Home
Central Bank of Iraq announces comprehensive banking reform map
[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]
[rtl]After the Central Bank delegation returned from the last round of negotiations with the US Treasury and the US Federal Reserve, it revealed the roadmap for radical and comprehensive banking reform, which begins with working to cancel...[/rtl]
[rtl] The electronic platform for foreign transfers, which was implemented as a first stage to reorganize financial transfers in a way that ensures proactive control over them instead of subsequent control. This was a temporary exceptional measure and a gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and approved banks, mediated by an international auditing company to conduct pre-audit of transfers before they are executed by correspondent banks.[/rtl]
[rtl]During the year 2024, up until now, 95% of the transfer process from the electronic platform to the correspondent banking mechanism directly between it and Iraqi banks has been achieved. This means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year, according to the plan.[/rtl]
[rtl]Thus, some expectations about possible effects on the exchange rate and transfer operations are baseless, because the process will not be sudden or in one go at the end of this year, but rather it was originally achieved during the past period with effort and careful follow-up, except for the remaining small percentage that will be accomplished in the coming short period.[/rtl]
[rtl]The Central Bank confirms that trade with the United Arab Emirates, Turkey, India and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transfer in euros, Chinese yuan, Indian rupees and UAE dirhams, through approved correspondent banks in those countries. (13) Iraqi banks have actually begun to conduct transfer operations with a pre-audit mechanism that has been agreed upon and approved in addition to transfers in dollars.[/rtl]
[rtl]Providing channels for personal transfers for legitimate purposes and external purchases through electronic payment channels, global money transfer companies, cash sales to travelers, and paying cash dollars for incoming transfers to the parties and purposes specified in the Central Bank’s published instructions.[/rtl]
[rtl]The Central Bank stresses that it has placed foreign transfer operations and meeting dollar demands on sound tracks consistent with international practices and standards and the Anti-Money Laundering and Terrorist Financing Law.[/rtl]
[rtl]He explains that providing the aforementioned channels for all purposes at the official dollar price makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation, and any other price traded outside those channels is an abnormal price that those with unorthodox or illegal practices resort to, who move away from official channels in their dealings, so they bear the additional costs alone by purchasing at a higher price than the official price to delude others with the difference between the official price and others. The map and mechanisms announced by the Central Bank will certainly lead to lifting the confusion and instability in the monetary market, which is prevalent due to the continued imposition of American restrictions on our private banks and directing accusations, slander, rumors, analyses, interpretations and targeting of the Central Bank, and will create a state of optimism by lifting the restrictions imposed on some private banks. This means that there are great efforts made by the Central Bank, in cooperation with the government, since the beginning of 2023 until now, in the field of implementing the financial and banking reform program and fruitful coordination with financial policy, which refutes the slander. And the accusations and spreading optimism and reassuring the market and citizens. This is what the Governor of the Central Bank had previously emphasized before the Central Bank delegation’s recent trip to America. And the new reform roadmap is a result of the efforts previously made and which the Central Bank has been working on for a year and eight months, and it is as follows:[/rtl]
[rtl] - Reorganizing foreign trade financing to achieve several goals at once, one of which is the transparency of foreign transfer operations that begin with the transfer process and the transferor to the final beneficiary and to the source through all data, documents and information that enhance and match reality.[/rtl]
[rtl]All large and medium-sized companies are committed to achieving this goal. The problem now is the dealings of small traders outside the operations. [/rtl]
[rtl]Foreign transfers are a pressure on the dollar money market and cause it to rise.[/rtl]
[rtl]- The Central Bank opened channels for the Chinese, Turkish, Indian and Emirati currencies, which are currencies that represent a significant weight in foreign trade, as there was a halt for a period due to a new regulation aimed at providing sufficient control over these operations.[/rtl]
[rtl]“A new audit mechanism has been put in place by an international company, and the process has been finalised and is now being restarted.”[/rtl]
[rtl]The Central Bank has continuously urged the opening of relations with correspondent banks, because the Iraqi bank without having external correspondents is considered a local bank and cannot open up to the world.[/rtl]
[rtl]The Central Bank, for its part, supports and assists this trend.”[/rtl]
[rtl]- “In light of the new regulation of the foreign exchange process, the real price at which the Central Bank sells more than $250 million daily at the official price should be considered. This means that the bank covers foreign trade, and this explains why there is no inflation or price increases.[/rtl]
