The Central Bank of Iraq works in accordance with its strategy in monetary policy, which depends on two factors: First: to stimulate banks to move to the market and provide credit and bank financing, which requires the case of targeting the gross domestic product and address the aspects of unemployment and economic stagnation, which requires raising the financial depth of the country.
And second: to continue to address inflation and targeting through the price signals adopted by the Central Bank to target inflation, and achieve a unified framework of stability and economic growth desired.
The Governor of the Central Bank of Iraq, Ali Mohsen Ismail Alalak in his work, taking the steps of reform, administrative and operational in a deliberate, systematic and scientific; which reflected positively on the management of the Bank and its work, which implements monetary policy in Iraq and aimed at achieving the stability of prices, achieving an acceptable level of monetary and economic stability and avoidance Changes affecting the value of the national currency internally and externally, which arise due to changes in the general level of prices.
Monetary policy is currently facing the challenge of lower dollar sales from the Ministry of Finance (due to lower oil prices or production) to a lower level of market demand, higher demand for foreign currency, and government spending elasticity falling to a level commensurate with declining foreign currency revenues. During the control of the value of money supply in the market, which affect the volume of aggregate demand by changing the money supply in the market.
So it is very important to pay attention to and control the growth of money supply, much of the money supply will lead to high inflation to levels that could harm the economy, but a little of it, can lead to the disruption of economic growth, so decision-makers in the Central Bank of Iraq aspire to achieve a balance between Growth and inflation, through restrictive or concessional monetary policy.
The bank controls restrictive monetary policy when it wants to limit money supply; it uses concessional measures when it wants to increase money supply, while money supply is controlled by interest rates or by changing minimum bank reserve requirements.
Restrictive monetary policy has a positive impact on the currency because raising interest rates will attract new capital added to the economy, because high interest rates are usually a sign of a strong economy and investors are getting a higher return on capital they have in banks within the economy.
Monetary policy has a negative impact on the currency, because making capital readily available is likely to cause inflationary problems, which reduces the purchasing power of the currency and makes it less valuable, because lower interest rates mean that investors receive less return on capital They own it within this economy, and investors will go to invest their capital elsewhere, which will contribute to the depreciation of the currency.
Or by limiting the amount of money a bank can use to lend to consumers and businesses, by setting the minimum reserve for banks.
Therefore, the Central Bank avoided resorting to policies that would affect the general stability of prices and exchange rates and economic growth and therefore did not resort to the following options:
* Reduction of sales of foreign currency because it leads to the appreciation of foreign currency, which will harm the citizen, and affect directly • Creditors and investors must
continue to respond to foreign exchange demand (exchange rate stability, lower foreign reserves).
* Floating exchange rate is currently not possible in Iraq because the dollar source is monopolized by the government because of the nature of the economy and state resources.
The central bank believes that confronting these challenges calls for reducing the demand for the dollar by influencing the causes of demand (security and political stability, controlling imports, stimulating real economic sectors, providing a safe environment) and not by restricting supply or procedures.
In spite of all the challenges, the Central Bank has managed to achieve its most important goals:
price stability and inflation control: by continuing to reduce the inflation rate to less than 2%, which is the lowest level reached in many years. This means stabilizing prices at a certain level. The concerns of monetary policymakers focused on eliminating price inflation to eliminate the economic and social expenditure of inflation. Therefore, achieving prices at the price level is the main objective of monetary policy. To achieve the most difficult circumstances.
Restraining inflation is necessary because it leads to uncertainty and confidence in the economy, which affects the low rate of economic growth.
Stability of the exchange rate of the local currency
The exchange rate of the local currency is stabilized by achieving an acceptable level of monetary and economic stability, and avoids the effects of the value of the national currency that arises through changes in the general level.
Stimulating economic growth: in all sectors, which in turn generates an increase in national income and GDP growth; when monetary policy succeeds in achieving economic stability, driving production when money is increased in the market in a recession or reducing money in the market Inflation, thus contributing to economic growth rates, especially in sectors that have been unstable, leading to higher rates of investment.
Supporting financial stability at the level of sustainability of public finance and the banking sector:
Experts believe that by stabilizing the financial market through the functioning of financial markets, the instability in that market can affect the state of the economy in terms of stability and ability to control the transfer of capital between the financial market and savings of people, based on that this market is a market And stability in it affects the aspect of investment protection and growth, leading us to say that the more stable the market was, the more likely it is that the central bank will be able to control monetary policy and thus stabilize the financial market. For the Central Bank of Iraq.
And second: to continue to address inflation and targeting through the price signals adopted by the Central Bank to target inflation, and achieve a unified framework of stability and economic growth desired.
The Governor of the Central Bank of Iraq, Ali Mohsen Ismail Alalak in his work, taking the steps of reform, administrative and operational in a deliberate, systematic and scientific; which reflected positively on the management of the Bank and its work, which implements monetary policy in Iraq and aimed at achieving the stability of prices, achieving an acceptable level of monetary and economic stability and avoidance Changes affecting the value of the national currency internally and externally, which arise due to changes in the general level of prices.
