{Financial digitization}..a factor to reduce inflation and absorb hoarded funds

[RJG]

{Financial digitization}..a factor to reduce inflation and absorb hoarded funds

Economical  03/10/2024

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 Baghdad: Haider Falih Al-Rubaie

Economic affairs specialists have identified the most prominent advantages that digital transformation can achieve in banking, placing at the forefront of these advantages the elimination of inflation through the use of small denominations, and the absorption of citizens’ hoarded cash mass, estimated at more than 95 trillion dinars, while they praised the Central Bank’s measures. In providing the appropriate ground for achieving financial digital transformation, they stressed the necessity of doubling the distribution of points of sale and working to oblige all government and private institutions to operate with electronic cards.


“The electronic transformation of the use of money in daily transactions” is of utmost importance in the government’s directions, which is making great efforts to complete this direction, especially after “the Council of Ministers had previously obligated private educational institutions, universities, private colleges, fuel processing stations, centers and shops of all kinds, In addition to restaurants, pharmacies, private medical clinics, stores, all wholesale and retail marketing outlets, and professionals, there must be a minimum amount of their cash receipts through the electronic point-of-sale (POS) system.
Despite the short period of time in which it was officially decided to actually start using electronic payment methods (POS) in the country, “the World Bank believes that the infrastructure for electronic payment systems in Iraq is the best in the region,” praising during a previous meeting with the Governor of the Central Bank, Ali Mohsen Al-Alaq, Director of the World Bank Office in Iraq, Richard Abdel Nour, explained “the Central Bank’s procedures for facilitating financial transfers to different segments in Iraq.”
The process of “banking digitization” also represents a vital factor in achieving many economic advantages in the country, according to the banking expert and member of the Board of Directors of the Iraqi Association of Islamic Banks, Dr. Abbas Fadel Rahim, who stressed that “digital transformation has become an important factor in all countries of the world, and it is “This makes it imperative for all banking institutions in Iraq to use the latest knowledge in this field to keep pace with the development of banking work that most countries of the world have reached.”
In an interview with “Al-Sabah” on the sidelines of an economic symposium on the importance of digital transformation in banking, Abbas believes that “technical developments in banking can help financial institutions and individuals achieve a number of positives, including investigation, financial inclusion, security, profitability, and liquidity,” indicating that “All banks in Iraq, private and government, operate under the umbrella and laws of the Central Bank, which has made important steps in the field of electronic banking, and has worked to provide the appropriate ground for achieving electronic banking transformation, as well as enabling financial institutions to work and advance in this direction to be able to It provides advanced financial business.”
Abbas pointed out that the electronic transformation of banking carries a number of advantages that can be reflected positively on the economic reality in the country, especially in the field of absorbing part of the citizens’ accumulated cash mass, as the digital transformation will relieve citizens of the need to carry or hoard sums, in addition to that The transformation is able to play a vital role in reducing the high rates of inflation, due to the use of parts of the currency in electronic trading, and therefore the matter will save families sums of money that can meet other parts of their daily requirements when using electronic cards, indicating that trading in small denominations of less than 250 dinars is almost non-existent, so the use of electronic cards will use those amounts, noting at the same time that the high inflation rates are the result of many global factors that have greatly affected prices, especially the Russian-Ukrainian war.
Abbas also explained that among the advantages that the digital transformation of banking in Iraq can bring is the complete elimination of the circulation of counterfeit currencies, and the reduction of bribery operations due to reducing friction and direct dealing between citizens and employees, calling for intensifying efforts to increase electronic card sales stations ( POS).
In turn, the researcher specializing in economic affairs, Durgham Muhammad Ali, explained that there are a number of steps that would make electronic payment operations successful in Iraq, noting that among those steps is “the availability of promotional and procedural elements,” indicating that “the procedural elements are primarily based on encouraging economic activities.” From shops, restaurants, malls and markets to acquire electronic payment devices (POS) and provide financial privileges represented by granting tax allowances or other incentives to users of electronic cards.
Muhammad also stressed the importance of “facilitating the process of citizens obtaining electronic payment cards, by spreading more outlets for selling and charging these cards in residential and commercial areas outside banks,” pointing out at the same time that expanding the process of using electronic cards will achieve many positive economic factors. At the forefront of which is reducing the need for annual printing of cash, and increasing circulation in cash denominations of less than 250 dinars, which is reflected at the end of the month in the family budget.
The economic affairs specialist called for the necessity of “reducing the operator’s commission or paying it by the state to encourage the adoption of these technologies to increase financial inclusion in the country.”

