The End Of Dollar Dependence Or The Beginning Of Censorship? The National Payments Project Raises The Question Of “Financial Sovereignty” – Urgent
Baghdad Today – Baghdad In a pivotal step toward internal monetary independence, the Central Bank of Iraq (CBI) issued an official circular to all banks and electronic payment service providers
announcing the commencement of the implementation of the National Card Scheme project.
This is a local payment system managed through the national switchboard, completely separate from international platforms such as MasterCard and Visa.
The decision comes at a particularly sensitive time, following the Popular Mobilization Forces (PMF) salary crisis and sanctions imposed on several banks, amid indications that Iraq is shifting to a relatively closed monetary environment in the face of external pressures.
A national system that excludes international companies
According to a circular obtained by Baghdad Today, the Central Bank has ordered the launch of a local system for settling bank card payments within Iraq, without going through any international entity.
The circular outlined the need to adopt national codes such as BIN and AID to identify payment cards and link them to the national switchboard, implicitly eliminating any reliance on global payment networks such as Visa and MasterCard for local transactions.
The circular emphasized that this project is “exclusively local” and will be completed by the end of this year, paving the way for its official adoption starting early next year.
Motives for the decision: from sanctions to mobilization
Banking expert and former Central Bank official Mahmoud Dagher told Baghdad Today that “the decision is partly linked to international sanctions and pressure on Iraqi banks, so an alternative internal system is being considered.
” He added, “Iraq faces no legal or technical obstacles to establishing this type of system, and many countries have preceded us in this,” but he explained that “local systems remain limited and cannot be used outside the country’s borders.
” It’s worth noting that the decision came after the Popular Mobilization Forces‘ salaries were frozen at some banks linked to international payment systems, opening a new door for the Central Bank to restructure its payments infrastructure away from international political influence.
Monetary shift or financial isolation?
The new approach coincides with escalating tensions between Baghdad and Washington,
and with the ongoing pressure on major Iraqi banks accused of financing entities sanctioned by the US. In this context, it appears that the Central Bank has decided to proceed with a project that protects the domestic market from any “potential political freeze.”
However, this option, despite its importance in terms of sovereignty, raises questions:
Can global payment systems really be dispensed with?
Is Iraq structurally prepared to operate a closed system capable of meeting domestic demand?
Most importantly: Does this project pave the way for a gradual financial decoupling from the dollar?
The National Card Scheme project is not merely a technical decision regarding banking infrastructure;
it is a step with political, economic, and security dimensions.
If completed by the end of the year as planned, Iraq will have taken its first steps toward “internal monetary independence.”
However, this remains conditional on the state’s ability to ensure efficiency, prevent collapse, and build confidence in a system that has yet to be tested in a fragile economic reality.
Source: Baghdad Today + Agencies https://baghdadtoday.news/277819-.html
The Central Bank Of Iraq Participated In The Arab Conference On Savings And Financial Culture 2025, Held In The Tunisian Capital, Tunis,
July 2 to 3, 2025.Representatives from regulatory bodies, central banks, insurance companies, and investment companies from various Arab countries participated.
This participation serves as a boost to the implementation of the National Strategy for Financial Inclusion in Iraq for the years 2025-2029, recently launched by the Central Bank, and as part of its efforts to enhance regional cooperation and exchange expertise in the areas of
financial literacy, financial consumer protection, sustainable financing, and household savings.
The conference featured a number of important sessions that addressed topics
directly related to the axes of national financial inclusion strategies in Arab countries, including:
Financial literacy strategies and funding sources.
The role of digital finance in promoting financial inclusion.
Financial services consumer protection.
Microfinance and the role of social banks.
Using artificial intelligence to spread financial literacy.
The Central Bank of Iraq delegation also held a series of coordination meetings with its counterparts from Arab countries and regional and international organizations to discuss opportunities for technical cooperation and the exchange of institutional expertise.
In its contributions to the conference sessions, the Central Bank delegation emphasized the importance of developing financial literacy in Iraq as a fundamental pillar for enhancing financial inclusion and achieving economic stability.
This participation comes within the framework of the Central Bank of Iraq‘s commitment to implementing regional and international best practices,
its ongoing efforts to develop the institutional and digital infrastructure of the financial system, and enable individuals and communities to access financial services in a safe and comprehensive manner. https://cbi.iq/news/view/2926
Government Advisor: Iraq’s Renaissance Depends On Transforming Oil Assets Into Productive Investments
Time: 2025/07/03 12:03:38 PM Read: 180 Times {Economic: Al Furat News} The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, emphasized that the country’s renaissance lies in maximizing investment activity with strong impetus toward accelerated sustainable development.
He pointed out that this is a strategic issue that can only be resolved through the country’s economic resources in general, and specifically by transforming extracted oil assets into productive investment capital assets in vital economic sectors.
In a statement to Al Furat News, Salih emphasized that the government is engaged in implementing its productive activities, extending horizontally and vertically, through the implementation of strategic and service-oriented investment projects.
Challenges of Financing the Investment Budget and Opportunities for Improvement
The financial advisor explained that the operating budget imposes a spending restriction even in difficult circumstances, when the country’s oil revenues are severely reduced. He emphasized that financing the investment budget is the most affected in such circumstances.
He added that the opportunity for improvement in oil revenues means that the investment accelerator will operate at a high and accelerated pace to maximize GDP growth.
This is in light of the strict adherence to the government program, which has undertaken to implement the principle and vision of a “service government.”
“Service government”: Embodying the government’s role in reconstruction
Saleh considered the principle of a “service government” to be an embodiment of the key role currently being played by the government across the country,
starting with the implementation of the One Million Housing Unit Project and the establishment of new cities, and ending with the school buildings project (one thousand schools), and the construction of hospitals and various health facilities, in a manner unprecedented in the reconstruction process in Iraq.
He also pointed to the development of infrastructure in the country’s cities by advancing electricity, water, sanitation, and road projects without interruption and in an integrated manner. Saleh pointed out that the
Oil Investment Strategy and Its Role in Development
oil, gas, and other natural resource investment strategy is constantly evolving to feed and supplement the financial resources needed for the investment budget, which aims to develop investment activity linked to sustainable development and economic prosperity.
Reconstruction Driven by Oil Revenues
The financial advisor concluded his statement by emphasizing that reconstruction is now financed by oil revenues before being financed by external borrowing. He explained that the goal of oil revenues, when they rise, will be to develop productive assets in sectors that contribute to diversifying the national economy.
He stated that as oil prices rise and higher financial returns are achieved, they will be more aligned with the strength of the implementation of development projects outlined in the country’s government program and plans, which drive most new projects, especially those anticipated years ago.
This comes in line with a careful and precise program that builds a development renaissance based on a strong investment push, through a development movement unprecedented in the country’s history.
This momentum will continue unabated in the coming months, with a robust and expansive urban development map, supported by the high level of stability the country is witnessing in all economic, political, and security fields.
https://alforatnews.iq/news/مستشار-حكومي-نهضة-العراق-مرهونة-بتحويل-الأصول-النفطية-إلى-استثمارات-منتجة
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