Economist: The Central Bank’s policy is moving towards globalizing Iraqi banks
Economic expert "Safwan Qusay" confirmed that the Central Bank's policy is moving towards globalizing Iraqi banks, while stressing that it will contribute to raising the status of these banks globally.
The video for this blogpost is below here:
Qusay said in an interview: "The Central Bank's policy is moving towards consolidating the issue of globalizing Iraqi banks, and the process of ending dealings with the electronic platform will contribute to accepting local banks that have the ability to provide guarantees and international compliance conditions with international correspondent banks."
He added that "these correspondent banks can carry out the process of changing the Iraqi dinar to any global currency immediately, and for more than a million banks around the world, and there is a possibility to develop the performance of other banks in order to succeed in the international acceptance process, and there is still a possibility to import capital from different countries of the world and re-inject it into the local environment in the form of grants in different investment portfolios, and thus the possibility of achieving the goals of the Central Bank in the matter of development."
He pointed out that "the Central Bank will move from the issue of accepting local banks internationally to the issue of participating in the development process, and this will certainly contribute to achieving part of the government program's goals in employing the unemployed, and in forming productive Iraqi capital, especially since a portion of Iraqis own Iraqi dinars outside the banking system, and whenever we start the issue of convincing them to trust Iraqi banks, we will have new doors to operate this monetary mass."
He stressed that this step will contribute to raising the status of Iraqi banks globally, "meaning that they will succeed in the process of having a name in international financial transfer operations, and gradually confidence between banks will be strengthened, and there is what is called credit cover between Iraqi banks and international banks, and the level of confidence will be reflected in the credit cover."
He pointed out, "Whenever there are transfers and coverage at acceptable credit levels, this level may rise so that we succeed in the process of having Iraqi banks that are accepted internationally - and this is a step that does not exist - as Iraqi banks, especially public ones such as Rafidain and Rashid, have withdrawn from international financial transfers since the eighties of the last century."
Pointing out that "rehabilitating these banks, especially TPI Bank, can contribute to our having international acceptance for international correspondents for these banks."
Central Bank Renews Directive to Spread and Expand Financial Services and ATMs
The Central Bank of Iraq renewed, on Sunday, a directive to banks and non-banking financial institutions to spread and expand their financial services in areas that lack the presence of various services for bank card holders.
The Central Bank said in a statement received by "Al-Eqtisad News" that "the bank is working within its strategy to provide various services to bank cardholders, by expanding the spread of cash delivery outlets and through all available channels, including ATMs and POC cash payment devices, as well as authorized exchange companies, electronic payment company outlets, and POS electronic payment devices spread throughout Iraq."
The statement added, "The Central Bank confirms in its circulars that included directing banks and non-banking financial institutions to spread and expand their financial services in areas that lack the aforementioned services."
He continued, "The bank seeks to develop these services by establishing the latest infrastructure for financial products and services in Iraq, and improving them continuously," calling for "submitting inquiries and complaints, if any, through the following link: https://complaint.app.cbi.iq/.
The Central Bank is working to provide various services to bank card holders.
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The Central Bank of Iraq works within its strategy to provide various services to bank cardholders, by expanding the spread of cash delivery outlets and through all available channels, including ATMs and POC cash payment devices, as well as authorized exchange companies, electronic payment company outlets, and POS electronic payment devices spread throughout Iraq.
The Central Bank confirms in its circulars that included directing banks and non-banking financial institutions to spread and expand their financial services in areas that lack the aforementioned services.
While the bank seeks to develop these services by establishing the latest infrastructure for financial products and services in Iraq, and improving them continuously.
The Central Bank invites you to submit inquiries and complaints, if any, through the following link: https://complaint.app.cbi.iq/
Central Bank of Iraq
Media Office
January 12, 2025
Currency smuggling.. Central Bank punishes 10 Iraqi banks due to foreign transfer violations
MP Baqir Al-Saadi confirmed today, Sunday, that the Central Bank of Iraq issued penalties against ten Iraqi banks due to violations related to the foreign transfers file, which has become a direct threat to the local economy.
Al-Saadi said in a statement to Al-Maalouma Agency, “The file of smuggling hard currency outside Iraq is still a source of great concern, amidst multiple question marks about the mechanisms for implementing these operations, especially with the ongoing investigations into the commission of serious violations by exchange offices and banks in foreign transfers.”
He added that "the penalties issued by the Central Bank against 10 banks so far come within the framework of reducing violations related to foreign transfers, which are considered one of the most prominent methods used to smuggle currency out of the country."