Monetary policy is currently facing the challenge of lower dollar sales from the Ministry of Finance (due to lower oil prices or production) to a lower level of market demand, higher demand for foreign currency, and government spending elasticity falling to a level commensurate with declining foreign currency revenues. During the control of the value of money supply in the market, which affect the volume of aggregate demand by changing the money supply in the market.
So it is very important to pay attention to and control the growth of money supply, much of the money supply will lead to high inflation to levels that could harm the economy, but a little of it, can lead to the disruption of economic growth, so decision-makers in the Central Bank of Iraq aspire to achieve a balance between Growth and inflation, through restrictive or concessional monetary policy.
The bank controls restrictive monetary policy when it wants to limit money supply; it uses concessional measures when it wants to increase money supply, while money supply is controlled by interest rates or by changing minimum bank reserve requirements.
Restrictive monetary policy has a positive impact on the currency because raising interest rates will attract new capital added to the economy, because high interest rates are usually a sign of a strong economy and investors are getting a higher return on capital they have in banks within the economy.
Monetary policy has a negative impact on the currency, because making capital readily available is likely to cause inflationary problems, which reduces the purchasing power of the currency and makes it less valuable, because lower interest rates mean that investors receive less return on capital They own it within this economy, and investors will go to invest their capital elsewhere, which will contribute to the depreciation of the currency.
Or by limiting the amount of money a bank can use to lend to consumers and businesses, by setting the minimum reserve for banks.
Therefore, the Central Bank avoided resorting to policies that would affect the general stability of prices and exchange rates and economic growth and therefore did not resort to the following options:
* Reduction of sales of foreign currency because it leads to the appreciation of foreign currency, which will harm the citizen, and affect directly • Creditors and investors must
continue to respond to foreign exchange demand (exchange rate stability, lower foreign reserves).
* Floating exchange rate is currently not possible in Iraq because the dollar source is monopolized by the government because of the nature of the economy and state resources.
The central bank believes that confronting these challenges calls for reducing the demand for the dollar by influencing the causes of demand (security and political stability, controlling imports, stimulating real economic sectors, providing a safe environment) and not by restricting supply or procedures.
In spite of all the challenges, the Central Bank has managed to achieve its most important goals:
price stability and inflation control: by continuing to reduce the inflation rate to less than 2%, which is the lowest level reached in many years. This means stabilizing prices at a certain level. The concerns of monetary policymakers focused on eliminating price inflation to eliminate the economic and social expenditure of inflation. Therefore, achieving prices at the price level is the main objective of monetary policy. To achieve the most difficult circumstances.
Restraining inflation is necessary because it leads to uncertainty and confidence in the economy, which affects the low rate of economic growth.
Stability of the exchange rate of the local currency
The exchange rate of the local currency is stabilized by achieving an acceptable level of monetary and economic stability, and avoids the effects of the value of the national currency that arises through changes in the general level.
Stimulating economic growth: in all sectors, which in turn generates an increase in national income and GDP growth; when monetary policy succeeds in achieving economic stability, driving production when money is increased in the market in a recession or reducing money in the market Inflation, thus contributing to economic growth rates, especially in sectors that have been unstable, leading to higher rates of investment.
Supporting financial stability at the level of sustainability of public finance and the banking sector:
Experts believe that by stabilizing the financial market through the functioning of financial markets, the instability in that market can affect the state of the economy in terms of stability and ability to control the transfer of capital between the financial market and savings of people, based on that this market is a market And stability in it affects the aspect of investment protection and growth, leading us to say that the more stable the market was, the more likely it is that the central bank will be able to control monetary policy and thus stabilize the financial market. For the Central Bank of Iraq.
Achievements under these goals are reflected in the following:
Coverage of public and private sector imports in foreign currency.
Thus, the purchasing power of the citizens whose income is mostly paid by salaries and government pensions is maintained. They depend on covering their import needs for most of what they consume or use, and maintain the rights of the creditors or investors, who are hit by inflation and suffer heavy losses.
Thus, the purchasing power of the citizens whose income is mostly paid by salaries and government pensions is maintained. They depend on covering their import needs for most of what they consume or use, and maintain the rights of the creditors or investors, who are hit by inflation and suffer heavy losses.
Local currency exchange rate stability:
Despite the significant decline in the (dollar) revenues of the exported oil, which reached about 70% in some months, the exchange rate remained constant and there were no significant gaps between the official exchange rate and the parallel market.
In 2016 standards were established (with the help of an international audit office) to enter banks and companies to the dollar purchase window in order to control the sale of the dollar and maintain the exchange rate on the one hand and to establish compliance with the rules of compliance and combating money laundering and terrorism financing. The banks in this regard and the construction of organizational and technical and technical units and capabilities to strengthen their systems and internal control, and maintain the level of adequacy of international reserves in accordance with international standards in the measurement of efficiency, and supports this level to maintain the exchange rate and meet the demand for the dollar.