[rtl]The parallel market is a market for those who do not want to go towards the regular methods of transfer and it is an illegal trade or trade that escapes the regular procedures or other illegal operations such as drug trafficking, human trafficking, corruption money, etc.[/rtl]
[rtl]- Whether the dollar price rose or fell is not a correct indicator, as one must look at what and how much the Central Bank sells at the official price to liquidate various needs.[/rtl]
[rtl]- That "the primary objective of the Central Bank is to maintain the general level of prices and limit inflation, and this is supposed to be the measure of the success of monetary policy, which has succeeded in controlling this aspect and the level of inflation compared to other countries and even in previous years is much lower, and within the target, and this means that foreign trade, on which Iraq depends primarily to meet the needs of citizens, is covered by the official price."[/rtl]
[rtl]- “There is great praise in all meetings with international organizations, including the International Monetary Fund, the Federal Reserve, and the US Treasury, for the transformations, management, and organization of the foreign transfer process in the Central Bank of Iraq at the present time.” [/rtl]
[rtl] And that "the Central Bank's plan until the end of the year will reach 100%, with foreign transfers between Iraqi banks and correspondent banks, without going through the US Federal Reserve.[/rtl]
[rtl]- That "the plan related to reforming the banks that are subject to restrictions and lifting them includes two axes: the first relates to conducting an audit of previous operations that were suspected by an independent external audit office, and some of them have been completed while we await the completion of the audit of others in order to determine the overall picture and classify the nature of these problems and how procedures will be carried out regarding them later."[/rtl]
[rtl]And to reach a real, stable banking sector that is consistent with what is required at the level of the national economy, and to prevent some banks from remaining marginal and not representing a real addition to the Iraqi economy, and to gain external acceptance through agreement on their implementation of international policies, procedures and standards.[/rtl]
[rtl]- The Central Bank has not set a quota for foreign transfers for banks, and they can submit whatever foreign transfer transactions they can attract. The Central Bank does not interfere in customers’ choices, and the banks that carry out this process rely on their capabilities to attract their customers.[/rtl]
124 views
Added 09/08/2024 - 10:02 AM
[You must be registered and logged in to see this link.]
[You must be registered and logged in to see this image.]
[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]
[rtl]After the Central Bank delegation returned from the last round of negotiations with the US Treasury and the US Federal Reserve, it revealed the roadmap for radical and comprehensive banking reform, which begins with working to cancel...[/rtl]
[rtl] The electronic platform for foreign transfers, which was implemented as a first stage to reorganize financial transfers in a way that ensures proactive control over them instead of subsequent control. This was a temporary exceptional measure and a gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and approved banks, mediated by an international auditing company to conduct pre-audit of transfers before they are executed by correspondent banks.[/rtl]
[rtl]During the year 2024, up until now, 95% of the transfer process from the electronic platform to the correspondent banking mechanism directly between it and Iraqi banks has been achieved. This means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year, according to the plan.[/rtl]
[rtl]Thus, some expectations about possible effects on the exchange rate and transfer operations are baseless, because the process will not be sudden or in one go at the end of this year, but rather it was originally achieved during the past period with effort and careful follow-up, except for the remaining small percentage that will be accomplished in the coming short period.[/rtl]
[rtl]The Central Bank confirms that trade with the United Arab Emirates, Turkey, India and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transfer in euros, Chinese yuan, Indian rupees and UAE dirhams, through approved correspondent banks in those countries. (13) Iraqi banks have actually begun to conduct transfer operations with a pre-audit mechanism that has been agreed upon and approved in addition to transfers in dollars.[/rtl]
[rtl]Providing channels for personal transfers for legitimate purposes and external purchases through electronic payment channels, global money transfer companies, cash sales to travelers, and paying cash dollars for incoming transfers to the parties and purposes specified in the Central Bank’s published instructions.[/rtl]
[rtl]The Central Bank stresses that it has placed foreign transfer operations and meeting dollar demands on sound tracks consistent with international practices and standards and the Anti-Money Laundering and Terrorist Financing Law.[/rtl]
