Economist: Electronic financial transactions save Iraq from cash shortage
Economic researcher Diaa Abdul Karim said on Thursday that the shift towards electronic financial transactions and generalizing this to all government and private transactions will save the country from a shortage of cash.
Abdul Karim told Al-Maalouma, “Most countries in the world, and Europe in particular, have moved towards electronic financial transactions, such that the culture of dealing with electronic cards in buying and selling in various sectors has been created in society, and even With the decline of its economy, it will not suffer financially because its financial transactions are electronic.”
He added, “These transactions make it unnecessary for governments to print currency continuously, as this process is financially costly. Iraq prints some denominations domestically and other denominations of currency are printed abroad, and printing them costs the financial value of this currency.”
He explained that “the move towards electronic transactions requires intensive education in order to withdraw the cash mass from the street and to transform transactions, especially large amounts, through electronic cards. Consequently, the citizen will not be forced to withdraw large amounts from banks in order to buy a property, a car, etc., but will use his card to transfer money to the other party, which ensures the safety of financial transactions and prevents the cash mass from being wasted and taken out of the banking framework.”
Birth of a new banking entity in Iraq.. A government advisor reveals the details to Euphrates News
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed a study being conducted by a global consulting firm, commissioned by the state, to restructure Rafidain and Rashid Banks, which constitute 85% of the banking market in the country.
Saleh explained to Al Furat News Agency that “the two banks suffer from a historical legacy of challenges, which requires a comprehensive reform plan to reposition them within the map of effective and efficient banking work.”
Saleh added, “The study aims to establish a new banking entity specializing in government banking operations, to meet the government’s needs exclusively. This entity will contribute to achieving the goals of the unified treasury account, which is a crucial tool for regulating cash flows for public finances.”
He pointed out that “the study focuses on evaluating the legal status of the two banks, including property rights, evaluating assets and liabilities, and studying the requirements of a strategic partner if necessary, with a focus on developing the two entities to operate according to advanced financial technology that meets the requirements of the national banking market.”
He stressed that “the structural reform also aims to enhance the integration of the two banks into the national banking market and enable them to expand into global financial markets, especially in the areas of trade and investment financing for the private sector.”
He added that “the two potential entities will rely on modern systems in compliance, governance and risk management, with a focus on digital payments.”
He concluded by saying: “The study is expected to be submitted to the higher official authorities in the coming months, within the framework of implementing the government’s financial and banking reform programme, which aims to achieve a comprehensive economic renaissance and build modern financial institutions.”
Earlier today, Thursday, Prime Minister Mohammed Shia Al-Sudani chaired a special meeting to discuss developing the work of government banks, in the presence of representatives of Ernst & Young for auditing and financial consulting.
The Prime Minister explained that the percentage of completion of the project to restructure Rafidain Bank has reached its final stages, stressing that it will enter into force within the next few days, within the framework of a plan that has been studied and implemented according to the established standards and specifications.
The Central Bank failed to control the rise in the dollar exchange rate
Member of the Parliamentary Integrity Committee, Hadi Al-Salami, confirmed today, Friday, the failure of the Central Bank to control the file of the rise in the dollar exchange rate.
Al-Salami told Al-Maalouma Agency, “The Central Bank of Iraq failed to control the banks that control the dollar file, indicating that the tasks of the Central Bank are to monitor and supervise the banks.”
He added, “There are violations and waste of public money amounting to millions of dollars daily,” noting that “the Central Bank failed to control the dollar exchange rate during the past months.”
He pointed out that “the Parliamentary Integrity Committee referred the dollar exchange rate file to the judicial and regulatory authorities, stressing that the measures taken by the bank did not limit the rise that is occurring in the local markets.”
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