The International Monetary Fund (IMF) estimates for reserves in March 2015, while the actual reserves as in the table below:
[You must be registered and logged in to see this link.]Despite the significant decline in the (dollar) revenues of the exported oil, which reached about 70% in some months, the exchange rate remained constant and there were no significant gaps between the official exchange rate and the parallel market.
In 2016 standards were established (with the help of an international audit office) to enter banks and companies to the dollar purchase window in order to control the sale of the dollar and maintain the exchange rate on the one hand and to establish compliance with the rules of compliance and combating money laundering and terrorism financing. The banks in this regard and the construction of organizational and technical and technical units and capabilities to strengthen their systems and internal control, and maintain the level of adequacy of international reserves in accordance with international standards in the measurement of efficiency, and supports this level to maintain the exchange rate and meet the demand for the dollar.
The International Monetary Fund (IMF) estimates for reserves in March 2015, while the actual reserves as in the table below:
This is an indication of the success of the Central Bank of Iraq in achieving a balance between maintaining the level of reserve adequacy and meet demand for the dollar, in light of the sharp decline in revenues from Iraqi oil source (due to the decline in international oil prices).
According to the agreement with the IMF signed by Iraq in 2008, all restrictions on foreign transfers have been canceled.
To stimulate economic growth
and to move and support development processes in the context of recession, as a result of low government expenditures and increase unemployment under complex security and social conditions, the Central Bank has undertaken the following initiatives:
• Support the real activities, lending private sector projects of specialized banks, 5 trillion Iraqi dinars to the bank (agricultural, industrial, housing and real estate fund). In the largest lending initiative in Iraq, and allocated 1.5 trillion Iraqi dinars to private banks to support small and micro enterprises , As the Bank is ready to expand this initiative, as it establishes a regulatory unit for microfinance.
• The initiative of the bank to pay the dues of contractors and processors and farmers (more than 5 trillion dinars), which affected the activity of the private sector and the banking sector, where the government approved the issuance of bonds proposed by the Central Bank and its systems, prepared and disbursed in coordination with government banks.
According to the agreement with the IMF signed by Iraq in 2008, all restrictions on foreign transfers have been canceled.
To stimulate economic growth
and to move and support development processes in the context of recession, as a result of low government expenditures and increase unemployment under complex security and social conditions, the Central Bank has undertaken the following initiatives:
• Support the real activities, lending private sector projects of specialized banks, 5 trillion Iraqi dinars to the bank (agricultural, industrial, housing and real estate fund). In the largest lending initiative in Iraq, and allocated 1.5 trillion Iraqi dinars to private banks to support small and micro enterprises , As the Bank is ready to expand this initiative, as it establishes a regulatory unit for microfinance.
• The initiative of the bank to pay the dues of contractors and processors and farmers (more than 5 trillion dinars), which affected the activity of the private sector and the banking sector, where the government approved the issuance of bonds proposed by the Central Bank and its systems, prepared and disbursed in coordination with government banks.
• Supporting financial stability on the level of fiscal sustainability and stability of the banking sector to cope with the sharp decline in government revenues, the emergence of a major financial crisis under special conditions facing the country, the difficulty of adapting to the sharp and severe decline in oil prices, and the central bank's support for stability and sustainability of public finances (The government's revenues in some months of 2016 were less than 50% of salary coverage); the central bank played a key role in containing the crises; by buying treasury remittances (issued by the Ministry of Finance) by 16 trillion dinars in 2015 , 201 6.
- Allow banks to purchase treasury remittances using 50% of the mandatory reserves of banks held by the Central Bank has reached remittances purchased from these amounts more than 4 trillion Iraqi dinars.
- Allow banks to purchase treasury remittances using 50% of the mandatory reserves of banks held by the Central Bank has reached remittances purchased from these amounts more than 4 trillion Iraqi dinars.
- The Central Bank provided support to the government by indirect funding of the budget, and the ability to pay the dues of the international oil companies for the permanence of oil production and export, and the failure to pay is a serious threat to the resources of the State, and the Central Bank of Iraq played a detailed role in the (credit program) The International Monetary Fund since 2015, under which Iraq received soft loans and facilities of about 15 billion dollars.
- To meet the bank's obligations towards the requirements of the program document (development readiness), including maintaining the general level of prices, tackling inflation, maintaining the exchange rate system, the precautionary measures, strengthening the control systems of banks and financial institutions, enhancing the risk-based governance and auditing of the Central Bank The obligation to combat money laundering and financing of terrorism and lifting the restrictions on external transfer and legislative and regulatory amendments, including the amendment of the law of the Central Bank and the obligation to audit its accounts and reserves and other activities of auditing companies The Mechanism.
