The Central Bank sets a date for opening a new bank in the US and resolving the Visa and Mastercard crisis.
The video for this My FX Buddies blogpost is below here:
Central Bank Governor Ali Al-Alaq confirmed on Saturday (April 26, 2025) that an agreement had been reached to open another bank in the United States to establish relations with Iraqi banks in money transfer operations.
Al-Alaq added in a statement followed by Baghdad Today that "the Central Bank aims to resolve the problem of Visa and MasterCard cards abroad within the next month," noting that "a plan has begun to be developed to issue cards specifically for small merchants."
The Iraqi banking sector faces challenges in international transactions, particularly regarding the use of electronic payment cards abroad, due to regulatory restrictions and global financial compliance requirements. The Central Bank of Iraq has been working for some time to strengthen banking relations abroad and open new channels to improve financial transfers and ensure smooth transactions for businessmen and citizens, as part of broader efforts to reform the banking system and bring it in line with international standards.
Central Bank: Visa and MasterCard card issue abroad to be resolved next month
link
Central Bank Governor Ali Mohsen Al-Alaq announced on Saturday that the issue of Visa and MasterCard cards abroad will be resolved within the next month.
Al-Alaq said in press statements, followed by "Al-Eqtisad News," that "the Central Bank has completed the two tasks related to cash sales and foreign transfers, but the card crisis witnessed a state of "misunderstanding."
He explained, "When we headed to organize this process, it required a set of procedures that must be worked on, so that we put it in its correct direction and according to acceptable standards, and therefore there were some stops and some changes in the paths."
Al-Alaq said, "An agreement was reached with all concerned parties - which include "Visa" and "MasterCard" in coordination with the Treasury, the Federal Reserve, and the auditing company - on "the formulas and paths for settling these cards," stressing that "the Central Bank has taken rapid steps in this regard, expecting to complete this task within the next month, i.e. before the scheduled date for this process, which is June 1."
Al-Alaq revealed that "work has begun on developing a plan to issue cards to small merchants, after completing consultations with companies," "to accommodate the requests of merchants—a large segment of Iraqis—to cover their foreign trade without passing through long routes, so that transfers can be made directly, which will create a major shift in accommodating merchants who do not use formal transfer methods."
Al-Alaq indicated that "the Central Bank, in agreement and consultation with the Treasury and the Federal Reserve, has completed the organization of cash sales of dollars, and is now 'in an ideal position, by their own testimony.'" He described foreign commercial transfers as "progressing very smoothly, as we have expanded the network of correspondent banks abroad in the US and elsewhere. An agreement has also been reached to open another bank in the US to establish relationships with Iraqi banks in transfer operations."
.png)
No comments:
Post a Comment