The Central Bank of Iraq revealed, on Wednesday, that the volume of deposits in the banking sector had increased to more than 180 trillion dinars, as well as an increase in bank credit to 69 trillion dinars, indicating that the volume of foreign cash reserves had reached 148 trillion dinars.
The Deputy Governor of the Bank, Ammar Hamad, said during a speech at the Finance and Banking Services Conference in Iraq, attended by a Shafaq News Agency correspondent, that “The Central Bank of Iraq faced all challenges with high responsibility and was able, through various monetary policy tools and its correct decisions, to achieve its goals set forth in its law, which is the main goal.” Achieving stability in the general level of prices through a decrease in the inflation rate since the beginning of 2023 from 7% to 4% at the end of last year and activating various monetary policy tools, in addition to issuing various financial instruments, including bank transfers and Islamic certificates of deposit instruments.”
He added, “These Islamic securities and certificates of deposit were considered an investment opportunity for Islamic and commercial banks operating in Iraq, in addition to using various monetary policy tools, including raising the mandatory reserve ratio from 15% to 18%. The purpose of all these tools was to manage excess liquidity in the Iraqi economy.” “.
He continued, “In addition, during the past year there was a clear growth in most monetary changes, for example the increase in the volume of deposits in the banking sector from 129 trillion dinars last year to 131 trillion dinars, as well as the increase in private sector deposits in the banking system from 54 trillion dinars to 55 trillion dinars.” Trillion dinars.
Hamad also pointed out “an increase in the volume of credit in the banking sector from 60 trillion to 69 trillion dinars in 2023, as well as an increase in the completion of the private sector from 35 trillion dinars to 40 trillion dinars, in addition to an increase in the volume of foreign cash reserves from 140 trillion dinars to 148 trillion dinars.” “.
He stressed that “the efforts led by the Central Bank of Iraq in cooperation with the government, especially with regard to the use of electronic payment tools, and there was a clear rise and growth in electronic payment tools in Iraq. For example, the number of POS points of sale increased from 10 thousand devices in 2023 to more than 20 thousand devices, and the number of ATM machines increased from 2,223 devices to about 3 thousand devices, and as for the various cards, their number increased from 15 million cards to 18 million cards, and the number is increasing.”
Hamad pointed out that “the past year witnessed great cooperation between the government and the Central Bank, especially with regard to enhancing confidence in the national currency through various decisions issued by the Council of Ministers and the Central Bank, and we notice that there is less use of foreign currency in daily transactions, in contrast to increased reliance on The national currency in local transactions”
He stated that “the use of electronic payment tools has been enhanced and expanded, as well as the development of private banking institutions to build sound and sound banking institutions, and the Central Bank of Iraq emphasizes the importance of enhancing commitment to compliance standards for all financial institutions in accordance with local and international standards.”
He added, “External transfer operations witnessed great discipline during the past year, and a high response from all banks to facilitate the operations of financing foreign trade and various external transfers, especially after the issuance of external transfer controls at the beginning of 2023. The Central Bank of Iraq was also able to strengthen its banking relationships with a number of… A large number of Arab and foreign financial and banking institutions will open wider areas to ensure a high flow of external transfers, especially the use of different channels for external transfers in different currencies other than the dollar or in addition to the US dollar.
Hamad explained, “The Central Bank seeks to strengthen banks by increasing their capital from 250 billion dinars to 400 billion dinars, and this increase will last until the end of the current year.”
He stated that “one of the most important projects launched by the Central Bank of Iraq last year and work is still underway during the current year is the establishment of Riyada Bank, which will specialize in providing financing for small and medium enterprises and preparing a national strategy for banking purposes due to the importance of the financial depth of the Iraqi economy and the importance of the role of finance in enhancing Production and investment opportunities in Iraq.
He concluded by saying, “This also aims to strengthen the role of non-banking financial institutions that support financial and banking stability in Iraq by strengthening the role of the Deposit Guarantee Company as well as the Loan Guarantee Company, in addition to starting to establish the National Company for Electronic Payment Systems, and we believe that this company will have a major role.” “Very important in regulating electronic payment operations in Iraq.”
shafaq.com