- Support the budget deficit in the amounts proposed by the Fund through the purchase of the central bank transfers of treasury, without which the budget can not be built, and therefore depends on the program of the Fund.
- Support and contribute to the realization of the terms of the agreement with the IMF in the framework of reform of economic and financial policies and the construction of new rules and policies to rebuild the state budget to cope with financial crises and control of public expenditure and maximize domestic revenues and provisions for control of public debt and the development of financial indicators and targets related to the establishment of specific ceilings To the deficit and the public debt and expenditures within the measurement of gross domestic product, and the call of the Central Bank and the Ministry of Finance to establish one account of the Treasury instead of an account for all government spending units to achieve management of the cash asset and control and disposal of dispersion Cash and the use of non-moving money; where the Central Bank of the existence of large amounts (trillions) scattered in sub-accounts are not used within the priorities of the government and its needs, which leads the Ministry of Finance to borrow interest at a time can be directed and available from those amounts and use.
- Coordinating with the Ministry of Finance on diversification of domestic and external public debt sources, including issuance of local bonds to the public (for the first time) with a view to diversifying the deficit on one hand, deepening the financial market and introducing new tools; and establishing a permanent joint coordination committee between the Central Bank and the Ministry of Finance To coordinate financial and monetary policies.
- To meet the bank's obligations towards the requirements of the program document (development readiness), including maintaining the general level of prices, tackling inflation, maintaining the exchange rate system, the precautionary measures, strengthening the control systems of banks and financial institutions, enhancing the risk-based governance and auditing of the Central Bank The obligation to combat money laundering and financing of terrorism and lifting the restrictions on external transfer and legislative and regulatory amendments, including the amendment of the law of the Central Bank and the obligation to audit its accounts and reserves and other activities of auditing companies The Mechanism.
- Support the budget deficit in the amounts proposed by the Fund through the purchase of the central bank transfers of treasury, without which the budget can not be built, and therefore depends on the program of the Fund.
- Support and contribute to the realization of the terms of the agreement with the IMF in the framework of reform of economic and financial policies and the construction of new rules and policies to rebuild the state budget to cope with financial crises and control of public expenditure and maximize domestic revenues and provisions for control of public debt and the development of financial indicators and targets related to the establishment of specific ceilings To the deficit and the public debt and expenditures within the measurement of gross domestic product, and the call of the Central Bank and the Ministry of Finance to establish one account of the Treasury instead of an account for all government spending units to achieve management of the cash asset and control and disposal of dispersion Cash and the use of non-moving money; where the Central Bank of the existence of large amounts (trillions) scattered in sub-accounts are not used within the priorities of the government and its needs, which leads the Ministry of Finance to borrow interest at a time can be directed and available from those amounts and use.
- Coordinating with the Ministry of Finance on diversification of domestic and external public debt sources, including issuance of local bonds to the public (for the first time) with a view to diversifying the deficit on one hand, deepening the financial market and introducing new tools; and establishing a permanent joint coordination committee between the Central Bank and the Ministry of Finance To coordinate financial and monetary policies.
As part of the stability of the banking sector in the shadow of the financial crisis and its direct and indirect effects on the banking sector and thus on financial stability in general, the Central Bank has worked to limit these effects through the following:
• Conduct a comprehensive survey and review of the conditions of banks and limit banks facing special difficulties In the liquidity and the development of a program and urgent measures to address them and recovered the conditions of the vast majority of them to enhance financial stability in banks and avoid the risk of suspicious operations, and all banks are obliged to comply with the law of combating money laundering and the financing of terrorism No. 39 of 2015 and regulations and Including the establishment of specialized units within banks that specialize in control, risk management and compliance processes.
• The Central Bank has made an important historic move during the years 2015 and 2016 in strengthening and strengthening relevant procedures and regulations which have been praised and supported by relevant international organizations including the FATF.
• Conduct a comprehensive survey and review of the conditions of banks and limit banks facing special difficulties In the liquidity and the development of a program and urgent measures to address them and recovered the conditions of the vast majority of them to enhance financial stability in banks and avoid the risk of suspicious operations, and all banks are obliged to comply with the law of combating money laundering and the financing of terrorism No. 39 of 2015 and regulations and Including the establishment of specialized units within banks that specialize in control, risk management and compliance processes.
• The Central Bank has made an important historic move during the years 2015 and 2016 in strengthening and strengthening relevant procedures and regulations which have been praised and supported by relevant international organizations including the FATF.
• Establishment of the Financial Stability and Risk Management Unit to reduce systemic risk and take precautionary actions at the macro and micro levels supported by early warning systems, crisis response and financial stability through the development of mathematical models to determine the financial system's ability to absorb crises and perform stress tests periodically.
• Protect the banking sector from credit risk by building a comprehensive and integrated program that provides a modern and sophisticated database available to all banks to inquire about borrowers to make appropriate decisions on borrowers in order to ensure and stabilize the financial system. Basel Committee on Financial Supervision.