[rtl]He explains that providing the aforementioned channels for all purposes at the official dollar price makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation, and any other price traded outside those channels is an abnormal price that those with unorthodox or illegal practices resort to, who move away from official channels in their dealings, so they bear the additional costs alone by purchasing at a higher price than the official price to delude others with the difference between the official price and others. The map and mechanisms announced by the Central Bank will certainly lead to lifting the confusion and instability in the monetary market, which is prevalent due to the continued imposition of American restrictions on our private banks and directing accusations, slander, rumors, analyses, interpretations and targeting of the Central Bank, and will create a state of optimism by lifting the restrictions imposed on some private banks. This means that there are great efforts made by the Central Bank, in cooperation with the government, since the beginning of 2023 until now, in the field of implementing the financial and banking reform program and fruitful coordination with financial policy, which refutes the slander. And the accusations and spreading optimism and reassuring the market and citizens. This is what the Governor of the Central Bank had previously emphasized before the Central Bank delegation’s recent trip to America. And the new reform roadmap is a result of the efforts previously made and which the Central Bank has been working on for a year and eight months, and it is as follows:[/rtl]
[rtl] - Reorganizing foreign trade financing to achieve several goals at once, one of which is the transparency of foreign transfer operations that begin with the transfer process and the transferor to the final beneficiary and to the source through all data, documents and information that enhance and match reality.[/rtl]
[rtl]All large and medium-sized companies are committed to achieving this goal. The problem now is the dealings of small traders outside the operations. [/rtl]
[rtl]Foreign transfers are a pressure on the dollar money market and cause it to rise.[/rtl]
[rtl]- The Central Bank opened channels for the Chinese, Turkish, Indian and Emirati currencies, which are currencies that represent a significant weight in foreign trade, as there was a halt for a period due to a new regulation aimed at providing sufficient control over these operations.[/rtl]
[rtl]“A new audit mechanism has been put in place by an international company, and the process has been finalised and is now being restarted.”[/rtl]
[rtl]The Central Bank has continuously urged the opening of relations with correspondent banks, because the Iraqi bank without having external correspondents is considered a local bank and cannot open up to the world.[/rtl]
[rtl]The Central Bank, for its part, supports and assists this trend.”[/rtl]
[rtl]- “In light of the new regulation of the foreign exchange process, the real price at which the Central Bank sells more than $250 million daily at the official price should be considered. This means that the bank covers foreign trade, and this explains why there is no inflation or price increases.[/rtl]
[rtl]The parallel market is a market for those who do not want to go towards the regular methods of transfer and it is an illegal trade or trade that escapes the regular procedures or other illegal operations such as drug trafficking, human trafficking, corruption money, etc.[/rtl]
[rtl]- Whether the dollar price rose or fell is not a correct indicator, as one must look at what and how much the Central Bank sells at the official price to liquidate various needs.[/rtl]
[rtl]- That "the primary objective of the Central Bank is to maintain the general level of prices and limit inflation, and this is supposed to be the measure of the success of monetary policy, which has succeeded in controlling this aspect and the level of inflation compared to other countries and even in previous years is much lower, and within the target, and this means that foreign trade, on which Iraq depends primarily to meet the needs of citizens, is covered by the official price."[/rtl]
[rtl]- “There is great praise in all meetings with international organizations, including the International Monetary Fund, the Federal Reserve, and the US Treasury, for the transformations, management, and organization of the foreign transfer process in the Central Bank of Iraq at the present time.” [/rtl]
[rtl] And that "the Central Bank's plan until the end of the year will reach 100%, with foreign transfers between Iraqi banks and correspondent banks, without going through the US Federal Reserve.[/rtl]
[rtl]- That "the plan related to reforming the banks that are subject to restrictions and lifting them includes two axes: the first relates to conducting an audit of previous operations that were suspected by an independent external audit office, and some of them have been completed while we await the completion of the audit of others in order to determine the overall picture and classify the nature of these problems and how procedures will be carried out regarding them later."[/rtl]
[rtl]And to reach a real, stable banking sector that is consistent with what is required at the level of the national economy, and to prevent some banks from remaining marginal and not representing a real addition to the Iraqi economy, and to gain external acceptance through agreement on their implementation of international policies, procedures and standards.[/rtl]
[rtl]- The Central Bank has not set a quota for foreign transfers for banks, and they can submit whatever foreign transfer transactions they can attract. The Central Bank does not interfere in customers’ choices, and the banks that carry out this process rely on their capabilities to attract their customers.[/rtl]
124 views
Added 09/08/2024 - 10:02 AM
[You must be registered and logged in to see this link.]
