Tishwash: Central Bank: 20 Iraqi banks practice direct transfer operations in 8 foreign currencies
The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Tuesday, that there are 20 Iraqi banks practicing direct transfer operations in 8 foreign currencies.
Al-Alaq said, according to the official agency, that “the recent quarterly meetings with the US Federal Reserve and the Treasury Department, which were held in Dubai, were very positive, as the steps taken by the Central Bank to improve the foreign transfer system and convert operations to international practices in a safe, transparent and highly organized manner were praised.”
Al-Alaq pointed out that “this transformation is the first of its kind in Iraq, which witnessed transitional stages from (the window) to (the platform) and then to correspondent banks.”
He continued, “Today, there are 20 Iraqi banks practicing direct transfer operations with international correspondents in eight foreign currencies, within the new system.”
Al-Alaq explained that “the other banks that are still outside this framework are now working to qualify them according to specific standards, in cooperation with an international consulting company, to apply the necessary standards that qualify them to join foreign transfer operations.”
He stressed that “there are no new sanctions or changes, but on the contrary, there is praise and appreciation from international bodies, especially with regard to the mechanism of selling cash dollars.
” Al-Alaq stressed the “need to focus on these successes to show a positive image of the transformations in the Iraqi banking sector, which will be positively reflected in the dealings of international financial institutions with Iraqi banks.” link
Tishwash: Government Advisor: Electronic Payment Enhances Dinar Stability, Shrinks Parallel Market
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that the public’s increasing conviction in using electronic payment cards for travel purposes or paying dues to small companies has achieved great success in reducing the size of the parallel market for the US dollar, which has contributed to its gradual decline.
Saleh explained in a statement to {Euphrates News} agency, that “the modern monetary policies that were recently implemented have proven their effectiveness in achieving financial and economic stability, as annual inflation rates have decreased to levels not exceeding 3%, which reflects the strength and stability of the Iraqi dinar against foreign currencies.
The financial advisor pointed out that the new monetary policy tools adopted by the Iraqi government, in cooperation with the Central Bank, have directly contributed to directing cash liquidity towards official channels, which has enhanced public confidence in the dinar and led to a reduction in informal transactions in the dollar.
Saleh stressed the importance of continuing efforts to enhance the use of electronic means in financial transactions, given its pivotal role in supporting the national economy and combating illegal practices associated with the parallel currency market.
He stressed that these achievements come within the framework of a comprehensive strategy aimed at achieving sustainable financial stability and enhancing the confidence of citizens and investors in the future of the Iraqi economy, calling on all segments of society to engage more in the use of electronic payment tools in the interest of the national economy. link
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Tishwash: Nineveh, Kirkuk and Tikrit are deprived of the dollar.. It’s time, Baghdad, the airport is ready
Exchange representative spoke to 964
Mosul (Nineveh) 964
Nineveh does not receive its share of the dollar despite the city’s stability for 9 years, and the restrictions affect many travelers from Nineveh, especially patients and students who need remittances to or from the city. Talk of the dollar problem has returned to the forefront in conjunction with the imminent opening of Mosul Airport.
Abdullah Khalil, a representative of Nineveh exchange companies, says that they have complied with the Central Bank’s requests to merge every 10 companies to form a new Category A company, but the red tape is still hindering the entry of these companies into the dollar auction. In the past, Nineveh included 90 companies, each of which received $1.2 million per month. Today, only two companies have met the merger criteria, in addition to 7 companies ready to merge, compared to 100 companies receiving dollars in Baghdad. According to Khalil, the return of the dollar to Mosul will serve all neighboring governorates deprived of the dollar, such as Salah al-Din and Kirkuk, in addition to Kurdistan. Economists in Baghdad have previously called for the necessity of resuming the injection of dollars into the western governorates, which would relieve pressure on the capital and the south.
In the event that The dollar has been pumped into Nineveh, and each company’s share will be about 2 million dollars per month, which will contribute to stimulating economic activity and improving the situation of affected companies
Abdullah Khalil – Representative of exchange companies in Nineveh:
Since 2014, exchange companies have stopped working by decision of the Central Bank.
In 2021, 47 companies were opened by the Central Bank.
When we reviewed the receipt of Nineveh Governorate’s share of the dollar, the Central Bank stipulated that every 10 companies merge into one company to be classified as A and to be able to enter the Central Bank’s dollar selling window.
Indeed, we have merged 10 companies two and a half years ago, but we suffer from red tape, which is disrupting our work.
Nineveh does not have a Class A company, which has the right to receive dollars from the Central Bank and sell them to travelers.
We also do not have external outlets through international companies such as Western Union.
We asked the Central Bank to exempt Nineveh from this matter, knowing that Baghdad has 100 category A companies.
Opening companies in Nineveh will serve nearby cities such as Kirkuk, Salah al-Din, Erbil, and Dohuk, which do not have Class A companies and do not receive dollars from the bank.
For 11 years, Nineveh has not received its share of the dollar, and I hope that through you our voice will be heard and that there will be an exception decision from the Central Bank, especially since Mosul is about to open the airport, and it is expected that tourism and trade will increase.
Previously, we had 90 companies, each of which was receiving $1.2 million per month.
Today we have two companies ready to take over, and there are 7 companies ready to merge.
There are 20 companies banned by the Central Bank from trading in dollars, and their dealings are limited to Iraqi dinars only.
We pay fees and taxes to the bank, just like the rest of the governorates that receive dollars and have external transfers.
Each company’s share will be $2 million per month if the Central Bank pumps dollars into Nineveh.
There are patients traveling outside Iraq who need remittances from Nineveh, but they cannot receive them or vice versa.
Issam Zenkana – Economic Researcher:
After 9 years of liberating Nineveh, restrictions on exchange companies are supposed to be lifted and they and citizens are supposed to be allowed to trade in dollars.
These restrictions negatively affected the commercial movement in the city, especially among merchants.
There is supposed to be a government banking operation based on academic financial steps built on the foundations of a free economy. link
