The Roadmap To Monetary Stability & Digital Transformation.

[Luigi1]

Here's an article of Dinarian interests...

Direct From The SANDBOX Report.

-The Roadmap To Monetary Stability & Digital Transformation.

Treat as a rumor.  Not verified.  Your opine.

 

 

The Roadmap To Monetary Policy In Iraq & Opportunities For Monetary Stability & Digital Transformation.
ARTICLE:  Today, the Emirati economic magazine Investments, widely circulated in the Arab world, Egypt & North Africa, published an exclusive analytical study prepared by Counselor Samir Al-Nusairi, a member of the World Union of Arab Bankers.
 
The study highlighted several factors, most notably monetary policy, opportunities for monetary stability & digital transformation.  The study highlighted the economic changes that occurred after 2003, when the need for radical reform of the CBI emerged.

 

A new law was issued, affirming its independence & consolidating its essential role in protecting the country's resources.
 
Defining its tasks in combating money laundering & terrorist financing attempts, which are at the forefront of the challenges facing the CBI.
 
It also aims to maintain the bank's independence, enable it to perform its mission without government interference, & make it an effective institution that guarantees the interests of society as a whole.
 
In addition to its control over the stability of the exchange rate & management of the money supply, she pointed out that the process of selling foreign currency requires a deep understanding in light of the major accusations the bank is facing without evidence proving the existence of suspicions of corruption, money laundering, or currency smuggling.
 
She added that selling currency is a waste of public funds, as this description does not relate to economic science.
 
She explained that the CBI is concerned with financial stability, managing the payments system, managing foreign reserves, & licensing & monitoring banks & financial institutions, as it is responsible for establishing preventive controls, in addition to other tasks related to currency issuance and publishing data, indicators & economic forecasts.
 
Managing monetary policy, which aims to stimulate the national economy, balance the balance of payments & achieve monetary stability.
 
She noted that monetary stability represents the starting point for economic stability, which requires monetary stability, embodied in the monetary authority's ability to achieve price stability at targeted levels.
 
The study, prepared by "Consultant Samir Al-Nusairi," revealed the challenges facing monetary policy, most notably the rentier economy, which relies on 95% of General Budget revenues & the weak activation of the real sector & other productive sectors.
 
The study pointed out that financing the state's General Budget deficit represents the greatest challenge facing monetary policy & is inversely proportional to the independence of the CBI, as this deficit is financed by the bank purchasing treasury bills & rediscounting them.
 
The CBI has deducted treasury transfers from the end of 2015 to the present for the purpose of paying salaries & dues to contractors & farmers.

 

The study pointed out that the financial markets, stock & bond markets, capital markets & money markets are limited, which misses opportunities to invest local savings and limit the phenomenon of hoarding & withdrawing liquidity to invest it in real sectors.
 
It pointed to the weakness of the banking system, which represents a fundamental pillar of the economy & its main link & an important arm of the CBI in achieving monetary stability. It confirmed the dominance of government banks in the sector by more than 80%.
 
There is also the problem of bad debts & credit concentration.
 
There is also weak institutional governance.
 
There is also the exposure to financial shocks due to the decline in real sector activity.
 
The study noted the decline in local investment & the increase in foreign savings.
 
Samir Al-Nusairi, a member of the International Union of Arab Bankers, pointed out that the Central Bank of Egypt began implementing the digital transformation in the banking sector in 2016, with clear phases included in its 1st, 2nd & 3rd strategies.
 
Over the past two years, cooperation between the CBI & the government, with the personal support & follow-up of the PM & his chairmanship of the Digital Transformation Committee, has been a fundamental step toward activating & accelerating the transition to a digital government & moving from a cash economy to a digital economy.
 
The amount collected from digital payments reached 7.6 trillion Iraqi Dinars in October 2024, up from 2.6 trillion Iraqi Dinars in December 2023.
 
The rate of digital transformation & electronic payments increased to 48.5%, compared to 20% in previous years.
 
