TNT – “Tidbits From TNT” Saturday 10-21-2023

Al-Alaq: Stability of the exchange rate requires changes in the Iraqi commercial system

Central Bank Governor Ali Al-Alaq considered, on Saturday, the process of stabilizing the exchange rate of the dinar against the dollar as a “major process” that requires changes to the Iraqi commercial system and financial transfers outside the country.

This came in his speech during the first annual banking conference hosted by the city of Erbil under the slogan “The banking sector, opportunities for advancement and the future of international companies,” in its first edition.

Al-Alaq said in his speech, “The rules stipulated in the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2018 must be consolidated, and international practices and standards must be applied in a way that preserves the integrity of the financial system from local and international risks and procedures, and in a way that ensures the transparency and integrity of financial operations.”

He added, “We emphasize once again that these rules are what preserve the integrity of the financial system, and even protect Iraq from serious risks, and what is related to this matter is the relationship between the application of these rules and standards and the process of external transfer and the sale of the dollar in various forms.”

Al-Alaq added, “There is a close relationship between establishing these standards and the smooth flow of transfer operations, and maintaining the stability of the exchange rate. To the extent of this commitment, we can determine monetary stability and exchange rate stability, which is a major process that requires making many changes and reorganizing the commercial system in Iraq.”

And the external transfer system and what is related to that,” noting that the Central Bank “is going through this process in daily details until it leads us to the right and correct path, and every day it opens a new channel to facilitate and accelerate this process.”   link

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CandyKisses:  From Erbil. Al-Handal announces the opening of the “Iraqi Banking Conference in the Kurdistan Region”

From Erbil. Al-Handal announces the opening of the “Iraqi Banking Conference in the Kurdistan Region”

Economy News – Baghdad

The head of the Iraqi Private Banks Association, Wadih al-Handal, announced on Saturday the launch of the work of the “Iraqi Banking Conference in the Kurdistan Region.”

In his speech, Al-Handal said: “I am pleased to welcome you with the most beautiful welcome from Erbil, the capital of the Kurdistan Region, and to convey to you my greetings, my brothers and colleagues, the chairmen of the boards of directors in private banks, the authorized managers and the executive management of the Association of Iraqi Private Banks (the Iraqi Banking Conference in the Kurdistan Region) under the patronage of the President of the Regional Government, Masrour Barzani, and announced the opening of the conference for its work on 21/10/2023.”

He added: “Today, through the sessions of this conference, we will focus on important axes, including: –
The role of the banking sector in supporting growth and stimulating investment, and the importance of transforming the country into an attractive environment for internal and external investments in all sectors, the great opportunities available in this field and innovative solutions that will stimulate the private sector, and we will also address the obstacles that hinder this goal, including the provision of the necessary financing for investment projects and the consequent provision of job opportunities and growth in the private sector to mitigate of the constant pressure on the government’s operating expenditures, which we must pay close attention to.”

– We will also discuss the duty of developing the banking sector for its international relations and the role of the Central Bank in this field, and the plans set to reform, improve and equip the banking sector to be able to meet the future demand for diversified banking services and to be a strong alternative to the government banking sector in a more organized and flexible manner and in line with the latest international standards in the field of compliance, combating money laundering, technology adoption, and developing human capabilities.

“In light of the great acceleration of events and challenges in the world, there has recently been a significant development in the field of the structure of the banking sector, through the plans set by the Central Bank of Iraq and clear government programs for digital transformation on both sides of transactions and payments, and through the continued implementation of these plans at a rapid pace, this will lead to the emergence of significant positive results that greatly affect the economy in our country,” he said.

“We aspire to come out of this conference with a common and future vision based on the importance of uniting efforts to improve the reality of the economy and improve the standard of living of our countrymen,” concluded his speech

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Tishwash:  What is the importance of the “electronic platform” in the Iraqi Central Bank’s transactions? A specialist explains

 Today, Saturday (October 21, 2023), banking affairs specialist Hammam Al-Shamaa revealed the importance of the “electronic platform” in the Central Bank’s transactions to sell the dollar. 

Al-Shamaa told “Baghdad Today” that “there is great importance in using the (electronic platform) in the Central Bank’s dealings with the sale of the dollar,” noting that “this platform prevented many illegal sales of the dollar as was happening previously, and it also prevented “A lot of currency smuggling operations abroad.”

He explained that “Iraq cannot stop working on the electronic platform, because it was imposed on it by the US Federal Reserve, and this imposition came in order to prevent any incorrect external transfers, whose goal is only to transfer the dollar to Iraq.”

Al-Shamaa confirmed, “After working on this platform, many of these operations were stopped, and for this reason some people began to rely on black transfers through some companies to extract dollars.”

On May 10, 2023, the Central Bank confirmed that it would continue to meet companies’ requests and finance the personal needs of all citizens.

A statement from the Central Bank, received by (Baghdad Today), said, “The bank continues to meet companies’ requests (financing their imports of goods and services), in addition to financing the personal needs of all citizens, such as travel, treatment, and study, through the electronic cash platform, and meeting the requests of banks and electronic payment companies to enhance… Their balances are to cover electronic payment card settlements (Visa, MasterCard) at the official exchange rate of 1,320 dinars per dollar.” 

On (February 19, 2023), the Central Bank of Iraq announced a directive to licensed banks, exchange companies, and brokerage companies buying and selling foreign currency, to apply via the electronic platform to obtain their prescribed share of the foreign currency “dollar.”

According to a document issued by the Iraqi Central Bank, it stated, “The electronic platform for the cash sale of foreign currency (FITR) must be approved as of Monday, February 20, 2023.” link