https://alsabaah.iq/93145-.html

[RJG]

16 minutes ago, RJG said:

pointing out at the same time that expanding the process of using electronic cards will achieve many positive economic factors. At the forefront of which is reducing the need for annual printing of cash, and increasing circulation in cash denominations of less than 250 dinars, which is reflected at the end of the month in the family budget.

👀 Less physical lower denominations will be needed with electronic payments

[Half Crazy Runner]

1 hour ago, RJG said:

increasing circulation in cash denominations of less than 250 dinars,

😲 So they need more of these denominations that are worth less than  .19¢ … 

[horsesoldier]

2 hours ago, Half Crazy Runner said:

😲 So they need more of these denominations that are worth less than  .19¢ … 

Makes perfect sense to a sun baked brain, huh

[Laid Back]

“Economic affairs specialists have identified the most prominent advantages that digital transformation can achieve in banking, placing at the forefront of these advantages the elimination of inflation through the use of small denominations, and the absorption of citizens’ hoarded cash mass”

 

Go delete of 000

Go LD notes

Go Stronger dinar

Go purchasing power 

[tn vol]

I just happen to have 2 or 3 hoarded funds they can absorb somewhere around 50 cents.

[3n1]

4 hours ago, RJG said:

and increasing circulation in cash denominations of less than 250 dinars,

whats the article speaking about releasing the LD's there are no iqd notes lower than the 250 currently  

thanks RJG

[3n1]

i have asked for years - How do iraqis make exact change round up or down and just get it close ? 

 

[horsesoldier]

45 minutes ago, 3n1 said:

i have asked for years - How do iraqis make exact change round up or down and just get it close ? 

 

Close only counts with horseshoes, hand grenades, and making change in Iraq. This doesn't help I know, but it beats a poke in the butt with a bayonet, huh.

Asking "WHY" with this mob leads to anger, mentally disturbed outlook & hot dog fingers. It happened to me so look out. 

You'll see I'm right when you begin fat fingering your key pad.

[3n1]

9 minutes ago, horsesoldier said:

Close only counts with horseshoes, hand grenades, and making change in Iraq. This doesn't help I know, but it beats a poke in the butt with a bayonet, huh.

Asking "WHY" with this mob leads to anger, mentally disturbed outlook & hot dog fingers. It happened to me so look out. 

You'll see I'm right when you begin fat fingering your key pad.

 

fair enough thanks for the heads up ,do u have any ideas how exact change is made in iraq do they have american coins too

[horsesoldier]

5 minutes ago, 3n1 said:

 

fair enough thanks for the heads up ,do u have any ideas how exact change is made in iraq do they have american coins too

Honestly don't know. Years ago I read they were tearing their notes in half to make change. Maybe they're still doing that, or their rounding up or down. Perhaps a combination of notes, barter or trade. Survival brings creative forces.

Do a Google search perhaps, I'm at work otherwise I'd do it. Bye for now y'all.

[Dinarrock]

8 hours ago, RJG said:

👀 Less physical lower denominations will be needed with electronic payments

This is Huge for two reasons, it literally says by the end of this month which is still in the first quarter of the year! Secondly once again there is NO 250 dinar notes and if there were what’s it used for a piece of gum…lol.. this to me screams they are increasing the Lower denoms! The only way to do that is to increase the value or there is no use for them period!! Best article of the day, week so far RJG!!!

[Dinarrock]

4 hours ago, Laid Back said:

“Economic affairs specialists have identified the most prominent advantages that digital transformation can achieve in banking, placing at the forefront of these advantages the elimination of inflation through the use of small denominations, and the absorption of citizens’ hoarded cash mass”

 

Go delete of 000

Go LD notes

Go Stronger dinar

Go purchasing power 

Great call out on this article LB, says it right there again they want to release the lower denoms they CANNOT do that without an increase in value!! Again they also know they still need to pull out more mattress money again they have been doing this as much as possible pre RV, they will get all the rest of this money after they RV!!