Al-Saadi pointed out that “currency smuggling has serious effects on the local economy and causes an increase in financial crises in the country,” noting that “most of the transfers made for the purpose of smuggling go to one of the Gulf countries, which "Requires serious reconsideration and the implementation of strict measures to stop this ongoing bleeding."
The representative stressed that "the Iraqi Financial Institution is working seriously to address this problem by setting new criteria and re-evaluating the tools used in financial transactions, with the importance of revealing the results of the investigations to public opinion."
Former MP: Iraq is facing an economic disaster and the solution lies in two urgent steps
Former MP Ahmed Al-Hajj called on the government and parliament on Sunday to take urgent measures to prevent an imminent economic disaster that Iraq may face.
Al-Hajj said in an interview with Al-Maalouma Agency, “Iraq is facing a financial crisis whose signs have appeared in the past few days and have affected the state’s financial obligations towards its employees and other groups. This crisis is caused by the decline in oil prices, which represent the most important source of financial resources for the state, as well as the gap between revenues and expenditures that has widened in recent years.” He indicated that "many warnings have been issued in the past that the country is heading towards such a crisis unless appropriate solutions are put in place."
He added, "The government must quickly adopt administrative streamlining and not inflate the financial budget due to the demands of some political parties that benefit from the budget as an investment or as a source of income," indicating that "administrative streamlining leads to a decrease in government expenditures and we avoid the disaster that Iraq faces if oil prices and the quantity of exported oil do not decrease.”
It is noteworthy that the Parliamentary Finance Committee hosted, on Monday, the Minister of Finance, Taif Sami, to discuss amending the budget law for the current year, while the head of the Rights Bloc, MP Hussein Mounes, called after the hosting to reduce spending and maximize revenues.
The dollar is "monopolized" by foreign banks.. Indications of the Central Bank's failure to control exchange rates
Financial and economic affairs expert Nasser Al-Tamimi confirmed today, Sunday (January 12, 2025), the failure of the Central Bank of Iraq to control the dollar file over the past three years.
Al-Tamimi said in an interview with Baghdad Today, "The Central Bank of Iraq has stopped the dollar selling platform and restricted this matter to some banks, and for this reason there has become a new monopoly on the dollar by certain banks, most of which are foreign and not Iraqi, and this confirms the bank's continued failure to control the dollar file."
He explained that "despite all the decisions and measures taken by the Central Bank of Iraq to control the dollar for many months, it failed to limit the rise in the exchange rate in the parallel market, as it did not find any solution to finance the foreign trade of some traders, who depend mainly on the parallel market, and this is what caused the instability and rise during the past two years."
On Friday (January 10, 2025), international economics expert Nawar Al-Saadi confirmed that Iraq is facing major and dangerous financial challenges, and these challenges must be avoided through real reforms .
Al-Saadi said in an interview with Baghdad Today that “the financial challenges in Iraq are ongoing, but recently they have begun to threaten its monetary stability and raise concerns about their impact on the government’s ability to pay salaries in the coming months. I do not believe that they will reach the point of not being able to pay salaries, as the Ministry of Finance has a reserve that may reach at least 6 months, but this concern stems from several data and indicators that have emerged recently, including that the Iraqi economy depends almost entirely on oil revenues, which represent the main source of government revenues, and any decline in global oil prices leads to a reduction in these revenues, which puts additional pressure on the general budget and increases the possibility of a financial deficit .”
He pointed out that "there are problems related to foreign currency management, as dollar smuggling operations have worsened through some unofficial outlets and weak supervision of banks, which has led to a shortage of dollars in the local market and a decrease in general liquidity. This affects monetary stability and puts the government in difficulty in financing salaries, especially with the increasing reliance on cash reserves to cover this deficit ."
He added, "The banking sector suffers from a lack of confidence among citizens, as many prefer to keep their money outside the banking system, and this behavior contributes to reducing the cash flow available in the market, which adds further complexity to the financial situation ."
The international economics expert concluded by saying, "In short, Iraq's financial situation requires urgent reform steps that include diversifying sources of income, improving revenue management, and enhancing citizens' confidence in the banking system, to avoid a liquidity crisis that could have broad repercussions on the economy and society."
The Central Bank Successfully Completes Its External Transformations.. Statement on Strengthening Balances and Stability
The Central Bank of Iraq has succeeded in adhering to its program related to the transition from foreign transfers via the electronic platform to the work of Iraqi banks through their foreign correspondent banks.
In a statement by the Central Bank, which Al-Masry reviewed today, Sunday, “The transition took place through stages that the external transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for external transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year.”
The Central Bank promised “the achievement of a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and this work received international support and praise throughout the stages of its implementation.”