The study continued that Iraq now has an advanced infrastructure capable of accommodating electronic payment tools & financial services.
 
It will soon transition to digital banks, where smartphones will drive various banking operations.
 
This transformation will facilitate financial access to services for citizens & provide vital data at the national level on the nature of transactions, their content, supervision & compliance achieved through this comprehensive system.

 

The study also indicated that banking reform has now entered the transition phase to digital banks, with the CBI currently examining & auditing approximately 70 applications to license new digital banks in accordance with the precise controls & conditions adopted by the CBI.

 

This represents a real & promising start for technical banking development in Iraq to bridge the technical gap with countries around the world in this field.
 
The study pointed out that the current phase is witnessing significant development in the electronic payment system through an increase in the number of ATMs, which exceeded 4,000, the number of electronic cards issued exceeded 17 million cards, the number of POS devices reached approximately 63,000 devices & the number of credit wallets also increased.
 
It explained that the financial inclusion rate rose to 40% after it was 20% two years ago, & that Iraqi banks are currently witnessing qualitative transformations in their banking operations, especially with regard to future banks that will transform from traditional entities to smart digital platforms & issue digital financial identities that facilitate financial transactions without the need for banks.
 
It stated that the financial and banking system will witness a decline in paper currencies to be replaced by digital payments for central banks, and that the CBI is moving to create its own digital currency to gradually replace the paper process, as is happening in some central banks around the world.
 
It is also working to establish a data center in Iraq similar to the major centers in the world, considering it in the digital economy the basis for artificial intelligence, applications, big data analysis & the Internet & that the CBI has begun promising steps in this direction.   

[Luigi1]

Part II: To the Above article:

 

 

The Role Of Electronic Payment In Strengthening Our Banking System.
 Dr. Haitham Hamid Mutlaq Al-Mansour:
 In light of the rapid technological developments witnessed worldwide, financial & banking systems are facing radical transformations aimed at enhancing efficiency, transparency & financial inclusion.
 
Among these transformations, the electronic payment system stands out as a fundamental pillar in reforming banking systems, especially in developing countries like Iraq.

 

The Iraqi banking system, which has suffered for many years from structural challenges & weak infrastructure, has begun to witness positive transformations thanks to the adoption of electronic payment technologies.
 
Electronic Payment Affects The Banking System In General Through:
1. Increased confidence in the banking system: Electronic payments enhance customer confidence in the banking system by providing secure & fast payment methods.
 
When individuals feel their financial transactions are secure & easy to conduct, they are more likely to deposit their money in banks rather than keeping it in cash.
 2. Promoting financial inclusion: Electronic payments facilitate access to banking services for individuals & small businesses, especially in remote areas or areas with a lack of bank branches.
 
When more people can open bank accounts and conduct financial transactions easily,
this leads to increased deposit rates, as depositing money in banks becomes more attractive than keeping it outside the banking system.
 
3. Reducing reliance on cash: In economies that rely heavily on cash, deposit rates are relatively low due to the widespread cash culture.
 
By adopting electronic payments, reliance on cash can be reduced & individuals & businesses can be encouraged to deposit their money in banks, leading to higher deposit rates.
 
4. Improving the efficiency of banking operations: Electronic payments reduce banks' operational costs, as they eliminate the need for traditional branches & their staff.

 

 
This improvement in efficiency can translate into better returns on deposits, making them more attractive to savers.
 
5. Increased transparency & anti-corruption: Electronic payments enhance transparency in the financial system, as financial transactions become recorded & monitored.
 
This reduces the risk of corruption and tax evasion, enhancing customer confidence in the banking system and encouraging deposits.
 
Global data clearly demonstrates the strong positive relationship between the spread of electronic payments and increased deposit rates in the banking system.

 

It is noted that countries that have adopted effective electronic payment systems, such as China, India & Kenya, have seen significant increases in deposit rates, demonstrating the impact of electronic payments on the banking system. This is as follows:
 1. China:
 It is one of the most advanced countries in the field of electronic payments, with more than 80% of the population relying on platforms such as Alipay & WeChat Pay.
 