[Laid Back]

9 minutes ago, Dinarrock said:

Great call out on this article LB, says it right there again they want to release the lower denoms they CANNOT do that without an increase in value!! Again they also know they still need to pull out more mattress money again they have been doing this as much as possible pre RV, they will get all the rest of this money after they RV!!

I totally agree with you Dinarrock,

 

The CBI has been complaining for years about the hoarded cash mass.

I have read many articles where they mentioned different amounts 

of hoarded cash 73 trillion, 84 trillion and now 95 trillion.

 

They are not telling us the real amount of hoarded cash. 

 

We know the CBI have collected a lot of the hoarded cash.

 

- The citizens can’t use the dollar anymore since 1/1/24. Only Dinar

- All public servants are paid electronically 

- Increased financial inclusion from 11% to 23%

- All trade is paid in Dinars 

- Increased of ( POS )

 

Go delete of 000

Go LD notes

Go Stronger dinar

Go purchasing power 

[BETTYBOOP]

Fabulous news!

[screwball]

great conversation @Dinarrock and @Laid Back ⏰

[3n1]

4 hours ago, horsesoldier said:

Honestly don't know. Years ago I read they were tearing their notes in half to make change. Maybe they're still doing that, or their rounding up or down. Perhaps a combination of notes, barter or trade. Survival brings creative forces.

Do a Google search perhaps, I'm at work otherwise I'd do it. Bye for now y'all.

 

no big deal didnt think i could stump google but that question does , ive known on some of the dinar forums PD members had friends here in the states that are iraqi and would answer regular iraqi life stuff thought some might have been here , doesnt really mean jack diddly squat in the grand scheme of things , just wasting forum space ... cheers letsroll 

[screwball]

13 hours ago, Dinarrock said:

This is Huge for two reasons, it literally says by the end of this month which is still in the first quarter of the year! Secondly once again there is NO 250 dinar notes and if there were what’s it used for a piece of gum…lol.. this to me screams they are increasing the Lower denoms! The only way to do that is to increase the value or there is no use for them period!! Best article of the day, week so far RJG!!!

I get it…it’s all very exciting we are all hoping and praying but Iraq giving timeframes it’s like the word soon! 

[screwball]

13 hours ago, Laid Back said:

The CBI has been complaining for years about the hoarded cash mass.

I have read many articles where they mentioned different amounts 

of hoarded cash 73 trillion, 84 trillion and now 95 trillion.

 

They are not telling us the real amount of hoarded cash. 

We all know the only way to bring cash is by a substantial rate change a nee to convert large notes for much smaller ones! 

 

13 hours ago, Laid Back said:

The citizens can’t use the dollar anymore since 1/1/24. Only Dinar

- All public servants are paid electronically 

- Increased financial inclusion from 11% to 23%

- All trade is paid in Dinars 

- Increased of ( POS )

Yep…salary scale and schedules being held back 

 

and now the iMF in 2024 in country report  calling for sizeable fiscal adjustments, in previous to create fiscal space, and now to make way for increase spending in social security, welfare and investment in reconstruction! 

[southbeach]

Just looking for that one thing to make me buy more.  Wonder if this is it?

[Longtimelurker]

20 minutes ago, southbeach said:

Just looking for that one thing to make me buy more.  Wonder if this is it?

Just do it, you won't be upset once it happens 

[md11fr8dawg]

19 hours ago, horsesoldier said:

horseshoes, hand grenades, and making change in Iraq

And Nucs!!

[horsesoldier]

7 minutes ago, md11fr8dawg said:

And Nucs!!

[Snatcher]

17 hours ago, Dinarrock said:

 Secondly once again there is NO 250 dinar notes and if there were what’s it used for a piece of gum…lol.

 

 Yes there are 250 dinar notes I have 100 of them along with 500.1000.5000.10000 and 25000 note.

 

https://cbi.iq/page/89

 

Edited March 12 by Snatcher