Listen, prime minister’s directives support the development of the electronic payment systems here on the September 14 was yesterday the international smart card.
The K company described the directives of the prime minister, Shia al Sadani, to develop the reality of the electronic payment in the tasks of our act. So obviously we already know that they’ve been doing this for quite a long time. A source says the prime minister’s directives come with the aim of improving performance in government institutions and benefiting from electronic payment within the private sector path.
So getting the government and the private sector merged together with electronic payments, etc, is going to be a big issue. So the path to that private sector is what? Through electronic payments, the government institutions and capital markets basically will use the electronic systems to facilitate their work. I think you guys can all figure that out.
What are they going to be doing? They’re going to be doing their work in a more transparent manner as they have in the past. So what does that do? Tells you right out the gate, they’re going to reduce corruption, they’re going to have speed, efficiency and transparency.
And obviously, what was the motivation for the private sector is for Iraq to go international. So here’s the Al NASC bank organises a workshop on financial inclusion, electronic payments, money laundering.
It’s almost like you can get this feel of it’s like Showtime, because they’re really doing the development of the reality of these, of the financial inclusion, and they’re spreading that financial culture around the country. So it hasn’t been something that just got started yesterday, it’s been ongoing for years, but it’s coming to the growth stage where that they have saturation levels with their national cards, their, their debit cards, their electronic cards, if you will. Some people have two or three of them now when they didn’t have them in the past. So they’re going to electronic system or less cash is what their, what their focus is.
And you can see that they’ve been taking probably currency out of the system because if they’re going digital, eventually they’re probably going to have a need for less cash because they’re not going to have to reprint it all the time. Damaged notes cost money, so it’s a savings. So we’ll see how this turns out. Will they still have cash?
They never said they were going to get rid of it. So, of course, workshop was hosted by some seminars in a conference hall at the Islamic Nazi bank for Investment and Finance. It comes based on the directives in the central bank of Iraq. So they are directing it.
And what they’re saying is that they have importance that they mentioned topics, education, raising awareness to who largest segment of citizens in Iraq in light of the government trends in supporting the culture of electronic payments and expanding its use in delivering financial services to, again, the largest segment of the society, as well as introducing the importance of combating money laundering and terrorist financing and telling the people probably why it’s important. So obviously there’s a push to get full saturation to all the people, using an education as a tool to get with people to use less cash. So that’s an interesting segment. Interesting segment of society is always usually the largest.
Al Kasab the private sector urgently needs to evaluate its efforts, especially after it’s proven its presence as being important and because of the projects in various regions of the country.
So they’re basically saturating all the region of Iraq. It points out that the capabilities of the private sector are constantly evolving and have important technology that shortens time and effort. I focused in on the important technology that shortens time and effort. That reeks of blockchain.
The fact is that there are systems out there that they will integrate into Iraq’s model, if you will, that are fast furious, transparent and state of the art. And blockchain fits that mould. So we’ll see which companies they’re talking about. I have some ideas but I’ll wait and see what they decide to share with us.
This specialist basically alludes to the deck, these new technologies that shorten the time and effort of the capabilities of the private sector. And basically Iraq is going into what looks to me like they’re going to a digital transformation revolution.
So you know that basically the port of Fa all the way into the north and up to Turkey, that’s gonna pass right through there. They’re gonna build industrial cities along the road. The road looks like it’s already amazingly clean and ready to go. Al Sudani basically said he launched the project, specifically launched it back in April.
So he’s been underway for quite some time. The economic expert Abdul Rahman Shakeli said that the development path will pass through twelve governance of course, and they have great investment opportunities. Well no doubt the development road will move Iraq from the regional situation to the global situation. You see where that’s headed.
Well you’re gonna go to a global situation, right? You’re goiing to have an international currency to do so. And so here we go as it will pass through those twelve governance and we’ll have great investment opportunities. So to me it’s telling them just like it is, they’re going to have regional and global situation.
The stability of the security situation reflects the extent of the interest in the future and the increase in investment opportunities. So security and stability is a big thing. Their opportunities are pointing to the change of the economic system, obviously since 2005 to the market system, to the market system that’s going to be the private sector. They’re going to go away from just oil, they’re going to use non oil revenues.
The system must turn from the rent economy to a product. In other words, get away from oil and go to products and start moving those products through where likely through the World Trade Organisation and through the AyAs Kutta system at the borders, taxes and tariffs going in and out of that country from the port of Faw. It’s going to be one of the largest in the Middle east, going saving time money for transport all the way into Europe and beyond.
The development road project is basically opening up Iraq to the region and into the international world. And the private sector is going to be that main driving force. Small medium enterprises are usually a backbone of any good quality economy. So they’re going to have to expose an exchange rate at some point in time. Sooner than later. I’m going to go with sooner.
