“Digital dinar instead of cash dollar.” These are the most prominent gains of electronic payment[You must be registered and logged in to see this link.] |Today[You must be registered and logged in to see this image.]
Baghdad Today - Baghdad
Today, Friday (December 1, 2023), Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, explained the benefits of adopting the electronic payments system in transactions inside Iraq.
Saleh said in a statement received by Baghdad Today, “The cash payments system is linked to a high degree of certainty whenever payments are made by electronic or digital means, which provides an indicator of liquidity in the banking system and reduces the degree of uncertainty in banking liquidity.”
He explained that "the payments system provides sufficient information about the flow of cash into the banking system, makes clear the amounts of paid and accumulated amounts, and indicates their actual balances at all times during the banking working day. Conversely, in light of the monetary systems that rely on direct cash payment, banking liquidity management policies surround themselves." With additional hedges of idle liquidity in order to protect against liquidity risks.
Saleh stated, “This matter disrupts part of banking operations and credit in particular, so as electronic payments increase as a behavior in daily dealings, the management of the cash mass and its flow in the banking system will be subject to the rule of clarity in cash management and then directing bank credit towards profitable areas by expanding... Credit activity provides efficient use of the cash supply, as well as a decrease in the rate of cash leakages outside banks, which means that a structural change in the behavior of cash demand among individuals and at banks will tend towards a decline, due to dealing with electronic payment systems that are linked to bank accounts.”
He stressed, “The development of the payments environment and its transition from a direct cash environment or cash payment in payment and receipt operations to the use of electronic payment will, in all cases, reduce the risks of local cash payment in currencies other than the dinar and distance the national economy’s transactions from cash payment in foreign currency, because payment systems Digital does not allow transactions in the local economy in anything other than the dinar, that is, the national currency, and certainly the economy’s tendency in its transaction payments is to (the digital dinar) instead of (the cash dollar), whose transactions in internal settlements are legally rejected completely by virtue of the principle of monetary sovereignty of the Iraqi dinar.