• Strengthening the governance system in the banking sector and issuing the first guide to corporate governance in the banking sector, which includes the principles, concepts and rules of governance in accordance with international developments and practices to enhance the sound performance of banks, protect the rights of shareholders and stakeholders and provide a sound banking management framework that separates ownership and management and provides an appropriate framework for disclosure,
• Strengthening financial stability by supporting and stimulating the Central Bank to establish Islamic banks because of the Islamic finance security against market fluctuations and to attract the savings that do not deal with conventional commercial banks and thus achieve the development of the capital market, and the central bank was able to stimulate more than half of the financial transfer companies To convert to Islamic banks and thus achieved two goals first support the Islamic banking industry and expansion, and the other limit of the transfer companies that the central bank intended to eliminate them for substantive reasons.
- To limit the risks to customers in their financial transactions through the development of a comprehensive framework of policies and procedures to be taken in their regulatory, regulatory, legislative, educational and educational dimensions. An organizational unit has been established to carry out these tasks
. Completion of legal, regulatory and financial procedures for the establishment of a deposit guarantee institution, In order to attract public funds and enhance confidence in the banking system.
- In order to develop the financial markets, thus enhancing the financial depth and thus supporting financial stability, the Central Bank has developed procedures for settling the results of trading in the financial market through payment systems and using the system of buying and selling securities and developing effective mechanisms to strengthen central storage and settlement systems and work to reconcile the settlement system Trading securities with payment systems.
One of the new functions and tasks of the Central Bank of Iraq after 2014 is to focus on:
Total Quality: which means continuous development of the administrative processes by reviewing and analyzing them and searching for means and methods to increase the performance and reduce the time to accomplish them by eliminating all tasks and functions that are useless and unnecessary for the client or the process; And raising the quality of documents in all stages of development to the requirements and needs of the client.
Financial stability: The Central Bank of Iraq actively contributed to strengthening the performance of the banking sector on the basis of international best practices to expand its activities and develop its services. This strengthened the stability of the financial sector in Iraq as the largest and most vulnerable component due to the nature of banks' The Central Bank of Iraq focused on the policy of continuous communication with the units of the banking system and create conditions to create a banking environment supportive of monetary stability, and to find an effective and developed national payment system, in addition to the duties and functions and powers Which is enjoyed by the Central Bank and its permanent ability to intervene in the institutions of the system through the possession of monetary tools and control.
. Completion of legal, regulatory and financial procedures for the establishment of a deposit guarantee institution, In order to attract public funds and enhance confidence in the banking system.
- In order to develop the financial markets, thus enhancing the financial depth and thus supporting financial stability, the Central Bank has developed procedures for settling the results of trading in the financial market through payment systems and using the system of buying and selling securities and developing effective mechanisms to strengthen central storage and settlement systems and work to reconcile the settlement system Trading securities with payment systems.
One of the new functions and tasks of the Central Bank of Iraq after 2014 is to focus on:
Total Quality: which means continuous development of the administrative processes by reviewing and analyzing them and searching for means and methods to increase the performance and reduce the time to accomplish them by eliminating all tasks and functions that are useless and unnecessary for the client or the process; And raising the quality of documents in all stages of development to the requirements and needs of the client.
Financial stability: The Central Bank of Iraq actively contributed to strengthening the performance of the banking sector on the basis of international best practices to expand its activities and develop its services. This strengthened the stability of the financial sector in Iraq as the largest and most vulnerable component due to the nature of banks' The Central Bank of Iraq focused on the policy of continuous communication with the units of the banking system and create conditions to create a banking environment supportive of monetary stability, and to find an effective and developed national payment system, in addition to the duties and functions and powers Which is enjoyed by the Central Bank and its permanent ability to intervene in the institutions of the system through the possession of monetary tools and control.
Financial Coverage The Central Bank of Iraq is concerned with the social aspect in terms of the greatest concern for the poor and low-income groups, with particular attention to women and access to individuals and small and medium-sized enterprises and the public interest in creating opportunities for the client, thus contributing to economic growth, Income and living standards, and the provision of financial services in simple, easy and cost-effective ways (such as mobile payments).
The role of the central bank in enhancing financial coverage:
- Establishing rules and legislations aimed at facilitating banking transactions in all their forms, and approving the availability of simplified financial services such as mobile phone use in electronic payments and other financial operations, highlighting the role of credit query and development of payment systems, and stimulating the financial sector and especially banks to spread financial culture. ATMs and any other means that will expand the network of banking services.
- Establish comprehensive databases that include historical credit data records of individuals and small and medium-sized enterprises, as well as a database recording movable assets.
Risk Based Audit: Activity means internal audit and quality control, follow-up of pending matters in internal audit reports with management, and validation of corrective plans
Microfinance: As the government tries to implement important political reforms as military operations continue against an advocacy organization, microfinance - in its widest sense - including loans, savings, payments and insurance for low-income families and small businesses - is one that can encourage domestic economic activity and help People to manage their setbacks, or economic shocks because of the difficult situation in the country.