The statement stressed that “the new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks. From this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in the US dollar, in addition to a group of other currencies, such as (the Indian rupee, the Chinese yuan, the euro, the Emirati dirham, the Saudi riyal, and the Jordanian dinar), and that this achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq approach a new stage in its financial relations regionally and internationally and enhance the government’s orientations in expanding its economic relations and enhancing investment opportunities.”
He pointed out that “the efforts in this important achievement came through a series of ongoing detailed technical procedures and agreements, and great support from the Iraqi government, and that the bank will continue to follow modern methods in managing monetary policy in Iraq, in line with its essential role in achieving financial stability, and its position among central banks in the region and the world, which will be positively reflected in the confidence and support of the external financial sector of Iraq and international financial and economic organizations.”
The statement explained that the management of the Central Bank of Iraq seizes this important opportunity to express its thanks and appreciation to everyone who contributed to achieving this great accomplishment, first and foremost the cadres of the Central Bank of Iraq, the banking sector in Iraq, and all international partners.
The statement concluded by saying, “The Central Bank of Iraq expresses its full readiness to support all Iraqi banks that work to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that positively reflects on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.”
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Kurdish MP: Postponing today's session is a shock to MPs, and the parliament presidency bears responsibility
Timur told {Euphrates News} that: "The lack of quorum and the adjournment of the session before it started was a shock to the MPs, and there were 154 MPs in attendance in today's session."
He stressed that "announcing sessions without holding them due to the absence of MPs has become a recurring phenomenon," holding the parliament presidency "responsible for this delay."
Timur stressed "the need to pressure MPs to attend in order to legislate laws that affect the lives of citizens."
He pointed out that "the disagreements over some laws are because they concern certain segments or components and not others," explaining that "the agenda of today's session included seven non-controversial paragraphs, and it was expected that the session would be held without problems."
Government Advisor: ASYCUDA System is a Vital Tool for Developing Customs Work and Boosting International Trade
The Prime Minister's Advisor for Financial Affairs, Mazhar Muhammad Salih, reviewed today, Sunday, the importance of adopting the ASYCUDA system in customs administration, noting that it reduces delays at ports and boosts international trade.
Saleh told the Iraqi News Agency (INA): "ASYCUDA is a customs data management system developed by the United Nations Conference on Trade and Development (UNCTAD) since the eighties of the last century, as this system aims to simplify and accelerate customs and border crossing operations using modern digital technology, according to the generations of the system applied, including the second advanced generation that relies on cloud digital technology."
He added that "in line with the government program to enhance the efficiency of collecting non-oil revenues and make them no less than 20% of total revenues, the Ministry of Finance and government support agencies have taken the step of joint cooperation with the United Nations to develop customs control and collection systems and control the movement of imports and exports in accordance with the best digital measures in applying customs tariffs on incoming imports and conducting matches with countries of origin."
Saleh continued that "the General Authority of Customs and the Border Ports Authority completed the procedures for working with the ASYCUDA system last year and are progressing in the new year 2025, including providing high-quality digital infrastructure," noting that "the importance of implementing the ASYCUDA system is that it provides comprehensive automation of customs operations, such as data recording, fee assessment, customs clearance, and records management."
The Prime Minister's Advisor for Financial Affairs explained that "this system reduces delays at border crossings and increases efficiency, in addition to enhancing transparency and disclosure of traded materials, and most importantly, it reduces corruption by reducing direct human interaction and adopting a reliable electronic system for recording and processing data," noting that "the increase in customs revenues that occurred last year was due to ASYCUDA's role in improving the process of assessing customs duties and taxes, which ensures fair and accurate collection of revenues."
Saleh explained that "the system enhances international trade by reducing administrative obstacles and allowing for the acceleration of the clearance process, which encourages the growth of trade between countries, and helps support analysis and statistics, and even provides a comprehensive database on the movement of goods across borders, which supports decision-makers in setting economic and trade policies. As for improving border security, the ASYCUDA system allows for better tracking and inspection of shipments, which helps combat smuggling and illegal activities."
He stated that "the ASYCUDA system is a vital tool for developing customs work and achieving a balance between facilitating trade and protecting borders, which makes it a fundamental pillar of any modern customs system, as Iraq is among the group of Arab countries that apply this system in an integrated manner in ports, airports and land borders, including Jordan, the Emirates, Saudi Arabia and Egypt."
Iraqi Customs: Electronic payment service will be temporarily suspended tomorrow
The Iraqi General Authority of Customs announced on Sunday that the electronic payment service will be temporarily suspended tomorrow, Monday.
The authority said in a statement received by Shafaq News Agency, "The Central Bank of Iraq informed us that the electronic payment service will stop tomorrow, January 13, 2025, at 12 midnight for two hours, for the purpose of making updates to their systems."