According to World Bank reports, deposit rates in China have increased significantly with the spread of electronic payments, with the deposit-to-GDP ratio reaching more than 180% in 2022.
 
Electronic payments have contributed to increased financial inclusion, with the number of bank accounts increasing from 64% in 2011 to more than 90% in 2022.
 
2. India:
 Following the launch of the Unified Payments Interface (UPI) system in India, bank deposits increased significantly.
 
In 2022, the deposit-to-GDP ratio reached 75%, up from 60% in 2016.
 
Electronic payments have contributed to an increase in the number of bank accounts from 35% in 2011 to more than 80% in 2022.

 

 
3. Kenya:
 Kenya is a pioneer in the use of mobile payments through M-Pesa.
 
Bank deposits have increased from 20% in 2007 to more than 70% in 2022, thanks to the spread of electronic payments & increased financial inclusion.
 
4. Sweden:
 Sweden is one of the countries with the highest reliance on electronic payments, with cash transactions accounting for less than 1% of total transactions.
 
Meanwhile, the Swedish deposit-to-GDP ratio is around 90%, reflecting high confidence in the banking system.
 
In Iraq, the deposit-to-GDP ratio remains relatively low compared to other countries, recording a 9% decline.
 
However, since 2024, the banking sector has begun to witness a significant decline in the total value of deposits, with a 9% decline from IQD 133.5 trillion in 2023 to IQD 123.5 trillion in 2024.
 
This decline is despite the increase in the number of bank accounts following the widespread adoption of electronic payments, which rose from 23% to approximately 50% in just a few years.
 
This reveals the reasons behind the decline in the value of deposits in the banking system, especially in light of the Central Bank's move to promote electronic payment tools & increase reliance on the banking sector.
 
This poses significant challenges for the government to address, developing medium- & long-term plans, & adopting supportive policies to address these challenges, which include the following:

1. Weak technological infrastructure: Iraq's telecommunications & internet networks continue to suffer from quality & coverage issues, hindering the effective implementation of electronic payment systems.
 
2. Low levels of financial literacy: A large portion of the population relies on cash transactions due to a lack of sufficient awareness of the benefits of electronic payment & how to use it.
 
3. Lack of a legal and regulatory framework: The implementation of electronic payment requires clear laws & regulations that govern electronic payment operations, protect consumer rights & facilitate & enhance the flexibility of payment processes.
 
4. Security concerns: Some individuals still fear the risks of cyber-hacking & data theft, which limits their use of electronic payments. 

[md11fr8dawg]

As the late great Toby Keith said, "A little less talk and a lot more action!!"

[Luigi1]

Here's MZs two cents worth...They're flying in...Jets Everywhere.

 

 

MarkZ  Update- Some highlights by PDK-Not verbatim.

THREAD:   Jets Everywhere.   They're Flying in.

Member: Many are still saying tonight into tomorrow for our announcements.

MZ: How are the boards out there today? Are they mentioning all the jets in Reno? The jets in Columbia?  The jets in Zurich?

Member: Hearing from Reno that there's no place to park your jet.

MZ: Are they mentioning rumors out of the Reno area that  it was this afternoon? My contacts there say it is really exciting and yes there was a lot of traffic but, they were not hearing of a release this afternoon.

MZ: I can imagine the rumors are Coocoo crazy right now.  I don’t know if this is our week but sure looks like they are zoning in on it. I am hearing wonderful positive things ut have not heard it has started on the currency side yet.

MZ: I do have bond contacts that have gone completely quiet since yesterday afternoon. I take it a positive sign that they are not allowed to respond. I am going straight to voicemail.

Member: Wolvie said BONDS paying out.

MZ: “ 145 billion barrels-Iraq will lead the world in oil reserves in 2025”  More oil reserves than Kuwait or Saudi Arabia. This is huge.