Financial risk management: The relationship between the return on investment and the risk associated with this investment, with the intention of employing this relationship, which maximizes the value of the investment from the point of view of its owners and can also be defined as the management of events that can not be predicted by developing a strategy that includes appropriate policies and procedures Its constantly updated.
Precautionary control: defined as the policy by which systemic risks are identified, controlled and controlled to reduce their accumulation and enhance the financial system's ability to withstand shocks by using a set of tools based on a set of core indicators; systemic risks: risks of developments that threaten the stability of the financial system and hence the economy Fully.
Anti-Money Laundering and Terrorist Financing: Iraq has made significant progress over the last two years in the field of preventing money laundering and financing of terrorism through the issuance of a special law No. 39 of 2015. This law has greatly regulated the process of transferring money and combating money laundering, and established a separate office separately from the Central Bank It is financially responsible for receiving notifications of suspicious operations. "
The Association of Banks held intensive courses on anti-money laundering, where more than one hundred trainees graduated since the beginning of 2017 and launched the "Central Bank of Iraq" program to finance small and medium projects after allocating one trillion Iraqi dinars to private banks, adding that the financing of these projects at the level of Where there were a lot of obstacles inside and outside the bank, most notably that government institutions refuse to provide banks with bail for their employees.
Electronic payment means a set of means, procedures and rules for the transfer of funds among the participants within the system provided that the transfer of funds through the infrastructure of payment systems.
Customer Protection: All laws and judicial provisions designed to protect consumers from exposure to fraudulent transactions and fraud that may be faced by some traders. It is also known as the set of social and ethical controls imposed on all workers in the commercial sectors and obliges them to respect all categories of consumers , And provide goods, services to them in a proper and appropriate manner.
Compliance: An independent function, approved by the Banking Law No. 94 of 2004, confirms the Bank's commitment to its daily banking operations, with the laws and regulations issued by the Central Bank and the Financial Authority, as well as policies, procedures, instructions, accounting standards, Basel Committee requirements, Money laundering and instructions issued thereunder, and the legal and standard rates specified for credit or investment operations, legal reserve and others, for the purpose of verifying the correctness of the procedures and avoiding all that would expose the bank to various risks.
The role of the central bank in enhancing financial coverage:
- Establishing rules and legislations aimed at facilitating banking transactions in all their forms, and approving the availability of simplified financial services such as mobile phone use in electronic payments and other financial operations, highlighting the role of credit query and development of payment systems, and stimulating the financial sector and especially banks to spread financial culture. ATMs and any other means that will expand the network of banking services.
- Establish comprehensive databases that include historical credit data records of individuals and small and medium-sized enterprises, as well as a database recording movable assets.
Risk Based Audit: Activity means internal audit and quality control, follow-up of pending matters in internal audit reports with management, and validation of corrective plans
Microfinance: As the government tries to implement important political reforms as military operations continue against an advocacy organization, microfinance - in its widest sense - including loans, savings, payments and insurance for low-income families and small businesses - is one that can encourage domestic economic activity and help People to manage their setbacks, or economic shocks because of the difficult situation in the country.
Financial risk management: The relationship between the return on investment and the risk associated with this investment, with the intention of employing this relationship, which maximizes the value of the investment from the point of view of its owners and can also be defined as the management of events that can not be predicted by developing a strategy that includes appropriate policies and procedures Its constantly updated.
Precautionary control: defined as the policy by which systemic risks are identified, controlled and controlled to reduce their accumulation and enhance the financial system's ability to withstand shocks by using a set of tools based on a set of core indicators; systemic risks: risks of developments that threaten the stability of the financial system and hence the economy Fully.
Anti-Money Laundering and Terrorist Financing: Iraq has made significant progress over the last two years in the field of preventing money laundering and financing of terrorism through the issuance of a special law No. 39 of 2015. This law has greatly regulated the process of transferring money and combating money laundering, and established a separate office separately from the Central Bank It is financially responsible for receiving notifications of suspicious operations. "
The Association of Banks held intensive courses on anti-money laundering, where more than one hundred trainees graduated since the beginning of 2017 and launched the "Central Bank of Iraq" program to finance small and medium projects after allocating one trillion Iraqi dinars to private banks, adding that the financing of these projects at the level of Where there were a lot of obstacles inside and outside the bank, most notably that government institutions refuse to provide banks with bail for their employees.
Electronic payment means a set of means, procedures and rules for the transfer of funds among the participants within the system provided that the transfer of funds through the infrastructure of payment systems.
Customer Protection: All laws and judicial provisions designed to protect consumers from exposure to fraudulent transactions and fraud that may be faced by some traders. It is also known as the set of social and ethical controls imposed on all workers in the commercial sectors and obliges them to respect all categories of consumers , And provide goods, services to them in a proper and appropriate manner.
