudani chaired a meeting today, Monday, on oil and electricity sector projects, in the presence of the Ministers of Oil and Electricity, in addition to specialized advisors and a number of undersecretaries in the two ministries.
During the meeting, the gas projects that are being implemented within the government program were discussed, as well as the timetable set for their completion, especially since there is an increase in the levels of stopping the burning of associated gas, as the percentage currently stands at 67 percent, and it is hoped to reach 80 percent by the end of next year, leading to a complete cessation of burning by the end of 2027.
During the meeting, the invitation to specialized American companies to establish a fixed gas platform in the Grand Faw Port was also discussed.
The meeting discussed inviting international energy companies to invest in natural gas fields, in addition to discussing the plan to supply fuel to power plants at the present time and for the coming months.
Dollar Auction.. What is the truth about stopping the Central Bank’s platform for currency conversion?
A responsible source in the Central Bank of Iraq revealed, on Monday evening, the truth about stopping the Central Bank's platform for currency transfer starting today.
The source told Shafak News Agency, "The talk about the official suspension of the Central Bank's platform for the currency transfer window, on today's date 12/23/2024, is incorrect. Today, the auction worked normally and there is no official decision to suspend it so far."
The source, who requested anonymity, added, “This platform will be stopped at the end of this year, according to what the bank officially announced. This does not mean stopping transfer operations, as some are trying to promote. However, after this step, there will be direct dealings between banks and correspondent banks, and not canceling transfer operations, as is being promoted. The issue is not limited to specific banks, but rather the process will be much broader.”
The responsible source in the Central Bank stated that "many Iraqi banks have the capabilities to deal directly with correspondent banks and operate in accordance with the work of advanced global banking sectors."
New conditions for the Central Bank of Iraq to buy and sell foreign currencies (document)
The Central Bank of Iraq has set new conditions for buying and selling foreign currencies, as shown in the document below:
The Central Bank of Iraq decided, on Monday, to allow exchange companies of the “AB” category, and brokerage companies of the “C” category, to contract with digital payment service providers to provide digital withdrawal services “POC”, provided that the agency is specifically in the name of the company, and that the services are provided at its headquarters and official branches exclusively, with the bank authorized to contract with the service provider being notified.
text of doc
Electronic payment companies / immune
Exchange companies and brokers for buying and selling foreign currencies
M/Agents of digital payment service providers
Greetings...
Given the availability of all the requirements for appointing an agent mentioned in Chapter Two / First / Agent Requirements of the Controls for the Work of Digital Payment Service Providers Agents for the year 2020, and given that exchange companies of categories (A, B) and brokerage companies for buying and selling foreign currencies of category (C) are licensed by this bank and subject to its supervision and control, the following has been decided:
1- Allowing exchange companies of categories (A, B) and brokerage companies to buy and sell foreign currencies of category (C) to contract with digital payment service providers / collectors to provide cash withdrawal service (POC) according to the following conditions:
The agency must be executed in the name of the company exclusively, and must not be owned by natural persons.
B- Agency services shall be provided exclusively within the company’s headquarters and branches.
The company shall notify this bank when contracting with the digital payment service provider and provide it with a copy of the contract signed between them.
Both parties.
The agency/outlet will be closed if this bank withdraws the company’s license.
C The digital payment service provider granting the agency shall take a written pledge from the company wishing to contract with it not to possess any
A shareholder in which there is an agency/executor, and operates outside the headquarters of the exchange or brokerage company.
In the event that a shareholder or the authorized manager of the exchange and brokerage companies owns an agency/executor in his name and operates outside the company’s headquarters, he can merge the agency/executor with the company and allow him to transfer his ownership in the company’s name exclusively and inform this bank of this, as an exception to this bank’s circular No. (114/10/9) dated (2/22/2023), which includes the non-transfer of ownership of agents/POC cash withdrawal outlets. If the agent/executor wishes to leave the work, the digital payment companies must terminate the contract with him and take appropriate measures from them to prevent the sale and transfer of ownership of the agency.
With appreciation.
Nassif: Government reforms contributed to Iraq's exit from foreign debt risks
MP Alia Nassif confirmed on Monday that the current government has achieved important economic reforms, most notably Iraq’s exit from the dangers of foreign debt.
"One of the most important economic reforms of the current government is to free Iraq from the risks of foreign debt after paying most of it off over the past two years," Nassif said in a statement reported by the official news agency and seen by Al-Eqtisad News.
"Our economy has become more secure and not shackled by debt," she added, expressing her hope "to move in the coming period from a rentier economy to a productive economy through an agricultural industrial revolution."
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