» MM&C 10/6/24 Digital Banks in Iraq
» utube 10/7/24 MM&C Iraq Dinar News-Iraqi Dinar-Liquidity-Sudani Report-Digital Phase-Supreme Court
» Increase in Iraqi oil product revenues through electronic payment
» Jordanian exports to Iraq grow by 50%
» Foreign Ministry: Al-Sudani's visit to Britain will take place at a later date
» With full powers.. The Undersecretary of the Ministry of Oil is assigned to manage its affairs inste
» Iraqis are the most buyers of real estate in Jordan during 9 months
» Government move to establish 52 new residential cities in Iraq.. These are the details
» Sudanese advisor: Most state employees do not know how to use computers
» BP abandons goal of reducing oil and gas production.. What is Iraq's role?
» Message to the world
» Civil Service Council: Appointing (5500) before the end of the year
» Industry opens new factory for the production of pivot sprinklers
» Official preparations for receiving the five berths project in Faw Port
» Starting the privatization of generators in Baghdad
» Two experts call for activating local product protection
» Privatization or partnership, which is more effective?
» Industrial cities... "great hope" to support the economy
» The Minister of Health holds a meeting with the Pharmacists Syndicate, the Iraqi Association of Phar
» Minister of Finance discusses with the Opinion Authority the development of financial performance...
» The secrets of the agreement between the factions and the government.. Two steps towards a calm Iraq
» Al-Maliki calls for stopping the war
» Al-Sudani stresses the responsibility of citizens and state agencies in maintaining the sustainabili
» The region is heading towards a strategic change.. What is Iraq's position?
» 4 Scenarios for Oil Prices as War Drums Beat in the Region
» Hezbollah praises the courage of Iraq, Yemen and Iran in destroying the depth of the entity with mis
» Three violations recorded in the election campaign in Erbil and a deadline set for their removal
» Türkiye is expanding.. 8 new roads revealed to be opened in northern Iraq - Urgent
» Iraqi oil exceeds $75 per barrel in the first session of the week
» 4 Scenarios for Oil Prices as War Drums Beat in the Region
» Parliamentary Energy Committee supports the transfer of the Dora refinery
» Completion of (70%) of the inventory and numbering operations
» Soon.. Launching the National Initiative for Electronic Payment Awareness and Here are its Details
» Government Advisor: Expansion of electronic payment has boosted the digital economy
» Masrour Barzani: The Kurdistan Democratic Party was founded to oppose oppression, tyranny and occupa
» The President of the Judicial Council and the Minister of Planning discuss issues related to the Min
» The Patriotic Union confirms to Al-Zawraa: No Kurdish party can form the regional government alone
» Agriculture announces to “Al-Zawraa” the planting of more than 6 million seedlings within the “Iraq
» Al-Sudani sends a message to Biden and the European Union and warns of a dangerous slide that could
» Nechirvan Barzani calls for protecting Kurdistan’s achievements: We have moved from a stage of strug
» Iraq “not ready for war” with Israel, international coalition will remain a spectator
» “Foreign Labor in Iraq”: Official Figures and Hidden Phenomena in the Labor Market
» New rise in dollar exchange rate against dinar in Iraq
» Starting the privatization of the government and private generators file in Baghdad
» Competition heats up between candidates for parliamentary elections in the region
» "Stopping Iraq's support for Jordan" tops social media sites.. What are Amman's privileges from Bagh
» From 300% to 200%.. Government plans to reduce overcrowding in correctional facilities
» utube 10/3/24 MM&C Iraq Update-Iraq Securities Exchange- Transform Iraq-Export Oil - Federal Co
» 2024 budget without implementation.. What is the fate of next year's budget?