Compliance: An independent function, approved by the Banking Law No. 94 of 2004, confirms the Bank's commitment to its daily banking operations, with the laws and regulations issued by the Central Bank and the Financial Authority, as well as policies, procedures, instructions, accounting standards, Basel Committee requirements, Money laundering and instructions issued thereunder, and the legal and standard rates specified for credit or investment operations, legal reserve and others, for the purpose of verifying the correctness of the procedures and avoiding all that would expose the bank to various risks.
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» Recovering more than 100 billion as a result of more than 200,000 employees on social welfare
Today at 8:11 am by Rocky
» The Sudanese consultant announces the completion of Baghdad Metro track designs
Today at 8:08 am by Rocky
» Al-Sudani stresses ending the problem of triple-shift schools
Today at 8:07 am by Rocky
» Iraq begins building two new tankers to transport petroleum products
Today at 8:06 am by Rocky
» Forming a council for “competition and preventing monopoly”
Today at 8:04 am by Rocky
» Features of an Iraqi-Turkish agreement regarding the status of the Kurdistan Workers’ Party
Today at 8:02 am by Rocky
» {Al-Buzrajiya} between the hammer of fraud and the power of the owners
Today at 8:01 am by Rocky
» Ministry of Oil: The gas sector is witnessing great development
Today at 7:59 am by Rocky
» An agreement with Britain in the field of securities
Today at 7:58 am by Rocky
» Discussions between Baghdad and Ankara to open a new port
Today at 7:57 am by Rocky
» Trade: About 11 million citizens updated their new card information
Today at 7:56 am by Rocky
» Electronic payment is sustainable growth
Today at 7:55 am by Rocky
» Experts: Iraq qualifies to be an important tourist country
Today at 7:54 am by Rocky
» utube 3/28/24 MM&C Iraqi Dinar - IQD Update - SWIFT - Purchasing Power - Urban Renaissance - Releas
Today at 6:24 am by Rocky
» utube MM&C 3/26/24 Iraqi Dinar - IQD Update - Strength Dinar - Automation ASYCUDA - World Bank - D
Today at 6:21 am by Rocky
» Amending the Health Professions Law “robs” scientists of the central appointment 3 years after it wa
Today at 6:20 am by Rocky
» Is the “blessings package” that Erbil paid to the citizens of Kurdistan related to the elections?
Today at 6:19 am by Rocky
» Exceeded 5,000 projects.. Allocating 10 trillion dinars to support governorate reconstruction plans
Today at 6:18 am by Rocky
» “His need no longer exists.” Parliamentary Finance confirms the necessity of returning the retiremen
Today at 6:17 am by Rocky
» To communicate with the bases... 12 directives from Al-Sadr, including blocking numbers for non-gove
Today at 6:15 am by Rocky
» In an interview with "Baghdad Today"... an Iranian researcher reveals the importance of Haniyeh's vi
Today at 6:14 am by Rocky
» After it was 63 trillion in 2023... the 2024 budget deficit will rise to 80 trillion dinars
Today at 6:13 am by Rocky
» Parliament reveals the date of the first evaluation of the governors and determines the party respon
Today at 6:11 am by Rocky
» The President of the Republic informs Al-Araji and Al-Basri: Momentum must be mobilized to eliminate
Today at 6:10 am by Rocky
» Can the Federal Court sue others? A legal clarification of its response mechanism to abuse
Today at 6:09 am by Rocky
» Despite promises to soon stop burning gas.. What is the secret behind Iraq renewing the Iranian gas
Today at 6:07 am by Rocky
» Advisor to Al-Sudani: The dollar is on the way to further decline, and 70% of Iraqi traders have ent
Today at 6:06 am by Rocky
» Iraq exported more than 99 million barrels of oil last February
Today at 6:04 am by Rocky
» Barzani “gives good news” to Kurdistan employees: salaries, land, and loan exemptions
Today at 6:03 am by Rocky
» Alia Nassif: Nour Zuhair returned to the port of Umm Qasr to make deals.. An influential Shiite forc
Today at 6:02 am by Rocky
» The Prime Minister announces the movement of nearly 500 stalled projects
Today at 6:00 am by Rocky
» A government strategy to enhance investments.. Iraq is on the verge of a new era of economic develop
Today at 5:59 am by Rocky
» Ranging between 20% and 50%.. The Kurdistan government decides to reduce service fees, customs dutie
Today at 5:58 am by Rocky
» Al-Sudani: The reform approach in the security services is an integral part of reform in other secto
Today at 5:56 am by Rocky
» Everyone in Iraq wants the Sudanese visit to Washington to be successful, even the factions!