MZ: “The budget law soon to go to parliament” They are saying its mere days. Another article says they are expecting the budget in parliament this weekend.

MZ: In this budget I was to expect the rates. I hope that turns out to be accurate.

MZ: “Banking operations across India to be disrupted for 4 days” they are shutting down the banking operations. They say it’s because of a banking strike. Is it that – or is it a reset? It certainly is a convenient time to make a change.

MZ: “UBS auditor warns over banks financial reporting controls”  Will this trigger a possible bank run or collapse in Europe? I am surprised markets did not crash today over this kind of news.

[md11fr8dawg]

3 hours ago, Luigi1 said:

I can imagine the rumors are Coocoo crazy right now

NO Z man you are bat sh*t crazy, but I did hear the Chinese Elders took most of the Reno jet parking spaces!!!

[Theseus]

Electronic banking means more government control over what you spend and what you buy. Trump chastised one Banking CEO at a global meeting via video and then an investigation ensued. Total electronic banking where all money is done electronically is a way for government to get into your daily life on a microeconomic level. Who knows they may see your payroll deposits and say you are earning too much or we don't like the fact you are buying certain items that the current administration says you shouldn't buy so they are going to hold your money for a short period of time or up to indefinitely. Electronic banking has its advantages but takes away more monetary freedoms than it gives. 

[Luigi1]

37 minutes ago, Theseus said:

Electronic banking means more government control over what you spend and what you buy. Trump chastised one Banking CEO at a global meeting via video and then an investigation ensued. Total electronic banking where all money is done electronically is a way for government to get into your daily life on a microeconomic level. Who knows they may see your payroll deposits and say you are earning too much or we don't like the fact you are buying certain items that the current administration says you shouldn't buy so they are going to hold your money for a short period of time or up to indefinitely. Electronic banking has its advantages but takes away more monetary freedoms than it gives. 

 

Agree.

There's good & bad going digital.

The good...it cuts down on corruption.

The bad...too much control.  

The powers that be can shut us down at the stroke of a computer key.

Go RV.

[md11fr8dawg]

Trust me, you start messing with law abiding, hard working tax paying citizen's money, that is a recipe for either disaster or outright revolution. And of course, if any party would do that it would be the rat party!! Just saying.

[Luigi1]

15 minutes ago, md11fr8dawg said:

Trust me, you start messing with law abiding, hard working tax paying citizen's money, that is a recipe for either disaster or outright revolution. And of course, if any party would do that it would be the rat party!! Just saying.

 

The Cabal & Big Gov are only one worry.

Hackers make a living going after our identities.

They always seem to be one step ahead of the law & the general public.

Go RV.

[md11fr8dawg]

You are correct Luigi, those scumbags have really taken advantage of hacking people and stealing their hard earned money. Especially older retirees who are not as tech savvy. We should start offering the death penalty for the crooks who rip off elderly people. Bet that would stop that quickly!!

[Theseus]

On 3/23/2025 at 10:56 AM, md11fr8dawg said:

You are correct Luigi, those scumbags have really taken advantage of hacking people and stealing their hard earned money. Especially older retirees who are not as tech savvy. We should start offering the death penalty for the crooks who rip off elderly people. Bet that would stop that quickly!!

To show how bad it has gotten with hackers and scumbags, Thailand, I believe, just freed 7,000 people who were being held against their will to target people all over the world to get their life savings. 7,000 people on the phones day in and day out scamming anyone and everyone out of their life savings. It has become a major industry in Asia like India, Thailand, Taiwan, Hong Kong, Philippines etc. These people that are held are usually vacationers or tourists that get lured and wake up in one of these institutions and kept in abysmal conditions. It is more akin to the new slave trade of the modern era.

 

This made news because when they were freed they were told they were going to go home. However, the government facilities ended up being not a whole lot better than the place they were being held against their will. They also didn't get to go home right away with some of them spending weeks to months in the government facility. However they weren't on the phone forced to scam anymore. 

Edited March 28 by Theseus