Iraq Economic News and Points to Ponder Wednesday AM 4-9-25

Al-Alaq: Digital Currencies Will Contribute To Reshaping The Traditional Banking System.

Time: 2025/04/07 13:22:22 Read: 1,740 times  {Economic: Al Furat News} Central Bank Governor Ali Al-Alaq confirmed on Monday that  digital currencies will contribute to reshaping the traditional banking system.   In a speech at the Iraqi Banking Sector Reform Conference, Al-Alaq said,
 
"The Central Bank aims to achieve a developed economy," stressing that "investment in research and development in the field of artificial intelligence must be increased." He added that "digital currencies could reshape the traditional banking system," noting that "the Central Bank has announced its readiness to implement a plan to reform the banking sector."      
https://alforatnews.iq/news/العلاق-العملات-الرقمية-ستسهم-في-إعادة-تشكيل-النظام-المصرفي-التقليدي  

Digital Currencies To Reshape Iraq’s Banking Sector 

Iraq  Amr Salem  April 8, 2025  283  2 min  The Central Bank of Iraq. Photo: INA  Baghdad (IraqiNews.com) – The governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, said on Monday that digital currencies will help transform Iraq’s conventional banking system.
 
Al-Alaq clarified during the Conference on Reforming the Iraqi Banking Sector that the
 
CBI wants to establish an advanced economy and emphasized the need for more funding for artificial intelligence research and development.
 
Al-Alaq explained that digital currencies have the potential to transform the conventional banking system, noting that the CBI has declared its willingness to carry out a plan for banking sector reform, the Iraqi News Agency (INA) reported.
 
In collaboration with the international consulting company Oliver Wyman, the CBI announced an extensive reform strategy designed to make the country’s private banking industry a robust, innovative, and expansion-oriented system.
 
Al-Alaq revealed in late February that the CBI is planning to create a digital currency to replace paper notes in transactions with central banks.
 
The Iraqi official added that fundamental changes will take place in the banking and financial systems,
including the limited use of paper notes, as they will be replaced by digital currencies in transactions between central banks.   https://www.iraqinews.com/iraq/digital-currencies-to-reshape-iraqs-banking-sector/

Parliamentary Finance Committee: Rebuilding Confidence In The Banking System Requires Developing The Infrastructure And Enhancing Its Cybersecurity.
 
Monday, April 7, 2025 14:01 | Economic     Number of readings: 495  Baghdad / NINA / The Parliamentary Finance Committee affirmed that the launch of the banking sector development project represents a
 
     starting point for comprehensive reform of the financial and monetary systems,
     paving the way for achieving sustainable development and the desired economic reform.

During his participation in the Banking Sector Development Conference, which kicked off today, Monday, in the capital, Baghdad, in cooperation with Oliver Wyman, the head of the committee, 
MP Atwan Al-Atwani, pointed out the parliament's keenness to support the efforts of the Central Bank in promoting the concepts of
 
     sustainable financing,  encouraging public and private banks to finance economic activities and development projects, and  diversifying sources of income, which would contribute to reducing the financial deficit in public budgets.  

He added:  "The banking sector is not just a financial instrument, but rather
the cornerstone for driving the national economy and combating corruption," indicating that
 
"developing this sector is 
     the cornerstone of the economic reform project and
     a pivotal step in moving towards a diversified economy,
     away from excessive reliance on oil revenues."  

He continued,  "Introducing modern banking systems into the Tax and Customs Administration will contribute to 
     improving financial transaction tracking mechanisms,
     enhance revenue collection efficiency, and
     limit tax evasion, in addition to    closing unofficial outlets that drain the state's resources and weaken its ability to invest and provide services."

Al-Atwani also emphasized that 
"rebuilding confidence in the banking system and
expanding the scope of digital transactions, both domestically and internationally,
requires developing the banking sector's infrastructure and enhancing its cybersecurity.
 
Furthermore, the reform process requires
     establishing genuine partnerships with international banks and institutions, and
     regulating foreign transfers to ensure compliance with international standards."
 
He called for the formulation of a clear understanding with the World Bank and the US Treasury, establishing the principle that the Central Bank of Iraq is the body authorized to evaluate banks' performance, ensure their compliance, and punish violators, to avoid any sudden decisions that negatively impact the banking sector.

He emphasized the need for a comprehensive reform revolution, starting with the banking sector, stressing:
 
"This requires genuine political will, institutional cooperation, and a strategic vision that goes beyond temporary solutions."
 
He also called for collective responsibility for reforming the banking sector, as it is a national priority that    affects national security and financial stability,   directly impacts citizens' livelihoods,achieves social justice, and  ensures the future of future generations.  /End 5   https://ninanews.com/Website/News/Details?key=1196152  

Parliamentary Finance Committee: Developing The Banking Sector Is A Fundamental Pillar For Achieving Comprehensive Economic Reform
 
Economy    Yesterday, Baghdad – INA  The Finance Committee of the House of Representatives affirmed, on Monday, the Central Bank’s management’s support    for enhancing sustainable financing, while noting that   developing the banking sector is a fundamental pillar for achieving comprehensive economic reform.
 
Committee Chairman Atwan Al-Atwani said in a speech during the Iraqi Banking Sector Reform Conference, which was followed by the Iraqi News Agency (INA):
 
"The banking sector reform project represents the   starting point for developing the financial and monetary system based on solid scientific foundations, and the     starting point for comprehensive economic reform and achieving sustainable development." 

 He added,  "The Finance Committee of the Iraqi Council of Representatives is keen to support the management of the Central Bank of Iraq in its efforts to   enhance sustainable   financing , encourage    government and private banks to finance economic activities and development projects, and  diversify revenue sources, thus contributing to covering the financial deficit in public budgets.
 
This is especially true since the banking sector is not just a financial system, but rather the backbone of stimulating the economy and combating corruption." 

He explained that "developing the banking sector is a fundamental pillar for achieving comprehensive economic reform and a major turning point toward a diversified economy, away from oil rents."  He continued,
 
"In light of the trend toward maximizing non-oil revenues, the introduction of modern banking systems into tax and customs operations provides a clear path for tracking financial transactions and collecting revenue more efficiently.
 
It also contributes to reducing tax evasion and closing informal outlets that drain the state's resources and weaken its ability to invest and provide services." 

He explained that  "restoring confidence in our banking system and expanding digital financial transactions requires developing the infrastructure for this sector and providing cybersecurity for these transactions." He emphasized,
 
"The process of reforming and developing the banking sector must be accompanied by a movement to establish genuine partnerships with international correspondent institutions and banks to  regulate foreign remittances,   ensuring  compliance with international standards and the  controls of relevant financial institutions.
 
This must also include establishing a clear understanding with the World Bank and the US Treasury, emphasizing that the Central Bank of Iraq is responsible for evaluating the performance and compliance of private government banks and punishing violators.
 
This will help avoid any improvised decisions or sudden external sanctions that could put our banks at risk and disrupt their operations." He added, "We need a reform revolution in all sectors, especially the banking sector.
 
This requires genuine will, collective action, and effective partnerships.
 
Most importantly, we need a clear vision that goes beyond temporary solutions to create modern financial institutions capable of confronting economic challenges and crises, providing all necessary facilities to serve citizens and keep pace with modern requirements."

He pointed out that "reforming the banking sector   is a shared responsibility and   must be a priority for both the legislative and executive authorities,
 
given its direct impact on driving all productive sectors, achieving national security and financial stability, and consequently improving people's livelihoods, promoting social justice, and securing the future of future generations."    https://www.ina.iq/231534--.html   

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