The number of electronic payments points in Iraq increased from 7000 to 30,000. I really believe that. I think that I’ve read within the last couple of weeks that they’re probably more like 50,000. But, this particular article says 30.
I’ll leave it at that. It’s a huge jump from seven to 30. That’s four to five fold, it says. The central bank of Iraq is currently working on a major plan to reform the banking sector in general, whether the governmental or private.
So again, they’re talking about both the mix of the government and the private sector. The focus in the next stage will be developing and improving the services to strengthen the iraqi banking sector, protect depositors, that sounds like insurance money. And develop the electronic payment system. Obviously, it’s the point of sale systems, electronics, which contributes significantly to reducing the risks of using cash.
Like I talked about at the beginning, whether from damage saves on money or forgery saves on corruption, as well as protecting the financial system from money laundering and financing terrorism. All of those things are actually international laws. And so what does that tell you? If Iraq’s going out, becoming involved in maintaining a system that abides by international law, obviously they’re going to have to accept those obligations.
And sounds to me like they probably would have to also accept the obligations of being article eight compliance. Article eight with the IMF, if they come out and say it, they don’t have to tell you that, but I think they can tell you that by action. so, but you’d have to check out the IMF’s website and look and see how that works.
They’ve increased from 7000 payments to 30,000 payment points. They have the ability for a total transfer of funds electronically.
They did about 2 trillion iraqi dinars this last, this last month alone. They’ve opened up from 50 government institutions. They went to electronic payment windows. They’ve now exceeded 600 payment windows for the government.
So obviously you can see how, again, there’s just amazing amount of increase in saturation regarding transferring money abroad. This gentleman explains that the issue is related to personal transfers. There are specific outlets and or ceilings for these transfers. In other words, they’re monitoring how much money goes out for legitimate purposes.
If you’re going to buy a foreign currency, you’re only going to be able to get their price limit. Well, your limit in value. I think it’s international.
Is what, $10,000 equivalency something to that effect? It says Iraq trades more than 2 trillion dinars electronically in a month. The value of electronic trading in the past month of August exceeds now the 2 trillion that they talk about. It says the amount was transferred and traded using those electronic payment systems.
They’re talking about the 30,000 devices and electronic points of sale. Their aim was to enhance the use of electronic payment in Iraq to what? Facilitate financial and commercial operations.
There is a key indicator that they’re going to go in, they’re going international, because if you’re going to facilitate financial and commercial operations in the dinar, you’re not going to do that at 1310. They can’t afford it. They don’t have it. It’s not going to work.
Revealing the important files resolved the federal government delegation during its visit to the region.
It says basically here the most important files that Iraq was dealing with the Kurds, etce. It says they were resolved by the federal government delegation during its visit to the region. So Baghdad and Kurdistan had meetings. it says the most important files were resolved.
That means they’re on the same page and they’re good to go. When you have resolved something, means it’s done.
So it says the most important file was the customs issue. And that main point was agreed upon. So done, which is the customs tariff from Basra to Zakao.
It says the visit decided the region’s revenues from ports and taxes. Because of the use of Article 114, half of the revenues go to the federal government. And this is what has happened again, resolution. They’re pointing out the unification and equality of salaries between employees in the region of federal government was discussed.
Basically, they talked about the oil file. I think that’s going to be somewhat standby because they’re going to need an international acceptable exchange rate to do that valuation to field what is necessary and equitably. It says Tafe Sami in her discussions with the Kurdistan officials and the Kurdistan government during her visit. It says the Ministry of Finance asked the regional government to.
To cooperate with it and provide it accurate information about the size of revenues and financial returns, as well as the tax rate, as well as providing the Ministry of finance with complete information from the security services and their numbers in full, and not to appoint any employee except that with the approval of the federal Ministry of Finance.
So they probably came to an agreement like, if we’re going to be using a blockchain type ledger, you probably can’t have those names and you probably got to scratch those out because they’re not going to match, they’re not going to work. TAFE Sammy confirms this last Sunday with the economic Council, Kurdistan region. They discussed these joint files in order to reach solutions to the financial issues related to the parties.
It says the talks represent a historic opportunity to achieve financial reconciliation between the federal government and Kurdistan region. And they’ve reached financial reconciliation. The importance of enhancing financial cooperation between the two parties and reaching sustainable solutions to outstanding financial issues. I’m sure that’s key importance.
You kind of get the picture, right? I think you do. Agreeing on a fair mechanism for distributing oil revenues and border crossings will contribute to enhancing confidence and economic stability in the country.
So if they’re going to do this, they’ve agreed to being article eight compliant. Therefore, they can move money and in dinars and do commercial business with their own currency internationally. That they’re going to be moving towards the forex at some point in time, which is an international market.
We want to see prosperous Iraq, but we also want to see our investment come to fruition. Because, we’ve been around for a long time.
I think we understand it, and then we’ll keep doing that until the time comes.