Today at 5:55 am by Rocky
» Sources and experts expect the agenda.. in his bag is the Baghdad dollar and the factions’ truce, bu
Today at 5:54 am by Rocky
» The decision to raise gasoline prices arouses the ire of drivers...a reminder of the large demonstra
Today at 5:53 am by Rocky
» Parliamentary services: 3 important hospitals in Baghdad will enter service at the end of the year
Today at 5:52 am by Rocky
» Iraq signs a contract to supply Iranian gas for a period of five years
Today at 5:50 am by Rocky
» Parliament adds a voting paragraph on amending the Penal Code to its agenda
Today at 5:49 am by Rocky
» His political advisor: We are not afraid of Sudanese entering the elections alone
Today at 5:48 am by Rocky
» Parliamentary services explain the reasons for the rise in real estate prices in Baghdad
Today at 5:46 am by Rocky
» Attia, criticizing the government's decisions: "The citizen's feathers will be ruffled without servi
Today at 5:45 am by Rocky
» Parliamentary Communications: Zain Iraq and Asiacell did not pay their debts
Today at 5:44 am by Rocky
» The Governor of Karbala announces the imminent establishment of the largest industrial city in the c
Today at 5:43 am by Rocky
» A government determination to end the issue of displaced persons in the middle of this year
Today at 5:42 am by Rocky
» Iraq buys gas from Kurdistan to generate electricity
Today at 5:41 am by Rocky
» Parliamentary signatures to include an amendment to the internal regulations to decide the choice of
Today at 5:40 am by Rocky
» In Basra.. a demonstration against foreign workers in Iraqi companies (video)
Today at 5:38 am by Rocky
» Al-Samarrai: Presidency of Parliament is an entitlement to the constituents, and calling it a “frame
Today at 5:36 am by Rocky
» Electronic food supplies in 6 governorates... covering 11 million Iraqis and “writing off” about 700
Today at 5:34 am by Rocky
» Corruption of the Ministry of Transport.. Representatives express their surprise at the minister’s s
Today at 5:32 am by Rocky
» The biggest supporter of the invasion of Iraq.. The death of former US Senator Joe Lieberman
Today at 5:31 am by Rocky
» Iraq is ranked “late.” A list of the most and least safe Arab countries for women
Today at 5:30 am by Rocky
» The Council of Ministers exempts the Gulf Interconnection Authority from guarantee fees: it is a gov
Yesterday at 8:48 am by Rocky
» The Iraqi government raises the size of the 2024 budget, and Parliament is “surprised”
Yesterday at 8:46 am by Rocky
» Popular Movement: We have many economic options away from American hegemony
Yesterday at 8:42 am by Rocky
» The Oil Parliament stresses the need to transfer part of the revenues to the producing governorates
Yesterday at 8:41 am by Rocky
» It will cover 14 regions in eastern Iraq.. A deputy reveals the “border electricity” project
Yesterday at 8:40 am by Rocky
» Experts Warn Mass Migration Threatens US Food Security
Yesterday at 8:37 am by Bama Diva
» Al-Fateh: America occupies Iraq through agreements
Yesterday at 8:37 am by Rocky
» Anger in Iraq over a "sudden decision"... and a reminder of a "general strike" that paralyzed the co
Yesterday at 8:34 am by Rocky
» Parliamentary Committee: Parliament is discussing today a decision that “disturbed” the Iraqis
Yesterday at 8:33 am by Rocky
» Ministry of Electricity: Our production will reach 27 thousand megawatts by May
Yesterday at 8:31 am by Rocky
» Diagnosing the “most important” problems in the oil file between Baghdad and Erbil.. What is the rel
Yesterday at 8:30 am by Rocky
» The Iraqi Fiqh Academy and the Sunni Endowment issue a fatwa to pay Zakat al-Fitr
Yesterday at 8:28 am by Rocky
» The National Bank of Iraq continues its digital transformation by launching its new banking system a
Yesterday at 8:26 am by Rocky
» Parliamentary Investment and the Central Bank are discussing the housing initiative
Yesterday at 8:25 am by Rocky
» The Prime Minister announces the restart of 500 suspended projects
Yesterday at 8:23 am by Rocky
» Al-Barti assesses the region's employees: Your salaries are insured and will be paid after resettlem
Yesterday at 8:21 am by Rocky
» Iraqi-American discussions in anticipation of the Sudanese visit
Yesterday at 8:20 am by Rocky
» Iraq and Turkey hold meetings in Ankara to discuss technical issues related to the development road
Yesterday at 8:17 am by Rocky
» A government parliamentary agreement to support budget revenues and governorate allocations for inve
Yesterday at 8:16 am by Rocky
» Oil: The gas sector is witnessing great development
Yesterday at 8:15 am by Rocky
» A Kurdish-French agreement to develop trade and economic relations
Yesterday at 8:13 am by Rocky
» Exchange companies in Mosul demand that they be entered into the currency selling window
Yesterday at 8:12 am by Rocky
» Minister of Finance to the Czech Ambassador: Iraq enjoys a more attractive business environment and
Yesterday at 8:10 am by Rocky