Central Bank: We Are Ready To Implement The Banking Sector Reform Plan.
Monday, April 7, 2025 13:21 | Economic Number of readings: 202 Baghdad / NINA / The Central Bank of Iraq confirmed its readiness to implement the banking sector reform plan.
Central Bank Governor Ali Al-Alaq said in a speech at the Banking Sector Reform Conference:
“Investments in research and development in the field of artificial intelligence must be increased.” He added: “Digital currencies could reshape the traditional banking system.” https://ninanews.com/Website/News/Details?key=1196153
The Central Bank Denies Stopping The Supply Of Dollars To Travelers.
April 06, 2025 The Central Bank of Iraq denies circulating news (about halting the supply of dollars to travelers at the official exchange rate of 1,320 dinars to the dollar), confirming that the decision is still in effect and that the suspension is false.
The Central Bank states that the process of supplying travelers with dollars is proceeding regularly and smoothly, according to an advanced electronic system operated by companies and banks at all Iraqi airports,
especially after the implementation of new mechanisms that enabled travelers to receive their shares of foreign currency (dollars) according to sound transactions, facilitating their faster access to dollars and eliminating the negative phenomena practiced by speculators.
The Central Bank of Iraq reserves the legal right to prosecute those who spread rumours aimed at destabilising the currency and creating opportunities for speculation. Central Bank of Iraq Media Office April 6, 2025 https://cbi.iq/news/view/2838
Government Advisor: 95 Trillion Dinars Stored Outside the Banking System
Economy 04-05-2025, 1:44 PM Baghdad – INA – Amna Al-Salami Adviser to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Saturday, that the widespread use of digital payment systems provides loans to citizens at lower costs.
He explained that 95 of the 109 trillion dinars are stored outside the banking system.
Adviser to the Prime Minister, Mazhar Mohammed Salih, told the Iraqi News Agency (INA):
“The positive steps in activating e-commerce are consistent with one of its objectives, as
the government and the Central Bank seek to integrate hoarded funds in households (cash leakage, as it is known) into the banking system, which contributes to strengthening the national economy and
achieving financial stability.” He pointed out that “the Monetary Authority has previously prepared controls and registration procedures to obtain a license to practice this trade, in a coordinated manner that contributes to regulating the market and enhancing consumer confidence.”
He added, “The steps taken by the government and the Central Bank to enhance confidence and and activate e-commerce are consistent with the launch of digital transformation projects.
This has been the case since the Central Bank announced the launch of strategic projects to support digital transformation, including the
instant payments project,
local cards, and
unified payment gateways,
all of which aim to
enhance financial inclusion and
facilitate digital banking operations.”
He pointed out that “all measures to address information technology and integrate it into digital payment systems are consistent with the development of the country’s digital renaissance, the financial culture of society, and the development of monetary behavior in relation to inherited customs, traditions, and cultures.
Hoarding money at home instead of depositing it in banks remains a prominent economic challenge in Iraq.” He explained, “Estimates indicate that approximately 87% of the money supply, or
approximately 95 trillion dinars out of a total of 109 trillion dinars, is held outside the banking system,
preventing a large portion of the national wealth from effectively participating in the economy.”
He explained that “the more digital payment systems are used, including e-commerce, the
more efficient banking activity becomes and the fewer leakages outside of banks.
This gives official and licensed banking units the greatest opportunity to grant more credit or
lend to citizens at a lower cost and with greater efficiency, thanks to the often low interest rate.” He noted that “the parallel market for usurers, which
deals with funds in circulation or hoarded outside the banking system, is a very dangerous, illegal, and costly market for citizens and the national economy when it comes to credit transactions or lending at very high usurious interest rates, or what is known as the usurers’ market.
This is due to the opaque nature of its operations, in addition to the fact that some of its activities conflict with the Anti-Money Laundering Law due to the lack of transparency in financing, the absence of governance elements, and the accompanying risks of trading and recovery.” https://www.ina.iq/231404–95-.html
Advisor to the Prime Minister Reveals Plan to Merge Rafidain and Rasheed Banks
Economy Yesterday, 6:26 PM Baghdad – INA Advisor to the Prime Minister and Executive Director of the Reform Management Cell, Amer Al-Adhadh, revealed plans to merge Rafidain and Rasheed Banks.
While addressing the government’s achievements in the field of economic reforms,
he explained the contents of the “House of Reform” project and its importance to the investment portfolio.
He also outlined the contents of the draft law on public-private partnerships, which aims
to enhance the investment environment in Iraq.
Al-Adhadh told Al-Shabaka magazine, as reported by the Iraqi News Agency (INA), in his discussion of the “House of Reform” project, “This project is not merely a government program, but rather
a comprehensive roadmap aimed at achieving sustainable development through interconnected objectives,one of which is activating human capital and enhancing national competencies.”
He added, “Economic reforms cannot succeed without an investment-attractive legal and regulatory environment, which is what the government is working to achieve through this project.”
Regarding cooperation with the World Bank, Al-Adhadh stated, “The World Bank commended the reforms implemented by the Iraqi government,including the “House of Reform” policies that support sustainable development.
Cooperation focuses on supporting financial reforms, providing technical advice, and financial assistance to enhance the stability of the Iraqi economy and improve financial governance systems.”
Al-Adhadh also noted that “the government has made significant progress in preparing the draft law on public-private partnerships, which is an essential part of the government’s program.
This partnership aims to enhance cooperation between the government and the private sector, particularly in infrastructure, transportation, and energy projects, contributing to stimulating the national economy and achieving sustainable development.”
Regarding the restructuring of the banking sector, Al-Adhadh revealed a plan to merge Rafidain and Rasheed Banks into a single entity with the aim of
improving Iraq‘s credit rating and increasing international confidence in the banking sector.
He noted that an international consulting firm has been commissioned to oversee the merger process, which includes improving financial and administrative performance and developing digital infrastructure.
The Prime Minister’s advisor also addressed the issue of economic diversification, stressing that
“the government has achieved a significant increase in non-oil revenues, which is
an important achievement within the strategy to diversify sources of income.” He noted that
“the government is focusing on improving tax administration, developing customs duties, and
stimulating investment in non-oil sectors such as industry, agriculture, tourism, and technology,
to ensure the sustainability of these revenues.”
Al-Adhadh emphasized that “the economic reforms implemented by the government contribute to strengthening the investment environment and achieving sustainable economic growth, ensuring Iraq has a stronger and more diversified financial future.” https://www.ina.iq/231484–.html
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