Ali Alak Central bank governor announces financial sustainability map for banking sector.
It’s the central bank Governor . Ali Alak announced on Monday a roadmap for the financial sustainability of the iraqi banking sector, while pointing out that this map, they’re working on parts of the efforts to upgrade the banking sector.
It says that the launch ceremony today of the Financial Sustainability Map project and the Manual, for the environmental and social standards and institutional governance for banks. He says that we are addressing this day as an important and fundamental aspect in the development of the banking sector in Iraq. As the term environmental and social standards and governance has witnessed a turbulent growth since its launch for the first time way back in 2005, noting that the environmental aspects and response related to climate change are key factors driving the development, environmental and social standards and governance.
It says here, we’re pleased to announce a roadmap for the financial sustainability of the banking sector in Iraq for the years 2023 and to 2029.
So 2023 to 2029 and social and institutional standards. Again, talking about what financial sustainability. And they’re talking about social and institutional standards. So social is the people, institutional are banks, corporations, businesses, etc
It says that this project is part of the ongoing efforts of the Central bank of Iraq to improve the banking sector based on international best practises, as well as keep pace with developing and the developments of the banking industry. He states that with this announcement, the central bank of Iraq is the first in the region. By applying this type of comprehensive work that they’re working on, Alak has praised the role played by the international experts in the International Financial Corporation of the World Bank Group and their active contribution in preparing the roadmap for the financial sustainability of the banking sector in Iraq, appreciating, of course, that the effective and continuous partnership and fruitful cooperation with the institutions.
They had fruitful and distinguished efforts of the central bank team as well as support from the kingdom of the Netherlands. So it says, the governor of the central bank, Ali Alak, signed an agreement with the International Finance Corporation, the IFC, on the financial sustainability roadmap. So, sustainability, they’re talking about achievements, they’re talking about financial sustainability.
Governor of the Central bank of Iraq Ali Alak pointed out that the central bank of Iraq increased its holdings of foreign exchange, which is its foreign reserves and gold reserves, to strengthen the country’s financial position and stability in order to enhance its ability to confront potential economic crisis. So he goes on to say, With the news outlet, the process of deleting the zeros is linked to the central bank of Iraq.
It says here that the increased production and diversification of the economy, and thus what we’ll talk about, they’re going to be talking about enhancing the value of the iraqi dinar.
it says the countries resort to deleting zeros when there is an expansion in the value of the printed currency. And problems occur in the book value and accounting entries for the purpose of restoring accounting balances. But again, they’re talking about what expansion in the value of the printed currency. So that, in other words, the more value the currency has, the less zeroes you need.
Iraq is currently suffering from problems with exchange rate, indicating that the value of printing and replacing the currency costs Iraq time, effort and millions of dollars. So what they’re doing is they’re telling you that they’re going to, you know, do a little less cash because they don’t need to print that much. It’s a waste of money. It’s a waste of time.
it says that situation now requires focusing on how to maintain the value of the iraqi currency against foreign currencies. That means other foreign currencies.
So the plan is, isn’t it, that central banks and Iraq says they have gold, they have reserves, they have all these things in place. They have the electronic systems, To do what? To defend their currency.
They’ve even used that term. That’s what that’s talking about. So according to the last data, the central bank of Iraq’s foreign reserves cover 83.62% of the broad money supply, which covers the cost of importing, what, 15 months of imports.
The global standard rate is only 20%, which is basically six months. See what they’re talking about? They’re telling the citizens that they have this covered.
This has been part of the plan. The project deletes the zeros is not something new.
Well, they have a lot of new electronic systems.
They have a transparency system, don’t they? They have blockchain information, blockchain technology. You see where we’re going with this? See how that the bank of international settlements came out to you guys and we’re talking about the who, JP Morgan Chase.
Then we look and we find out that the SBI Holdings Corporation has directly relationship to what technology.
Central bank of Iraq is a model for developing strategies that serve the development of the banking sector. International finance under the guise of the Central bank of Iraq is a model for developing strategies that serve the development of the banking sector.
Iraq as a model for developing means that they’ve fine tuned it. They’re not going to come out as a central bank in the world. Alak has been known for his ability to not only bring the central bank of Iraq through no inflation, he went to the Arab Monetary Fund and has come back to finish a project. To do what?
Delete the zeros off their exchange rate. The value of. Remember the value. That’s the key point.
The regional director for the Kingdom of Saudi Arabia, Lebanon, Lebanon and Iraq at the International Finance Corporation, that’s the IFC, everybody. That is the World bank arm confirms that Iraq is one of the first countries to adopt a comprehensive approach to governance and environmental and social accountability.
So what they’ve done, they’ve created a model that they probably have tested and retested to be able to be at this stage.
In a speech during the launch ceremony of the financial sustainability Map project and the environmental, social and corporate Governance standards Guide for banks, which was attended by the correspondent of the Iraq News, Iraq has provided humanity with justice and law. And it’s not strange. That is one of the first countries to adopt a comprehensive approach to governance and environmental and social accountability, indicating that this new achievement.
Remember one thing a lot. No. Al Sudani was stated many, many months ago that 2024 is going to be the year of achievements.
So this new achievement comes as a result of the strategic partnership between the international Finance corporation and the Central bank of Iraq in cooperation with the Kingdom of the Netherlands and our joint efforts to develop an advanced banking system and a banking sector that contributes to Iraq’s sustainable future. So they’re celebrating a very important step for the iraqi banking sector towards establishing sound practises of environmental, social, corporate governance standards that are consistent with international standards and rules where they’re not just a reference framework for celebration, but rather a systematic approach achieved by the banking sector.
It’s not just talk, they’ve actually achieved a systematic approach.
They want financial sustainability, business prosperity, and that’s a where they’re headed. So basically today, this event that gains great importance in light of Iraq’s confrontation with the challenges led by climate change, I mean, they really go on to like 223 billion. They’ll need to be spent out until 2040.
So, bottom line is they’re gonna try to bridge the gap for some of these things, that it’s gonna cost a lot of money. He goes on and continues that the environmental, social and corporate governance responsibility is not only a statement of transparency and accountability and fairness, but also they go on to say these essential components are responsible for investment strategies committed to sustainable practises and ethical standards in all financing and investment decisions. The iraqi banking sector represents the provision of the necessary financing to meet its nationally defined goals in Iraq. And all of this highlights the importance of the role of the Central bank of Iraq in achieving this goal.
So this man Ali Alaq has been truly, doing his job. And chagring to people that were involved in the parallel market, which is an illegal market, So he goes on and says that the International Finance Corporation, whose tireless work enabled us to reach this achievement. So Alak is giving the World Bank’s arm, international Finance Corporation, for helping us get here.
So Iraq’s growth in the financial world has made massive strides, in enhancing banking and financial sectors. Iraq is taking a comprehensive approach, IFC, working with the central bank of Iraq, has clearly worked out well in this global vision that Iraq has now achieved the ability to get sustainability in many forms, whether economic paths, whether they’re development paths, whether in practises and ethical standards. And most of all financial sustainability is now available for the people of Iraq and for the banking institutions and for financial institutions.
It’s no wonder that Iraq has been focused again on the deletion of the zeroes project. It’s no wonder they’ve been talking about it. It’s all timed accordingly, If you can’t see them showcasing what they’re ready to do, to go to an international system, to a market economy, I don’t know what else to tell you, but it looks really good.