Al-Sudani to pay official visit to UK tomorrow, Monday
An informed source reported today, Sunday (January 12, 2025), that Prime Minister Mohammed Shia Al-Sudani will pay an official visit to the United Kingdom tomorrow, Monday.
The source told Baghdad Today, "Prime Minister Mohammed Shia al-Sudani will pay an official visit to Britain tomorrow, Monday."
He added that "Al-Sudani will discuss a number of important security, economic and investment files with the United Kingdom."
Iranian government calls for direct negotiations with Trump face to face
no more of this passing notes between countries hahaha
The government of Iranian President Masoud Pezeshkian called on Sunday (January 12, 2025) to enter into direct negotiations without mediation with the administration of US President Donald Trump, who will assume power in the White House in the middle of next week.
Iranian Vice President for Economic Affairs Ali Abdolazizdeh said in an interview followed by Baghdad Today: “We should negotiate directly with the Donald Trump administration, not negotiate through mediation or sending messages or responses.”
"We must have a face-to-face conversation with Trump to defend our interests," he stressed, noting that "the Iranian regime's government has reached the conclusion that we must have a face-to-face conversation with the American authorities without mediation."
In a related context, the Washington Post said in a report that "Tehran and Washington are at a crossroads, and Iranian negotiators must be more open."
The newspaper wrote in a report translated by "Baghdad Today", quoting Iranian media, "Iran began the new year in circumstances that have changed significantly compared to last year."
She pointed out, "The Iranian economy is in an unfavorable situation, so the current situation in Iran and Donald Trump taking power in a few days will put Tehran and Washington in a predicament, and both parties must choose between negotiation or confrontation."
“The decision of each side at this critical moment will shape the reaction of the other side. The best path for the region and the world is negotiation. The alternative is a comprehensive conflict, which would be disastrous,” she added, noting that “for Iran, negotiations require amending some of its policies. Iran must change its regional role and renew talks to stop developing its nuclear program.”
The American newspaper pointed out that "negotiators who want to work on reforming the Iranian economy and easing American sanctions must be more open, and now Trump has a new opportunity. Let us hope that Trump and his counterparts in Iran can make the best use of this moment - before it passes."
Hostage deal 'very close': Biden, Trump race against time
Hostage deal 'very close'
White House National Security Adviser Jake Sullivan said Sunday that Biden will likely speak with Israeli Prime Minister Benjamin Netanyahu in the near term.
This comes as officials of the current US administration are racing against time to reach an agreement before Biden leaves office on January 20.
Sullivan added in an interview with CNN that the parties concerned are now "very close" to reaching an agreement to stop the fighting in the Palestinian sector and release the remaining 98 hostages there.
He said Biden was following developments in the talks in Doha on a daily basis, where Israeli and Palestinian officials said on Thursday that some progress had been made in indirect talks between Israel and Hamas.
"We remain determined to use every day we have left in office to accomplish this mission," he continued, adding that Biden "will likely, in the near term, reach out to Prime Minister Netanyahu, and we are not ruling that out in any way."
He said there was still a chance for a deal before Biden left office, but it was also possible that "Hamas, in particular, will remain intransigent."
Trump intervenes "personally"
An Israeli source revealed on Saturday that US President-elect Donald Trump has begun to personally intervene in the issue of releasing the hostages held in the Gaza Strip.
Channel 12 Israel quoted an informed source as saying that in the last two days, Trump has begun to personally intervene in the issue of releasing the detainees, and he is "interested in completing the agreement as soon as possible before he takes office."
Meanwhile, Netanyahu met on Saturday with Trump's Middle East envoy Steve Witkoff, who arrived in Israel on a surprise visit amid developments in the hostage release negotiations.
On Saturday evening, the Israeli Prime Minister's Office announced that Netanyahu had decided to send the head of Mossad to Qatar to hold talks on the hostages.
Observers considered Trump's sending of his envoy to the Middle East, Steve Witkoff, to the Qatari capital, Doha, to discuss the hostage crisis to be unprecedented, despite his not officially assuming power in the White House.
This is the first time in US history that an elected president has sent his envoy to another country to discuss a specific issue, even though the current administration continues to perform its duties.
On Sunday, Trump's national security adviser said that negotiations between Hamas and Israel "are literally happening as we speak."
"Let's get our hostages released," Mike Waltz told ABC News. "I want to see them walk down the aisle, or at least some kind of agreement before the inauguration because President Trump is serious."
"Anything else will only make things worse for Hamas, and there will be hell in the Middle East if we continue to engage in this kind of hostage diplomacy," he continued.
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