» Communications announces the launch of the "Iraq Post" platform to ensure "fair competition" and pre
» Al-Hashemi details the objectives of the government lending strategy
» Social assistance in Iraq.. 157 thousand people are waiting to obtain the (K-card)
» Karbala refinery stops working and goes out of service
» Kurdistan Finance announces depositing Sulaymaniyah employees' salaries into their accounts
» Minister of Communications announces launch of "Iraq Post" platform
» Nineveh complains that its companies are denied entry to the “currency auction” to obtain dollars
» Iraq and the United Nations sign the Sinjar Peace and Stability Project Document
» Arshad Al-Salihi: The population census in its current form does not serve Iraq
» Starting to question the parties responsible for implementing projects in Basra local
» Al Dakheel: 77.5 billion were disbursed as compensation for (8500) transactions
» Loans for farmers and agriculturalists are about to be launched
» Parliamentary Committee: Foreign labor does not have a significant impact on the local market
» Parliamentary Committee: Submitting a new draft for the ownership of slums
» Design warns Sunnis against continued obstruction of election of parliament speaker
» Twenty hours of electricity preparation.. Smart meters to be installed in Anbar
» Political movement accuses America of monitoring Iraqi accounts for the benefit of the Zionist entit
» Starting to question the parties responsible for implementing projects in Basra
» About $6,000 per capita GDP in Iraq
» By 6%.. A “significant” decline in the number of those eligible to vote in the Kurdistan Parliament
» Stripping the Minister of Oil of his powers
» Minister of Communications: We are proceeding with the procedures for implementing the national lice
» Planning: Next week discussing plans for the year (2025)
» Agricultural loans and supplies for farmers and growers
» Government proposal to include private sector workers in residential cities
» Economist: Demand for food leads to higher prices
» Minister of Industry inaugurates pivot irrigation systems production project
» “We won’t be able to live here”: Drought threatens Iraq’s marshes
» Amendment of the Hajj Commission Law
» In front of the storm
» An internal national equation to face challenges
» Cabinet approves national initiative to support energy and reduce emissions
» Completion of a strategic road at a cost of (64) billion dinars
» Parliamentary migration to {Sabah}: The return of (3) thousand displaced families to Mosul
» Next week.. Planning discusses (2025) projects
» Al-Sudani welcomes reopening of Swiss embassy in Baghdad
» Agricultural guide in the face of climate change
» Planning: The annual inflation rate is slight and does not exceed 3%.
» Digital Banks in Iraq
» Minister of Trade: Iraq is food secure for a whole year
» Iraqi oil exports to the United States fell last week
» Planning confirms its readiness to conduct the population census on the scheduled date
» Similar to 2014... Will Iraq resort to reducing expenditures to cover the budget deficit?
» Border disputes between Iraq and Kuwait return to the forefront and "options" to resolve them
» Israel targeting Iraqi sites is possible.. Iraq is facing an accumulated strategic mistake since 200
» Al-Hakim and the Iranian Ambassador call for the application of laws and outcomes of international l
» Regional elections.. Barzani's party complains of "increasing conspiracies" and aims at parties in B
» Al-Sudani's visit to the United Kingdom on the table of his dialogue with the British Ambassador to
» Expert opens the file of the maritime agreement with Kuwait and indicates a Kuwaiti “fraud” against